Basic Business Statistics

12th Edition

Chapter 4
Two-Sample Tests

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 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 by
testing the ratio of the two variances

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 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

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-3
 Difference Between Two Means
DCOVA

Population means, Goal: Test hypothesis or form

independent
samples
* a confidence interval for the
difference between two
population means, μ1 – μ2
σ1 and σ2 unknown,
assumed equal The point estimate for the
difference is

X1 – X2
σ1 and σ2 unknown,
not assumed equal
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 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

Use Sp to estimate unknown

σ1 and σ2 unknown, σ. Use a Pooled-Variance t
assumed equal test.

σ1 and σ2 unknown, Use S1 and S2 to estimate

not assumed equal unknown σ1 and σ2. Use a
Separate-Variance t test.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-5
 Hypothesis Tests for
Two Population Means DCOVA
Two Population Means, Independent Samples

Lower-tail test: Upper-tail test: Two-tail test:

H0: μ1  μ2 H0: μ1 ≤ μ2 H0: μ1 = μ2

H1: μ1 < μ2 H1: μ1 > μ2 H1: μ1 ≠ μ2
i.e., i.e., i.e.,
H0: μ1 – μ2  0 H0: μ1 – μ2 ≤ 0 H0: μ1 – μ2 = 0
H1: μ1 – μ2 < 0 H1: μ1 – μ2 > 0 H1: μ1 – μ2 ≠ 0

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 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

-ta ta -ta/2 ta/2

Reject H0 if tSTAT < -ta Reject H0 if tSTAT > ta Reject H0 if tSTAT < -ta/2
or tSTAT > ta/2

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-7
 Hypothesis tests for µ1 - µ2 with σ1
and σ2 unknown and assumed equal
DCOVA

Population means, Assumptions:

independent
 Samples are randomly and
samples
independently drawn

 Populations are normally

σ1 and σ2 unknown,
assumed equal
* distributed or both sample
sizes are at least 30

 Population variances are

unknown but assumed equal
σ1 and σ2 unknown,
not assumed equal
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-8
 Hypothesis tests for µ1 - µ2 with σ1
and σ2 unknown and assumed equal
(continued)
DCOVA
• The pooled variance is:
Population means,
independent n
S2  1
 1S 1
2
 n 2  1S 2
2

(n1  1)  (n 2  1)
p
samples

• The test statistic is:

σ1 and σ2 unknown,
assumed equal
*  X 
 X 2   μ1  μ 2 

1
t STAT
1 1 
S   
2
p
 n1 n 2 
σ1 and σ2 unknown,
not assumed equal • Where tSTAT has d.f. = (n1 + n2 – 2)
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-9
 Confidence interval for µ1 - µ2 with σ1
and σ2 unknown and assumed equal
DCOVA

Population means,
independent
samples
The confidence interval for
μ1 – μ2 is:
σ1 and σ2 unknown, *
X 
assumed equal 1 1 
1  X 2  ta/2 S   
2
p
 n1 n 2 

σ1 and σ2 unknown, Where tα/2 has d.f. = n1 + n2 – 2

not assumed equal
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-10
 Pooled-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

Assuming both populations are

approximately normal with
equal variances, is
there a difference in mean
yield (a = 0.05)?
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-11
 Pooled-Variance t Test Example:
Calculating the Test Statistic
(continued)
H0: μ1 - μ2 = 0 i.e. (μ1 = μ2) DCOVA
H1: μ1 - μ2 ≠ 0 i.e. (μ1 ≠ μ2)

The test statistic is:

t STAT 
X 1 
 X 2  μ1  μ 2 

3.27  2.53  0  2.040
 1 1   1 1 
S   
2
1.5021   
 21 25 
p
 n1 n 2 

n
S2  1
 1 S 2
1  n 2  1 S 2
2

21  11.30 2
 25  11.16 2
 1.5021
(n1  1)  (n 2  1) (21 - 1)  ( 25  1)
P

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 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 STAT   2.040 Reject H0 at a = 0.05
 1 1 
1.5021    Conclusion:
 21 25  There is evidence of a
difference in means.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-13
 Excel Pooled-Variance t test
Comparing NYSE & NASDAQ
DCOVA
Pooled-Variance t Test for the Difference Between Two Means
(assumes equal population variances)
Data
Hypothesized Difference
Level of Significance
0
0.05
Decision:
Reject H0 at a = 0.05
Population 1 Sample
Sample Size 21 =COUNT(DATA!$A:$A)
Sample Mean 3.27 =AVERAGE(DATA!$A:$A)
Sample Standard Deviation 1.3 =STDEV(DATA!$A:$A)

Sample Size
Sample Mean
Population 2 Sample
25 =COUNT(DATA!$B:$B)
2.53 =AVERAGE(DATA!$B:$B)
Conclusion:
Sample Standard Deviation 1.16 =STDEV(DATA!$B:$B)
There is evidence of a
Intermediate Calculations
Population 1 Sample Degrees of Freedom
Population 2 Sample Degrees of Freedom
20 =B7 - 1
24 =B11 - 1
difference in means.
Total Degrees of Freedom 44 =B16 + B17
Pooled Variance 1.502 =((B16 * B9^2) + (B17 * B13^2)) / B18
Standard Error 0.363 =SQRT(B19 * (1/B7 + 1/B11))
Difference in Sample Means 0.74 =B8 - B12
t Test Statistic 2.040 =(B21 - B4) / B20

Two-Tail Test
Lower Critical Value -2.015 =-TINV(B5, B18)
Upper Critical Value 2.015 =TINV(B5, B18)
p-value 0.047 =TDIST(ABS(B22),B18,2)
Reject the null hypothesis =IF(B27<B5,"Reject the null hypothesis",
"Do not reject the null hypothesis")

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-14
 Minitab Pooled-Variance t test
Comparing NYSE & NASDAQ
DCOVA
Two-Sample T-Test and CI

Sample N Mean StDev SE Mean

1 21 3.27 1.30 0.28
2 25 2.53 1.16 0.23

Difference = mu (1) - mu (2)

Estimate for difference: 0.740
95% CI for difference: (0.009, 1.471)
T-Test of difference = 0 (vs not =): T-Value = 2.04 P-Value = 0.047 DF = 44
Both use Pooled StDev = 1.2256
Decision:
Reject H0 at a = 0.05
Conclusion:
There is evidence of a
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
difference in means. Chap 10-15
 Pooled-Variance t Test Example:
Confidence Interval for µ1 - µ2
DCOVA
Since we rejected H0 can we be 95% confident that µNYSE
> µNASDAQ?

95% Confidence Interval for 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 

Since 0 is less than the entire interval, we can be 95%

confident that µNYSE > µNASDAQ

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-16
 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

σ1 and σ2 unknown,  Populations are normally

assumed equal distributed or both sample
sizes are at least 30

 Population variances are

unknown and cannot be
σ1 and σ2 unknown,
not assumed equal
* assumed to be equal

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-17
 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


Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-18
 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 = X2i – X1i
 Eliminates Variation Among Subjects
 Assumptions:
 Both Populations Are Normally Distributed

 Or, if not Normal, use large samples

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-19
 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  i 1
n1
n is the number of pairs in the paired sample

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-20
 The Paired Difference Test:
Finding tSTAT
DCOVA

 The test statistic for μD is:

Paired
samples
D  μD
t STAT 
SD
n

 Where tSTAT has n - 1 d.f.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-21
 The Paired Difference Test:
Possible Hypotheses DCOVA
Paired Samples

Lower-tail test: Upper-tail test: Two-tail test:

H0: μD  0 H0: μD ≤ 0 H0: μD = 0

H1: μD < 0 H1: μD > 0 H1: μD ≠ 0

a a a/2 a/2

-ta ta -ta/2 ta/2

Reject H0 if tSTAT < -ta Reject H0 if tSTAT > ta Reject H0 if tSTAT < -ta/2
or tSTAT > ta/2
Where tSTAT has n - 1 d.f.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-22
 The Paired Difference
Confidence Interval
DCOVA

Paired The confidence interval for μD is

samples
SD
D  ta / 2
n

where

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-23
 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
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-24
 Paired Difference Test:
Solution DCOVA

 Has the training made a difference in the number of

complaints (at the 0.01 level)?
Reject Reject
H0: μD = 0
H1: μD  0
a/2 a/2
a = .01 D = - 4.2 - 4.604 4.604
- 1.66
t0.005 = ± 4.604 Decision: Do not reject H0
d.f. = n - 1 = 4
(tstat is not in the reject region)
Test Statistic:
Conclusion: There is
D  μ D  4.2  0 insufficient evidence there
t STAT    1.66
SD / n 5.67/ 5 is significant change in the
number of complaints.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-25
 Paired t Test In Excel
DCOVA
Paired t Test

Data
Since -2.776 < -1.66 < 2.776
Hypothesized Mean Diff. 0 we do not reject the null hypothesis.
Level of Significance 0.05
Or
Intermediate Calculations
Sample Size 5 =COUNT(I2:I6)
Dbar -4.2 =AVERAGE(I2:I6) Since p-value = 0.173 > 0.05 we
Degrees of Freedom 4 =B8 - 1 do not reject the null hypothesis.
SD 5.67 =STDEV(I2:I6)
Standard Error 2.54 =B11/SQRT(B8) Thus we conclude that there is
t-Test Statistic -1.66 =(B9 - B4)/B12
Insufficient evidence to conclude
Two-Tail Test there is a difference in the average
Lower Critical Value -2.776 =-TINV(B5,B10) number of complaints.
Upper Critical Value 2.776 =TINV(B5,B10)
p-value 0.173 =TDIST(ABS(B13),B10,2)
Do not reject the null =IF(B18<B5,"Reject the null
Hypothesis hypothesis",
"Do not reject the null hypothesis")
Data not shown is in column I
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-26
 Paired t Test In Minitab Yields
The Same Conclusions
Paired T-Test and CI: After, Before DCOVA

Paired T for After - Before

N Mean StDev SE Mean

After 5 2.40 2.61 1.17
Before 5 6.60 7.80 3.49
Difference 5 -4.20 5.67 2.54

95% CI for mean difference: (-11.25, 2.85)

T-Test of mean difference = 0 (vs not = 0): T-Value = -1.66 P-Value = 0.173

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-27
 Two Population Proportions
DCOVA
Goal: test a hypothesis or form a
confidence interval for the difference
between two population proportions,
π1 – π2
Population
proportions

The point estimate for

the difference is
p1  p2
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-28
 Two Population Proportions
DCOVA
In the null hypothesis we assume the
null hypothesis is true, so we assume π1
Population
= π2 and pool the two sample estimates
proportions
The pooled estimate for the
overall proportion is:

X1  X 2
p
n1  n 2
where X1 and X2 are the number of items of
interest in samples 1 and 2

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-29
 Two Population Proportions
(continued)

The test statistic for DCOVA

Population π1 – π2 is a Z statistic:
proportions

Z STAT 
 p1  p2    π1  π2 
 1 1 
p (1  p )   
 n1 n2 

X1  X 2 X1 X2
where p , p1  , p2 
n1  n2 n1 n2
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-30
 Hypothesis Tests for
Two Population Proportions
DCOVA
Population proportions

Lower-tail test: Upper-tail test: Two-tail test:

H0: π1  π2 H0: π1 ≤ π2 H0: π1 = π2

H1: π1 < π2 H1: π1 > π2 H1: π1 ≠ π2
i.e., i.e., i.e.,
H0: π1 – π2  0 H0: π1 – π2 ≤ 0 H0: π1 – π2 = 0
H1: π1 – π2 < 0 H1: π1 – π2 > 0 H1: π1 – π2 ≠ 0

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-31
 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

-za za -za/2 za/2

Reject H0 if ZSTAT < -Za Reject H0 if ZSTAT > Za Reject H0 if ZSTAT < -Za/2
or ZSTAT > Za/2

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-32
 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?

 In a random sample, 36 of 72 men and 35 of

50 women indicated they would vote Yes

 Test at the .05 level of significance

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-33
 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)

 The sample proportions are:

 Men: p1 = 36/72 = 0.50
 Women: p2 = 35/50 = 0.70

 The pooled estimate for the overall proportion is:

X 1  X 2 36  35 71
p    0 .582
n1  n2 72  50 122
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-34
 Hypothesis Test Example:
DCOVA
Two population Proportions
(continued)
Reject H0 Reject H0
The test statistic for π1 – π2 is:
.025 .025

z STAT 
 p1  p2    π1  π2 
 1 1
p ( 1  p)    -1.96 1.96
 n1 n2  -2.20


 .50  .70   0   2 .20
 1 1  Decision: Reject H0
.582 ( 1  .582 )   
 72 50 
Conclusion: There is
evidence of a difference in
Critical Values = ±1.96
For a = .05 proportions who will vote
yes between men and
women.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-35
 Two Proportion Test In Excel
DCOVA
Z Test for Differences in Two Proportions

Data
Hypothesized Difference 0 Since -2.20 < -1.96
Level of Significance 0.05
Group 1
Number of items of interest 36
Or
Sample Size 72
Group 2 Since p-value = 0.028 < 0.05
Number of items of interest 35
Sample Size 50
We reject the null hypothesis
Intermediate Calculations
Group 1 Proportion 0.5 =B7/B8
Group 2 Proportion 0.7 =B10/B11
Difference in Two Proportions -0.2 =B14 - B15 Decision: Reject H0
Average Proportion 0.582 =(B7 + B10)/(B8 + B11)
Z Test Statistic -2.20 =(B16-B4)/SQRT((B17*(1-B17))*(1/B8+1/B11))

Two-Tail Test Conclusion: There is

Lower Critical Value -1.96 =NORMSINV(B5/2) evidence of a difference in
Upper Critical Value 1.96 =NORMSINV(1 - B5/2)
p-value 0.028 =2*(1 - NORMSDIST(ABS(B18))) proportions who will vote
Reject the null hypothesis =IF(B23 < B5,"Reject the null hypothesis", yes between men and
"Do not reject the null hypothesis")
women.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-36
 Two Proportion Test In Minitab
Shows The Same Conclusions
DCOVA

Test and CI for Two Proportions

Sample X N Sample p
1 36 72 0.500000
2 35 50 0.700000

Difference = p (1) - p (2)

Estimate for difference: -0.2
95% CI for difference: (-0.371676, -0.0283244)
Test for difference = 0 (vs not = 0): Z = -2.28 P-Value = 0.022

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-37
 Confidence Interval for
Two Population Proportions
DCOVA

Population The confidence interval for

proportions
π1 – π2 is:

p1 (1  p1 ) p 2 (1  p 2 )
 p1  p 2   Za/2 
n1 n2

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-38
 Testing for the Ratio Of Two
Population Variances DCOVA
Hypotheses FSTAT
Tests for Two
Population
* H0: σ12 = σ22
H1: σ12 ≠ σ22 S 2
1
Variances 2
H0: σ12 ≤ σ22 S 2
H1: σ12 > σ22
F test statistic
Where:
S12 = Variance of sample 1 (the larger sample variance)
n1 = sample size of sample 1
S 22 = 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
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-39
 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

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-40
 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

Reject H0 if FSTAT > Fα/2 Reject H0 if FSTAT > Fα

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-41
 F Test: An Example
DCOVA

You are a financial analyst for a brokerage firm. You

want to compare dividend yields between stocks listed
on the NYSE & NASDAQ. You collect the following data:
NYSE NASDAQ
Number 21 25
Mean 3.27 2.53
Std dev 1.30 1.16

Is there a difference in the

variances between the NYSE
& NASDAQ at the a = 0.05 level?

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-42
 F Test: Example Solution
DCOVA
 Form the hypothesis test:
H 0: σ12  σ 22 (there is no difference between variances)
H 1: σ 12  σ 22 (there is a difference between variances)

 Find the F critical value for a = 0.05:

 Numerator d.f. = n1 – 1 = 21 –1 = 20

 Denominator d.f. = n2 – 1 = 25 –1 = 24

 Fα/2 = F.025, 20, 24 = 2.33

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-43
 F Test: Example Solution
DCOVA
(continued)

 The test statistic is: H0: σ12 = σ22

H1: σ12 ≠ σ22
S12 1.302
FSTAT  2  2
 1.256
S 2 1.16
a/2 = .025

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

 Conclusion: There is insufficient evidence of

a difference in variances at a = .05

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-44
 Two Variance F Test In Excel
DCOVA
F Test for Differences in Two Variables Conclusion:
Level of Significance
Data
0.05
There is insufficient evidence
Larger-Variance Sample of a difference in variances
Sample Size 21
Sample Variance 1.6900 =1.3^2 at a = .05 because:
Smaller-Variance Sample
Sample Size 25
Sample Variance 1.3456 =1.16^2

Intermediate Calculations
F statistic =1.256 < 2.327 Fα/2
F Test Statistic 1.256 1.255945
Population 1 Sample Degrees of Freedom 20 =B6 - 1
or
Population 2 Sample Degrees of Freedom 24 =B9 - 1
p-value = 0.589 > 0.05 = α.
Two-Tail Test
Upper Critical Value 2.327 =FINV(B4/2,B14,B15)
p-value 0.589 =2*FDIST(B13,B14,B15)
Do not reject the null hypothesis =IF(B19<B4,"Reject the null hypothesis",
"Do not reject the null hypothesis")

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-45
 Two Variance F Test In Minitab
Yields The Same Conclusion
Test and CI for Two Variances
DCOVA
Null hypothesis Sigma(1) / Sigma(2) = 1
Alternative hypothesis Sigma(1) / Sigma(2) not = 1
Significance level Alpha = 0.05

Statistics
Sample N StDev Variance
1 21 1.300 1.690
2 25 1.160 1.346

Ratio of standard deviations = 1.121

Ratio of variances = 1.256

95% Confidence Intervals

CI for
Distribution CI for StDev Variance
of Data Ratio Ratio
Normal (0.735, 1.739) (0.540, 3.024)

Tests
Test
Method DF1 DF2 Statistic P-Value
F Test (normal) 20 24 1.26 0.589

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-46
 Chapter Summary
 Compared 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
 Compared two related samples (paired
samples)
 Performed paired t test for the mean difference
 Formed confidence intervals for the mean difference
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-47
 Chapter Summary
(continued)

 Compared two population proportions

 Formed confidence intervals for the difference
between two population proportions
 Performed Z-test for two population proportions

 Performed F test for the ratio of two

population variances

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 10-48