CH10A

.. .
SLIDES BY
.
..
. John Loucks
..
. St. Edward’s
.. University
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied
Slide 1
or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 10, Part A
Inference About Means and Proportions
with Two Populations
Inferences About the Difference Between

Two Population Means: s 1 and s 2 Known
Two Population Means: s 1 and s 2 Unknown
Two Population Means: Matched Samples
Slide 2
Two Population Means: s 1 and s 2 Known
Interval Estimation of m 1 – m 2
Hypothesis Tests About m 1 – m 2
Slide 3
Estimating the Difference Between
Two Population Means
Let m1 equal the mean of population 1 and m2 equal
the mean of population 2.
The difference between the two population means is
m1 - m2.
To estimate m1 - m2, we will select a simple random
sample of size n1 from population 1 and a simple
random sample of size n2 from population 2.
Let x1 equal the mean of sample 1 and x2 equal the
mean of sample 2.
 The point estimator of the difference between the
means of the populations 1 and 2 is x1  x2.
Slide 4
Sampling Distribution of x1  x2
Expected Value
E ( x1  x2 )  m1  m 2
Standard Deviation (Standard Error)
s12 s 22
s x1  x2  
n1 n2
where: s1 = standard deviation of population 1

s2 = standard deviation of population 2
n1 = sample size from population 1
n2 = sample size from population 2
Slide 5
Interval Estimation of m1 - m2:
s 1 and s 2 Known
Interval Estimate
s 12 s 22
x1  x2  z / 2 
n1 n2
where:
1 -  is the confidence coefficient
Slide 6
s 1 and s 2 Known
Example: Par, Inc.
Par, Inc. is a manufacturer of golf equipment and
has developed a new golf ball that has been
designed to provide “extra distance.”
In a test of driving distance using a mechanical
driving device, a sample of Par golf balls was
compared with a sample of golf balls made by Rap,
Ltd., a competitor. The sample statistics appear on
the next slide.
Slide 7
s 1 and s 2 Known
Example: Par, Inc.
Sample #1 Sample #2
Par, Inc. Rap, Ltd.
Sample Size 120 balls 80 balls
Sample Mean 275 yards 258 yards
Based on data from previous driving distance

tests, the two population standard deviations are
known with s 1 = 15 yards and s 2 = 20 yards.
Slide 8
s 1 and s 2 Known
Example: Par, Inc.
Let us develop a 95% confidence interval estimate
of the difference between the mean driving distances of
the two brands of golf ball.
Slide 9
Estimating the Difference Between
Two Population Means
Population 1 Population 2
Par, Inc. Golf Balls Rap, Ltd. Golf Balls
m1 = mean driving m2 = mean driving
distance of Par distance of Rap
golf balls golf balls
m1 – m2 = difference between
the mean distances
Simple random sample Simple random sample
of n1 Par golf balls of n2 Rap golf balls
x1 = sample mean distance x2 = sample mean distance
for the Par golf balls for the Rap golf balls
x1 - x2 = Point Estimate of m1 – m2
Slide 10
Point Estimate of m1 - m2
Point estimate of m1  m2 = x1  x2
= 275  258
= 17 yards
where:
m1 = mean distance for the population
of Par, Inc. golf balls
of Rap, Ltd. golf balls
Slide 11
s 1 and s 2 Known
s12 s 22 (15) 2 ( 20) 2

x1  x2  z / 2   17  1. 96 
n1 n2 120 80
17 + 5.14 or 11.86 yards to 22.14 yards
We are 95% confident that the difference between
the mean driving distances of Par, Inc. balls and Rap,
Ltd. balls is 11.86 to 22.14 yards.
Slide 12
Hypothesis Tests About m 1  m 2:
s 1 and s 2 Known
 Hypotheses
H 0 : m1  m2  D0 H 0 : m1  m2  D0 H 0 : m1  m2  D0
H a : m1  m2  D0 H a : m1  m2  D0 H a : m1  m2  D0
Left-tailed Right-tailed Two-tailed
 Test Statistic
( x1  x2 )  D0
z
s 12 s 22

n1 n2
Slide 13
s 1 and s 2 Known
Example: Par, Inc.
Can we conclude, using  = .01, that the
mean driving distance of Par, Inc. golf balls is
greater than the mean driving distance of Rap, Ltd.
golf balls?
Slide 14
s 1 and s 2 Known
 p –Value and Critical Value Approaches
1. Develop the hypotheses. H0: m1 - m2 < 0

Ha: m1 - m2 > 0
where:
of Par, Inc. golf balls
of Rap, Ltd. golf balls
2. Specify the level of significance.  = .01
Slide 15
s 1 and s 2 Known
3. Compute the value of the test statistic.
( x1  x2 )  D0
z
s 12 s 22

n1 n2
(235  218)  0 17
z   6.49
(15)2 (20)2 2.62

120 80
Slide 16
s 1 and s 2 Known
 p –Value Approach
4. Compute the p–value.

For z = 6.49, the p –value < .0001.
5. Determine whether to reject H0.

Because p–value <  = .01, we reject H0.
At the .01 level of significance, the sample evidence
indicates the mean driving distance of Par, Inc. golf
balls is greater than the mean driving distance of Rap,
Ltd. golf balls.
Slide 17
s 1 and s 2 Known
 Critical Value Approach
4. Determine the critical value and rejection rule.
For  = .01, z.01 = 2.33

Reject H0 if z > 2.33

Because z = 6.49 > 2.33, we reject H0.
The sample evidence indicates the mean driving
distance of Par, Inc. golf balls is greater than the mean
driving distance of Rap, Ltd. golf balls.
Slide 18
Two Population Means: s 1 and s 2 Unknown
Interval Estimation of m 1 – m 2
Hypothesis Tests About m 1 – m 2
Slide 19
s 1 and s 2 Unknown
When s 1 and s 2 are unknown, we will:
• use the sample standard deviations s1 and s2
as estimates of s 1 and s 2 , and
• replace z/2 with t/2.
Slide 20
s 1 and s 2 Unknown
Interval Estimate
s12 s22
x1  x2  t / 2 
n1 n2
Where the degrees of freedom for t/2 are:

2
s s  2 2
  
1 2
df   n1 n2 
2 2
1  s1 2
1  s2 
2
    
n1  1  n1  n2  1  n2 
Slide 21
Difference Between Two Population Means:
s 1 and s 2 Unknown
Example: Specific Motors
Specific Motors of Detroit has developed a new
Automobile known as the M car. 24 M cars and 28 J
cars (from Japan) were road tested to compare miles-
per-gallon (mpg) performance. The sample statistics
are shown on the next slide.
Slide 22
s 1 and s 2 Unknown
Sample #1 Sample #2
M Cars J Cars
24 cars 28 cars Sample Size
29.8 mpg 27.3 mpg Sample Mean
2.56 mpg 1.81 mpg Sample Std. Dev.
Slide 23
s 1 and s 2 Unknown
Let us develop a 90% confidence interval estimate
of the difference between the mpg performances of
the two models of automobile.
Slide 24
Point Estimate of m 1  m 2
Point estimate of m1  m2 = x1  x2
= 29.8 - 27.3
= 2.5 mpg
where:
m1 = mean miles-per-gallon for the
population of M cars
m2 = mean miles-per-gallon for the
population of J cars
Slide 25
Interval Estimation of m 1  m 2:
s 1 and s 2 Unknown
The degrees of freedom for t/2 are:
2
 (2.56) (1.81) 
2 2
  
df   24 28   24.07  24
2 2
1  (2.56) 2  1  (1.81) 2 
    
24  1  24  28  1  28 
With /2 = .05 and df = 24, t/2 = 1.711
Slide 26
Interval Estimation of m 1  m 2:
s 1 and s 2 Unknown
s12 s22 (2.56)2 (1.81) 2

x1  x2  t / 2   29.8  27.3  1.711 
n1 n2 24 28
2.5 + 1.069 or 1.431 to 3.569 mpg
We are 90% confident that the difference between

the miles-per-gallon performances of M cars and J cars
is 1.431 to 3.569 mpg.
Slide 27
s 1 and s 2 Unknown
Hypotheses
H0 : m1  m2  D0 H0 : m1  m2  D0 H0 : m1  m2  D0
H a : m1  m2  D0 H a : m1  m2  D0 H a : m1  m2  D0
Left-tailed Right-tailed Two-tailed
Test Statistic
( x1  x2 )  D0
t
s12 s22

n1 n2
Slide 28
s 1 and s 2 Unknown
Can we conclude, using a .05 level of significance,
that the miles-per-gallon (mpg) performance of M cars
is greater than the miles-per-gallon performance of J
cars?
Slide 29
s 1 and s 2 Unknown
1. Develop the hypotheses.
H0: m1 - m2 < 0
Ha: m1 - m2 > 0
where:
m1 = mean mpg for the population of M cars
m2 = mean mpg for the population of J cars
Slide 30
s 1 and s 2 Unknown
( x1  x2 )  D0 (29.8  27.3)  0
t   4.003
2 2 2 2
s s (2.56) (1.81)
1
 2

n1 n2 24 28
Slide 31
s 1 and s 2 Unknown
4. Compute the p –value.
The degrees of freedom for t are:
2
 (2.56) (1.81) 2 2
  
df   24 28   40.566  41
2 2
1  (2.56) 2  1  (1.81) 2 
    
24  1  24  28  1  28 
Because t = 4.003 > t.005 = 1.683, the p–value < .005.
Slide 32
s 1 and s 2 Unknown
We are at least 95% confident that the miles-per-
gallon (mpg) performance of M cars is greater than
the miles-per-gallon performance of J cars?.
Slide 33
s 1 and s 2 Unknown
For  = .05 and df = 41, t.05 = 1.683
Reject H0 if t > 1.683

Because 4.003 > 1.683, we reject H0.
We are at least 95% confident that the miles-per-
gallon (mpg) performance of M cars is greater than
the miles-per-gallon performance of J cars?.
Slide 34
 With a matched-sample design each sampled item
provides a pair of data values.
 This design often leads to a smaller sampling error
than the independent-sample design because
variation between sampled items is eliminated as a
source of sampling error.
Slide 35
Example: Express Deliveries
A Chicago-based firm has documents that must
be quickly distributed to district offices throughout
the U.S. The firm must decide between two delivery
services, UPX (United Parcel Express) and INTEX
(International Express), to transport its documents.
Slide 36
Example: Express Deliveries
In testing the delivery times of the two services,
the firm sent two reports to a random sample of its
district offices with one report carried by UPX and
the other report carried by INTEX. Do the data on
the next slide indicate a difference in mean delivery
times for the two services? Use a .05 level of
significance.
Slide 37
Delivery Time (Hours)

District Office UPX INTEX Difference
Seattle 32 25 7
Los Angeles 30 24 6
Boston 19 15 4
Cleveland 16 15 1
New York 15 13 2
Houston 18 15 3
Atlanta 14 15 -1
St. Louis 10 8 2
Milwaukee 7 9 -2
Denver 16 11 5
Slide 38
1. Develop the hypotheses.
H0: md = 0
Ha: md  
Let md = the mean of the difference values for the
two delivery services for the population
of district offices
Slide 39
 di ( 7  6... 5)
d    2. 7
n 10
 ( di  d )
2
76.1
sd    2. 9
n 1 9
d  md 2.7  0
t   2.94
sd n 2.9 10
Slide 40
4. Compute the p –value.
For t = 2.94 and df = 9, the p–value is between

.02 and .01. (This is a two-tailed test, so we double
the upper-tail areas of .01 and .005.)

We are at least 95% confident that there is a
difference in mean delivery times for the two
services?
Slide 41
For  = .05 and df = 9, t.025 = 2.262.

Reject H0 if t > 2.262

Because t = 2.94 > 2.262, we reject H0.
We are at least 95% confident that there is a
difference in mean delivery times for the two
services?
Slide 42
End of Chapter 10
Part A
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.. .

Inferences About the Difference Between

Standard Deviation (Standard Error)

where: s1 = standard deviation of population 1

Based on data from previous driving distance

s12 s 22 (15) 2 ( 20) 2

1. Develop the hypotheses. H0: m1 - m2 < 0

2. Specify the level of significance.  = .01

3. Compute the value of the test statistic.

4. Compute the p–value.

5. Determine whether to reject H0.

4. Determine the critical value and rejection rule.

For  = .01, z.01 = 2.33

5. Determine whether to reject H0.

Where the degrees of freedom for t/2 are:

With /2 = .05 and df = 24, t/2 = 1.711

s12 s22 (2.56)2 (1.81) 2

We are 90% confident that the difference between

3. Compute the value of the test statistic.

5. Determine whether to reject H0.

Delivery Time (Hours)

3. Compute the value of the test statistic.

For t = 2.94 and df = 9, the p–value is between

5. Determine whether to reject H0.

For  = .05 and df = 9, t.025 = 2.262.

5. Determine whether to reject H0.

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