Slides Prepared by

JOHN S. LOUCKS
St. Edward’s University

© 2002 South-Western /Thomson Learning Slide

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 Chapter 10
Comparisons Involving Means
 Estimation of the Difference Between the Means of
Two Populations: Independent Samples
 Hypothesis Tests about the Difference between the
Means of Two Populations: Independent Samples
 Inferences about the Difference between the Means
of Two Populations: Matched Samples
 Inferences about the Difference between the

?
Proportions of Two Populations:

= 2
ANOVA 1
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Estimation of the Difference Between the Means

of Two Populations: Independent Samples

 Point Estimator of the Difference between the Means
of Two Populations
 Sampling Distribution x1  x2
 Interval Estimate of Large-Sample Case
 Interval Estimate of Small-Sample Case

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 Point Estimator of the Difference Between
the Means of Two Populations
 Let 1 equal the mean of population 1 and 2 equal
the mean of population 2.
 The difference between the two population means is
1 - 2.
 To estimate 1 - 2, we will select a simple random
sample of size n1 from population 1 and a simple
random sample of size n2 from population 2.
x1 x2
 Let equal the mean of sample 1 and equal the
mean of sample 2.
 The point estimator of the
x1 difference
x2 between the
means of the populations 1 and 2 is .

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 Sampling Distribution ofx1  x2

1  x2
Properties of the Sampling Distribution xof


• Expected Value
E ( x1  x2 )  1   2
• Standard Deviation

2

2

x x  1
2
1 2
n
1 n
2

where: 1 = standard deviation of population 1

2 = standard deviation of population 2
n1 = sample size from population 1
n2 = sample size from population 2
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 Interval Estimate of 1 - 2:
Large-Sample Case (n1 > 30 and n2 > 30)
 Interval Estimate with 1 and 2 Known
x1  x2  z / 2  x1  x2
where:
1 -  is the confidence coefficient
 Interval Estimate with 1 and 2 Unknown

x1  x2  z / 2 sx1  x2

where: 2 2
s s
s
x x  1
2
1 2
n
1 n2

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 Example: Par, Inc.

 Interval Estimate of 1 - 2: Large-Sample Case

Par, Inc. is a manufacturer of golf equipment and
has developed a new golf ball that has been designed
to provide “extra distance.” In a test of driving
distance using a mechanical driving device, a sample of
Par golf balls was compared with a sample of golf balls
made by Rap, Ltd., a competitor.
The sample statistics appear on the next slide.

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 Example: Par, Inc.

 Interval Estimate of 1 - 2: Large-Sample Case

• Sample Statistics
Sample #1 Sample #2
Par, Inc. Rap, Ltd.
Sample Size n1 = 120 balls n2 = 80 balls
Mean = 235 yards = 218 yards
Standard Dev. s1x = 15 yards
1
s2 = x20
2 yards

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 Example: Par, Inc.

 Point Estimate of the Difference Between Two

Population Means
1 = mean distance for the population of
Par, Inc. golf balls
2 = mean distance for the population of
Rap, Ltd. golf balls
Point estimate of 1 - 2 =x1  x2 = 235 - 218 = 17 yards.

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 Point Estimator of the Difference
Between the Means of Two Populations

Population 1 Population 2
Par, Inc. Golf Balls Rap, Ltd. Golf Balls
m11 = mean driving m22 = mean driving
distance of Par distance of Rap
golf balls golf balls
m1 – m2 = difference between
the mean distances
Simple random sample Simple random sample
of n11 Par golf balls of n22 Rap golf balls
x11 = sample mean distance x22 = sample mean distance
for sample of Par golf ball for sample of Rap golf ball
x1 - x2 = Point Estimate of m1 – m2

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 Example: Par, Inc.

 95% Confidence Interval Estimate of the Difference

Between Two Population Means: Large-Sample Case,
1 and 2 Unknown
Substituting the sample standard deviations for the
population standard deviation:
12  22 (15) 2 ( 20) 2
x1  x2  z / 2   17  1. 96 
n1 n2 120 80

= 17 + 5.14 or 11.86 yards to 22.14 yards.

We are 95% confident that the difference between the
mean driving distances of Par, Inc. balls and Rap, Ltd.
balls lies in the interval of 11.86 to 22.14 yards.

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 Interval Estimate of 1 - 2:
Small-Sample Case (n1 < 30 and/or n2 < 30)
 Interval Estimate with  2
Known

x1  x2  z / 2  x1  x2
where:
1 1
 x1 x2   (  )
2
n1 n2

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 Interval Estimate of 1 - 2:
Small-Sample Case (n1 < 30 and/or n2 < 30)
 Interval Estimate with  2
Unknown
x1  x2  t/2sx1x2
where:
2 2
2 1 1 ( n  1) s  ( n  1) s
sx1  x2  s (  ) s2  1 1 2 2
n1 n2 n1  n2  2

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 Example: Specific Motors

Specific Motors of Detroit has developed a new

automobile known as the M car. 12 M cars and 8 J cars
(from Japan) were road tested to compare miles-per-
gallon (mpg) performance. The sample statistics are:
Sample #1 Sample #2
M Cars J Cars
Sample Size n1 = 12 cars n2 = 8 cars
Mean = 29.8 mpg = 27.3 mpg
Standard Deviation x1 s1 = 2.56 mpg x2 s2 = 1.81
mpg

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 Example: Specific Motors

 Point Estimate of the Difference Between Two

Population Means
1 = mean miles-per-gallon for the population of
M cars
2 = mean miles-per-gallon for the population of
J cars
Point estimate of 1 - 2 =x1  x2 = 29.8 - 27.3 = 2.5
mpg.

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 Example: Specific Motors

 95% Confidence Interval Estimate of the Difference

Between Two Population Means: Small-Sample Case
We will make the following assumptions:
• The miles per gallon rating must be normally
distributed for both the M car and the J car.
• The variance in the miles per gallon rating must
be the same for both the M car and the J car.
Using the t distribution with n1 + n2 - 2 = 18 degrees
of freedom, the appropriate t value is t.025 = 2.101.
We will use a weighted average of the two sample
variances as the pooled estimator of  2.

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 Example: Specific Motors

 95% Confidence Interval Estimate of the Difference

Between Two Population Means: Small-Sample Case
2 2 2 2
( n  1) s  ( n  1) s 11( 2 . 56 )  7 (1. 81)
s2  1 1 2 2
  5. 28
n1  n2  2 12  8  2

2 1 1 1 1
x1  x2  t.025 s (  )  2. 5  2.101 5. 28(  )
n1 n2 12 8
= 2.5 + 2.2 or .3 to 4.7 miles per gallon.
We are 95% confident that the difference between the
mean mpg ratings of the two car types is from .3 to
4.7 mpg (with the M car having the higher mpg).

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 Hypothesis Tests About the Difference
Between the Means of Two Populations:
Independent Samples
 Hypotheses
H0: 1 - 2 < 0 H0: 1 - 2 > 0 H0: 1 - 2 = 0
Ha: 1 - 2 > 0 Ha: 1 - 2 < 0 Ha: 1 - 2  0

 Test Statistic
Large-Sample Small-Sample
(
x
 2
z 1x
2 
)(
12) (xx
t122

)(

1 2)
 2
1 1 2n
n 2 s(
1n
1 1
n2)

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 Example: Par, Inc.

 Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
Par, Inc. is a manufacturer of golf equipment and has
developed a new golf ball that has been designed to
provide “extra distance.” In a test of driving distance
using a mechanical driving device, a sample of Par
golf balls was compared with a sample of golf balls
made by Rap, Ltd., a competitor. The sample
statistics appear on the next slide.

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 Example: Par, Inc.

 Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
• Sample Statistics
Sample #1 Sample #2
Par, Inc. Rap, Ltd.
Sample Size n1 = 120 balls n2 = 80 balls
Mean = 235 yards = 218 yards
Standard Dev. sx1 1= 15 yards x2 yards
s2 = 20

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 Example: Par, Inc.

 Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
Can we conclude, using a .01 level of significance,
that the mean driving distance of Par, Inc. golf balls is
greater than the mean driving distance of Rap, Ltd.
golf balls?
1 = mean distance for the population of Par, Inc.
golf balls
2 = mean distance for the population of Rap, Ltd.
golf balls
• Hypotheses H0: 1 - 2 < 0
Ha: 1 - 2 > 0

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 Example: Par, Inc.

 Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
• Rejection Rule Reject H0 if z > 2.33
( x1  x2 )  ( 1   2 ) ( 235  218)  017
z    6. 49
12  22 2
(15) ( 20) 2 2. 62
 
n1 n2 120 80
• Conclusion
Reject H0. We are at least 99% confident that the
mean driving distance of Par, Inc. golf balls is greater
than the mean driving distance of Rap, Ltd. golf balls.

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 Example: Specific Motors

 Hypothesis Tests About the Difference Between the

Means of Two Populations: Small-Sample Case
Can we conclude, using a .05 level of significance,
that the miles-per-gallon (mpg) performance of M
cars is greater than the miles-per-gallon performance
of J cars?
1 = mean mpg for the population of M cars
2 = mean mpg for the population of J cars
• Hypotheses H0: 1 - 2 < 0
Ha: 1 - 2 > 0

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 Example: Specific Motors

 Hypothesis Tests About the Difference Between the

Means of Two Populations: Small-Sample Case
• Rejection Rule
Reject H0 if t > 1.734
(a = .05, d.f. = 18)
• Test Statistic
(x
t 2
1 x
2 
)(

1 2)
s(
1n
1 1n
2)
where:
( n1  1)s12  (n2  1)s22
s  2

n1  n2  2

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 Inference About the Difference Between the
Means of Two Populations: Matched Samples
 With a matched-sample design each sampled item
provides a pair of data values.
 The matched-sample design can be referred to as
blocking.
 This design often leads to a smaller sampling error
than the independent-sample design because
variation between sampled items is eliminated as a
source of sampling error.

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 Example: Express Deliveries

 Inference About the Difference Between the Means of

Two Populations: Matched Samples
A Chicago-based firm has documents that must
be quickly distributed to district offices throughout
the U.S. The firm must decide between two delivery
services, UPX (United Parcel Express) and INTEX
(International Express), to transport its documents.
In testing the delivery times of the two services, the
firm sent two reports to a random sample of ten
district offices with one report carried by UPX and
the other report carried by INTEX.
Do the data that follow indicate a difference in
mean delivery times for the two services?

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 Example: Express Deliveries

Delivery Time (Hours)

District Office UPX INTEX Difference
Seattle 32 25 7
Los Angeles 30 24 6
Boston 19 15 4
Cleveland 16 15 1
New York 15 13 2
Houston 18 15 3
Atlanta 14 15 -1
St. Louis 10 8 2
Milwaukee 7 9 -2
Denver 16 11 5

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 Example: Express Deliveries

 Inference About the Difference Between the Means of

Two Populations: Matched Samples
Let d = the mean of the difference values for the
two delivery services for the population of
district offices

• Hypotheses H0: d = 0, Ha: d 

• Rejection Rule
Assuming the population of difference values is
approximately normally distributed, the t
distribution with n - 1 degrees of freedom applies.
With  = .05, t.025 = 2.262 (9 degrees of freedom).
Reject H0 if t < -2.262 or if t > 2.262
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 Example: Express Deliveries

 Inference About the Difference Between the Means of

Two Populations: Matched Samples
 di ( 7  6... 5)
d    2. 7
n 10
2
 ( di  d ) 76.1
sd    2. 9
n 1 9
d  d 2. 7  0
t   2. 94
sd n 2. 9 10
• Conclusion Reject H0.
There is a significant difference between the mean
delivery times for the two services.

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 Inferences About the Difference
Between the Proportions of Two Populations
 Sampling Distribution of p1  p2
 Interval Estimation of p1 - p2
 Hypothesis Tests about p1 - p2

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 Sampling Distribution of p1  p2

 Expected Value
E ( p1  p2 )  p1  p2
 Standard Deviation

p1 (1  p1 ) p2 (1  p2 )
 p1  p2  
n1 n2
 Distribution Form
If the sample sizes are large (n1p1, n1(1 - p1), n2p2,
and n2(1 - p2) are all greater than or equal to 5), the
sampling distribution of p1  p2 can be approximated
by a normal probability distribution.

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 Interval Estimation of p1 - p2

 Interval Estimate
p1  p2  z / 2  p1  p2

 Point Estimator of  p1  p2

p1 (1  p1 ) p2 (1  p2 )
s p1  p2  
n1 n2

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 Example: MRA

MRA (Market Research Associates) is conducting

research to evaluate the effectiveness of a client’s new
advertising campaign. Before the new campaign
began, a telephone survey of 150 households in the
test market area showed 60 households “aware” of
the client’s product. The new campaign has been
initiated with TV and newspaper advertisements
running for three weeks. A survey conducted
immediately after the new campaign showed 120 of
250 households “aware” of the client’s product.
Does the data support the position that the
advertising campaign has provided an increased
awareness of the client’s product?

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 Example: MRA

 Point Estimator of the Difference Between the

Proportions of Two Populations
120 60
p1  p2  p1  p2   . 48. 40 . 08
250 150
p1 = proportion of the population of households
“aware” of the product after the new campaign
p2 = proportion of the population of households
“aware” of the product before the new campaign
p1 = sample proportion of households “aware” of the
product after the new campaign
p2 = sample proportion of households “aware” of the
product before the new campaign

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 Example: MRA

 Interval Estimate of p1 - p2: Large-Sample Case

For = .05, z.025 = 1.96:
. 48(. 52 ) . 40(. 60)
. 48. 40  1. 96 
250 150
.08 + 1.96(.0510)
.08 + .10
or -.02 to +.18
• Conclusion
At a 95% confidence level, the interval estimate of
the difference between the proportion of households
aware of the client’s product before and after the new
advertising campaign is -.02 to +.18.

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 Hypothesis Tests about p1 - p2

 Hypotheses
H 0 : p1 - p2 < 0
H a : p1 - p2 > 0
 Test statistic
( p1  p2 )  ( p1  p2 )
z
 p1  p2
 Point Estimator of  p1  p2 where p1 = p2
s p1  p2  p (1  p )(1 n1  1 n2 )
n1 p1  n2 p2
where: p
n1  n2

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 Example: MRA

 Hypothesis Tests about p1 - p2

Can we conclude, using a .05 level of significance,
that the proportion of households aware of the
client’s product increased after the new advertising
campaign?
p1 = proportion of the population of households
“aware” of the product after the new campaign
p2 = proportion of the population of households
“aware” of the product before the new campaign
• Hypotheses H0: p1 - p2 < 0
Ha: p1 - p2 > 0

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 Example: MRA

 Hypothesis Tests about p1 - p2

• Rejection Rule Reject H0 if z > 1.645
• Test Statistic
250(. 48)  150(. 40) 180
p  . 45
250  150 400

s p1  p2  . 45(. 55)( 1  1 ) . 0514

250 150

(. 48. 40)  0 . 08
z   1. 56
. 0514 . 0514
• Conclusion Do not reject H0.

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End of Chapter 10

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