ESTIMATION AND

HYPOTHESIS TESTING
FOR TWO POPULATIONS
Chapter 1
 LEARNING OUTCOME (LO)

At the end of this chapter, the students should be

able
1. to construct confidence interval and perform a
hypothesis testing about the difference between
two population means for
a) large and independent samples.
b) small and independent samples: equal
and unequal standard deviation.
2. to construct confidence interval and perform a
hypothesis testing about the difference between
two population proportions for large and
independent samples.
 1.1 INFERENCES ABOUT THE DIFFERENCE BETWEEN TWO
POPULATION MEANS FOR LARGE AND INDEPENDENT SAMPLE

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 1.1 INFERENCES ABOUT THE DIFFERENCE BETWEEN TWO
POPULATION
4 MEANS FOR LARGE AND INDEPENDENT SAMPLE

Interval estimation
An interval that constructed around the point estimate
which is likely to contain the corresponding population
parameter.

Interval estimation of µ1– µ2

The (1 – α) 100% confidence interval for µ1– µ2 is
 EXAMPLE 1

The following information is obtained from two

independent samples selected from two
populations:

n1 = 190
n2 = 170
Construct a 99% confidence interval for µ1– µ2.
Given z0.005 = 2.58.
 EXAMPLE 2

The diameter of bottles manufactured on Machine I

and Machine II is being investigated. The information
gathered are shown below:

Machine I Machine II

Sample size 70 60

Average diameter (in cm) 8.56 8.78

Standard deviation of diameter (in cm) 0.5619 0.5925

Construct a 97% confidence interval for the

difference in mean diameters of the bottles. Given
z0.015 = 2.17.
 HYPOTHESIS TESTING ABOUT µ1– µ2

TAILED HYPOTHESIS REJECTION

STATEMENT REGION
Two-tailed H0: µ1– µ2 = 0 z < −zα/2
H1: µ1– µ2 ≠ 0
Left-tailed H0: µ1– µ2 ≥ 0 z < −zα
H1: µ1– µ2 < 0
Right-tailed H0: µ1– µ2 ≤ 0 z > zα
H1: µ1– µ2 > 0

 EXAMPLE 3

The diameter of bottles manufactured on Machine I

and Machine II are being investigated. The
information gathered are shown below:
Machine I Machine II

Sample size 70 60

Average diameter (in cm) 8.56 8.78

Standard deviation of diameter (in cm) 0.5619 0.5925

Test at 5% significance level whether we can

conclude that the mean diameter for the bottles
are different for Machine I and Machine II. Given
z0.025 = 1.96.
 EXAMPLE 4

The average retirement age for Malaysian is 62.7

years old for women and 62.2 years old for men.
These means are based on samples of 800 women
and 1000 men, and the sample standard deviations
for two samples are 4.5 years old and 3 years,
respectively.

a) Find a 99% confidence interval for the difference

between the corresponding population means.
Given z0.005 = 2.58.
b) Test at 2.5% significance level whether the mean
retirement age for all women is higher than the
mean retirement age for all men. Given z0.025 = 1.96.
 1.2 INFERENCES ABOUT THE DIFFERENCE BETWEEN TWO
POPULATION MEANS FOR SMALL AND INDEPENDENT SAMPLE

Assumption for using t–distribution

Item Equal standard Unequal
deviation standard
deviation
Source Normally distributed
Sample size

Interval estimation of µ1– µ2

Degree of
freedom
11
 1.2 INFERENCES ABOUT THE DIFFERENCE BETWEEN TWO
POPULATION MEANS FOR SMALL AND INDEPENDENT SAMPLE

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 EXAMPLE 5
A manufacturer wants to compare the bursting pressure
(in psi) for two types of pipes. Both pipes have the same
diameter and the manufacturer selects 15 pipes from
each type. The experiment had been done and the
results are shown below:
Type I Type II
Means of bursting pressure 383 389
Standard deviation of bursting pressure 28.86 27.84

Assume that both population variances are unequal.

a) Construct a 98% confidence interval for the
difference between the two population means.
b) Testing at 1% significance level, does the
experiment show the evidence that the mean of
bursting pressure is different for both type of pipes?
 EXAMPLE 6
The mean drying time (in minutes) for two brands of
paint are analyzed. The variance of drying time is known
to be 0.57 minutes for both brands. The drying time for
each brand are given below:
Brand X Brand Y
1.59 1.64 1.78 1.66 1.45 1.75
1.79 1.90 2.01 1.79 1.84 1.90
2.05 2.21 1.74 1.90 2.01 1.88
1.55 1.43 1.65 1.85 1.77 1.80

Assume that both population variances are equal.

a) Find a 96% confidence interval on the difference in
mean drying time for the brands of paint.
b) Based on the sample information given, is there any
evidence to indicate that the mean drying time will
depend on the brand of paint? Use α = 0.03.
1.3 INFERENCES ABOUT THE DIFFERENCE BETWEEN TWO POPULATION
PROPORTIONS FOR LARGE AND INDEPENDENT SAMPLE

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1.3 INFERENCES ABOUT THE DIFFERENCE BETWEEN TWO POPULATION
PROPORTIONS FOR LARGE AND INDEPENDENT SAMPLE

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 EXAMPLE 7

In a random sample of 500 buyers in AEON, 28.5%

stated that they like coffee A, while another sample
of 400 buyers in GIANT, 35.6% stated that they also
like coffee A.

At 1% significance level, is there any reason to

believe that the proportion of buyers who like coffee
A in GIANT is higher compared to the proportion of
buyers in AEON?
 REFERENCES

1. Introduction to Statistics & Probability: A Study

Guide, Pearson Prentice Hall (2009)

2. Probability and Statistics for Engineers and

Scientists, Pearson (2014)

3. Statistics: The Arts and Science of Learning from

Data, Pearson (2007)