Hypothesis Testing: Additional Topics: Paired T-Test and CI

Chapter 10:
Hypothesis Testing: Additional Topics
10.1 n = 25 paired observations with sample means of 50 and 60 for populations

1 and 2. Can you reject the null hypothesis at an alpha of .05 if
a. sd = 20, H 0 : 1  2  0; H 1 : 1   2  0;
10  0
t = 2.500, p-value is between .010 and .005.
20 25
Reject H 0 at alpha of .05
Paired T-Test and CI

N Mean StDev SE Mean
Difference 25 10.0000 20.0000 4.0000
95% lower bound for mean difference: 3.1565
T-Test of mean difference = 0 (vs > 0): T-Value = 2.50 P-Value = 0.010
b. sd = 30, H 0 : 1  2  0; H 1 : 1   2  0;
10  0
t = 1.67, p-value = .054. Do not reject H 0 at alpha of .05
30 25

Difference 25 10.0000 30.0000 6.0000
95% lower bound for mean difference: -0.2653
c. sd = 15, H 0 : 1  2  0; H 1 : 1   2  0;
10  0
t = 3.33, p-value = .001. Reject H 0 at alpha of .05
15 25

Difference 25 10.0000 15.0000 3.0000
d. sd = 40, H 0 : 1  2  0; H 1 : 1   2  0;
10  0
t = 1.25, p-value = .112. Do not reject H 0 at alpha of .05
40 25

Difference 25 10.0000 40.0000 8.0000
Chapter 10: Hypothesis Testing: Additional Topics 233
234 Statistics for Business & Economics, 7th edition
10.2 n = 25 paired observations with sample means of 50 and 56 for populations

1 and 2. Can you reject the null hypothesis at an alpha of .05 if
a. sd = 20, H 0 : 1  2  0; H 1 : 1   2  0;
(6)  0
t = -1.50, p-value = .073. Do not reject H 0 at alpha of .05
20 25
Paired T-test and CI

Difference 25 -6.00000 20.00000 4.00000
95% upper bound for mean difference: 0.84353
T-Test of mean difference = 0 (vs < 0): T-Value = -1.50 P-Value =
0.073
b. sd = 30, H 0 : 1  2  0; H 1 : 1   2  0;
(6)  0
t = -1.00, p-value = .164. Do not reject H 0 at alpha of .05
30 25

Difference 25 -6.00000 30.00000 6.00000
0.164
c. sd = 15, H 0 : 1  2  0; H 1 : 1  2  0;
(6)  0
t = -2.00, p-value = .028. Reject H 0 at alpha of .05
15 25

Difference 25 -6.00000 15.00000 3.00000
95% upper bound for mean difference: -0.86735
0.028
d. sd = 40, H 0 : 1  2  0; H 1 : 1   2  0;
(6)  0
t = -.75, p-value = .230. Do not reject H 0 at alpha of .05
40 25

Difference 25 -6.00000 40.00000 8.00000
0.230
10.3 H 0
:  x   y  0; H 1 :  x   y  0;
.0518  0
t = 2.04, p-value = .043. Reject H 0 at alpha levels in excess of 4.3%
.3055 145

Difference 145 0.051800 0.305500 0.025370
95% CI for mean difference: (0.001654, 0.101946)
T-Test of mean difference = 0 (vs not = 0): T-Value = 2.04 P-Value = 0.043
10.4 H 0
:  x   y  0; H 1 :  x   y  0;
1475  0
t = 2.239, p-value = .0301. Reject H 0 at levels in excess of 3%
1862.985 8
Paired T-Test and CI: Male, Female

Paired T for Male - Female
Male 8 46437.5 2680.1 947.5
Female 8 44962.5 2968.4 1049.5
Difference 8 1475.00 1862.99 658.66
10.5 H :  x   y  0; H 1 :  x   y  0; reject H 0 if t(5,.05) > 2.015

0
4.5  0
t = 2.665. Reject H 0 at the 5% level
4.1352 6
10.6
x  y  D0
 z
a. Reject H if  2
2 . For   0.05, z  z0.05  1.645 .
0
 y
x
nx n y
x  y  D0 50  60
z   1.04
 2
 2
y
900 1600


x
nx n y 25 28
Do not reject H 0 at alpha of .05.
x  y  D0
 z
H  x2  y
2
b. Reject if . For   0.05, z  z0.05  1.645 .
0

nx n y
x  y  D0 20
z   2.07
 x2  900 1600
2
 y 
nx n y 25 28
Reject H 0 at alpha of .05.

x  y  D0
 z
H  x2  y
2
c. Reject if . For   0.05, z  z0.05  1.645 .
0

nx n y
x  y  D0 45  50
z   0.52
 x2  y 900 1600
2
 
nx n y 25 28
x  y  D0
 z
H  x2  y
2
d. Reject if . For   0.05, z  z0.05  1.645 .
0

nx n y
x  y  D0 15
z   1.55
 2
 2
900 1600


x y
nx n y 25 28
10.7
x  y  D0
 t nx  n y  2,
a. Reject H 0 if s 2p s 2p

. For the given data, t n x  n y  2 ,  t59, 0.05  1.671 .
nx n y
(nx  1) s x2  (n y  1) s y2 ( 24)(30) 2  (35)( 28) 2
s 
2
p   831.19
( nx  n y  2) ( 25  36  2)
x  y  D0 56  50
t   0.7994
s 2p s 2p 831.19 831.19
 
nx n y 25 36

x  y  D0
 t n x  n y  2,
b. Reject H 0 if s 2p

s 2p . For the given data, t n x  n y  2 ,  t59, 0.05  1.671 .
nx ny
( nx  1) s x2  ( n y  1) s 2y (24)(22) 2  (35)(33) 2
s 2p    842.90
(nx  n y  2) ( 25  36  2)
x  y  D0 56  50
t   0.7938
s 2
s 2
842.90 842.90

p p 
nx n y 25 36
x  y  D0
 t nx  n y  2,
c. Reject H 0 if s 2p s 2p

nx n y
( nx  1) s x2  ( n y  1) s 2y (24)(30) 2  (35)(42) 2
s 2p    1412.54
( nx  n y  2) (25  36  2)
x  y  D0 56  50
t   0.6132
s 2
s 2
1412.54 1412.54
p
 p 
nx n y 25 36
x  y  D0
 t n x  n y  2,
d. Reject H 0 if s 2p s 2p

nx n y
(n x  1) s x2  (n y  1) s y2 (24)(15) 2  (35)(36) 2
s 2p    860.34
(nx  n y  2) (25  36  2)
x  y  D0 56  50
t   0.7857
s 2
s 2
860.34 860.34

p p 
nx n y 25 36

10.8 H 0
:  x   y  0; H 1 :  x   y  0;
85.8  71.5
z = 7.334.
(19.13)2 /151  (12.2) 2 /108
Reject H 0 at all common levels of alpha
10.9 H 0
:  x   y  0; H 1 :  x   y  0;
1.91  .21
z = 12.96.
(1.32) 2 /125  (.53) 2 / 86
10.10 H 0
:  x   y  0; H 1 :  x   y  0;
2.71  2.79
z = -1.0207,
(.64) /114  (.56) 2 /123
2
p-value = 2[1-FZ(1.02)] = 2[1-.8461] = .3078

Therefore, reject H 0 at levels of alpha in excess of 30.78%
10.11 H 0
:  x   y  0; H 1 :  x   y  0;
2 2
2 (nx  1) sx  (ny  1) s y 35(22.93) 2  35(27.56) 2
sp  = = 642.66925
nx  n y  2 36  36  2
X  Y  D0 36.21  47.56
t
2 2
sp s = 642.66925 642.66925 = -1.8995
 p 
nx n y 36 36
t70 (1.8995)=.0308; p-value = 2(.0308) = .0616.
Reject H 0 at levels in excess of 6.16%
10.12 Assuming both populations are normal with equal variances:

H 0 :  x   y  0; H 1 :  x   y  0;
69(6.14) 2  50(4.29) 2
s2 p  = 29.592247
70  51  2
X  Y  D0 3.97  2.86
t
2 2
sp s = 29.592247 29.592247 = 1.108
 p 
nx n y 70 51
Therefore, do not reject H 0 at the 10% alpha level since 1.108 < 1.645 = t(119,.05)
10.13 H 0
:  x   y  0; H 1 :  x   y  0;
9254  8167
9(2107) 2  9(1681) 2 t
s 2
p  = 3,632,605, 3632605 3632605 = 1.275
10  10  2 
10 10
Therefore, do not reject H 0 at the 10% alpha level since 1.275 < 1.33 = t(18,.1)
10.14 a. H 0
: Px  Py  0; H 1 : Px  Py  0;
.42  .50
500(.42)  600(.50) z
pˆ o  = .4636, (.4636)(1  .4636) (.4636)(1  .4636)
500  600 
500 600
= -2.65 p-value = .004. Therefore, reject H 0 at all common levels of alpha
b. H 0
: Px  Py  0; H 1 : Px  Py  0;
500(.60)  600(.64)
pˆ o  = .6218,
500  600
.60  .64
z
(.6218)(1  .6218) (.6218)(1  .6218) = -1.36

500 600
p-value = .0869. Therefore, reject H 0 at .10, but do not reject at the .05 level
c. H 0
: Px  Py  0; H 1 : Px  Py  0;
500(.42)  600(.49)
pˆ o  = .4582,
500  600
.42  .49
z
(.4582)(1  .4582) (.4582)(1  .4582) = -2.32

500 600
p-value = .0102.
Therefore, reject H 0 at the .05 level, but do not reject at the .01 level
d. H 0
: Px  Py  0; H 1 : Px  Py  0;
.25  .34
500(.25)  600(.34) z
pˆ o  = .299, (.299)(1  .299) (.299)(1  .299) = -3.25
500  600 
500 600
p-value = .0006. Therefore, reject H 0 at all common levels of alpha
e. H 0
: Px  Py  0; H 1 : Px  Py  0;
500(.39)  600(.42)
pˆ o  = .4064,
500  600
.39  .42
z
(.4064)(1  .4064) (.4064)(1  .4064) = -1.01

500 600
p-value = .1562. Therefore, do not reject H 0 at any common level of alpha
10.15 H 0
: Px  Py  0; H 1 : Px  Py  0;
900(.60)  900(.66)
pˆ o  = .63,
900  900
.60  .66
z
(.63)(1  .63) (.63)(1  .63) = -2.63

900 900
p-value = .0043. Therefore, reject H 0 at all common levels of alpha
10.16 H 0
: Px  Py  0; H 1 : Px  Py  0;
.384  .52
1556(.384)  1108(.52) z
pˆ o  = .44, (.44)(.56) (.44)(.56) = -6.97
1556  1108 
1556 1108
10.17 H 0
: Px  Py  0; H 1 : Px  Py  0; reject H 0 if |z.025| > 1.96
368(.25)  116(.319)
pˆ o  = .266
368  116
.25  .319
z
(.266)(.734) (.266)(.734) = -1.466. Do not reject H 0 at the 5% level

368 116
10.18 H 0
: Px  Py  0; H 1 : Px  Py  0; reject H 0 if |z.025| > 1.96
78  208
pˆ o  = .36714
175  604
.446  .344
z
(.36714)(.63286) (.36714)(.63286) = 2.465. Reject
 H 0 at the 5% level
175 604
10.19 H 0
: Px  Py  0; H 1 : Px  Py  0;
191  145
pˆ o  = .614
381  166
.501  .873
z
(.614)(.386) (.614)(.386) = -8.216.

381 166
10.20 H 0
: Px  Py  0; H 1 : Px  Py  0; reject H 0 if |z.05| > 1.645
138  128
pˆ o  = .554
240  240
.575  .533
z
(.554)(.446) (.554)(.446) = .926.

240 240
Do not reject H 0 at the 5% level
10.21 H 0
: Px  Py  0; H 1 : Px  Py  0; reject H 0 if z.01 < -2.33
480  790
pˆ o  = .577
1200  1000
.4  .79
z
(.577)(.423) (.577)(.423) = -18.44. Reject H 0 at the 1% level

1200 1000
10.22 a. H 0
:  2x   2 y ; H 1 :  2x   2 y
F = 125/51 = 2.451. Reject H 0 at the 1% level since 2.451 > 2.11  F(44,40,.01)
b. H 0
:  2x   2 y ; H 1 :  2x   2 y
c. H 0
: 2
x   y ; H 1:
2 2
x  2
y
d. H 0
: 2
x   y ; H 1:
2 2
x  2
y
10.23 H 0
:  2x   2 y ; H 1 :  2x   2 y
F = 1614.208/451.770 = 3.573.
Reject H 0 at the 1% level since 3.573 > 2.41F(29,29,.01)
10.24 H 0
:  2 x   2 y ; H 1 :  2 x   2 y ; reject H 0 if F(3,6,.05) > 4.76
F = 114.09/16.08 = 7.095. Reject H 0 at the 5% level
10.25 H 0
:  2x   2 y ; H 1 :  2x   2 y ;
F=(27.56)2/(22.93)2=1.44.
Do not reject H 0 at the 10% level since 1.44<1.84F(35,35,.05)
10.26 H 0
:  2x   2 y ; H 1 :  2x   2 y ;
F = (2107)2/(1681)2 = 1.57
Therefore, do not reject H 0 at the 10% level since 1.57 < 3.18  F(9,9,.05)
10.27 H 0
:  2x   2 y ; H 1 :  2x   2 y ;
F = (24.4)2/(20.2)2 = 1.46.
Do not reject H 0 at the 5% level since 1.46 < 9.28  F(3,3,.05)
10.28 No. The probability of rejecting the null hypothesis given that it is true is 5%.
10.29 H 0
:  x   y  0; H 1 :  x   y  0;
2 2
2 (nx  1) sx  (ny  1) s y 33(2.21) 2  85(1.69) 2
sp  = = 3.4525
nx  n y  2 34  85  2
X  Y  D0 2.21  1.47
t
2 2
sp s = 3.4525 3.4525 = 1.966
 p 
nx n y 34 86
p-value is between (.025, .010) x 2 = .05 and .02.
Reject H 0 at levels in excess of 5%
10.30 a. H : 0
 4; H 1 :   4; reject H 0 if t.05 > 1.671
4.4  4
t = 2.574. Reject H 0 at the 5% level
1.3 70
b. H 0 :  x   y  0; H 1 :  x   y  0; reject H 0 if t .05 < -1.645
2 2
2 (nx  1) sx  (ny  1) s y 69(1.3) 2  105(1.4) 2
sp  = = 1.853
nx  n y  2 70  106  2
X  Y  D0 4.4  5.3
t
2 2
sp s = 1.853 1.853 = -4.293.
 p 
nx n y 70 106
10.31 H 0
:  x   y  0; H 1 :  x   y  0; reject H 0 if |t .05| > 1.645
2 2
2 (nx  1) sx  (ny  1) s y 43(18.20) 2  67(18.94) 2
sp  = = 347.980
nx  n y  2 44  68  2
X  Y  D0 35.02  36.34
t
2 2
sp s = 347.98 347.98 =-.210.
 p 
nx n y 44 68
Do not reject H 0 at levels in excess of 5%
10.32 Presuming the populations are normally distributed with equal variances, the
samples must be independent random samples:
H 0 :  x   y  0; H 1 :  x   y  0; reject H 0 if t(6,.01) < -3.143
2 2
2 (nx  1) sx  (ny  1) s y 3(24.4) 2  3(14.6) 2
sp  = = 106.58
nx  n y  2 442
X  Y  D0 78  114.7
t
2 2
sp s = 106.58 106.58 = -5.027.
 p 
nx n y 4 4
10.33 Assuming the populations are normally distributed with equal variances and
independent random samples:
Magazine A: X  10.968; sx  2.647 , Magazine B: Y  6.738; s y  1.636
H 0
:  x   y  0; H 1 :  x   y  0; reject H 0 if t(10,.05) > 1.812
2 2
2 (nx  1) sx  (ny  1) s y 5(2.647) 2  5(1.636) 2
sp  = = 4.8416
nx  n y  2 662
X  Y  D0 10.968  6.738
t
2 2
sp s = 4.8416 4.8416 = 3.330.
 p 
nx n y 6 6
10.34 Assume that the populations are normally distributed with equal variances and
independent random samples:
Magazine A: X  7.045; sx  2.1819 , Magazine B: Y  6.777; s y  2.85

H 0 :  x   y  0; H 1 :  x   y  0;
2 2
2 (nx  1) sx  (ny  1) s y 5(2.1819) 2  5(2.85) 2
sp  = = 6.4416
nx  n y  2 662
X  Y  D0 7.045  6.777
t
H
2 2
sp s = 6.4416 6.4416 = .183. Do not reject at any common
 p  0
nx n y 6 6
level of alpha
10.35 H 0
:  x   y  0; H 1 :  x   y  0; Sample sizes greater than 100, use the z-test.
2.83  3.0
z
(.89) 2 (.67) 2 = -2.30, p-value = 1 – FZ(2.3) = 1 - .9893 = .0107

202 291
10.36 H 0
:  x   y  0; H 1 :  x   y  0; . Sample sizes less than 100, use the t-test
2 2
2 (nx  1) sx  (ny  1) s y 82(.649) 2  53(.425) 2
sp  = = .32675
nx  n y  2 83  54  2
X  Y  D0 6.543  6.733
t
2 2
sp s = .32675 .32675 = -1.901. p-value is between (.05 and .025)
 p 
nx n y 83 54
x 2 = .10 and .05. Reject H 0 at any alpha of .10 or higher.
10.37 a. H : P  .5; H 1 : P  .5; reject H 0 if z.05 < -1.645

0
.455  .5
z = -1.2. Do not reject H 0 at the 5% level
(.5)(.5) /178
b. H 0 : Px  Py  0; H 1 : Px  Py  0; reject Ho if |z.025| > 1.96
.5068  .455
75  81 z
pˆ o  = .478, 1 1 = .932
148  178 (.478)(.522)(  )
148 178
Therefore, do not reject H 0 at the 5% level
10.38 H 0
:  x   y  0; H 1 :  x   y  0; reject Ho if t(44,.05) < -1.684
2 2
2 (nx  1) sx  (ny  1) s y 22(.055) 2  22(.058) 2
sp  = = .00319
nx  n y  2 23  23  2
X  Y  D0 .058  .146
t
2 2
sp s = .00319 .00319 = -5.284.
 p 
nx n y 23 23
Reject H 0 at any common level of alpha
10.39 H : Px  Py  0; H 1 : Px  Py  0; reject Ho if |z.01| < -2.33

0
.164  .239
11  27 z
pˆ o  =.211, 1 1 = -1.19.
67  113 (.211)(.789)(  )
67 113
Do not reject H 0 at the 1% level
10.40 H 0
: Px  Py  0; H 1 : Px  Py  0;
.6812  .5797
47  40 z
pˆ o  = .630435, 1 1 = 1.235, p-value =
69  69 (.630435)(.369565)(  )
69 69
2[1-FZ(1.24)] = 2[1-.8925] = .1075.
Reject H 0 at levels of alpha in excess of 10.75%
10.41 H 0
: Px  Py  0; H 1 : Px  Py  0;
.564  .691
53  47 z
pˆ o  = .617, 1 1 = -1.653,
94  68 (.617)(.383)(  )
94 68
p-value = 1–FZ(1.65)]=.0495
s2x
10.42 H 0 :  x   y ; H 1 :  x   y ; sx  2.64665, s y  1.63561 , F  =
s2 y
(2.647)2/(1.63656)2 = 2.618. Do not reject H 0 at the 5% level, 2.618 < 5.05 
F(5,5,.05)
s2x
10.43 H 0 :  x   y ; H 1 :  x   y ; sx  4.16314, sy  4.05421 , F  s2 y
= (4.16314)2/
(4.05421)2 = 1.0545. Do not reject H 0 at the 5% level, 1.0545 < 2.98 

F(10,10,.05). There is insufficient evidence to suggest that the population variances
differ between the two forecasting analysts.
10.44 a. H 0 :  x   y  0; H 1 :  x   y  0;
df = n1 + n2 – 2 = 27 + 27 – 2 = 52; t52,.05 = 1.675
2 2
(n1  1) s1  (n2  1) s2 (27  1)100  (27  1)150
s p
2
  125
n1  n2  2 52
x2  x1 64  60
tcalc    1.99
s2 p s2 p 125 125
 
n1 n2 60 64
At the .05 level of significance, reject Ho and accept the alternative that the mean
output per hectare is significantly greater with the new procedure.
b. 95% acceptance interval:

2
1 s 150
F26,26,.025  2.20 , P (  22  2.20)  .95 , Fcalc   1.50 , because F
2.20 s1 100
calc is within the acceptance interval, there is not sufficient evidence against
the null hypothesis that the sample variances are not significantly different
from each other.
10.45 a. H 0
: P2  P1  0; H 1 : P2  P1  0; reject H
if |z.015| > 2.17
0
.3714  .3225
258  260 z
pˆ o  = .3453, (.3453)(.6547) (.3453)(.6547) = 1.987
800  700 
800 700
Therefore, reject H 0 at the 5% level, but do not reject at the 3% level
b. H 0
: P2  P1  0; H 1 : P2  P1  0; reject H
if |z.03| > 1.88
0
.3714  .3225
258  260 z
pˆ o  = .3453, (.3453)(.6547) (.3453)(.6547) = 1.987
800  700 
800 700
Therefore, reject H 0 at the 3% level
10.46 Assume that the population of matched differences are normally distributed
H 0 :  x   y  0; H 1 :  x   y  0; reject H 0 if |t(9,.05)| > 1.833
x of the matched differences = 1.13, s of the matched differences = 1.612
1.13  0
t = 2.22, p-value =.054.
1.612 10
Reject H 0 at the 10%, but not the 5% level
Paired T-Test and CI: VARIETY A, VARIETY B

Paired T for VARIETY A - VARIETY B
VARIETY A 10 11.9300 2.9265 0.9254
VARIETY B 10 10.8000 2.5237 0.7981
Difference 10 1.13000 1.61180 0.50969
95% CI for mean difference: (-0.02301, 2.28301)
T-Test of mean difference = 0 (vs not = 0): T-Value = 2.22
P-Value = 0.054
10.47 a. The box plots of the raw data show similar medians and interquartile ranges
for both brands. However, brand 2 is dominated by three outliers that are
skewing the brand 2 data to the right:
The descriptive statistics show the effect of the extreme outliers on brand 2 sales
—note the sizeable standard deviation of brand 2:
Descriptive Statistics: saleb2, saleb4

Variable N Mean Median TrMean StDev SE Mean
saleb2 52 181.2 127.0 155.7 154.9 21.5
saleb4 52 140.29 125.50 136.80 60.84 8.44
Variable Minimum Maximum Q1 Q3

saleb2 59.0 971.0 94.8 203.3
saleb4 55.00 305.00 101.25 182.75
The matched pairs t-test on the original data shows a significant difference between the
weekly sales with brand 2 found to be significantly larger than brand 4 at the .05 level:
Paired T-Test and CI: saleb2, saleb4

Paired T for saleb2 - saleb4
Variable N Mean StDev SE Mean
saleb2 52 181.2 154.9 21.5
saleb4 52 140.3 60.8 8.4
Difference 52 40.9 169.5 23.5
b. However, with only the largest outlier removed from the data of brand 2, the
difference between the two brands becomes insignificant at the .05 level:
Paired T-Test and CI: saleb2_1, saleb4 (with outlier removed)

Paired T for saleb2_1 - saleb4
saleb2_1 51 165.7 108.5 15.2
saleb4 51 140.8 61.3 8.6
Difference 51 24.9 125.7 17.6
10.48 a. H 0
:  x   y  0; H 1 :  x   y  0;
Results for: Ole.MTW
Two-Sample T-Test and CI: Olesales, Carlsale

Two-sample T for Olesales vs Carlsale
Olesales 156 3791 5364 429
Carlsale 156 2412 4249 340
Difference = mu Olesales - mu Carlsale

Estimate for difference: 1379
95% lower bound for difference: 475
T-Test of difference = 0 (vs >): T-Value = 2.52 P-Value = 0.006 DF =
310
Both use Pooled StDev = 4839
Reject H0 at the .01 level of significance.
b. H 0
:  x   y  0; H 1 :  x   y  0;
Two-Sample T-Test and CI: Oleprice, Carlpric
Two-sample T for Oleprice vs Carlpric
Oleprice 156 0.819 0.139 0.011
Carlpric 156 0.819 0.120 0.0096
Difference = mu Oleprice - mu Carlpric

Estimate for difference: -0.0007
95% CI for difference: (-0.0297, 0.0283)
T-Test of difference = 0 (vs not =): T-Value = -0.05 P-Value =

0.962 DF = 310
Both use Pooled StDev = 0.130
Do not reject H0 at any common level of significance. Note that the 95%
confidence interval contains 0, therefore, no evidence of a difference.
10.49 The equation for an acceptance interval is shown next:
  z  / 2 x
Since the package weights are not independent (   0.40 ), the variance of the
sample means is given by the following equation:
 12  22  2
 x2    2 1
n1 n2 n1 n2
Calculate the variance of the sample means using  1  0.04,  2  0.06, n1  4,

2 2
and n2  4. Also, use  1  0.2 and  2  0.245.
0.04 0.06 0.2 0.245

 x2    2(0.40)   0.034798
4 4 4 4
Thus, the standard deviation of the sample means is  x  0.1865.
For a 99% acceptance interval,   0.01, so z / 2  z0.005  2.576.
The 99% acceptance interval is 16  2.576  0.1865, or (15.52, 16.48). The

acceptance interval can be used for quality control monitoring of the process. The
interval is plotted over time and provides limits for the sample mean x .
10.50 H 0
: Px  Py  0; H 1 : Px  Py  0; reject H 0 if z   z / 2  1.96 or
z  z / 2  1.96
Let nx  270 and n y  203. Then, pˆ x  56 / 270  0.2074 and
py  52 / 203  0.2562.
(270)(0.2074)  (203)(0.2562)
pˆ 0   0.2283
270  203
0.2074  0.2562
z  1.25
(0.2283)(1  0.2283) (0.2283)(1  0.2283)

270 203
Do not reject H 0 at the 5% level. Conclude that there is a not a difference in the
proportion of humorous ads in British versus American trade magazines.

Hypothesis Testing: Additional Topics: Paired T-Test and CI

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Hypothesis Testing: Additional Topics: Paired T-Test and CI

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Chapter 10:

Hypothesis Testing: Additional Topics

10.1 n = 25 paired observations with sample means of 50 and 60 for populations

Paired T-Test and CI

Paired T-Test and CI

Paired T-Test and CI

Paired T-Test and CI

10.2 n = 25 paired observations with sample means of 50 and 56 for populations

Paired T-test and CI

Paired T-Test and CI

Paired T-Test and CI

Paired T-Test and CI

Paired T-Test and CI

Paired T-Test and CI: Male, Female

10.5 H :  x   y  0; H 1 :  x   y  0; reject H 0 if t(5,.05) > 2.015

Do not reject H 0 at alpha of .05.

Reject H 0 at alpha of .05.

Do not reject H 0 at alpha of .05.

Do not reject H 0 at alpha of .05.

Do not reject H 0 at alpha of .05.

Do not reject H 0 at alpha of .05.

Do not reject H 0 at alpha of .05.

Do not reject H 0 at alpha of .05.

p-value = 2[1-FZ(1.02)] = 2[1-.8461] = .3078

10.12 Assuming both populations are normal with equal variances:

Magazine A: X  7.045; sx  2.1819 , Magazine B: Y  6.777; s y  2.85

10.37 a. H : P  .5; H 1 : P  .5; reject H 0 if z.05 < -1.645

10.39 H : Px  Py  0; H 1 : Px  Py  0; reject Ho if |z.01| < -2.33

(4.05421)2 = 1.0545. Do not reject H 0 at the 5% level, 1.0545 < 2.98 

b. 95% acceptance interval:

Paired T-Test and CI: VARIETY A, VARIETY B

Descriptive Statistics: saleb2, saleb4

Variable Minimum Maximum Q1 Q3

Paired T-Test and CI: saleb2, saleb4

Paired T-Test and CI: saleb2_1, saleb4 (with outlier removed)

Two-Sample T-Test and CI: Olesales, Carlsale

Difference = mu Olesales - mu Carlsale

Difference = mu Oleprice - mu Carlpric

T-Test of difference = 0 (vs not =): T-Value = -0.05 P-Value =

10.49 The equation for an acceptance interval is shown next:

Calculate the variance of the sample means using  1  0.04,  2  0.06, n1  4,

and n2  4. Also, use  1  0.2 and  2  0.245.

0.04 0.06 0.2 0.245

Thus, the standard deviation of the sample means is  x  0.1865.

For a 99% acceptance interval,   0.01, so z / 2  z0.005  2.576.

The 99% acceptance interval is 16  2.576  0.1865, or (15.52, 16.48). The

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