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This is a case for testing two population proportions. Here, two groups in the

form of large independent samples (with a common characteristic – a headache

in this case) are being compared: The Viagra group and the placebo group. Let

the Viagra group be the first group and the placebo group be the second group.

Hence, n1 = 734 and n2 =725.

experienced headaches for the Viagra group) and p̂2 (proportion of subjectswho

experienced headaches for the placebo group).

headaches) / (total number in viagra group + total number in placebo group)

p̂ = 0.10

1 1

Standard error = √p̂ (1 − p̂) ∗ [( ) + ( )] =

n1 n2

1 1

√0.10 (1 − 0.10) ∗ [( ) + (725)] = √0.09 ∗ [0.001362 + 0.0013793] =

734

Difference between the two sample proportions = p̂1 - p̂2 = 0.16 – 0.04 = 0.12

The null hypothesis states that the two population proportions are equal (the rate

of occurrence of a headache is the same among the Viagra and placebo groups) :

H0 : p̂1 = p̂2

The alternative hypothesis states that the two population proportions are

unequal (in this case, the rate of occurrence of a headache is more among the

Viagra in comparison to the placebo groups) : H0 : p̂1 > p̂2

The test statistic (denoted as z) for testing the difference between two

population proportions is

𝑛1

1

) + (𝑛 )]

2

proportions involves computing the difference between the two population

proportions plus or minus the Margin of Error.

The table value of the z-score for the 99% confidence level is 2.58

ztable = 2.58

[p (1−p )]

1 + [p2 (1−p2 )]

̂ ̂ ̂ ̂

Margin of Error = 𝑧 ∗ √ 1

𝑛1 𝑛2

[0.16(0.84)]

= 2.58 ∗ √

734

+ [0.04725

(0.96)]

The formula for the 99% confidence interval is (p̂1 - p̂2) ± Margin of Error

The p-value is the chance (expressed in percentage terms) of being to the right

of the value of the test statistic (which was 7.6) which is 100% - 99% = 1% =

0.01

2.

This is a case for testing of the difference of means. Here, there are two groups

in the form of small independent samples: The filtered king size cigarettes and

the non-filtered king size cigarettes . Assume that these small independent

samples have been drawn from normal populations, with means µx (population

mean for filtered cigarettes) and µy (population mean for non-filtered cigarettes)

Let the filtered cigarettes be the first group and the non-filtered cigarettes group

be the second group. Hence, n1 = n2 =6

Sample mean for the first group = ȳ = (1+1+2+1+1+1)/ 6 = 1.167

Standard deviation for second group = s2 = 0.40

Let µx = population mean for filtered cigarettes

The null hypothesis H0 states that the small independent samples have been

drawn from normal populations, with same means, that is µx = µy and that the

population variances are equal (σX2 = σy2). The alternative hypothesis H1 states that the

population means are not equal, that is µx ≠µy. The formula for the test statistic t is based

on the equal population variances assumption.

Before computing the test statistic, we need to test whether the two

independent samples have been drawn from normal populations with

the same variance σ2 . Under the null hypothesis, the population

variances are equal - σX2 = σy2 = σ2.The alternative hypothesis is that the

population variances are unequal -> σX2 ≠ σy2

The calculated F statistic is given by: F = sx2 / sy2

Where sx2 and sy2 are unbiased estimates of the common population variance σ2

The F statistic follows the F-distribution with [(n1 – 1), (n2 – 1)] degrees

of freedom = [5,5] degrees of freedom. The level of significance is α/2 = 0.05/2

= 0.025

The critical F value from the table, for α/2 = 0.025 and (5,5) degrees of freedom

is 7.15.

The calculated value is less than the critical table value (1.67 < 7.15). So, we

can conclude that the population variances are equal.

The formula for the test statistic is:

1 1

t = (x̅ - ȳ) / S√𝑛 + 𝑛

1 2

population variance σ2

S= √ = 0.47

𝑛1 + 𝑛2 −2

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