In this document we will discuss 2 – sample Z- hypothesis testing and confidence

intervals that uses a mean’s and known population S’s.

This PDF discusses Z-Critical Value and you are discussing a sample mean and a
population S.
There are still 3 different hypothesis scenarios with a 2 – Sample Z Hypothesis
Test.
Lower Tail Test (1 tail):
Ho: 𝑥̅1 − 𝑥̅2 = 0
Ha: 𝑥̅1 − 𝑥̅2 < 0
Upper Tailed Test (1 tail):
Ho: 𝑥̅1 − 𝑥̅2 = 0
Ha: 𝑥̅1 − 𝑥̅2 > 0
Two Tailed Test:
Ho:𝑥̅1 − 𝑥̅2 = 0
Ha: 𝑥̅1 − 𝑥̅2 ≠ 0
The hypothesized value is 0 and the same key words apply from a 1 – sample
hypothesis test to determine which scenario to use. 𝜇1 − 𝜇2 is the difference
between the average in the first sample and the average in the second sample.
̅1 − 𝑥̅2 −0
𝑥
The Z – Test Statistic =
𝑆 2𝑆 2
√ 1+ 2
𝑛1 𝑛2

Where S is the population standard deviation, 𝜇1 𝑎𝑛𝑑 𝜇2 are averages and n1

and n2 are the sample sizes.
We can use =NORM.S.DIST to find the p-values. These should look familiar from
the discussion forum.
Example:
A dietitian has developed a diet that is low in fats, carbs, and cholesterol. The
dietitian wishes to examine the effects this diet has on the weights of obese
people. Two random samples of 30 obese each are selected, and one group of 30
people is places on the low-fat diet. The other 30 people are places on a diet that
contains approximately the same quantity of food, but has is not low in fats,
carbs, and cholesterol. For each person the amount of weight lost (or gained) in a
three-week period is recorded. There is a difference in the population mean
weight losses for the two diets? The population S1 = 4.67 and the population S2 =
4.04. Use alpha = .05. Here we see we are given the Raw Data set.
WL Low Diet WL Regular
Diet
8 6
21 14
13 4
8 6
11 13
4 11
3 11
6 8
16 14
5 8
10 6
8 4
8 12
12 2
7 1
3 2
12 6
14 1
16 0
11 9
10 5
9 10
10 6
8 6
 14 9
3 8
7 3
14 1
11 7
14 8

First step is to state the hypothesis scenario. Because the key word says
difference this means it is a two tailed test.
Ho: 𝑥̅1 − 𝑥̅2 = 0
Ha: 𝑥̅1 − 𝑥̅2 ≠ 0
Before we start calculating anything by hand and because we are given the raw
data set, we can actually run this hypothesis test in Excel. And since you installed
the Data Analysis Toolpak it is easy to do. First you need to input this Raw Data
into Excel.
Then go to Data -> Data Analysis -> and scroll to where it says z-Test Two Sample
for Means and click OK
Under Input:
Variable 1 Range: you will highlight the WL Low Diet column and make sure you
include the top row where the Label is located.
Variable 2 Range: you will highlight the WL Regular Diet column and make sure
you include the top row where the Label is located.
Hypothesize Mean Difference: can be left as 0
Variance 1 Variance (known): Here is where you will put the Known Variance for
the First Sample. In the problem we are given the Known Standard Deviation. To
find the Variance all we did was Square it. Input that value in the box.
Variance 2 Variance (known): Here is where you will put the Known Variance for
the Second Sample. In the problem we are given the Known Standard Deviation.
To find the Variance all we did was Square it. Input that value in the box.
Check the “Labels” box because we did include the first row of labels. For Alpha
out 0.05 but this can be change depending on what significance level you use.
Then make sure the bubble for New Workbook Ply: highlight and click OK. It
should look similar to the screenshot below.

Once you click OK in a new Worksheet this should populate.

 z-Test: Two Sample for
Means

WL Low Diet WL Regular

Diet
Mean 9.866666667 6.7
Known Variance 21.8089 16.3216
Observations 30 30
Hypothesized Mean 0
Difference
z 2.808838232
P(Z<=z) one-tail 0.002486031
z Critical one-tail 1.644853627
P(Z<=z) two-tail 0.004972062
z Critical two-tail 1.959963985

Here we have all the values we need to state a conclusion.

We see the Z - Test Statistic = 2.8088 and because we ran a two tailed test the
p-value = .00497.
p -value = .00497 < .05. This p-value is less than .05 which means we Reject Ho.
Yes, there is statistical evidence that there is a difference in the population mean
weight losses for the two diets.
If we were running a 1-tailed test, we are given the p-value which is .002486. Z-
Test Statistic is the same and so is the conclusion for a 1-tailed test.

Using Excel to run a hypothesis test when we are given the Raw Data is very
convenient. But if we aren’t given the Raw Data and we are given the averages
and known S’s we will need to compute the Z-Test Stat by hand and then use the
Excel function to find the p-value.
To find the Z-Test Stat we will use this equation and plug in what we know. You
should know by now how to calculate the average and SD using Excel. Which is
what I did here.
 ̅1 − 𝑥̅2 −0
𝑥
Z – Test Statistic =
𝑆 2𝑆 2
√ 1+ 2
𝑛1 𝑛2

9.86667− 6.7−0
Z – Test Statistic = 2 2
√4.67 +4.04
30 30

3.16667
Z – Test Statistic =
√.72696333+.54405333
3.16667
Z – Test Statistic =
√1.27101666
3.16667
Z – Test Statistic =
1.1273937
Z – Test Statistic = 2.80884
When we calculate the Test Stat by hand using algebra we get the same value.
Next, we need to find the p-value. We will use the =NORM.S.DIST function to find
the p-value.
In Excel input =NORM.S.DIST(2.80884,TRUE) and hit Enter. We will type True
because this is a cumulative test.
We see this p-value = .997514 BUT remember when we use this function in Excel,
this function is in the less than form. This means if we were running a Lower
Tailed test, this would be our p-value. If we were running an Upper Tailed Test
we need to take 1 - .997514 to get the p-value for our test.
P-value = 1 - .997514 = .002486. This is the p-value for an upper tailed test.
But since we are running a Two Tailed, we take whichever p-value is smaller and
multiply it by 2.
p-value = .002486*2 = .004972. This is the p-value for a two tailed test. And if we
compare these to the Excel output that should be the same and draw the same
conclusion.
This is how you would run a 2 – sample Z hypothesis test using averages and
population S’s when we don’t have the raw data and can’t use Excel.

Now that we ran a hypothesis test, let calculate a confidence interval and draw
the same conclusion.
The equation for a 2 – sample Z confidence interval:

2 2
∗ 𝑆1 𝑆2
𝑥̅1 − 𝑥̅2 ± 𝑍𝛼 ∗ √ +
2 𝑛1 𝑛2

𝑆12 𝑆22
Where Standard Error (SE) = √ +
𝑛1 𝑛2

∗ 𝑆21 𝑆22
Margin of Error = 𝑍𝛼 ∗ √𝑛 + 𝑛
2 1 2

We have all the values we need let’s plug them into our equation.
 2 2
∗4.67 4.04
9.86667 − 6.7 ± 𝑍𝛼 ∗ √ +
2 30 30
The last thing we need to find is a Z-Critical Value. We will use the =NORM.S.INV
in Excel to find the Z-Critical Value.
If we want to find a 95% confidence interval, then alpha = 1 - .95 = .05. But
because this is a confidence interval and we need to take into account the plus
AND minus on both sides if the bell-shaped curve we will divide alpha be 2. .05/2
= .025. Then we take 1 - .025 = .975. We will use this value in our Excel function.
=NORM.S.INV(.975)

We see the Z – Critical Value is 1.96. We will plug this into the equation and
solve. But if you compare this Critical Value to the Excel output we got when we
ran the hypothesis test it is the same because we used Alpha = .05 in the output.
But this value will change depending on what you input for Alpha.
z-Test: Two Sample for
Means
 WL Low Diet WL Regular
Diet
Mean 9.866666667 6.7
Known Variance 21.8089 16.3216
Observations 30 30
Hypothesized Mean 0
Difference
z 2.808838232
P(Z<=z) one-tail 0.002486031
z Critical one-tail 1.644853627
P(Z<=z) two-tail 0.004972062
z Critical two-tail 1.959963985

2 2
∗4.67 4.04
9.86667 − 6.7 ± 𝑍𝛼 ∗ √ +
2 30 30
2 2
4.67 4.04
9.86667 − 6.7 ± 1.96 ∗ √ +
30 30
3.16667 ± 1.96 ∗ 1.1273937
3.16667 ± 2.209697
The confidence interval goes from .95697 to 5.376367. This interval goes from a
positive value to a positive value. This means that 0 is NOT in this interval.
Because 0 is NOT in the interval, Yes, it is Significant, and we Reject Ho. This is the
same conclusion that we got with the hypothesis test.