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Microsoft Excel
7th Edition
Chapter 10
Two-Sample Tests
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc. Chap 10-1
Learning Objectives
In this chapter, you learn:
How to use hypothesis testing for comparing the
difference between
The means of two independent populations
The means of two related populations
The proportions of two independent populations
The variances of two independent populations
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-2
Two-Sample Tests
DCOVA
Two-Sample Tests
Population Population
Means, Means, Population Population
Independent Related Proportions Variances
Samples Samples
Examples:
Group 1 vs. Same group Proportion 1 vs. Variance 1 vs.
Group 2 before vs. after Proportion 2 Variance 2
treatment
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-3
Difference Between Two Means
DCOVA
X1 – X2
σ1 and σ2 unknown,
not assumed equal
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-4
Difference Between Two Means:
Independent Samples DCOVA
Different data sources
Population means, Unrelated
independent
samples
* Independent
Sample selected from one
population has no effect on the
sample selected from the other
population
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-6
Hypothesis tests for μ1 – μ2
DCOVA
Two Population Means, Independent Samples
Lower-tail test: Upper-tail test: Two-tail test:
H0: μ1 – μ2 0 H0: μ1 – μ2 ≤ 0 H0: μ1 – μ2 = 0
H1: μ1 – μ2 < 0 H1: μ1 – μ2 > 0 H1: μ1 – μ2 ≠ 0
a a a/2 a/2
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-7
Hypothesis tests for µ1 - µ2 with σ1
and σ2 unknown and assumed equal
DCOVA
(n1 1) (n2 1)
p
samples
Population means,
independent
samples
The confidence interval for
μ1 – μ2 is:
σ1 and σ2 unknown,
assumed equal
*
X1 X 2 tα/2 2
Sp
1
1
n1 n 2
t
X1 X 2 μ1 μ 2
3.27 2.53 0 2.040
2 1 1
1
1.5021
1
Sp
n1 n 2 21 25
S
2 n1 1S1
2
n 2 1S 2
2
21 11.30 2 25 11.16 2
1.5021
(n1 1) (n2 1) (21 - 1) (25 1)
p
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-12
Pooled-Variance t Test Example:
Hypothesis Test Solution
DCOVA
Reject H0 Reject H0
H0: μ1 - μ2 = 0 i.e. (μ1 = μ2)
H1: μ1 - μ2 ≠ 0 i.e. (μ1 ≠ μ2)
a = 0.05 .025 .025
df = 21 + 25 - 2 = 44 -2.0154 0 2.0154 t
Critical Values: t = ± 2.0154
2.040
Test Statistic: Decision:
3.27 2.53
t 2.040 Reject H0 at a = 0.05
1 1
1.5021 Conclusion:
21 25 There is evidence of a
difference in means.
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-13
Pooled-Variance t Test Example:
Confidence Interval for µ1 - µ2
DCOVA
Since we rejected H0 can we be 95% confident that µNYSE
> µNASDAQ?
X X t
1 2 a/2
1
2
p
1
S 0.74 2.0154 0.3628 (0.009, 1.471)
n1 n 2
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-14
Hypothesis tests for µ1 - µ2 with σ1
and σ2 unknown, not assumed equal
DCOVA
Population means, Assumptions:
independent
Samples are randomly and
samples
independently drawn
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-15
Hypothesis tests for µ1 - µ2 with σ1 and
σ2 unknown and not assumed equal
(continued)
DCOVA
The test statistic is:
Population means,
independent
t STAT
X 1
X 2 μ1 μ 2
samples
S12 S 22
n1 n 2
σ1 and σ2 unknown,
assumed equal tSTAT has d.f. ν =
2
S1 2 S 2 2
n n
2
1 2
2
S1 2 S22
σ1 and σ2 unknown,
not assumed equal
*
n
n1 1
n
1 2
n2 1
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-16
Separate-Variance t Test Example
DCOVA
You are a financial analyst for a brokerage firm. Is there
a difference in dividend yield between stocks listed on the
NYSE & NASDAQ? You collect the following data:
NYSE NASDAQ
Number 21 25
Sample mean 3.27 2.53
Sample std dev 1.30 1.16
t
X 1
X 2 μ1 μ 2
3.27 2.53 0 2.019
S12 S 22 1.302 1.162
n1 n 2 21 25
2
S1 2 S 2 2
2
1.30 2
1.16 2
n
21
n Use degrees of
2
2 25
40.57
1
S1
2
S2 2 2
1.30 2 2
1.16 2 2 freedom = 40
n n 21 25
1 2
n1 1 n2 1 20 24
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc. Chap 10-18
Separate-Variance t Test Example:
Hypothesis Test Solution
DCOVA
Reject H0 Reject H0
H0: μ1 - μ2 = 0 i.e. (μ1 = μ2)
H1: μ1 - μ2 ≠ 0 i.e. (μ1 ≠ μ2)
a = 0.05 .025 .025
df = 40 -2.021 0 2.021 t
Critical Values: t = ± 2.021
2.019
Decision:
Test Statistic:
Fail To Reject H0 at a
= 0.05
t 2.019 Conclusion:
There is no evidence of
a difference in means.
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-19
Related Populations
The Paired Difference Test
DCOVA
Tests Means of 2 Related Populations
Related Paired or matched samples
samples Repeated measures (before/after)
Use difference between paired values:
Di = X1i - X2i
Eliminates Variation Among Subjects
Assumptions:
Both Populations Are Normally Distributed
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-20
Related Populations
The Paired Difference Test DCOVA
(continued)
The ith paired difference is Di , where
Related Di = X1i - X2i
samples
n
The point estimate for the
paired difference
D i
population mean μD is D :
D i 1
n
n
The sample standard i
(D D ) 2
deviation is SD SD i1
n 1
n is the number of pairs in the paired sample
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-21
The Paired Difference Test:
Finding tSTAT
DCOVA
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-22
The Paired Difference Test:
Possible Hypotheses DCOVA
Paired Samples
a a a/2 a/2
(D D)
i
2
where SD i1
n 1
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-24
Paired Difference Test:
Example DCOVA
Assume you send your salespeople to a “customer
service” training workshop. Has the training made a
difference in the number of complaints? You collect
the following data:
Number of Complaints: (2) - (1) Di
Salesperson Before (1) After (2) Difference, Di D = n
C.B. 6 4 - 2 = -4.2
T.F. 20 6 -14
M.H. 3 2 - 1
R.K. 0 0 0
SD
i
(D D ) 2
M.O. 4 0 - 4
n 1
-21
5.67
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-25
Paired Difference Test:
Solution DCOVA
X1 X 2
p
n1 n2
where X1 and X2 are the number of items of
interest in samples 1 and 2
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-28
Two Population Proportions
(continued)
ZSTAT
p1 p 2 π1 π2
1 1
p (1 p)
n1 n 2
X1 X2 X X
where p , p1 1 , p 2 2
n1 n2 n1 n2
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-29
Hypothesis Tests for
Two Population Proportions
DCOVA
Population proportions
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-30
Hypothesis Tests for
Two Population Proportions
(continued)
Population proportions DCOVA
Lower-tail test: Upper-tail test: Two-tail test:
H0: π1 – π2 0 H0: π1 – π2 ≤ 0 H0: π1 – π2 = 0
H1: π1 – π2 < 0 H1: π1 – π2 > 0 H1: π1 – π2 ≠ 0
a a a/2 a/2
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-31
Hypothesis Test Example:
Two population Proportions
DCOVA
Is there a significant difference between the
proportion of men and the proportion of
women who will vote Yes on Proposition A?
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-32
Hypothesis Test Example:
Two population Proportions
(continued)
DCOVA
The hypothesis test is:
H0: π1 – π2 = 0 (the two proportions are equal)
H1: π1 – π2 ≠ 0 (there is a significant difference between proportions)
z STAT
p1 p 2 1 2
1 1
p (1 p) -1.96 1.96
n1 n 2 -2.20
.50 .70 0 2.20
1 1 Decision: Do not reject H0
.582 (1 .582)
72 50
Conclusion: There is not
significant evidence of a
Critical Values = ±1.96
For a = .05 difference in proportions
who will vote yes between
men and women.
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc. Chap 10-34
Confidence Interval for
Two Population Proportions
DCOVA
p1 (1 p1 ) p 2 (1 p 2 )
p1 p2 Za/2
n1 n2
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-35
Testing for the Ratio Of Two
Population Variances DCOVA
Hypotheses FSTAT
Tests for Two
Population
* H0: σ12 = σ22
H1: σ12 ≠ σ22
Variances S12 / S22
H0: σ12 ≤ σ22
H1: σ12 > σ22
F test statistic
Where:
S12 = Variance of sample 1 (the larger sample variance)
n1 = sample size of sample 1
S22 = Variance of sample 2 (the smaller sample variance)
n2 = sample size of sample 2
n1 –1 = numerator degrees of freedom
n2 – 1 = denominator degrees of freedom
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-36
The F Distribution
DCOVA
The F critical value is found from the F table
There are two degrees of freedom required: numerator
and denominator
The larger sample variance is always the numerator
2
S
When FSTAT 1
2
df1 = n1 – 1 ; df2 = n2 – 1
S 2
In the F table,
numerator degrees of freedom determine the column
denominator degrees of freedom determine the row
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-37
Finding the Rejection Region
DCOVA
H0: σ12 = σ22 H0: σ12 ≤ σ22
H1: σ12 ≠ σ22 H1: σ12 > σ22
a/2 F a
0 0
Do not Reject H0 Do not Reject H0 F
reject H0 Fα/2 reject H0 Fα
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-38
F Test: An Example
DCOVA
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-39
F Test: Example Solution
DCOVA
Form the hypothesis test:
H0: σ21 = σ22 (there is no difference between variances)
H1: σ21 ≠ σ22 (there is a difference between variances)
Denominator d.f. = n2 – 1 = 25 –1 = 24
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-40
F Test: Example Solution
DCOVA
(continued)
0 F
Do not Reject H0
reject H0
FSTAT = 1.256 is not in the rejection F0.025=2.33
region, so we do not reject H0
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-41
Chapter Summary
In this chapter we discussed
Comparing two independent samples
Performed pooled-variance t test for the difference in
two means
Performed separate-variance t test for difference in two
means
Formed confidence intervals for the difference between
two means
Comparing two related samples (paired
samples)
Performed paired t test for the mean difference
Formed confidence intervals for the mean difference
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc. Chap 10-42
Chapter Summary
(continued)
Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.
Chap 10-43
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Statistics for Managers Using Microsoft Excel® 7e Copyright ©2014 Pearson Education, Inc.