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1 2 = 1 and 2 known 1 2 > Reject H0 if >

(1 2 ) 1 2 < Reject H0 if <

= 1 2 Reject H0 if > /2 or

2 2 < /2

1 + 2

1 2

1 2 = 1 = 2 but unknown 1 2 > Reject H0 if > ,

(1 2 ) 1 2 < Reject H0 if < ,

= 1 2

1 1 Reject H0 if > /2, and

+

1 2 < /2,

where

(1 1)12 + (2 1)22 where = 1 + 2 2

2 =

1 + 2 2

1 2 = 1 2 but unknown 1 2 > Reject H0 if > ,

(1 2 ) 1 2 < Reject H0 if < ,

= 1 2 Reject H0 if > /2, and

2 2

1 + 2 < /2,

1 2

where

2

s1 2 s 2 2

n n

1 2

s

/ n11

2

s / n2

2

2 2

2

n1 1 n2 1

1 =mean of population 1 1 =standard deviation of sample 1

2 =mean of population 2 2 =standard deviation of sample 1

1 =standard deviation of population 1 =hypothesized difference of 1 and 2

2 =standard deviation of population 2 2 =pooled variance

1 =mean of sample taken from population 1 =degrees of freedom

2 =mean of sample taken from population 2

**For the equal-variance t test, the observations should be independent, random samples from normal

distributions with the same population variance. For the unequal-variance t test, the observations should be

independent, random samples from normal distributions.

Exercises: n 10 10

1. A new computer software package has been 325 hrs 295 hrs

developed to help systems analysts in developing s 40 hrs 44 hrs

computer based information systems. The objective of

the new software package is to reduce the time 2. Independent random samples from normal

required to design, develop, and implement an distributions with equal variances of auditor fees

information system. A random sample of 20 analysts when an audit resulted in (1) a lawsuit or (2) no

was chosen and each analyst was given specifications lawsuit gave the following results. Test to see whether

for a hypothetical information system. Ten analysts the mean fee when lawsuit occurs is equal or unequal

used the current technology while the other ten used to the mean fee when no lawsuit occurs. Use 0.05 for

the new software package. Use a 0.05 level of the level of significance.

significance. The following data were revealed:

Lawsuit 17 11 5 11 15 13 7 9

Current New Software No

Technology Package 9 5 3 4 3 6 4 7 4

Lawsuit

Page 1 of 2 |kkb2014

HYPOTHESIS TESTS FOR DIFFERENCE BETWEEN TWO MEANS

3. Suppose that the makers of Duracell batteries want effective versus the alternative hypothesis that they

to prove that their size AA battery lasts an average of are not equally effective.

at least 45 minutes longer than Duracells main

competitors, the Energizer. Two independent random

6. The photography department of a glamour

samples of 100 batteries of each kind are selected, and

magazine needs to choose a camera. Of the two

the batteries are run continuously until there are no

models the department is considering, one is made by

longer operational. The sample average life for

Nikon and one by Minolta. The department contracts

Duracell is found to be 1 = 308 minutes, and the

with an agency to determine if one of the two models

sample standard deviation is 1 = 84 minutes. The

gets a higher average performance rating by the

results for the Energizer batteries are 2 = 254 minutes

professional photographers, or whether the average

and 2 = 67 minutes. Is there evidence to substantiate

performance ratings of these two cameras are not

Duracells claim that their batteries last, on the average,

statistically different. The agency asks 60 different

at least 45 minutes longer than Energizer batteries of

professional photographers to rate one of the cameras

the same size? Use = 0.01.

(30 photographers rate each model). The ratings are

on a scale of 1 to 10. The average sample rating for

4. The following data represent the running times of Nikon is 8.5, and the standard deviation is 2.1. For the

films produced by two different motion picture Minolta sample, the mean is 7.8, and the standard

companies: deviation is 1.8. Is there a difference between the

average population ratings of the two cameras? Use

Company Time (in minutes) 0.05 level of significance.

A 102 68 98 109 92

7. Mark Pollard, financial consultant for Merrill Lynch,

B 81 165 97 143 92 78 114

Pierce, Fenner & Smith, Inc., is quoted in national

advertisements for Merrill Lynch as saying: Ive made

Test hypothesis that the average running time of

more money for clients by saying no than by saying

films produced by Company B exceeds the average

yes. Suppose that Mr. Pollard allowed you access to

running time of films produced by Company A by 10

his files so that you could conduct a statistical test of

minutes against the alternative that the difference is

the correctness of his statement. Suppose further that

more than 10 minutes. Use a 0.05 level of significance

you gathered a random sample of 15 clients to whom

and assume the distribution of times to be

Mr. Pollard said yes when presented with their

approximately normal and the population variances

investment proposals, and you found that the clients

are equal.

average gain on investments was 12% and the

5. Many companies that cater to teenagers have standard deviation was 2.5%. Suppose you gathered a

learned that young people respond to commercials random sample of 15 clients to whom Mr. Pollard said

that provide dance-beat music, adventure, and a fast no when asked about possible investments; the clients

pace, rather than words. In one test, a group of 128 were then offered other investments, which they

teenagers were shown commercials featuring rock consequently made. For this sample, you found that

music, and their purchasing frequency of the the average return was 13.5% and the standard

advertised products over the following month were deviation was 1%. Test Mr. Pollards claim at =

recorded as a single score for each person in the 0.025. Assume equal variances.

group. Then a group of 212 teenagers were shown

8. The manufacturers of compact disc players want to

commercials for the same products, but with the

test whether a small price reduction is enough to

music replaced by verbal persuasion. The purchase

increase sales of their product. Randomly chosen data

frequency scores of this group were computed as well.

on 15 weekly sales totals at outlets in a given area

The results for the music group were = 23.5 and =

before the price reduction show a sample mean of

12.2; and the results for the verbal group were =

$6,598 and a sample standard deviation of $844. A

18.0 and = 10.5. Assume that the two groups were

random sample of 12 weekly sales totals after the small

randomly selected from the entire teenager consumer

price reduction gives a sample mean of $6,870 and a

population. Using the = 0.01 level of significance,

sample standard deviation of $699. Is there evidence

test the null hypothesis that both methods are equally

that a small price reduction is enough to increase sales

of compact disc players? Assume equal variances.

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