Statistics

Chapter 9: Inferences Based

on Two Samples: Confidence
Intervals and Tests of
Hypotheses
Where We’ve Been

 Made inferences based on confidence

intervals and tests of hypotheses
 Studied confidence intervals and
hypothesis tests for µ, p and 2
 Selected the necessary sample size
for a given margin of error

McClave, Statistics, 11th ed. Chapter 9: 2

Inferences Based on Two Samples
Where We’re Going

 Learn to use confidence intervals and

hypothesis tests to compare two populations
 Learn how to use these tools to compare
two population means, proportions and
variances
 Select the necessary sample size for a
given margin of error when comparing
parameters from two populations

McClave, Statistics, 11th ed. Chapter 9: 3

Inferences Based on Two Samples
9.1: Identifying the Target
Parameter

µ 1 - µ2 p1 - p2 2/ 2
1 2

Difference Ratio of
Mean difference; between variances;
difference in proportions, difference in
averages percentages, variability or
fractions or spread; compare
rates; compare variation
proportions

Quantitative Data Qualitative Data Quantitative Data

McClave, Statistics, 11th ed. Chapter 9: 4

Inferences Based on Two Samples
9.2: Comparing Two Population
Means: Independent Sampling
Point Estimators
→µ 1 - 2 → µ1 - µ2

To construct a confidence interval or conduct a

hypothesis test, we need the standard deviation:

Singe sample ̂ x  s n

s12 s22
Two samples ˆ x  x  
1 2
n1 n2

McClave, Statistics, 11th ed. Chapter 9: 5

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
The Sampling Distribution for ( 1 - 2)
1. The mean of the sampling distribution is (µ1-µ2).
2. If the two samples are independent, the standard
deviation of the sampling distribution (the
standard error) is
s12 s22
ˆ x1  x2  
n1 n2
3. The sampling distribution for ( 1 - 2) is
approximately normal for large samples.
McClave, Statistics, 11th ed. Chapter 9: 6
Inferences Based on Two Samples
9.2: Comparing Two Population
Means: Independent Sampling
The Sampling Distribution for ( 1 - 2)

McClave, Statistics, 11th ed. Chapter 9: 7

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
Large Sample Confidence Interval for (µ1 - µ2 )

 2
 2
( x1  x2 )  z / 2 ( x1  x2 )  ( x1  x2 )  z / 2 1
 2
n1 n2
2 2
s s
 ( x1  x2 )  z / 2 1
 2
n1 n2

McClave, Statistics, 11th ed. Chapter 9: 8

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
Two samples concerning retention rates for first-year students at private and
public institutions were obtained from the Department of Education’s data
base to see if there was a significant difference in the two types of colleges.
Private Colleges Public Universities
 n: 71  n: 32
 Mean: 78.17  Mean: 84
 Standard Deviation: 9.55  Standard Deviation: 9.88
 Variance: 91.17  Variance: 97.64
What does a 95% confidence interval tell us about retention rates?
Source: National Center for Education Statistics

McClave, Statistics, 11th ed. Chapter 9: 9

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
Private Colleges Public Universities
 n: 71  n: 32
 Mean: 78.17  Mean: 84
 Standard Deviation: 9.55  Standard Deviation: 9.88
 Variance: 91.17  Variance: 97.64
s12 s22
( x1  x2 )  z / 2 ( x1  x2 )  ( x1  x2 )  z / 2 
n1 n2
91.1 97.64
78.17  84  1.96 
71 32
 5.83  4.08
McClave, Statistics, 11th ed. Chapter 9: 10
Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
Private Colleges Public Universities
 n: 71  n: 32

 Mean: 78.17  Mean: 84

 Standard Deviation: 9.55  Standard Deviation: 9.88

 Variance: 91.17 Since 0 is not
 in Variance: 97.64
the confidence 2
s s22
( x1  x2 )  z / 2 (interval,
x1  x2 )
difference
 the
( x  x
in1 the 2
)  z /2
1

n1 n2
sample means
appears to indicate
91.in1 97.64
78.17  84  1.96
a real difference 
retention. 71 32
 5.83  4.08
McClave, Statistics, 11th ed. Chapter 9: 11
Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
One-Tailed Test Two-Tailed Test
H0: (µ1 - µ2) = D0 H0: (µ1 - µ2) = D0
Ha: (µ1 - µ2) > D0 (< D0) Ha: (µ1 - µ2) ≠ D0
Rejection region: Rejection region:
z < -z (> z) |z| > z/2

( x1  x2 )  D0
Test Statistic: z
 (x x1 2)

 12  22 s12 s22
where  (x x )    
1 2
n1 n2 n1 n2
McClave, Statistics, 11th ed. Chapter 9: 12
Inferences Based on Two Samples
9.2: Comparing Two Population
Means: Independent Sampling

Conditions Required for Valid Large-

Sample Inferences about (µ1 - µ2)
1. The two samples are randomly and
independently selected from the target
populations.
2. The sample sizes are both ≥ 30.

McClave, Statistics, 11th ed. Chapter 9: 13

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
Let’s go back to the retention data and test the hypothesis that there is no
significant difference in retention at privates and publics.

Private Colleges Public Universities

 n: 71  n: 32
 Mean: 78.17  Mean: 84
 Standard Deviation: 9.55  Standard Deviation: 9.88
 Variance: 91.17  Variance: 97.64
s12 s22 91.17 97.64
 (x x )      2.08
1 2
n1 n2 71 32
McClave, Statistics, 11th ed. Chapter 9: 14
Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
H 0 : ( 1   2 )  0
H a : ( 1   2 )  0
  .05

( x1  x2 )  0  5.83
Test statistic: z   2.799
 ( x x 1 2)
2.08

Reject the null hypothesis: | z | z / 2

2.799  1.96
McClave, Statistics, 11th ed. Chapter 9: 15
Inferences Based on Two Samples
9.2: Comparing Two Population
Means: Independent Sampling

For small samples, the t-distribution

can be used with a pooled sample
estimator of 2, sp2
(n1  1) s  (n2  1) s
2 2
s 
2 1 2
n1  n2  2
p

McClave, Statistics, 11th ed. Chapter 9: 16

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
Small Sample Confidence Interval for (µ1 - µ2 )

1 1
( x1  x2 )  t / 2 ( x1  x2 )  ( x1  x2 )  t / 2 s   
2
p
 n1 n2 

The value of t is based on (n1 + n2 -2) degrees of freedom.

McClave, Statistics, 11th ed. Chapter 9: 17

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
One-Tailed Test Two-Tailed Test
H0: (µ1 - µ2) = D0 H0: (µ1 - µ2) = D0*
Ha: (µ1 - µ2) > D0 (< D0) Ha: (µ1 - µ2) ≠ D0
Rejection region: Rejection region:
t < -t (> t) |t| > t/2

( x1  x2 )  D0
Test Statistic: t
1 1
s   
2
p
 n1 n2 

McClave, Statistics, 11th ed. Chapter 9: 18

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
Conditions Required for Valid Small-Sample
Inferences about (µ1 - µ2)
1. The two samples are randomly and
independently selected from the target
populations.
2. Both sampled populations have
distributions that are approximately normal.
3. The population variances are equal.

McClave, Statistics, 11th ed. Chapter 9: 19

Inferences Based on Two Samples
9.2: Comparing Two Population
Means: Independent Sampling
 Does class time affect performance?
 The test performance of students in two
sections of international trade, meeting at
different times, were compared.
8:00 a.m. Class 9:30 a.m. Class
Mean: 78 Mean: 82
Standard Deviation: 14 Standard Deviation: 17
Variance: 196 Variance: 289
n: 21 n: 21

With  = .05, test H0 : µ1 = µ2

McClave, Statistics, 11th ed. Chapter 9: 20
Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
8:00 a.m. Class 9:30 a.m. Class
Mean: 78 Mean: 82
H 0 : 1   2  0 Variance: 196 Variance: 289
n: 21 n: 21
H a : 1   2  0
  .05
( n  1) s 2
 ( n  1) s 2
(21  1)196  (21  1)289
sp 
2 1 1 2 2
  242.5
n1  n2  2 21  21  2
( x1  x2 )  0 (78  82)  0
Test Statistic : t    .832
1 1 1 1
s   
2
242.5  
 21 21 
p
 n1 n2 
McClave, Statistics, 11th ed. Chapter 9: 21
Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
8:00 a.m. Class 9:30 a.m. Class
Mean: 78 Mean: 82
H 0 : 1   2  0 Variance: 196 Variance: 289
n: 21 n: 21
H a : 1   2  0
  .05 With df = 18 + 24 – 2 = 40, t/2 = t.025 = 2.021.
Since out test2statistic t = -.812. |t| < t.025.
(n1  1) s1  (n2  1) s2 (21  1)196  (21  1)289
2
s 
2
  242.5
n1  n2Do 2not reject the null hypothesis
21  21  2
p

( x1  x2 )  0 (78  82)  0
Test Statistic : t    .832
1 1 1 1
s   
2
242.5  
 21 21 
p
 n1 n2 
McClave, Statistics, 11th ed. Chapter 9: 22
Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
8:00 a.m. Class
Several students in the 8:00 a.m. section sleep through Mean: 72
Variance: 154
the next exam. We can still compare the results, n: 13
with some modifications.
H 0 : 1  2  0 9:30 a.m. Class
Mean: 86
H a : 1  2  0 Variance: 163
  .05 n: 21

( x1  x2 )  0 (72  86)  0
Test Statistic: t    3.16
 s12 s22   154 163 
     
 n1 n2   13 21 
McClave, Statistics, 11th ed. Chapter 9: 23
Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
8:00 a.m. Class 9:30 a.m. Class
Mean: 72 Mean: 86
Variance: 154 Variance: 163
n: 13 n: 21

t  3.16

Degrees of Freedom  v 
s 2
1 / n1  s / n22
2 2


154 / 13  163 / 21
2

s 2
1 / n1

 
2
s / n2 2
2 
2
154 / 132  163 / 212
n1  1 n2  1 13  1 21  1
26.15  26
t.025,df  26  2.056

McClave, Statistics, 11th ed. Chapter 9: 24

Inferences Based on Two Samples
 9.2: Comparing Two Population
Means: Independent Sampling
8:00 a.m. Class 9:30 a.m. Class
Mean: 72 Mean: 86
Variance: 154 Variance: 163
n: 13 n: 21

t  3.16

Degrees ofSince
Freedom  v ,,
s 2
1 / n1  s / n2 2
2 2


154 / 13  163 / 21
2

|t| > t.025,df=26

reject the null s
2
hypothesis.
1 /n
1
2


 
s / n2 2
2 
2
154 / 132  163 / 212
n1  1 n2  1 13  1 21  1
26.15  26
t.025,df  26  2.056

McClave, Statistics, 11th ed. Chapter 9: 25

Inferences Based on Two Samples
 9.3: Comparing Two Population Means:
Paired Difference Experiments

Paired Difference Confidence Interval for d  1   2

d sd
Large Sample : xd  z / 2  xd  z / 2
nd nd
sd
Small Sample : xd  t / 2 with (nd  1) degrees of freedom,
nd
where xd  sample mean difference
where s d  sample standard deviation of difference s
where n d  number of pairs observed
McClave, Statistics, 11th ed. Chapter 9: 26
Inferences Based on Two Samples
 9.3: Comparing Two Population Means:
Paired Difference Experiments

Suppose ten pairs of puppies were housetrained using two different

methods: one puppy from each pair was paper-trained, with the
paper gradually moved outside, and the other was taken out every
three hours and twenty minutes after each meal. The number of
days until the puppies were considered housetrained (three days
straight without an accident) were compared. Nine of the ten
paper-trained dogs took longer than the other paired dog to
complete training, with the average difference equal to 4 days, with
a standard deviation of 3 days.

What is a 90% confidence interval on the difference in successful

training?

McClave, Statistics, 11th ed. Chapter 9: 27

Inferences Based on Two Samples
 9.3: Comparing Two Population Means:
Paired Difference Experiments

xd  4
sd  3
sd
90% confident 1   2  xd  t / 2,df  nd 1
nd
3
 4  1.833  4  1.74
10
Since 0 is not in the interval, one program does seem to work more effectively.
McClave, Statistics, 11th ed. Chapter 9: 28
Inferences Based on Two Samples
 9.3: Comparing Two Population Means:
Paired Difference Experiments
Paired Difference One - Tailed Test
Hypothesis Tests for H 0 :  d  D0
 d  1   2 H a :  d  (or ) D0
Large sample test statistic Large sample rejection region : z  (or )  z
x  D0 x  D0 Small sample rejection region : t  (or )  t
z d  d
 d / nd sd / nd Two - Tailed Test
Small sample test statistic H 0 :  d  D0
H a :  d  D0
xd  D0
tα, n d 1  Large Sample rejection region : | z |  z / 2
sd / nd
Small sample rejection region : | t |  t / 2
McClave, Statistics, 11th ed. Chapter 9: 29
Inferences Based on Two Samples
 9.3: Comparing Two Population Means:
Paired Difference Experiments

 Suppose 150 items were priced at two

online stores, “cport” and “warriorwoman.”
 Mean difference: $1.75
 Standard Deviation: $10.35
 Test at the 95% level that the difference in
the two stores is zero.

McClave, Statistics, 11th ed. Chapter 9: 30

Inferences Based on Two Samples
 9.3: Comparing Two Population Means:
Paired Difference Experiments
Suppose 150 items H 0 : d  0
were priced at two H a : d  0
online stores, “cport”
and “warriorwoman.” xd  D0
z
 Mean difference:
$1.75
 d / nd
 Standard Deviation: 1.75  0
$10.35 z
  = .05 10.35 / 150
z  2.07
McClave, Statistics, 11th ed. Chapter 9: 31
Inferences Based on Two Samples
 9.3: Comparing Two Population Means:
Paired Difference Experiments
Suppose 150 items H 0 : d  0
were priced at two H a : d  0
online stores, “cport”
and “warriorwoman.”The critical xd  D0
z
 Mean difference: value of z.05 is
$1.75 1.96, so we  d / nd
would reject
 Standard Deviation: this null 1.75  0
$10.35 hypothesis. z
  = .05 10.35 / 150
z  2.07
McClave, Statistics, 11th ed. Chapter 9: 32
Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling

Two groups may or may not

have similar proportion s
regarding particular characteri stics.

We can make inferences about

p1 and p2 by examining pˆ 1 and pˆ 2 .

McClave, Statistics, 11th ed. Chapter 9: 33

Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling
Properties of the Sampling Distributi on of ( pˆ 1  pˆ 2 )
1. E ( pˆ1  pˆ 2 )  ( p1  p2 )
p1q1 p2 q2 pˆ1qˆ1 pˆ 2 qˆ 2
2.  ( pˆ1  pˆ 2 )    
n1 n2 n1 n2
3. If the samples are large, the sampling
distributi on is approximat ely normal.

McClave, Statistics, 11th ed. Chapter 9: 34

Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling

Large - Sample 100(1 -  )% Confidence Interval for ( p1  p2 )

p1q1 p2 q2
( pˆ 1  pˆ 2 )  z / 2 ( pˆ1  pˆ 2 )  ( pˆ 1  pˆ 2 )  z / 2 
n1 n2
pˆ 1qˆ1 pˆ 2 qˆ 2
 ( pˆ 1  pˆ 2 )  z / 2 
n1 n2

McClave, Statistics, 11th ed. Chapter 9: 35

Inferences Based on Two Samples
9.4: Comparing Two Population
Proportions: Independent Sampling

 A group of men and women were asked

their opinions on the following important
issue:
Are the Three Stooges funny?
The results are as follow:
Men Women
Yes 290 200
No 50 50
n 340 250

McClave, Statistics, 11th ed. Chapter 9: 36

Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling
 Calculate a 95% confidence interval on the
difference in the opinions of men and women.
Men Women p1q1 p2 q2
p .85 .80 ( pˆ M  pˆW )  z /2  
n1 n2
q .15 .20
n 340 250 .85  .15 .80  .20
(.85  .80)  1.96  
340 250
.05  .062

McClave, Statistics, 11th ed. Chapter 9: 37

Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling
 Calculate a 95% confidence interval on the
difference in the opinions of men and women.
Since 0 is in the confidence
Men Women
interval, we cannot rule out p1q1 p2 q2
p .85 ( pˆ M  pˆthat
.80 the possibility W ) both
z /2  
n1 n2
q .15 genders find the Stooges
.20
n 340 250 equally funny. .85  .15 .80  .20
Nyuk nyuk
(.85 .80) nyuk.
1.96  
340 250
.05  .062

McClave, Statistics, 11th ed. Chapter 9: 38

Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling
Large - Sample Test of Hypothesis about p1  p2
One - Tailed Test Two - Tailed Test
H 0 : ( p1  p2 )  D0 ( very often 0) H 0 : ( p1  p2 )  D0
H a : ( p1  p2 )  (or ) D0 H a : ( p1  p2 )  D0
Rejection region : | z | z Rejection region : | z | z / 2
( pˆ 1  pˆ 2 )
Test Statistic : z 
 ( pˆ  pˆ
1 2)

x1  x2 1 1
where p 
ˆ and  ( pˆ1  pˆ 2 )  pˆ qˆ   
n1  n2  n1 n2 
McClave, Statistics, 11th ed. Chapter 9: 39
Inferences Based on Two Samples
9.4: Comparing Two Population
Proportions: Independent Sampling
 Randy Stinchfield of the University of
Minnesota studied the gambling activities of
public school students in 1992 and 1998
(Journal of Gambling Studies, Winter 2001).
His results are reported below:
1992 1998
Survey n 21,484 23,199
Number who gambled 4.684 5,313
Proportion who gambled .218 .229

 Do these results represent a statistically

significant difference at the  = .01 level?
McClave, Statistics, 11th ed. Chapter 9: 40
Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling
1992 1998 x1  x2 4, 684  5,313
pˆ    .224
Survey n 21,484 23,199 n1  n2 21, 484  23,199
Number who 4.684 5,313
gambled 1 1
Proportion who .218 .229
 ( pˆ  pˆ )  ˆ ˆ  
pq
 n1 n2 
1 2

gambled
 1 1 
Two-Tailed Test  (.224)(.776)     .00395
H 0 : ( p1  p2 )  D0  21, 484 23,199 
H a : ( p1  p2 )  D0 ( pˆ1  pˆ 2 ) (.218  .229)
Test Statistic: z  
Rejection region:  ( pˆ1  pˆ 2 ) .00395
|z | z / 2  2.576  2.786

McClave, Statistics, 11th ed. Chapter 9: 41

Inferences Based on Two Samples
 9.4: Comparing Two Population
Proportions: Independent Sampling
1992 1998 x1  x2 4, 684  5,313
pˆ    .224
Survey n 21,484 23,199 n1  n2 21, 484  23,199
Number who 4.684 5,313
gambled Since the computed value of z, 1- 1 
Proportion who .218
 ( pˆ1  pˆ 2 )magnitude
2.786, is of greater
.229
 pq
ˆ ˆ  
gambled
than the critical value, 2.576, n we1 n2 
can reject the null hypothesis at
the  = .01 level.  1 1 
Two-Tailed Test  (.224)(.776)     .00395
H 0 : ( p1  p2 )  D0  21, 484 23,199 
H a : ( p1  p2 )  D0 ( pˆ1  pˆ 2 ) (.218  .229)
Test Statistic: z  
Rejection region:  ( pˆ1  pˆ 2 ) .00395
|z | z / 2  2.576  2.786

McClave, Statistics, 11th ed. Chapter 9: 42

Inferences Based on Two Samples
9.4: Comparing Two Population
Proportions: Independent Sampling

 For valid inferences

 The two samples must be independent
 The two sample sizes must be large:
n1 pˆ 1  15 and n1qˆ1  15
n2 pˆ 2  15 and n2 qˆ 2  15

McClave, Statistics, 11th ed. Chapter 9: 43

Inferences Based on Two Samples
9.5: Determining the Sample Size

 With a given level of confidence, and a

specified sampling error, it is possible
to calculate the required sample size
 Typically, n1 = n2

McClave, Statistics, 11th ed. Chapter 9: 44

Inferences Based on Two Samples
 9.5: Determining the Sample Size

 Sample size needed to estimate (µ1 - µ1)

 Given (1 -  ) and the sampling error (SE)
required

( z / 2 ) 2 ( 12   22 )
n1  n2 
SE 2

 Estimates of 1 and 2 will be needed

McClave, Statistics, 11th ed. Chapter 9: 45

Inferences Based on Two Samples
9.5: Determining the Sample Size

 Suppose you need to estimate the

difference between two population
means to within 2.2 at the  = 5%
level. You have good reason to
believe the two variances are equal to
each other, and equal 15.
 How large must n1 and n2 be?

McClave, Statistics, 11th ed. Chapter 9: 46

Inferences Based on Two Samples
 9.5: Determining the Sample Size

( z / 2 ) 2 ( 12   22 )
 SE = 2.2 n1  n2  2
SE
  = 5% level.
1.96 (15  15)
2
 12 = 22 n1  n2 
=15. 2.2 2
 n1 and n2 = ? n1  n2  23.8  24

McClave, Statistics, 11th ed. Chapter 9: 47

Inferences Based on Two Samples
 9.5: Determining the Sample Size

 Sample size needed to estimate (p1 - p2)

 Given (1 -  ) and the sampling error (SE)
required
( z / 2 ) ( p1q1  p2 q 2 )
2
n1  n2  2
SE
 Estimates of p1 and p2 will be needed
 The most conservative values are p1 = p2 =.5
McClave, Statistics, 11th ed. Chapter 9: 48
Inferences Based on Two Samples
9.5: Determining the Sample Size

 Suppose you need to calculate a 90%

confidence interval of width .05, with
no information about possible values
of p1 and p2.
 What size do n1 and n2 need to be?

McClave, Statistics, 11th ed. Chapter 9: 49

Inferences Based on Two Samples
 9.5: Determining the Sample Size
 Suppose you
need to calculate
( z / 2 ) ( p1q1  p2 q2 ) 2
a 90%
confidence
n1  n2  2
SE
interval of width
.05, with no 1.6452 [(. 5)(. 5)  (.5)(. 5)]
information about n1  n2  2
possible values
.05
of p1 and p2. n1  n2  541.2  542
 What size do n1
and n2 need to
be?
McClave, Statistics, 11th ed. Chapter 9: 50
Inferences Based on Two Samples
9.6: Comparing Two Population
Variances: Independent Sampling

Two samples
taken from the
same
population …

should have
variances that
means that are
are close to one
close to one
another as well.
another and …

McClave, Statistics, 11th ed. Chapter 9: 51

Inferences Based on Two Samples
9.6: Comparing Two Population
Variances: Independent Sampling

 Since variances do not follow a normal

distribution (due to the squaring
involved) we use a different technique
for inferences about variances.

McClave, Statistics, 11th ed. Chapter 9: 52

Inferences Based on Two Samples
9.6: Comparing Two Population
Variances: Independent Sampling

 s 2
   2

If E ( s1 )   1 and E ( s2 )   2 , then E  2    2  .
2 2 2 2 1 1

 s2    2 
 s 2

If  1   2 , the random variable  2 
2 2 1
F.
 s2 
The F random variable is a ratio with n1  1 numerator
and n2  1 denominator degrees of freedom.

McClave, Statistics, 11th ed. Chapter 9: 53

Inferences Based on Two Samples
 9.6: Comparing Two Population
Variances: Independent Sampling
 If the ratio of variances gets too far from 1 in
value, in either direction the likelihood that
both samples share a population variance
drops. For convenience the larger sample
variance is usually put in the numerator.

McClave, Statistics, 11th ed. Chapter 9: 54

Inferences Based on Two Samples
9.6: Comparing Two Population
Variances: Independent Sampling
A (1   ) 100% Confidence Interval for  12 /  22

 s12   1    12   s12   1 
 2      2    2   
F 
 2   U , /2   2   2   L , /2 
s s F

where FL , /2 leaves ( /2)% of the distribution in a lower tail

and FU , /2 leaves ( /2)% of the distribution in an upper tail.
Degrees of freedom are n1  1 in the numerator and
n2  1 in the denominator.
McClave, Statistics, 11th ed. Chapter 9: 55
Inferences Based on Two Samples
9.6: Comparing Two Population
Variances: Independent Sampling
Has the designated hitter produced a significant
difference in homeruns in the two major leagues?

Home Runs, American National

2003 League League
µ 178.5 169.25
2 1415.8 951.4
n 14 16

To use the two-sample t-test, we should check the variance

ratio to see if the assumption of equal variances is acceptable.

McClave, Statistics, 11th ed. Chapter 9: 56

Inferences Based on Two Samples
 9.6: Comparing Two Population
Variances: Independent Sampling
Home Runs, American National
2003 League League  s12   1    12   s12   1 
 2      2    2   
µ 178.5 169.25
 s2   FU , /2    2   s2   FL , /2 
2 1415.8 951.4
n 14 16

 1415.8   1    1   1415.8   1 
2

      2      
 951.4 F 
  U ,.025   2   951.4   L ,.025 
F

 1415.8  1    1   1415.8   1 
2

   2   
 951.4  2.92    2   951.4   .32 

  12 
. 5096   2   4.6504
2 
McClave, Statistics, 11th ed. Chapter 9: 57
Inferences Based on Two Samples
 9.6: Comparing Two Population
Variances: Independent Sampling
Home Runs, American National
2003 League League  s12   1    12   s12   1 
 2      2    2   
µ 178.5 169.25
 s2   FU , /2    2   s2   FL , /2 
2 1415.8 951.4
n 14 16

 1415.8   1    1   1415.8   1 
2

      2      
 951.4 F 
  U ,.025   2   951.4   L ,.025 
F
Since 1 is in the
confidence interval, the
assumption of equal
 1415.8  1    1   1415.8   1 
2

 2 
variances needed for
   
the t-test is not rejected.  951.4  2.92    2   951.4   .32 

  12 
. 5096   2   4.6504
2 
McClave, Statistics, 11th ed. Chapter 9: 58
Inferences Based on Two Samples
 9.6: Comparing Two Population
Variances: Independent Sampling
F -Test for Equal Population Variances
One-Tailed Test Two-Tailed Test
H 0 :  12   22 H 0 :  12   22
H a :  12  (or  ) 22 H a :  12   22
s22 Test Statistic:
Test Statistic: F  2 if H a :  12   22
s1 Larger sample variance
F
s12 Smaller sample variance
or F  2 if H a :  12   22
s2
Rejection Region: F  F /2
Rejection Region: F  F

McClave, Statistics, 11th ed. Chapter 9: 59

Inferences Based on Two Samples
9.6: Comparing Two Population
Variances: Independent Sampling

 In 2006, ten fast-growing economies had an

average GDP growth rate of 8.69%, with a
standard deviation of 1.7. Ten slow-growing
economies had an average GDP growth
rate of 2.29%, with a standard deviation of
.58.* Do slow- and fast-growing economies
have similar variability (=5%)?
* Source: euroekonom.com

McClave, Statistics, 11th ed. Chapter 9: 60

Inferences Based on Two Samples
 9.6: Comparing Two Population
Variances: Independent Sampling
Two-Tailed Test
µfast-growing = 8.69% H 0 :  12   22
µslow-growing = 2.29%
H a :  12   22
2fast-growing = 2.89
2slow-growing = .34 Test Statistic:
Larger sample variance 2.89
F   8.5
Smaller sample variance .34

Rejection Region: F  F.025  4.03

McClave, Statistics, 11th ed. Chapter 9: 61

Inferences Based on Two Samples
 9.6: Comparing Two Population
Variances: Independent Sampling
Two-Tailed Test
µfast-growing = 8.69% H 0 :  12   22
µslow-growing = 2.29%
H a :  12   22
2fast-growing = 2.89
2slow-growing = .34 Test Statistic:
Larger sample variance 2.89
F   8.5
Smaller sample variance .34
Reject the null
hypothesis at
the =.05 Rejection Region: F  F.025  4.03
level.

McClave, Statistics, 11th ed. Chapter 9: 62

Inferences Based on Two Samples