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

Paired T-Test and CI

N Mean StDev SE Mean
Difference 25 10.0000 30.0000 6.0000
95% lower bound for mean difference: -0.2653
T-Test of mean difference = 0 (vs > 0): T-Value = 1.67 P-Value = 0.054
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

Paired T-Test and CI

N Mean StDev SE Mean
Difference 25 10.0000 15.0000 3.0000
95% lower bound for mean difference: 4.8674
T-Test of mean difference = 0 (vs > 0): T-Value = 3.33 P-Value = 0.001
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

Paired T-Test and CI

N Mean StDev SE Mean
Difference 25 10.0000 40.0000 8.0000
95% lower bound for mean difference: -3.6871
T-Test of mean difference = 0 (vs > 0): T-Value = 1.25 P-Value = 0.112
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

N Mean StDev SE Mean
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

Paired T-Test and CI

N Mean StDev SE Mean
Difference 25 -6.00000 30.00000 6.00000
95% upper bound for mean difference: 4.26529
T-Test of mean difference = 0 (vs < 0): T-Value = -1.00 P-Value =
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

Paired T-Test and CI

N Mean StDev SE Mean
Difference 25 -6.00000 15.00000 3.00000
95% upper bound for mean difference: -0.86735
T-Test of mean difference = 0 (vs < 0): T-Value = -2.00 P-Value =
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

Paired T-Test and CI

N Mean StDev SE Mean
Difference 25 -6.00000 40.00000 8.00000
95% upper bound for mean difference: 7.68706
T-Test of mean difference = 0 (vs < 0): T-Value = -0.75 P-Value =
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
 Chapter 10: Hypothesis Testing: Additional Topics 235

Paired T-Test and CI

N Mean StDev SE Mean
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
236 Statistics for Business & Economics, 7th edition

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
N Mean StDev SE Mean
Male 8 46437.5 2680.1 947.5
Female 8 44962.5 2968.4 1049.5
Difference 8 1475.00 1862.99 658.66
95% lower bound for mean difference: 227.11
T-Test of mean difference = 0 (vs > 0): T-Value = 2.24 P-Value = 0.030

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.

 Chapter 10: Hypothesis Testing: Additional Topics 237

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

Do not reject H 0 at alpha of .05.

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

Do not reject H 0 at alpha of .05.

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

Do not reject H 0 at alpha of .05.

238 Statistics for Business & Economics, 7th edition

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

Do not reject H 0 at alpha of .05.

x  y  D0
 t nx  n y  2,
c. 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 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

Do not reject H 0 at alpha of .05.

x  y  D0
 t n x  n y  2,
d. 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
(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

Do not reject H 0 at alpha of .05.

 Chapter 10: Hypothesis Testing: Additional Topics 239

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
Reject H 0 at all common levels of alpha

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)
240 Statistics for Business & Economics, 7th edition

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
 Chapter 10: Hypothesis Testing: Additional Topics 241

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
Reject H 0 at all common levels of alpha

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
242 Statistics for Business & Economics, 7th edition

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
Reject H 0 at all common levels of alpha

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
F = 235/125 = 1.88. Reject H 0 at the 5% level since 1.88 > 1.69  F(43,44,.05)
c. H 0
: 2
x   y ; H 1:
2 2
x  2
y

F = 134/51 = 2.627. Reject H 0 at the 1% level since 2.627 > 2.11  F(47,40,.01)
d. H 0
: 2
x   y ; H 1:
2 2
x  2
y

F = 167/88 = 1.90. Reject H 0 at the 5% level since 1.90 > 1.79  F(24,38,.05)

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)
 Chapter 10: Hypothesis Testing: Additional Topics 243

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
244 Statistics for Business & Economics, 7th edition

X  Y  D0 4.4  5.3
t
2 2
sp s = 1.853 1.853 = -4.293.
 p 
nx n y 70 106
Reject H 0 at levels in excess of 5%

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
Reject H 0 at levels in excess of 1%

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
Reject H 0 at levels in excess of 5%

10.34 Assume that the populations are normally distributed with equal variances and
independent random samples:
 Chapter 10: Hypothesis Testing: Additional Topics 245

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
Therefore, reject H 0 at levels of alpha in excess of 1.07%

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
246 Statistics for Business & Economics, 7th edition

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
Therefore, reject H 0 at levels of alpha in excess of 4.95%

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)
 Chapter 10: Hypothesis Testing: Additional Topics 247

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
248 Statistics for Business & Economics, 7th edition

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
N Mean StDev SE Mean
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
 Chapter 10: Hypothesis Testing: Additional Topics 249

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
95% lower bound for mean difference: 1.5
T-Test of mean difference = 0 (vs > 0): T-Value = 1.74 P-Value = 0.044

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
N Mean StDev SE Mean
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
95% lower bound for mean difference: -4.6
T-Test of mean difference = 0 (vs > 0): T-Value = 1.42 P-Value = 0.081

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
N Mean StDev SE Mean
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
N Mean StDev SE Mean
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)
250 Statistics for Business & Economics, 7th edition

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.