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Statistical Inference:
Hypothesis Testing for
Two Populations
Statistical Inference: Hypothesis Testing for Two Populations 1
Learning Objectives
Upon completion of this chapter, you will be able to:
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Test the hypothesis for the difference between two population
means using the z statistic
Test the hypothesis for the difference between two population
means using the t statistic
Understand the concept of statistical inference of the difference
between the means of two related populations (matched
samples)
Test hypothesis for the difference in two population proportions
Test hypothesis about two population variances (F distribution)
Statistical Inference: Hypothesis Testing for Two Populations 2
Hypothesis Testing for the Difference
Between Two Population Means
Using the Z Statistic
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Statistical Inference: Hypothesis Testing for Two Populations 3
Hypothesis Testing for the Difference
Between Two Population Means
Using the Z Statistic
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Statistical Inference: Hypothesis Testing for Two Populations 4
Example 11.1
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Two consumer durables companies
market two brands of electric irons A
and B, respectively. A researcher has
taken a random sample of size 35 from
the first company and size 40 from the
second company and computed the
average life of both the brands in months
(average life is shown in Table 11.1(a)
and 11.1(b)). Is there a significant
difference between the average life of
the two brands A and B? Take 95% as
the confidence level.
Statistical Inference: Hypothesis Testing for Two Populations 5
Example 11.1 (Contd.)
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Statistical Inference: Hypothesis Testing for Two Populations 6
Solution (Example 11.1)
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Statistical Inference: Hypothesis Testing for Two Populations 7
Using MS Excel for Hypothesis Testing
with the z Statistic for the Difference in
Means of Two Populations
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Solved Examples\Excel\Ex 11.1.xls
Confidence interval to estimate the difference in two population
means
Statistical Inference: Hypothesis Testing for Two Populations 8
Hypotheseis Testing for the Difference
Between Two Population Means Using the
t Statistic (Case of a Small Random
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Sample, n1, n2 < 30, When Population
Standard Deviation Is Unknown)
When sample size is small (n1, n2 < 30) and
samples are independent (not related) and the
population standard deviation is unknown, the t
statistic can be used to test the hypothesis for
difference between two population means.
Statistical Inference: Hypothesis Testing for Two Populations 9
Hypotheseis Testing for the Difference Between
Two Population Means Using the t Statistic (Case
of a Small Random Sample, n1, n2 < 30, When
Population Standard Deviation Is Unknown)
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Statistical Inference: Hypothesis Testing for Two Populations 10
Example 11.2
Anmol Constructions is a leading company in the
construction sector in India. It wants to construct
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flats in Raipur and Dehradun, the capitals of the
newly formed states of Chattisgarh and
Uttarakhand, respectively. The company wants to
estimate the amount that customers are willing
to spend on purchasing a flat in the two cities. It
randomly selected 25 potential customers from
Raipur and 27 customers from Dehradun and
posed the question, “how much are you willing to
spend on a flat?” The data collected from the two
cities is shown in Table 11.2(a) and Table
11.2(b). The company assumes that the intention
to purchase of the customers is normally
distributed with equal variance in the two cities
taken for the study. On the basis of the samples
taken for the study,
Statistical estimate
Inference: Hypothesis the
Testing for Two difference in
Populations 11
Example 11.2 (Contd.)
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Statistical Inference: Hypothesis Testing for Two Populations 12
Solution (Example 11.2)
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Solution in excel
Statistical Inference: Hypothesis Testing for Two Populations 13
Statistical Inference About the Difference
Between the Means of Two Related Populations
(Matched Samples)
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For dependent samples or related samples, it is important that
the two samples taken in the study are of the same size.
t Formula to test the difference between the means of two
related populations (matched samples)
Statistical Inference: Hypothesis Testing for Two Populations 14
Example 11.3
An electronic goods company
arranged a special training
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programme for one segment of its
employees. The company wants to
measure the change in the attitude of
its employees after the training. For
this purpose, it has used a well-
designed questionnaire, which
consists of 10 questions on a 1 to 5
rating scale (1 is strongly disagree and
5 is strongly agree). The company
selected a random sample of 10 Use α = 0.10 to determine whether there is a
employees. The scores obtained by significant change in the attitude of
employees after the training programme.
these employees are given in Table
11.3.
Statistical Inference: Hypothesis Testing for Two Populations 15
Solution (Example 11.3)
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Solution in excel
Statistical Inference: Hypothesis Testing for Two Populations 16
Hypothesis Testing for the Difference in
Two Population Proportions
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Statistical Inference: Hypothesis Testing for Two Populations 17
Hypothesis Testing for the Difference in
Two Population Proportions
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Statistical Inference: Hypothesis Testing for Two Populations 18
Example 11.4
There has been a fundamental shift in Indian economy
after 1991. All business sectors including the banking
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sector have been affected by the liberalization and
privatization measures of the government. Due to
heavy competition, Indian public sector banks have
also adopted consumer-friendly policies such as
extending service time for their customers. On one
hand, changes introduced by the banks enhance the
quality of services; however, on the other hand, they
are also responsible for generating stress among
employees. A researcher wants to assess the stress
levels of bank employees. The researcher has selected
two banks, A & B for this purpose. The working hours
of bank A are from 10 am to 3.30 pm and the working
hours of bank B are from 8.00 am to 8.00 pm. The
researcher has randomly selected 40 employees from
bank A and 10 of them have indicated high stress
levels. The researcher has also randomly selected 50
Statistical Inference: Hypothesis Testing for Two Populations 19
employees from bank B and 22 of them have indicated
Solution (Example 11.4)
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Solved Examples\Minitab\Ex 11.4.MPJ
Statistical Inference: Hypothesis Testing for Two Populations 20
Hypothesis Testing About Two Population
Variances (F Distribution)
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Figure 11.25 : Acceptance and rejection regions for a two-tailed F test
Statistical Inference: Hypothesis Testing for Two Populations 21
F test for the difference in two population
variances
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Statistical Inference: Hypothesis Testing for Two Populations 22
F Distribution
In the F distribution, degrees of freedom are
attached to the numerator and denominator,
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which decide the shape of the F distribution. F
distribution is based on the assumption that
the populations from which samples are
drawn are normally distributed.
The F distribution is neither symmetric nor
does it have a zero mean value. So, the simple
procedure of obtaining the upper-tail value
and merely placing a minus sign besides to the
upper-tail value for obtaining the lower tail
value is not applicable here.
The F value is always positive because it is a
ratio of two variances (two squared
quantities). The lower-tail value is obtained by
using the reciprocal property of the F
Statistical Inference: Hypothesis Testing for Two Populations 23
F Distribution (Contd.)
The reciprocal property can be stated as:
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Statistical Inference: Hypothesis Testing for Two Populations 24
Example 11.5
A plant has installed two machines producing polythene bags. During the
installation, the manufacturer of the machine has stated that the capacity of the
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machine is to produce 20 bags in a day. Owing to various factors such as
different operators working on these machines, raw material, etc. there is a
variation in the number of bags produced at the end of the day. The company
researcher has taken a random sample of bags produced in 10 days for machine
1 and 13 days for machine 2, respectively. The following data gives the number
of units of an item produced on a sampled day by the two machines:
How can the researcher determine whether the variance is from the same
population (population variances are equal) or it comes from different
populations (population variances are not equal)? Take α = 0.05 as the
confidence level.
Statistical Inference: Hypothesis Testing for Two Populations 25
Solution (Example 11.5)
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Statistical Inference: Hypothesis Testing for Two Populations 26
Using MS Excel for Hypothesis Testing
about Two Population Variances
(F distribution)
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Solved Examples\Excel\Ex 11.5.xls
Solved Examples\Minitab\Ex 11.5.MPJ
Statistical Inference: Hypothesis Testing for Two Populations 27
