11/11/2015

OPRE 6301/SYSM 6303

Quantitative Introduction to Risk and
Uncertainty in Business
13-1

Chapter Thirteen
Inference about Comparing Two Populations

13-2

11/11/2015

F Distribution
F is defined as the value FA,n1,n2

P(F FA ,n 1 ,n 2 ) A

13-3

F Distribution
Use the F-table to determine the value FA,n1,n2

F1 A ,n 1 ,n 2

1
FA ,n 2 ,n 1
13-4

11/11/2015

F Distribution
n1 = numerator degrees of freedom
n2 = denominator degrees of freedom

13-5

F Distribution
F0.05,5,7 = 3.97

F0.95,4 ,8

1
F0.05,8 ,4

1
0.166
6.04
13-6

11/11/2015

Difference in Two Means:

Independent Samples
x1 x 2
normal if populations are normal
approximately normal otherwise if samples sizes are large

13-7

Difference in Two Means:

Independent Samples
x1 x 2
normal if populations are normal
approximately normal otherwise if samples sizes are large

E ( x1 x 2 ) 1 2

13-8

11/11/2015

Difference in Two Means:

Independent Samples
x1 x 2
normal if populations are normal
approximately normal otherwise if samples sizes are large

E ( x1 x 2 ) 1 2
V ( x1 x 2 )

12
n1

22
n2

13-9

Difference in Two Means:

Independent Samples
x1 x 2
normal if populations are normal
approximately normal otherwise if samples sizes are large

E ( x1 x 2 ) 1 2
V ( x1 x 2 )

12
n1

22
n2

The standard error

12
n1

22
n2

13-10

11/11/2015

Difference in Two Means:

Independent Samples
Thus,

x 1 x 2 1 2
12
n1

22
n2

Is a standard normal
(or approximately normal)
random variable

13-11

Difference in Two Means:

Independent Samples
The interval estimator is
2
2
x1 x2 z 2 1 2

n1

n2

13-12

11/11/2015

Difference in Two Means:

Independent Samples
The interval estimator is

x1 x2 z 2

12
n1

22
n2

However, these equations are rarely used because values

for the population standard deviations are virtually always
unknown.

13-13

Difference in Two Means:

Independent Samples
The interval estimator is
2
2
x1 x2 z 2 1 2

n1

n2

However, these equations are rarely used because values

for the population standard deviations are virtually always
unknown.
Instead, we will use an estimate of standard error of the
sampling distribution.
13-14

11/11/2015

Difference in Two Means:

Independent Samples
Test Statistic for 1-2 when variances are equal

x 1 x 2 1 2
1 1
sp2
n1 n2

where n n1 n2 2

and

sp2

n1 1s12 n2 1s22
n1 n2 2
13-15

Difference in Two Means:

Independent Samples
Interval Estimator for 1-2 when variances are equal

x1 x2 t 2,n

1 1
sp2
n1 n2

where n n1 n2 2

13-16

11/11/2015

Difference in Two Means:

Independent Samples
Test Statistic for 1-2 when variances are unequal

x x 1 2
t 1 2
s12 s22

n1 n2

where n

n1 s22 n2

2
1

n1 s22 n2

n1 1
n2 1
2

2
1

13-17

Difference in Two Means:

Independent Samples
Test Statistic for 1-2 when variances are unequal

x x 1 2
t 1 2
s
s

n1 n2
2
1

2
2

where n

n1 s22 n2

2
1

n1 s22 n2

n1 1
n2 1
2

2
1

Interval Estimator for 1-2 when variances are unequal

x1 x2 t 2,n

s12 s22

n1 n2

where n

2
1

n1 s22 n2

n1 s22 n2

n1 1
n2 1
2
1

13-18

11/11/2015

Difference in Two Means:

Independent Samples
Testing the Population Variances

H0 : 12 22 1
H1 : 12 22 1

13-19

Difference in Two Means:

Independent Samples
Testing the Population Variances

H0 : 12 22 1
H1 : 12 22 1
The test statistic is
s12
s22
which is F-distributed with
n 1 n1 1

n 2 n2 1
13-20

10

11/11/2015

Difference in Two Means:

Independent Samples
Testing the Population Variances

H0 : 12 22 1
H1 : 12 22 1
This is a two-tailed test with rejection region

F F 2,n 1 ,n 2
or

F F1 2,n 1 ,n 2
13-21

Difference in Two Means:

Independent Samples
Lets investigate Examples 13.1 and 13.2

13-22

11

11/11/2015

Difference in Two Means:

Independent Samples
Lets investigate Examples 13.1 and 13.2

13-23

Testing and Estimating a

Ratio of Two Variances
Lets investigate Example 13.7

13-24

12

11/11/2015

Difference in Two
Population Proportions
p1 p2
is normally distributed if
n1p1, n1(1-p1), n2p2, n2(1-p2) are all >5

13-25

Difference in Two
Population Proportions
p1 p2
is normally distributed if
n1p1, n1(1-p1), n2p2, n2(1-p2) are all >5

E (p1 p2 ) p1 p2

13-26

13

11/11/2015

Difference in Two
Population Proportions
p1 p2
is normally distributed if
n1p1, n1(1-p1), n2p2, n2(1-p2) are all >5

E (p1 p2 ) p1 p2
V (p1 p2 )

p1 1 p1 p2 1 p2

n1
n2

13-27

Difference in Two
Population Proportions
p1 p2
is normally distributed if
n1p1, n1(1-p1), n2p2, n2(1-p2) are all >5

E (p1 p2 ) p1 p2
V (p1 p2 )

p1 1 p1 p2 1 p2

n1
n2

The standard error

p 1 p1 p2 1 p2
p1 p2 1

n1
n2

13-28

14

11/11/2015

Difference in Two
Population Proportions
Thus,

p1 p2 p1 p2
p1 1 p1 p2 1 p2

n1

n2

is approximately standard normally distributed.

13-29

Difference in Two
Population Proportions
Thus,

p1 p2 p1 p2
p1 1 p1 p2 1 p2

n1

n2

is approximately standard normally distributed.

Again, this equation is rarely used because values for the
population proportions are virtually always unknown.
13-30

15

11/11/2015

Difference in Two
Population Proportions
Test Statistic for p1 - p2
For H0: p1 - p2 = 0

p1 p2
1 1
p 1 p
n1 n2

13-31

Difference in Two
Population Proportions
Test Statistic for p1 - p2
For H0: p1 - p2 = D, D 0 .

p1 p2 D
p1 1 p1 p2 1 p2

n1

n2

13-32

16

11/11/2015

Difference in Two
Population Proportions
Interval Estimator for p1 - p2

p1 p2 z 2

p1 (1 p1 ) p2 (1 p2 )

n1
n2

13-33

Difference in Two
Population Proportions
Lets investigate Example 13.9

13-34

17