Lecture- 20

T, Z, &F Test
Dr. J.K. Nayak
Department of Management Studies

1
 Testing Sample Proportions:
When your variable is at the nominal (or
ordinal) level the one sample z-test for
proportions should be used.
If the data are in % format, convert to a
proportion first.
The method is the same as the one sample Z-
test for means (see above)
 Formula for Proportions:

Note: Ps is the sample proportion

Pu is the population proportion
Ps Pu
Z
Pu (1 Pu ) / n
 Example
In a recent provincial election, 55% of voters
rejected lotteries. A random sample of 150
rural communities showed that 49% of voters
rejected lotteries. Is the difference significant?

Use the formula for proportions and 5 step

method to solve
 Solution:
Step 1:
Random sample
The sample is large
Step 2:
H0: Pu = .55 (convert % to proportion)
(Note you can also say H0: Ps = Pu )
H1: Pu .55 (H1: Ps Pu
Step 3:
The sample is large, use Z distribution
Alpha () = .05
Critical Z = 1.96
 Solution (cont.)
Step 4

Ps Pu .49 .55
Z 1.48
Pu (1 Pu ) / n .55(1 .55) / 150

Step 5
Z (obtained) < Z (critical)
Fail to reject Ho. There is no significant difference between
the rural population and rest of the province.
 Testing Differences Between Means With Dependent Samples

A health Spa has advertised a weight reducing programme and has claimed that the average participant in the
programme loses more that 17 pounds a somewhat overweight executive is interested in the programme but
is skeptical about the claims and asks for some hard evidence. The spa allow him to select randomly the
records of 10 participants and record their weight before and after the programme. This data is recorded in
the table below. Here we have two samples ( a before sample and an after sample) that are clearly dependent
on each other because the same 10 people have been observed twice
The overweight executive wants to test at the 5 percent significance level the claimed average weight loss of
more than 17 pounds.
(Weight before and after a reducing programme)

Before 189 202 220 207 194 177 193 202 208 233
After 170 179 203 192 172 161 174 187 186 204

7
 Relationship Among Techniques
Analysis of variance (ANOVA) is used as a test of means for two or more samples. The
null hypothesis, typically, is that all means are equal.

Analysis of variance must have a dependent variable that is metric (measured using an
interval or ratio scale).

There must also be one or more independent variables that are all categorical (nonmetric).
Categorical independent variables are also called factors.
 Analysis of Variance (ANOVA)

An inferential statistical procedure used to test

the null hypothesis that the means of two or
more populations are equal to each other.

The test statistic for ANOVA is the F-test

(named for R. A. Fisher, the creator of the
statistic).
 T test vs. ANOVA
T-test
Compare two groups
Test the null hypothesis that two populations has
the same average.

ANOVA:
Compare more than two groups
Test the null hypothesis that two populations
among several numbers of populations has the
same average.
 ANOVA example
Example: Curricula A, B, C.
You want to know what the average score on the test
of computer operations would have been
if the entire population of the 4th graders in the school
system had been taught using Curriculum A;
What the population average would have been had they
been taught using Curriculum B;
What the population average would have been had they been
taught using Curriculum C.
Null Hypothesis: The population averages would have been
identical regardless of the curriculum used.
Alternative Hypothesis: The population averages differ for at
least one pair of the population.
 ANOVA: F-ratio
The variation in the averages of these samples, from one sample to the
next, will be compared to the variation among individual observations
within each of the samples.
Statistic termed an F-ratio will be computed. It will summarize the
variation among sample averages, compared to the variation among
individual observations within samples.
This F-statistic will be compared to tabulated critical values that
correspond to selected alpha levels.
If the computed value of the F-statistic is larger than the critical value,
the null hypothesis of equal population averages will be rejected in
favor of the alternative that the population averages differ.
 Interpreting Significance
p<.05
The probability of observing an F-statistic at
least this large, given that the null hypothesis
was true, is less than .05.
 Logic of ANOVA
If 2 or more populations have identical averages, the
averages of random samples selected from those
populations ought to be fairly similar as well.

Sample statistics vary from one sample to the next,

however, large differences among the sample averages
would cause us to question the hypothesis that the
samples were selected from populations with identical
averages.
 Logic of ANOVA cont.
How much should the sample averages differ before we
conclude that the null hypothesis of equal population
averages should be rejected.
In ANOVA, the answer to this question is obtained by
comparing the variation among the sample averages to the
variation among observations within each of the samples.
Only if variation among sample averages is substantially
larger than the variation within the samples, do we
conclude that the populations must have had different
averages.
 Three types of ANOVA
One-way ANOVA

Within-subjects ANOVA (Repeated measures,

randomized complete block)

Factorial ANOVA (Two-way ANOVA)

 Sources of Variation
Three sources of variation:
1) Total, 2) Between groups, 3) Within groups
Sum of Squares (SS): Reflects variation. Depend on sample size.
Degrees of freedom (df): Number of population averages being
compared.
Mean Square (MS): SS adjusted by df. MS can be compared with
each other. (SS/df)
F statistic: used to determine whether the population averages are
significantly different. If the computed F static is larger than the
critical value that corresponds to a selected alpha level, the null
hypothesis is rejected.
 Computing
SS Total: Total variation in the data
F-ratio
df total: Total sample size (N) -1
MS total: SS total/ df total

SS between: Variation among the groups compared.

df between: Number of groups -1
MS between : SS between/df between

SS within: Variation among the scores who are in the same group.
df within: Total sample size - number of groups -1
MS within: SS within/df within
F ratio = MS between / MS within
Formula for One-way ANOVA
Formula Name How To
Sum of Square Total Subtract each of the scores from
the mean of the entire sample.
Square each of those deviations.
Add those up for each group,
then add the two groups
together.
Sum of Squares Among Each group mean is subtracted
from the overall sample mean,
squared, multiplied by how
many are in that group, then
those are summed up. For two
groups, we just sum together
two numbers.
Sum of Squares Within Here's a shortcut. Just find the
SST and the SSA and find the
difference. What's left over is the
SSW.
 Alpha inflation
Conducting multiple ANOVAs, will incur a large risk that
at least one of them would be statistically significant just
by chance.
The risk of committee Type I error is very large for the
entire set of ANOVAs.
Example: 2 tests .05 Alpha
Probability of not having Type I error .95
.95x.95 = .9025
Probability of at least one Type I error is
1-9025= .0975. Close to 10 %.
Use more stringent criteria. e.g. .001
 Relation between t-test and F-test
When two groups are compared both t-test and F-
test will lead to the same answer.

t2 = F.

So by squaring t youll get F

(or square root of t is F)
 Follow-up test
Conducted to see specifically which means are different
from which other means.

Instead of repeating t-test for each combination (which

can lead to an alpha inflation) there are some modified
versions of t-test that adjusts for the alpha inflation.

Most recommended: Tukey HSD test

Other popular tests: Bonferroni test , Scheffe test
 Within-Subject (Repeated Measures)
ANOVA
SS tr : Sum of Squares Treatment
SS block : Sum of Squares Block
SS error = SS total - SS block - SS tr

MS tr = SS tr/k-1
MSE = SS error/(n-1)(k-1)

F = MS tr/MSE
Within-Subject (Repeated Measures)
ANOVA

Examine differences on a dependent

variable that has been measured at more
than two time points for one or more
independent categorical variables.
 Factorial ANOVA
T-test and One way ANOVA
1 independent variable (e.g. Gender), 1 dependent
variable (e.g. Test score)

Two-way ANOVA (Factorial ANOVA)

2 (or more) independent variables (e.g. Gender
and Academic Standing), 1 dependent variable
(e.g. Test score)
 Analysis of Covariance
If the set of independent variables consists of both categorical and metric variables, the
technique is called analysis of covariance (ANCOVA).

In this case, the categorical independent variables are still referred to as factors,
whereas the metric-independent variables are referred to as covariates.
 SPSS Windows
One-way ANOVA can be efficiently performed using the program COMPARE
MEANS and then One-way ANOVA. To select this procedure using SPSS for
Windows click:

Analyze>Compare Means>One-Way ANOVA

N-way analysis of variance and analysis of covariance can be performed using

GENERAL LINEAR MODEL. To select this procedure using SPSS for Windows click:

Analyze>General Linear Model>Univariate

THANK YOU