Slides Prepared by

JOHN S. LOUCKS
St. Edwards University

2002 South-Western /Thomson Learning

Chapter 10
Comparisons Involving Means

Estimation of the Difference Between the

Means of
Two Populations: Independent Samples
Hypothesis Tests about the Difference between
the
Means of Two Populations: Independent
Samples
Inferences about the Difference between the
Means
of Two Populations: Matched Samples
2
Inferences about the Difference between
the
1
Proportions of Two Populations:

=
ANOVA
2

Estimation of the Difference Between the

Means
of Two Populations: Independent Samples

Point Estimator of the Difference between the

Means of Two Populations
x1 x2
Sampling Distribution
Interval Estimate of Large-Sample Case
Interval Estimate of Small-Sample Case

Point Estimator of the Difference Between

the Means of Two Populations

Let 1 equal the mean of population 1 and 2

equal the mean of population 2.
The difference between the two population
means is 1 - 2.
To estimate 1 - 2, we will select a simple
random sample of size n1 from population 1
and a simple random sample of size n2 from
x1
x2
population
2.
Let
equal the mean of sample 1 and
equal the mean of sample 2.
x x
The point estimator of the difference between
the means of the populations 1 and 2 is
.
1

Sampling Distribution ofx1 x2

x1 x2of
Properties of the Sampling Distribution
Expected Value
E ( x1 x2 ) 1 2

Standard Deviation

x1 x2

12 22

n1 n2

where: 1 = standard deviation of population

1
2 = standard deviation of population
2
n1 = sample size from population 1
5

Interval Estimate of 1 - 2:
Large-Sample Case (n1 > 30 and n2 > 30)

Interval Estimate with 1 and 2 Known

x1 x2 z / 2 x1 x2

where:
1 - is the confidence coefficient
Interval Estimate with 1 and 2 Unknown

x1 x2 z / 2 sx1 x2
where:

sx1 x2

s12 s22

n1 n2

Example: Par, Inc.

Interval Estimate of 1 - 2: Large-Sample Case

Par, Inc. is a manufacturer of golf equipment
and has developed a new golf ball that has been
designed to provide extra distance. In a test
of driving distance using a mechanical driving
device, a sample of Par golf balls was compared
with a sample of golf balls made by Rap, Ltd., a
competitor.
The sample statistics appear on the next
slide.

Example: Par, Inc.

Interval Estimate of 1 - 2: Large-Sample Case

Sample Statistics

Sample #1
Sample #2
Par, Inc.
Rap, Ltd.
Sample Size n1 = 120 balls
n2 = 80 balls

x1 yards
Mean
= 235
yards
Standard Dev. s1 = 15 yards

x2 = 218

s2 = 20 yards

Example: Par, Inc.

Point Estimate of the Difference Between Two

Population Means
1 = mean distance for the population of
Par, Inc. golf balls
2 = mean distance for the population of
Rap, Ltd. golf balls
Point estimate of 1 - x12 =x2
17 yards.

= 235 - 218 =

Point Estimator of the Difference

Between the Means of Two Populations
Population 1
Population 2
Par, Inc. Golf Balls
Rap, Ltd. Golf Balls
11 = mean driving
22 = mean driving
distance of Par
distance of Rap
golf balls
golf balls
m1 2 = difference between
the mean distances
Simple random sample
of n11 Par golf balls

Simple random sample

of n22 Rap golf balls

x11 = sample mean distance

for sample of Par golf ball

x22 = sample mean distance

for sample of Rap golf ball

x1 - x2 = Point Estimate of
m1 2
10

Example: Par, Inc.

95% Confidence Interval Estimate of the

Difference Between Two Population Means:
Large-Sample Case, 1 and 2 Unknown
Substituting the sample standard deviations
for the population standard deviation:
x1 x2 z / 2

12 22
(15) 2 ( 20) 2

17 1. 96

n1 n2
120
80

= 17 + 5.14 or 11.86 yards to 22.14

yards.
We are 95% confident that the difference
between the mean driving distances of Par, Inc.
balls and Rap, Ltd. balls lies in the interval of
11.86 to 22.14 yards.
11

Interval Estimate of 1 - 2:
Small-Sample Case (n1 < 30 and/or n2 <
30)
Interval Estimate with 2 Known

x1 x2 z / 2 x1 x2
where:

x1 x2

1 1
( )
n1 n2
2

12

Interval Estimate of 1 - 2:
Small-Sample Case (n1 < 30 and/or n2 <
30)
Interval Estimate with 2 Unknown

x1 x2 t / 2 sx1 x2
where:
sx1 x2

1 1
s ( )
n1 n2
2

2
2
(
n

1
)
s

(
n

1
)
s
1
2
2
s2 1
n1 n2 2

13

Example: Specific Motors

Specific Motors of Detroit has developed a new
automobile known as the M car. 12 M cars and 8
J cars
(from Japan) were road tested to compare milespergallon (mpg) performance. The sample statistics
are:

Sample Size

Sample #1
Sample #2
x1
x2
M Cars
J Cars
n1 = 12 cars n2 = 8 cars

Mean
mpg
Standard Deviation

= 29.8 mpg
s1 = 2.56 mpg

= 27.3
s2 =

14

Example: Specific Motors

Point Estimate of the Difference Between Two

Population Means

1 = mean miles-per-gallon for the population of

M cars
2 = mean miles-per-gallon for the population of
J cars
Point estimate of 1 - 2x=
1 x2
= 2.5 mpg.

= 29.8 - 27.3

15

Example: Specific Motors

95% Confidence Interval Estimate of the

Difference Between Two Population Means:
Small-Sample Case
We will make the following assumptions:
The miles per gallon rating must be
normally
distributed for both the M car and the J car.
The variance in the miles per gallon rating
must
be the same for both the M car and the J
car.
Using the t distribution with n1 + n2 - 2 = 18
degrees
of freedom, the appropriate t value is t.025 = 16

Example: Specific Motors

95% Confidence Interval Estimate of the

Difference Between Two Population Means:
Small-Sample
2 Case
2
2
2
(
n

1
)
s

(
n

1
)
s
11
(
2
.
56
)

7
(
1
.
81
)
1
2
2
s2 1

5. 28
n1 n2 2
12 8 2
x1 x2 t.025

1 1
1 1
s ( ) 2. 5 2.101 5. 28( )
n1 n2
12 8
2

= 2.5 + 2.2 or .3 to 4.7 miles per gallon.

We are 95% confident that the difference
between the
mean mpg ratings of the two car types is
from .3 to 4.7 mpg (with the M car having the
higher mpg).
17

Hypothesis Tests About the Difference

Between the Means of Two Populations:
Independent Samples

Hypotheses
H0: 1 - 2 < 0
2 = 0

H0: 1 - 2 > 0

H0: 1 -

Ha: 1 - 2 > 0
2 0

Ha: 1 - 2 < 0

Ha: 1 -

Test Statistic
( x1 x2 ) ( 1 2 )
z
12Large-Sample
n1 22 n2
Sample

( x1 x2 ) ( 1 2 )
2Smalls (1 n1 1 n2 )

18

Example: Par, Inc.

Hypothesis Tests About the Difference Between

the Means of Two Populations: Large-Sample
Case
Par, Inc. is a manufacturer of golf equipment
and has developed a new golf ball that has
been designed to provide extra distance. In
a test of driving distance using a mechanical
driving device, a sample of Par golf balls was
compared with a sample of golf balls made by
Rap, Ltd., a competitor. The sample statistics
appear on the next slide.

19

Example: Par, Inc.

Hypothesis Tests About the Difference Between

the Means of Two Populations: Large-Sample
Case
Sample Statistics
Sample #1

Sample

#2
Par,xInc.
Rap,xLtd.
2
1
Sample Size n1 = 120 balls
n2 = 80 balls
Mean
= 235 yards
yards
Standard Dev. s1 = 15 yards

= 218
s2 = 20 yards
20

Example: Par, Inc.

Hypothesis Tests About the Difference Between

the Means of Two Populations: Large-Sample
Case
Can we conclude, using a .01 level of
significance, that the mean driving distance of
Par, Inc. golf balls is greater than the mean
driving distance of Rap, Ltd. golf balls?
1 = mean distance for the population of Par,
Inc.
golf balls
2 = mean distance for the population of Rap,
Ltd.
golf balls
Hypotheses H0: 1 - 2 < 0
21

Example: Par, Inc.

Hypothesis Tests About the Difference Between

the Means of Two Populations: Large-Sample
Case
Reject H0 if z > 2.33
Rejection Rule
( x1 x2 ) ( 1 2 ) ( 235 218) 0
17
z

6. 49
2
2
2
2
2. 62
1 2
(15) ( 20)

n1 n2
120
80

Conclusion
Reject H0. We are at least 99% confident
that the mean driving distance of Par, Inc. golf
balls is greater than the mean driving distance
of Rap, Ltd. golf balls.
22

Example: Specific Motors

Hypothesis Tests About the Difference Between

the Means of Two Populations: Small-Sample
Case
Can we conclude, using a .05 level of
significance, that the miles-per-gallon (mpg)
performance of M cars is greater than the
miles-per-gallon performance of J cars?
1 = mean mpg for the population of M cars

2 = mean mpg for the population of J cars

Hypotheses H0: 1 - 2 < 0

Ha: 1 - 2 > 0

23

Example: Specific Motors

Hypothesis Tests About the Difference Between

the Means of Two Populations: Small-Sample
Case
Rejection Rule
Reject H0 if t > 1.734
(a = .05, d.f. = 18)

Test Statistic ( x1 x2 ) ( 1 2 )

s2 (1 n1 1 n2 )

2
2
(
n

1)
s

(
n

1)
s
1
1
2
2
where:
s
n1 n2 2
2

24

Inference About the Difference Between

the Means of Two Populations: Matched
Samples

With a matched-sample design each sampled

item provides a pair of data values.
The matched-sample design can be referred to
as blocking.
This design often leads to a smaller sampling
error than the independent-sample design
because variation between sampled items is
eliminated as a source of sampling error.

25

Example: Express Deliveries

Inference About the Difference Between the

Means of Two Populations: Matched Samples
A Chicago-based firm has documents that
must be quickly distributed to district offices
throughout the U.S. The firm must decide
between two delivery services, UPX (United
Parcel Express) and INTEX (International
Express), to transport its documents. In
testing the delivery times of the two services,
the firm sent two reports to a random sample
of ten district offices with one report carried by
UPX and the other report carried by INTEX.
Do the data that follow indicate a difference
in mean delivery times for the two services? 26

Example: Express Deliveries

Delivery Time (Hours)
District Office UPX
INTEX
Difference
Seattle
Los Angeles
Boston
Cleveland
New York
Houston
Atlanta
St. Louis
Milwaukee
Denver

32
30
19

25
24
15
16

15
18
14
10
7
16

7
6
4
15

13
15
15
8
9
11

1
2
3
-1
2
-2
5
27

Example: Express Deliveries

Inference About the Difference Between the

Means of Two Populations: Matched Samples
Let d = the mean of the difference values for
the
two delivery services for the
population of
district offices

Hypotheses

H0: d = 0, Ha: d

Rejection Rule
Assuming the population of difference
values is
approximately normally
distributed, the t distribution with n - 1 degrees
of freedom applies. With = .05, t.025 = 2.262
(9 degrees of freedom).
Reject H0 if t < -2.262 or if t > 2.262
28

Example: Express Deliveries

Inference About the Difference Between the

Means of Two Populations: Matched Samples
di ( 7 6... 5)
d

2. 7
n
10
2
76.1
( di d )
sd

2. 9
n 1
9

d d
2. 7 0
t

2. 94
sd n 2. 9 10

Conclusion

Reject H0.

There is a significant difference between the

mean delivery times for the two services.
29

Inferences About the Difference

Between the Proportions of Two
Populations

p2
Sampling Distributionp1of
Interval Estimation of p1 - p2

Hypothesis Tests about p1 - p2

30

Sampling Distribution of p1 p2

Expected Value
E ( p1 p2 ) p1 p2

Standard Deviation

p1 p2

p1 (1 p1 ) p2 (1 p2 )

n1
n2

Distribution Form
If the sample sizes are large (n1p1, n1(1 - p1),
n2p2,
and n2(1 - p2) are all greater
p1 p2 than or equal to
5), the
sampling distribution of
can be
approximated
31
by a normal probability distribution.

Interval Estimation of p1 - p2

Interval Estimate

p1 p2 z / 2 p1 p2

Point Estimator of
p1 p2
s p1 p2

p1 (1 p1 ) p2 (1 p2 )

n1
n2

32

Example: MRA
MRA (Market Research Associates) is
conducting research to evaluate the
effectiveness of a clients new advertising
campaign. Before the new campaign began, a
telephone survey of 150 households in the test
market area showed 60 households aware of
the clients product. The new campaign has
been initiated with TV and newspaper
advertisements running for three weeks. A
survey conducted immediately after the new
campaign showed 120 of 250 households
aware of the clients product.
Does the data support the position that the
advertising campaign has provided an
increased awareness of the clients product? 33

Example: MRA

Point Estimator of the Difference Between the

Proportions of Two Populations
120 60
p1 p2 p1 p2

. 48. 40 . 08
250 150
p1 = proportion of the population of
households
aware of the product after the new
campaign
pp
1 2 = proportion of the population of
households
p2 aware of the product before the new
campaign
= sample proportion of households aware
of the
product after the new campaign
34

Example: MRA

Interval Estimate of p1 - p2: Large-Sample

Case
For = .05,. 48
z.025
(. 52=) 1.96:
. 40(. 60)
. 48. 40 1. 96

250
150
.08 + 1.96(.0510)
.08 + .10
or -.02 to +.18
Conclusion
At a 95% confidence level, the interval
estimate of the difference between the
proportion of households aware of the clients
product before and after the new advertising
35
campaign is -.02 to +.18.

Hypothesis Tests about p1 - p2

Hypotheses
H0: p1 - p2 < 0
Ha: p1 - p2 > 0

Test statistic
z

( p1 p2 ) ( p1 p2 )
p1 p2

p1 p2
Point Estimator of
s p1 p2

where:

where p1 = p2

p (1 p )(1 n1 1 n2 )

n1 p1 n2 p2
n1 n2

36

Example: MRA

Hypothesis Tests about p1 - p2

Can we conclude, using a .05 level of
significance, that the proportion of households
aware of the clients product increased after
the new advertising campaign?
p1 = proportion of the population of
households
aware of the product after the new
campaign
p2 = proportion of the population of
households
aware of the product before the new
campaign
37
Hypotheses H0: p1 - p2 < 0

Example: MRA

Hypothesis Tests about p1 - p2

Rejection Rule

Reject H0 if z > 1.645

Test Statistic
250(. 48) 150(. 40) 180
p

. 45
250 150
400
s p1 p2 . 45(. 55)( 1

1 ) . 0514
250 150

(. 48. 40) 0
. 08
z

1. 56
. 0514
. 0514

Conclusion

Do not reject H0.

38

End of Chapter 10

39