--%>

Compute two sample standard deviations

Consider the following data for two independent random samples taken from two normal populations.

Sample 1 14 26 20 16 14 18

Sample 2 18 16 8 12 16 14

a) Compute the two sample means and the two sample standard deviations.

b) What is the point estimate of the difference between the two population means?

c) Assuming α = .10, conduct p-value based and critical-value based hypothesis tests for the equality

of means of the two populations.

d) What is the 90% confidence interval estimate of the difference between the two population means?

How do the results compare in all the three approaches to hypothesis testing?

 

E

Expert

Verified

Mean sample 1 = X1-bar = (14+26+20+16+14+18)/6 = 18

Mean sample 2 = X2-bar = (18+16+8+12+16+14)/6 = 14

Sample 1 SD = SD1

X1

X1-X1-bar

(X1-X1-bar)2

14

-4

16

26

8

64

20

2

4

16

-2

4

14

-4

16

18

0

0

Sum of (X1-X1-bar)2 = 104

S12 = 104/6-1

        = 20.8

SD1 =  = 4.56

Sample 2 SD = SD2

X2

X1-X1-bar

(X1-X1-bar)2

18

4

16

16

2

4

8

-6

36

12

-2

4

16

2

4

14

0

0

 

Sum of (X2-X2-bar)2 = 64

S22 = 64/6-1

        = 12.8

SD2 =  = 3.58

(b)

Point estimation of difference b/w two means = 18 - 14 = 4

(c)

t-test will be applied because sample size is small.

Hypothesis Formation

Null Hypothesis H0:    µ1 - µ2 = 0

Alternative Hypothesis H1:    µ1 - µ2 ≠ 0

t Statistic

t-statistic = (X1-bar  - x2-bar)/Sp

Where SP =

                  = 2.016

Critical value

Critical value of t with df=10 at 0.1 significance level = 1.812

Critical Region

Reject null hypothesis in favor of alternative if t is greater than t critical value of 1.812 or less than -1.812.

Computation

t-statistic = (18 - 14)/2.016

   = 5.95

Decision

Null hypothesis is rejected in favor of alternative as Z value is greater than Z critical value.

(d)

90% CI of difference between means = (18-14) - 1.812*2.016

                                                                    = 4 - 1.22 < µ < 4 + 1.22

                                                                    = 2.78< µ< 5.22

   Related Questions in Basic Statistics

  • Q : FIN512 Entrepreneurial Finance Chapter

      Chapter 6: Discussion Question: #4 p. 223  It is usually easier to forecast sales for a seasoned firm contrast to an early-stage venture because an early-stage venture has limited access to bank credit lines, sho

  • Q : Use the NW corner rule to find an

      (a) Use the NW corner rule to find an initial BFS, then solve using the transportation simplex method. Indicate your optimal objective function value. (b) Suppose we increase s1 from 15 to 16, and d3 from 10 to 11. S

  • Q : Regression Analysis 1. A planning

    1. A planning official in the Texas Department of Community Affairs, which works in the office next to you, has a problem. He has been handed a data set from his boss that includes the costs involved in developing local land use plans for communities wi

  • Q : Sample Questions in Graphical Solution

    Solved problems in Graphical Solution Procedure, sample assignments and homework Questions: Minimize Z = 10x1 + 4x2 Subject to

  • Q : STATISTICS Question This week you will

    This week you will analyze if women drink more sodas than men.  For the purposes of this Question, assume that in the past there has been no difference.  However, you have seen lots of women drinking sodas the past few months.  You will perform a hypothesis test to determine if women now drink more

  • Q : Compute two sample standard deviations

    Consider the following data for two independent random samples taken from two normal populations. Sample 1 14 26 20 16 14 18 Sample 2 18 16 8 12 16 14 a) Com

  • Q : What is Inter-arrival times

    Inter-arrival times:A) Requests arrive randomly, often separated by small time intervals with few long separations among themB) The time until the next arrival is independent of when the last arrival occurredC) Coro

  • Q : Sample z test and Sample t test A

    A random sample X1, X2, …, Xn is from a normal population with mean µ and variance σ2. If σ is unknown, give a 95% confidence interval of the population mean, and interpret it. Discuss the major diff

  • Q : Problem on Model Checking Part (a).

    Part (a). Draw a state diagram for a car with the following state variables: D indicating whether the car is in drive; B indicating the brake pedal is depressed; G indicating the gas pedal is depressed; and M indicating whether the car is moving. (For example, the sta

  • Q : Correlation analysis and the regression

    1).  When you take out a mortgage, there are many different kinds of costs.  Usually the two largest are the interest rate (annual percentage that determines the size of your monthly payment) and the loan fee (a one-time percentage charged to you at the time