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Transcript of Statistics for Managers Using Microsoft Excel, 5e 2008 Prentice-Hall, Inc.Chap 10-1 Statistics for...
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-1
Statistics for ManagersUsing Microsoft® Excel
5th Edition
Chapter 10Two-Sample Tests
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-2
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, 5e © 2008 Prentice-Hall, Inc. Chap 10-3
Two-Sample Tests Overview
Two Sample Tests
Independent Population
Means
Means, Related
Populations
Independent Population Variances
Group 1 vs. Group 2
Same group before vs. after treatment
Variance 1 vs.Variance 2
Examples
Independent Population Proportions
Proportion 1vs. Proportion 2
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-4
Two-Sample Tests
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
Goal: Test hypothesis or form a confidence interval for the difference between two population means, μ1 – μ2
The point estimate for the difference between sample means:
X1 – X2
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-5
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
Different data sources Independent: Sample selected
from one population has no effect on the sample selected from the other population
Use the difference between 2 sample means
Use Z test, pooled variance t test, or separate-variance t test
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-6
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
Use a Z test statistic
Use S to estimate unknown σ, use a t test statistic
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-7
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
Assumptions:
Samples are randomly and independently drawn
population distributions are normal
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-8
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
When σ1 and σ2 are known and both populations are normal, the test statistic is a Z-value and the standard error of X1 – X2 is
2
22
1
21
XX nσ
nσσ
21
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-9
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
2
22
1
21
2121
nσ
nσ
μμXXZ
The test statistic is:
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-10
Two-Sample TestsIndependent Populations
Lower-tail test:
H0: μ1 μ2
H1: μ1 < μ2
i.e.,
H0: μ1 – μ2 0H1: μ1 – μ2 < 0
Upper-tail test:
H0: μ1 ≤ μ2
H1: μ1 > μ2
i.e.,
H0: μ1 – μ2 ≤ 0H1: μ1 – μ2 > 0
Two-tail test:
H0: μ1 = μ2
H1: μ1 ≠ μ2
i.e.,
H0: μ1 – μ2 = 0H1: μ1 – μ2 ≠ 0
Two Independent Populations, Comparing Means
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-11
Two-Sample TestsIndependent PopulationsTwo Independent Populations, Comparing Means
Lower-tail test:
H0: μ1 – μ2 0H1: μ1 – μ2 < 0
Upper-tail test:
H0: μ1 – μ2 ≤ 0H1: μ1 – μ2 > 0
Two-tail test:
H0: μ1 – μ2 = 0H1: μ1 – μ2 ≠ 0
/2 /2
-z -z/2z z/2
Reject H0 if Z < -Za Reject H0 if Z > Za Reject H0 if Z < -Za/2
or Z > Za/2
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-12
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
Assumptions: Samples are randomly and independently drawn
Populations are normally distributed
Population variances are unknown but assumed equal
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-13
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
Forming interval estimates:
The population variances are assumed equal, so use the two sample standard deviations and pool them to estimate σ
the test statistic is a t value with (n1 + n2 – 2) degrees of freedom
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-14
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
The pooled standard deviation is:
1)n()1(n
S1nS1nS21
222
211
p
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-15
Two-Sample TestsIndependent Populations
Where t has (n1 + n2 – 2) d.f., and
21
2p
2121
n1
n1S
μμXXt
The test statistic is:
1)n()1(n
S1nS1nS21
222
2112
p
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-16
Two-Sample TestsIndependent Populations
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 NASDAQNumber 21 25Sample mean 3.27 2.53Sample std dev 1.30 1.16
Assuming both populations are approximately normal with equal variances, is there a difference in average yield ( = 0.05)?
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-17
Two-Sample TestsIndependent Populations
1.50211)25(1)-(21
1.161251.301211)n()1(n
S1nS1nS22
21
222
2112
p
2.040
251
2115021.1
02.533.27
n1
n1S
μμXXt
21
2p
2121
The test statistic is:
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-18
Two-Sample TestsIndependent Populations
H0: μ1 - μ2 = 0 i.e. (μ1 = μ2) H1: μ1 - μ2 ≠ 0 i.e. (μ1 ≠ μ2) = 0.05 df = 21 + 25 - 2 = 44 Critical Values: t = ± 2.0154 Test Statistic: 2.040
t0 2.0154-2.0154
.025
Reject H0 Reject H0
.025
Decision: Reject H0 at α = 0.052.040
Conclusion: There is evidence of a difference in the means.
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-19
Independent PopulationsUnequal Variance If you cannot assume population variances
are equal, the pooled-variance t test is inappropriate
Instead, use a separate-variance t test, which includes the two separate sample variances in the computation of the test statistic
The computations are complicated and are best performed using Excel
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-20
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
2
22
1
21
21nσ
nσXX Z
The confidence interval for μ1 – μ2 is:
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-21
Two-Sample TestsIndependent Populations
Independent Population Means
σ1 and σ2 known
σ1 and σ2 unknown
21
2p2-nn21
n1
n1SXX
21t
The confidence interval for μ1 – μ2 is:
Where
1)n()1(n
S1nS1nS21
222
2112
p
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-22
Two-Sample TestsRelated Populations
D = X1 - X2
Tests Means of 2 Related Populations Paired or matched samples Repeated measures (before/after) Use difference between paired values:
Eliminates Variation Among Subjects Assumptions:
Both Populations Are Normally Distributed
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-23
Two-Sample TestsRelated PopulationsThe ith paired difference is Di , where
n
DD
n
1ii
Di = X1i - X2i
The point estimate for the population mean paired difference is D :
Suppose the population standard deviation ofthe difference scores, σD, is known.
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-24
Two-Sample TestsRelated PopulationsThe test statistic for the mean difference is a Z
value:
nσ
μDZD
D
WhereμD = hypothesized mean differenceσD = population standard deviation of differencesn = the sample size (number of pairs)
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-25
Two-Sample TestsRelated PopulationsIf σD is unknown, you can estimate the unknown population standard deviation with a sample standard deviation:
1n
)D(DS
n
1i
2i
D
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-26
Two-Sample TestsRelated Populations
1n
)D(DS
n
1i
2i
D
nS
μDtD
D
The test statistic for D is now a t statistic:
Where t has n - 1 d.f.
and SD is:
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-27
Two-Sample TestsRelated Populations
Lower-tail test:
H0: μD 0H1: μD < 0
Upper-tail test:
H0: μD ≤ 0H1: μD > 0
Two-tail test:
H0: μD = 0H1: μD ≠ 0
/2 /2
-t -t/2t t/2
Reject H0 if t < -ta Reject H0 if t > ta Reject H0 if t < -ta/2
or t > ta/2
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-28
Two-Sample TestsRelated Populations ExampleAssume 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:
Salesperson Number of Complaints Difference, Di
(2-1)Before (1) After (2)
C.B. 6 4 -2T.F. 20 6 -14M.H. 3 2 -1R.K. 0 0 0M.O 4 0 -4
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-29
Two-Sample TestsRelated Populations Example
2.4n
DD
n
1ii
5.671n
)D(DS
2i
D
Salesperson Number of Complaints Difference, Di
(2-1)Before (1) After (2)
C.B. 6 4 -2T.F. 20 6 -14M.H. 3 2 -1R.K. 0 0 0M.O 4 0 -4
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-30
Two-Sample TestsRelated Populations ExampleHas the training made a difference in the number of complaints (at the α = 0.01 level)?
H0: μD = 0H1: μD 0
Critical Value = ± 4.604 d.f. = n - 1 = 4
Test Statistic:
1.6655.67/04.2
n/Sμt
D
D
D
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-31
Two-Sample TestsRelated Populations Example
Reject
- 4.604 4.604
Reject
/2
- 1.66
Decision: Do not reject H0
(t statistic is not in the reject region)
Conclusion: There is no evidence of a significant change in the number of complaints
/2
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-32
Two-Sample TestsRelated Populations The confidence interval for μD (σ known) is:
nσDZD
Where n = the sample size (number of pairs in the paired sample)
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-33
Two-Sample TestsRelated Populations The confidence interval for μD (σ unknown) is:
1n
)D(DS
n
1i
2i
D
nStD D
1n
where
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-34
Two Population Proportions
Goal: Test a hypothesis or form a confidence interval for the difference between two independent population proportions, π1 – π2
Assumptions: n1π1 5 , n1(1-π1) 5
n2π2 5 , n2(1-π2) 5
The point estimate for the difference is p1 - p2
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-35
Two Population Proportions
Since you begin by assuming the null hypothesis is true, you assume π1 = π2 and pool the two sample (p) estimates.
21
21
nnXXp
The pooled estimate for the overall proportion is:
where X1 and X2 are the number of successes in samples 1 and 2
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-36
Two Population Proportions
21
2121
11)1(nn
pp
ppZ
The test statistic for p1 – p2 is a Z statistic:
2
22
1
11
21
21
nX ,
nX ,
nnXXp
PPwhere
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-37
Two Population Proportions
Hypothesis for Population Proportions
Lower-tail test:
H0: π1 π2
H1: π1 < π2
i.e.,
H0: π1 – π2 0H1: π1 – π2 < 0
Upper-tail test:
H0: π1 ≤ π2
H1: π1 > π2
i.e.,
H0: π1 – π2 ≤ 0H1: π1 – π2 > 0
Two-tail test:
H0: π1 = π2
H1: π1 ≠ π2
i.e.,
H0: π1 – π2 = 0H1: π1 – π2 ≠ 0
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-38
Two Population Proportions
Hypothesis for Population Proportions
Lower-tail test:
H0: π1 – π2 0H1: π1 – π2 < 0
Upper-tail test:
H0: π1 – π2 ≤ 0H1: π1 – π2 > 0
Two-tail test:
H0: π1 – π2 = 0H1: π1 – π2 ≠ 0
/2 /2
-z -z/2z z/2
Reject H0 if Z < -Z Reject H0 if Z > Z Reject H0 if Z < -Z
or Z > Z
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-39
Two Independent Population Proportions: Example 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 of 72 men, 36 indicated they would vote Yes and, in a sample of 50 women, 31 indicated they would vote Yes
Test at the .05 level of significance
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-40
Two Independent Population Proportions: Example 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 = .50
Women: p2 = 31/50 = .62
The pooled estimate for the overall proportion is:
.54912267
50723136
nnXXp
21
21
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-41
Two Independent Population Proportions: Example
The test statistic for π1 – π2 is:
1.31
501
721.549)(1.549
0.62.50
n1
n1)p(1p
z
21
2121
pp
Critical Values = ±1.96For = .05
.025
-1.96 1.96
.025
-1.31
Decision: Do not reject H0
Conclusion: There is no evidence of a significant difference in proportions who will vote yes between men and women.
Reject H0 Reject H0
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-42
Two Independent Population Proportions
2
22
1
1121 n
)(1n
)(1 ppppZpp
The confidence interval for π1 – π2 is:
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-43
Testing Population Variances
Purpose: To determine if two independent populations have the same variability.
H0: σ12 = σ2
2
H1: σ12 ≠ σ2
2
H0: σ12 σ2
2
H1: σ12 < σ2
2
H0: σ12 ≤ σ2
2
H1: σ12 > σ2
2
Two-tail test Lower-tail test Upper-tail test
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-44
Testing Population Variances
22
21
SSF
The F test statistic is:
= Variance of Sample 1 n1 - 1 = numerator degrees of freedom
n2 - 1 = denominator degrees of freedom = Variance of Sample 2
21S
22S
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-45
Testing Population Variances
The F critical value is found from the F table There are two appropriate degrees of
freedom: numerator and denominator. In the F table,
numerator degrees of freedom determine the column
denominator degrees of freedom determine the row
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-46
Testing Population Variances
0
FL Reject H0
Do not reject H0
H0: σ12 σ2
2
H1: σ12 < σ2
2
Reject H0 if F < FL
0
FU Reject H0Do not reject H0
H0: σ12 ≤ σ2
2
H1: σ12 > σ2
2
Reject H0 if F > FU
Lower-tail test Upper-tail test
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-47
Testing Population Variances
L22
21
U22
21
FSSF
FSSF
rejection region for a two-tail test is:F 0
/2
Reject H0Do not reject H0 FU
H0: σ12 = σ2
2
H1: σ12 ≠ σ2
2
FL
/2
Two-tail test
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-48
Testing Population Variances
To find the critical F values:
1. Find FU from the F table for n1 – 1 numerator and n2 – 1 denominator degrees of freedom.
*UL F
1F 2. Find FL using the formula:
Where FU* is from the F table with n2 – 1 numerator and n1 – 1 denominator degrees of freedom (i.e., switch the d.f. from FU)
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-49
Testing Population Variances
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 NASDAQNumber 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 = 0.05 level?
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-50
Testing Population Variances
Form the hypothesis test: H0: σ2
1 – σ22 = 0 (there is no difference between variances)
H1: σ21 – σ2
2 ≠ 0 (there is a difference between variances)
Numerator: n1 – 1 = 21 – 1 = 20 d.f.
Denominator: n2 – 1 = 25 – 1 = 24 d.f.
FU = F.025, 20, 24 = 2.33
Numerator: n2 – 1 = 25 – 1 = 24 d.f.
Denominator: n1 – 1 = 21 – 1 = 20 d.f.
FL = 1/F.025, 24, 20 = 0.41
FU: FL:
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-51
Testing Population Variances The test statistic is:
256.116.130.1
2
2
22
21
SSF
0 /2 = .025
FU=2.33Reject H0Do not
reject H0
FL=0.41
/2 = .025
Reject H0
F
F = 1.256 is not in the rejection region, so we do not reject H0
Conclusion: There is insufficient evidence of a difference in variances at = .05
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-52
Chapter Summary
In this chapter, we have Compared two independent samples
Performed Z test for the differences in two means Performed pooled variance t test for the differences
in two means Formed confidence intervals for the differences
between two means Compared two related samples (paired samples)
Performed paired sample Z and t tests for the mean difference
Formed confidence intervals for the paired difference
Performed separate-variance t test
Statistics for Managers Using Microsoft Excel, 5e © 2008 Prentice-Hall, Inc. Chap 10-53
Chapter Summary
Compared two population proportions Formed confidence intervals for the difference between
two population proportions Performed Z-test for two population proportions
Performed F tests for the difference between two population variances
Used the F table to find F critical values
In this chapter, we have