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Unit 3

The document presents various statistical examples focusing on hypothesis testing and the use of Z-statistics to determine significant differences in proportions across different samples. It includes scenarios related to smoking habits, tea consumption, defective products, and treatment effectiveness, illustrating how to calculate proportions and test hypotheses. The results indicate whether the null hypothesis can be rejected based on calculated Z-values compared to critical values at specified significance levels.

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0% found this document useful (0 votes)
5 views164 pages

Unit 3

The document presents various statistical examples focusing on hypothesis testing and the use of Z-statistics to determine significant differences in proportions across different samples. It includes scenarios related to smoking habits, tea consumption, defective products, and treatment effectiveness, illustrating how to calculate proportions and test hypotheses. The results indicate whether the null hypothesis can be rejected based on calculated Z-values compared to critical values at specified significance levels.

Uploaded by

aggarwalmanas287
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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sample

Thene can thane test kte

1)

sl ki.44 (s7. lewl gnne)


ame

1) z<3,deene
at s level o
379
SOLVED
EXAMPLES

Example
6.0Ina sample of 600 men from n certain city, 450 men are found to besmokers. In
rom another city, 450 nre found to be smokers. Do the data indicate that two
slymilicanty different with respect to prevalence of
smoking habitsamong ment
Solutlon. Here we are given for one city
450
600,Pproportion of smokers =0,75
600
anothercity,
Alofor
n, =900, P, proportion of smokers = 450 0.5
900
450 +450 900
P= 600 +900 1500 =0.6
q= 1-p=1-0.6=0.4
Letustakethe hypothesis that there is no significant difference in thesmoking habits of two cities
, and HPP,
:
follows:
Tlsing the Z-statisticas
Z= P P2
P9

0.75-0.5 0.75-0.5
1 1 Jo.0004 +0.000267
0.6x04 600 900
0.75 -0.5
=9.68
0.0258
Asthe caleulated value of l ZI=9.68> 1.96the significant value of Zat 5% level of sigmificance,
H,is rejected ie., there is a significant differences in the smoking habits of two cities.
Example 6.10. Before an increasein excise duty on tea, 800 people out of a sample of
10 personswere found to betea drinkers. After an inerease in the duty, 800 persons were known
obe tea drinkers in a sample of 1200 people. Do you think that there has been asiguificant
decrease in the consumption of tea after the inerease in the excise duty?
Solution. Here,
800
1100,p=proportion of tea drinkers before increase in excise = =0.8
1000

X, 800 =0.67
g=1200, P,Fproportion of tea drinkers after an increase in duty = 1200
800 +800 1600
MPtP2 -0.727
1000 +1200 2200
and 4= 1-p=1-0,727 =0.273
380.
difference in the PROBABILITY AND S

Let us take the hypothesisthat


increase in excise duty, i.e.,
there is no significant

P,
consumption teaSTAafIStTecAr
of th
H,:P,=P, and H,:P, *
Using the Z-statistic as follows: P-P
Z=

0.8-0.67 0.8-0.67
1 1 0.019
yar27x0274 1000 1200
= 6.842
Asthecalculated value of l Zl = 6.842 >1.96the significant value of Zat 5% level of significancg.
in the consumption of tea after the increase
significant decrease 1n excise
rejected i.e., there is a
H,is Example 6.11. Amachine produced 20 defective articles ina batch of 400. After overhauling
duty. improved?
Has the machine
defectives in a batch of300.
it produced 10
Solution. Here, 20
before overhauling =
=0.050
articles 400
=400, P, =proportion of defective
n 10
= 0.033
defective articles after overhauling = 300
proportion of
n, = 300, P, =
p=

20 +10 30 =0.043
400 +300 700
0.957
q= 1-p=1 -0.043
and
machine has not improved after overhauling. ie., H,:P, =,
Let us take the hypothesis that the
and H, : P,#Py
Using the Z-statistic as follows:
P- P2
Z=

0.05-0.033
0.05-0.,033
0.0155
+

= 1.1 s A
fsignificance
Zat 5% level of
As the calculated value of l Zl =1.1 <1.96 the significant value of
is accepted i.e.,the machine has not improved after overhauling.
eEDSTA7STICS
381
Bample6.12, In a year there are 956 births in a
BCOombined, this town Aof which 52.5% were males, while in
proportion in atotal of 1406 births was 0.496. Is
there any signíficant
in
diterence the proportion of male births in the
Solution. Here,
two towns?

nË= 956, P, proportion of male births in the sarnple of size n


= 0.525
n+n, = 1406, P, =proportion of male births in the sarmple of n +ny
=0.496

p= PtngP2
0.496 = 956x0.525 +450x P2
1406
P2 0.434
and q=1-p=1=0.496=0.504
ns take the hypothesis that there is no difference in the proportion in male
births in two towns,
i,E:P,=P, and H,: P,P
Using the Z-statistic as followS:
Z= P P2
Pa1)
0.525-0.434 0.091
3.367
0.027
0.496x 0.504 956 450
As the calculated value of lZl= 3.367 > 1.96 the significant value of Zat59% level of significance,
H,srejected ie, there is adifference between the proportion of male births intown Aand B.
Example 6.13. On a certain day, 74 trains were arriving ontime at Delhi station during the
ash hours and 83 were late. At New Delhi, there were 65 on time and 107 late. Is there any
aiterence in the proportion arriving on time at the two stations?
Solution. Here,
n = 157,
P,=proportion of trains arriving on time at Delhi station
74
=0,471
74+83
n, = 172,
Delhi station
P,= proportion of trains arriving on time at New
65 =0,378
65+107
PROBABILUTY ANToSTATISTc
Mean proportion of trains arriving on time
p=

157 x 0.47l+172x 0.378 74+65 139


157 +172 329
329
p=0423
-0.423 =0.577
q= 1-p=|
Let us take the hypothesis thatthere is no difference inthe proportions arriving on fime at fhe twg

stations, ie. Ho:P =P, and H, :P, * P


Using the Z-statistic as follow:
P-P2

0.471-0.378 0.093
0.054 =1.722
1
/0.423x0.577|
sionit
calculated value of IZ| = 1.722 < 1.96, the significant value of Zat 5% level of
As the 'arriving on time' at the two stations
there is no difference of trains
H,is accepted i.e.,
certain disease are cured by allonain
Example 6.14. If 57 out of 150 patients suffering with homeopathy, is there reason to beliep
cured by
and 33 out of 100 patients with same disease are
0.05 level of significance.
that allopathy is better than homeopathy at
Solution. From the given data, n, = 150 andn, = 100
57
=0.38
The observedproportion, cured by allopathy 1s P= 150
33
and the observed proportion, cured by homeopathy is P; =100 =0.33
proportions P, and P, areequal(a
To test the significance difference between the two population
two sample proportion p, and p, are equal).
Let the nullbypothesis H, :P =P
against the alternative hypothesis H, : P, >P, (use right tail test)
The critical region for Z, level of significance a at 0.05 is 1.645
Now the test statistic

Z= P- P2 PP2
S.E(P - P2)
APPAIEDSTATISTICS
383

where S.E(P;-P)=
p= "Ptnp,
and and q=1-p

Now
n t ny
150x 0.38 +100×0,33
150 +100
o= 0.36 thenq=0.64

Z= P P2 0.38-0.33
Now
11 1 1
0.36x0.64 150 100
= 0.806<1.645 accepted
Calculated Zvalue (=0.806) is less than the table value of Z(1.645) at 0.05 levelofsignificance. So
need not reject the null hypothesis. Hence we concludethatthere is no significant difference between
heallopathy and homeopathy treatment i.e., the reasonto believethat allopathy is betterthan homeopathy
at 0.05 level of significance is rejected.
Example 6.15. On the basis of their total scores, 200 candidates ofa civil service examination
aredivided into two groups, the upper 30% and the remaining 70%.Consider the first question
of the examination. Among the first group 40 had correct answer, whereas the second group,
80 had the correct answer. On the basis of these results, can one
conclude that the first question is
examined here ?
Dot good at discriminating ability of the type being
140
Solution. Fromthe given data, n, = 30% of 200=60 and n,= 70% of 200 =
40 80
Pi 60 =0.667, P2 140 =0.57
Let the nul hypothesis H: P, =P,
tail test)
and the Alternative Hypothesis H,:P, #P, (use two

60x0.667+140x0.57
60+140
40+ 80
=0.6
200

1200.6
200
and q= 1-0.6=0.4
S84 PROBABILITY AND STATISTICN
S.EP, -P) =
= 0.0756

|Z|= S.E(P, -P)|


. The test statistic
0.667-0.571
0.0750
= 1.269<1.96
table value of Z, so we need not reject the nat
is less than the
Since the calculated the value of Z
hypothesis.
there is no significant difference between the two oro ie,te proportions,
Hence, we conclude that of both
enough in discriminating the ability of the candidates
Exampleis good
first question 6.16. Astudyshows that 16 of 200 tractors producedlon one assembly line requirei
extensive adjustments before they could beshipped, while the same wasstrue for 14 of 400 tractos
line. At the 0.01 level of significance, doesthis supnort f
produced on another assembly
does not superior work.
that the second production line
Solution. Given n, = 200, n, =400
1 16 0.08
The observed proportion of first assembly ineP 200
A214.
=0.035
The observed proportion of the first assembly line p, 400

200x 0.08+400X0.035 16+14


200+ 400 200+ 400
= 0.05 then q=0.95
From the given data, to est p P,Le, P,SP,
Let nullhypothesis H,:P=P2
Alternative hypothesis H:P<P, (useleft tailed test)
0.08-0.035

Jossxosg: 400
= 2.37>-2.33 null
The the
calculated yalue of Zis greater than the table value of Z(-2.33). So we need not ireject
dprodctu
hypothesis. Hence we conclude that P, = P, i.e., do
line is not superiorto first not support the claim that the second
production line.
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J>. "'llt1 .
4.21.8.3. Spearman's Rank Correlation Coefficient Method
of liner relationship
discussed degree of covariability
hari Pearson's coefficient of correlation
when definite measurements
But often we come across situations
UeLWeen twoquantitative variables. quantitative terms.
cannot be measured in
i.e., the factor, under study
are not possible
Onne variables of leadership ability, the ordering
of
of agroup of students on
the basis
Forexample, the evaluation in an interview
and so on. In
by two or more judges
the ranking of students
WOmen in a beauty contest, or proficiency on
and arranged in order of merit
or individuals may be ranked them, we measure the
all such cases, objects between
covery or have agreement
and when these twosets ofranks
two variable
or relationship by coefficient of rank correlation.
degree of covariation

In rank correlation
we may have three types of problems:
()when ranks are given.
(1) when ranks are not given.

() when equal ranks are


()When
given

Ranks are Given


to more than two
attributes.

are:
required fro computing rank correlation
the steps
are given to us D.
ranks differences by
Where actual
of two ranks, i.e.,(R,
-
R,) and denote these

diference
Step 1. Take the
obtain the totalD
these difference and
Step 2. Square

Step 3.Apply
the formulal
R=1- 2D
n(n -1)

is the total number of pairs of observations.


where n
SOLVEDEXAMPLES

AaIpie 4.85, Two ladies were asked to rank 7 different types of lipsticks. The ranks given
by them are given bclow:

F G
Lipsticks B C D E

Anita 2 .1 4 3 7

Sunita 4 5 7
1 3 2

CalculateSpearman's rank correlation coefficient.

Solution. Let ranks givenby Anita be denoted by R, andSunitaby R,

Calculation ofrank correlationcoefficient

D2
R R, D=R,-R,
2 1 +1
3 -2 4
4 2 +2 4
3 4 -1

5 5 0.
7 6 +1
6 7 -1 1

SD² =12

Now R= 1D n(n-1)
Here ED² = 12, n=7
6x12
R= 1 =1-0.214 =0.786.
7(7-1)

Example 4.86. Ten competitors in a beautycontest are.ranked by three judges in the following
orders:

Ist Judge
1 6 5 10 3 4 9 7 8

2ndJudge 3 5 8 4 10 2 1 6

3rd Judge 6 4 9 8 1 2 3 10 5 7

Use the correlation coefficient to determine which pair of judges has the nearest approach to

common taste in beauty.

Solution. Let R, R,R,, respectively be the ranks given by first, second and third judge. Let rbe
rank correlation coefficient between the rank givenby ith and jth judge, #), =1,2,3,j i i = 1,2,3. Let
=R,-Rbe the
D,, difference of ranks of an individual given by ith and th judge.
he

ranks

PROBABILITY AND STATISTICS


given

Computation of rank correlation


coefficient

R,R,| k,|Dn R,-R, D,g=R-R,DR,-R, D;


Ds D:
1|3 6 -2 -5 -3 4
65 4
2
25
4 1
5 -3 -4 -1 16 1

10 4 8 6 2 –4 36 4 16
3 7 -4 2 6 16 4 36
210 2 -8 8 64 64

4 2 3 2 -1
10 -1 64 81

7 6 8 2 4
8 9 4
7 -1 2

1
D =0 D, =0 EDa =0 SD;, =200 D, 60 D,=214
=

Here n=10
6x200 7
-=-0.2121
Ry, = 1- 10x99 33
n(n-1)

R3 = 1-.n(n -1)1 10x99


6x60 7
6Di 11
=0.6363

-49
6Di--1. 6x214 165
=0.2970
n(n
10x99
-1)
judge has the nearest approach to the common
and
Since R,2 iS maximum so the pair of first third

taste of beauty.
10 students in English
Example 4.87. The coefficient of rank correlation of marksobtained by
the difference in ranks in the two
If was later discovered that
and Economics was found to be 0.5.
taken as 3 instead of 7. Find the correct
students was wrongly
subjects obtained by one of the
coefficient of rank correlation.

Solution. R= 1

n(n -1)

Substituting the value in the aboveformula, we get

0.5 = 1
6D' 6D'
990
=|-0.5=0.5
10(100 -1)

0.5x990
6)D = 0.5 x 990 D = =82.5
Correct value of SD =82.5 -32 + 72=122.5

6x122.5 735 225


Correct R= 1
10x99
=1
990 990
=0.2676.
PROBABILITYSTICS
debenture prices
and sh
between the the valu
eficient of rank correlation was 33, find
in ranks
ple 4.88. The
cocfficient
squaresof the
difference
0.8. If thesum of
Dp company was
D:
25

4 ion. R= 16D n(n-1)


9
16
36
4 R=0.8, )D =33
16 6x33
4
64
0
),0.8 = 1

n(n-1)
4 198
=990 n'-n=990
64 nr-1)= 0.2

4 n'-1000 – n+10 =0 n-(10)³- (n-10)=0


+ 100 (n-10)(n+ 10n + 99) =0
(n-10)(n + 10n – 1)

n=10 (:ncannot be imaginary)


,=200| >D;, =60
ce, number of item in the group is 10.

When Ranks are Not Given

x and y by giving the rank


7 his case we are given onty the data. We assign ranks to both the series

33 =-0.2121 (or to the lowest values in both the series) and so on.
hest values in both the series

7
=0.6363 OLVED EXAMPLES
11

of rank correlation between


jample 4.89. From the data given below, calculate the coefficient

-49 Y.
165
=0.2970
78 89 97 69 59 79 68 57
:arest
approach to thd
125 137 156 112 107 136 123 108

ed by 10students iolution. Here n =8


ifference in
ranks ii
Computation of rank correlation coefficient
itead of 7.
Find the
D2
X Y Rankin X (R) RankinY(R) Rank difference D =R,-R
78 125 4 4 0 0
89 137 2 2 0
97 156

69 112 6 -1
0.5 = 0.5
59 107 8
79 136 3 3
32,5
68 123 6 5
57 108 8 7 1

XD =0 SD'=4
16
and
the 302
AND STATISTICS
shai Coefficients of rank PROBABILITY
correlation:
value

R=16D-=|- 6x4 3
=0,952.
n(n-1) 8(64-1) 63
Example 4.90. A
random sample of 5college grades in
Mathematics and students is selected and their
Statistics are found to be:

1 2 3 4
Mathematics 85 60 73 40 90
Statistics 93 75 65 50 80

Calculate Spearman's rank correlation


coefficient.

Solution.
Computation of rank correlation coefficient

Marks in Rank Marks in Rank Rank difference


D
Mathematics X in XR, Statistics Y in YR, D=R,-R,
1

85 2 93 1

60 4 75 3 1

4 -1
73 3 65
0
5 50 5
40 1
80 2 -1
90 1

SD'=4

6x4
6)D?-=1
Spearman's rankcorrelation =1 s(5-1)
n(n' -1)
4
=1
24
-=1
24
=1:
1

5 5
=0,8.

5(25 –1) 5x 24
than TwoAttributes
(I)When Equal Ranks are Given to More
an attribute, i.e.,
with respect to
together in any classification
It two or more individuals are placed in either or both
the series
with the same rank
are more than one item
in case of variable data, their
if
formula given abovedoes not give the
the Spearman's Rank Correlation coefficient
(ie., Tie rank), then of these
average rank to each
for Tie Rank. The problem is solved by assigning
correlation cocfficient and 6th
at rank Sth (i.e., the 5th
For example, suppose an item is repeated
individuals who are put
in tie.

to 5th and 6th


items is (5 6)/2=5.5. +
same values), then the common rank assigned
items are having they were
would have been assigned if
average of 5 and 6, the ranks which these items
which is the the common
7. But if an item is
repeated thrice at rank 2,then
The next rank assigned will be
mean of 2, 3 and 4.The next
different.

each value will be (2 +4)/3=3,which is the arithmetic


+3
rank assigned to Repeated Ranks or
In order to find the Rank
Correlation coefficient of
rank to be assigned would be 5.
to the Spearman's
Rank Correlation formula,
Correction Factor is added
Tie Ranks, an Adjustment or
i.e., as
R= 1
6JD?
...()
n(n -1)

m (m-1)
Correction Factor. "In the formula(),add the factor
12
to D', where m is the number

of times an item is repcated. This correction factor is to be added for cach repeated value in both the

series.

The modified formulafor Tie Rank Correlation Coefficient is given by

12 12 12
R=1
n(n'-1)

where m,m, m,,....,.are the number of times a value is repeated.

SOLVED EXAMPLES
Example 4.91. From the following data ofthe makes obtained by 8 students in Mathematics
ard Physics paper compute rank coefficients of correlation.

Marks in Mathematics 15 20 28 12 40 60 20 80
Marks in Physics 40 30 50 30 20 10 30 60

Computationofrank correlation

Marks in Rank Marks in Rank D²


Mathematics X assigned R, Physics Y assigned R,
15 2 40 6 16.00

20 3.5 30 4 0.25

28 5 50 7 4.00

12 1 30 4 9.00

40 6 20 2 16.00

60 7 10 36.00
20 3.5 30 4 0.25

80 8 60 8 0.00

SD=81.5

6 D+12 (m -m)+12(n-m,)
1

R=
1.
-n
PROBABILITYAND STATISTICS

ere
D= 81.5, n =8
Y theitem 30 occurs 3 times and so

20is repeated 2 times in series X. So m, =2. In series


The item

3
Substituting these values in the above formula.

6 81.5+('-2) +(3-3)|
12
12
R= 1- 8'-8

504
6 (81.5+0.5 + 2) _, 6x84-=1 504 =0.
= 1

504
504
coefficient:
the rank correlation
calculate 57
Example 4.92. From the followingt table, 16
65 24
16 16
X 48 33 40
20
6 19
4
6 15
13 13 24

the following table.


Solution.We prepare coefficient
ofrank correlation D²
Computation

Rank YR, D=R-R,


X Y Rank XR 2.5
6.25
5.5 0.25
8 0.5
48 13
5.5 9
6 -3
33 13
10 2.25
24
7 -1.5
40 2.5 16
6
1 -4
9 7
4
15
3 2
16 1

4
3
16 9 1

10
65 20 4
1

0.25
5 0.5
24 2.5 1
6 3
16
8
57 19 2D² =41
these
given to
thrice. The common rank
is repeated
the value 16
we notice that values would
In the X-series, the ranks which these
(2+3+4)_a
values is 3.which is the average of 2, 3 and 3 is 5. Here m, =3. The
to the next value
different.
The next rank given
if they were
1ave assumed is.
correction factor for X-series

-1) =2,
m (m-1) 3(3²

12 and its average


twice
The value of 6 occurs
12
twice.
13 are repeated
the value 6 and
the value 13
the Y-series. is
In
m, =2. Again
(2+3) the rank 4. Here
= 9 is assigned
rank is 2.5 The next value
2
cases

BASIC STATISTICS SO6


certain
5+6 actual

twice different places. rank is 5,5 = The next value 5 IS


repeated
at The average 2 assigned the

cank 7. Here m, 2. The total correction for the Y-series is

–1),m,(mž-1) 2(2-1),2(2-I)
m, (om;
12 12 12 12
=0.5 +0.5 =1.

Thus the rank correlation is:

+
R= 1- 12 12 12

n(n-1)

=1- 6|41+2 +0.5+0.5])


=] 264 =1-0.267 =
10(10 -1) 990
0.733.

Merits and Demerits ofRank Correlation


Coefficient Method
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= 330½t"'
1'iw~i.ctw 1.heo.Li ~ ~UU4 ~ 3. ~1 -heuhl J o ti, eel
~t. UJ.i(J ~ -Ute e~ ua}\ 0\.00 H,o..n ~( 0/» p1o\,a.W~
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