Lecture-15

CO4: Compare various statistical methods of study data samples

TESTING OF HYPOTHESIS FOR TWO

POPULATION VARIANCES USING Z-TEST

we have discussed testing of hypothesis about the population variance. But there

are so many situations where we want to test the hypothesis about equality of

two population variances or standard deviations. For example, an economist

may want to test whether the variability in incomes differ in two populations, a

quality controller may want to test whether the quality of the product is

changing over time, etc.

Let there be two populations, say, population-I and population-II under study.

Also let 1, 2, 1, 2, and denote the means and variances of population-I and

population-II respectively where both 21 and 22 are unknown but 1 and 2

may be known or unknown. For testing the hypothesis about equality of two

population variances or standard deviations, we draw a random sample of large

size n1 from population-I and a random sample of large size n 2 from population-

II. Let S21 and S22 be the sample variances of the samples selected from

population-I and population-II respectively.

limit theorem, the sampling distribution of difference of two large sample

variances asymptotically normally distributed with mean (21 + 22) and

variance (241/n1 + 242/n2).

Thus

E ( S12−S 22 )=E ( S 21 )−E ( S 22 )=σ 21−σ 22 (1)

and

4 4
2 σ 1 2 σ2
Var ( S −S ) =Var ( S ) −Var ( S ) =
2 2 2 2
1 2 1 + 2
n1 n2

But we know that standard error = √ Variance

1 2 √
 SE ( S −S ) = Var ( S ) −Var ( S )= V
2 2 2σ 41 2 σ 42
2
1
n1
+
n2
2
2
√
Now, follow the same procedure as we have discussed already, that is, first of all

we have to setup null and alternative hypothesis. Here, we want to test the

hypothesis about the two population variances, so we can take our null and

alternative hypotheses as

2 2 2
H 0 :σ 1=❑2=σ ∧H 1 : σ 1 ≠❑2
2 2
[for two-tailed test]

or
 }
2 2 2 2
H 0 :σ 1 ≤❑2 ∧H 1 :σ 1>❑2
[for one-tailed test]
H 0 :σ 21 ≥❑22∧H 1 : σ 21<❑22

For testing the null hypothesis, the test statistic Z is given by

S 21−S 22−E ( S 21−S 22 )

2 2
2 2 (σ ¿¿ 1 −σ 2 )
Z=(S −S )− ¿

√
1 2
4
2 σ1 2 σ2
4
[Using equations (1) and (2)]
+
n1 n2

Since under null hypothesis we assume that σ 21=σ 22=σ 2, therefore, we have

2 2
S 1−S 2
Z= N ( 0 ,1)

√(
σ 2
1 1
+
n 1 n2 )
Generally, population variances σ 21∧σ 22 are unknown, so we estimate them by

their corresponding sample variances S21∧S 22 as

2 2 2 2
σ 1 ¿ S1∧σ 2=S2

Thus, the test statistic Z is given by

2 2
S 1−S 2
Z= N (0 ,1)

√
4 4
2 S1 2 S2
+
n1 n2
After that, we calculate the value of test statistic as may be the case and

compare it with the critical value given in Table at prefixed level of significance

α. Take the decision about the null hypothesis as described already.

Note: When populations under study are normal then for testing the hypothesis

about equality of population variances we use F- test which will be discussed.

Whereas when the form of the populations under study is not known and sample

sizes are large then we apply Z-test as discussed above.

Now, it is time to do an example based on above test.

Example: A comparative study of variation in weights (in pound) of Army-

Large Sample Tests soldiers and Navy- sailors was made. The sample variance

of the weight of 120 soldiers was 60 pound 2 and the sample variance of the

weight of 160 sailors was 70 pound 2. Test whether the soldiers and sailors have

equal variation in their weights. Use 5% level of significance.

Solution: Given that

2 2
n1=120 , S1 =60 , n2=160 , S 2=70

We want to test that the Army-soldiers and Navy-sailors have equal variation in

their weights. If σ 21∧σ 22 and denote the variances in the weight of Army-soldiers

and Navy-sailors so our claim is σ 21=σ 22and its complement is σ 21 ≠ σ 22 . Since the
claim contains the equality sign so we can take the claim as the null hypothesis

and complement as the alternative hypothesis. Thus,

2 2
H 0 :σ 1=❑2 [Army-soldiers and Navy-sailors have equal variation in their weights]

and the alternative hypothesis as

2 2
H 1 : σ 1 ≠❑2 [Army-soldiers and Navy-sailors have different variation in their weights]

Here, the distributions of populations under study are not known and sample

sizes are large n1 = 120 > 30, n2 = 160 > 30) so we can go for Z-test.

Since population variances are unknown so for testing the null hypothesis, the

test statistic Z is given by

2 2
S 1−S 2
Z=

√
4 4
2 S1 2 S2
+
n1 n2

60−70
Z=

√
2 2
2∗( 60 ) 2∗( 70 )
+
120 160

−10 −10
Z= = =−0.91
√60.0+ 61.25 11.01

The critical values for two-tailed test at 5% level of significance are ± z α/2 = ±

z0.025 = ±1.96.
Since calculated value of Z (= −0.91) is less than critical value (= 1.96) and

greater than the critical value (= −1.96), that means it lies in non-rejection

region, so we do not reject the null hypothesis i.e., we support the claim.

Thus, we conclude that samples fail to provide us sufficient evidence against the

claim so we may assume that the Army-soldiers and Navy-sailors have equal

variation in their weights.

Now, you can try the following exercise.

1. Two sources of raw materials of bulbs are under consideration by a bulb

manufacturing company. Both sources seem to have similar characteristics

but the company is not sure about their respective uniformity. A sample of 52

lots from source A yields variance 25 and a sample of 40 lots from source B

yields variance of 12. Test whether the variance of source A significantly

differs to the variances of source B at  = 0.05?

TEXT BOOKS
• T1 = H. K Dass, Higher Engineering Mathematics, S. Chand
Publishers,3rd revised edition.2014.
• T2 = B.S. Grewal, Higher Engineering Mathematics, Khanna
Publishers,42th ed.2013, New Delhi.
• T3= N. P. Bali and Manish Goyal, A textbook of engineering
Mathematics, Laxmi Publications, Reprint 2008.
REFERENCE BOOKS
• R1=R. K. Jain and S. R. K. Lyenger, Advanced Engineering
Mathematics ,3rd Edition Narosa Publishing House ,2004,New Delhi.
• R2 =B. V. Ramana Advanced Engineering Mathematics, McGrawHill,
July2006, New Delhi.
• S.P. Gupta, Statistical Methods, S.Chand &Sons, 2017, NewDelhi,
ISBN9789351610281 Insiders’ Guide

Video Lecture: https://www.youtube.com/watch?v=K6wNyoDdRSk&t=95s