Estimation

Two Samples

Estimation: Two Samples

Example
The sample average and the sample
standard deviation of monthly salaries
relating to two groups of industrial workers
are given below:

Statistical Methods

Usha A. Kumar, IIT Bombay

Example(contd)
Group A
Sample size
50
Mean
Rs. 2500
Standard deviation Rs. 250

Group B
80
Rs. 3000
Rs. 300

Compute a 99% confidence interval for the

mean difference of monthly salaries.
Statistical Methods

Usha A. Kumar, IIT Bombay

Sampling distribution of the difference

between two sample means
X

X2

Statistical Methods

X2

X2

2
1

2
2
2

Usha A. Kumar, IIT Bombay

Z Formula for the Difference

in Two Sample Means

( X X ) ( )
Z=
1

+
n

n1 and n2 are large and Independent

Samples
Statistical Methods

Usha A. Kumar, IIT Bombay

Confidence Interval to Estimate

1 - 2

(X X ) Z + (X X )+ Z +
n n
n n
1

Statistical Methods

Usha A. Kumar, IIT Bombay

Estimation
An admissions officer of a college wishes to
compare the mean admission test scores of
applicants educated in rural high schools
and of applicants educated in urban high
schools. Independent random samples of
15 rural applicants and 17 urban applicants
were selected and the results are:
X
Y

= 495 s1 = 55
= 545 s2 = 50

Statistical Methods

Usha A. Kumar, IIT Bombay

Example(contd)
Find a 95 percent confidence interval for the
difference in mean test scores. It is reasonable
to assume here that admission test scores in
both populations are normally distributed with
common variance 2.

Statistical Methods

Usha A. Kumar, IIT Bombay

Confidence Interval to Estimate 1 - 2 when

1, 2 are unknown

Each of the two populations is normally

distributed.
The two samples are independent.
The values of the population variances are
unknown.
The variances of the two populations are
equal. 12 = 22
Statistical Methods

Usha A. Kumar, IIT Bombay

t Formula for the Difference

in Means

(X X ) ( )
t=
1

Sp

n n
1

(
1) + S (n 1)
S
n
=
n +n 2
2

where S p2

(X

X ) t
2

Sp

where df = n1 + n2 2
Statistical Methods

Usha A. Kumar, IIT Bombay

Confidence Interval to Estimate 1 - 2

when n1 and n2 are large.

(X X )Z S + S (X X )+Z S + S
n n
n n
1

Statistical Methods

Usha A. Kumar, IIT Bombay

Example

A taxi company is trying to decide whether to

purchase brand A or brand B tires for its fleet of
taxis. To estimate the difference in the two brands,
an experiment is conducted using 12 of each brand.
The tires are run until they wear out. The results
are:
Brand A: sample mean = 36,300 kilometres
sample standard deviation = 5000 kilometres.
Brand B: sample mean = 38,100 kilometres
sample standard deviation = 6100 kilometres.
Statistical Methods

Usha A. Kumar, IIT Bombay

Example(contd)

Compute a 95% confidence interval for the

difference in the true means assuming the
populations to be approximately normally
distributed.
To construct this confidence interval, are
you justified in making the assumption that

=
2
1

2
2

Statistical Methods

Usha A. Kumar, IIT Bombay