HYPOTHESIS TESTS FOR DIFFERENCE BETWEEN TWO MEANS

12.1 TESTS CONCERNING TWO MEANS

Value of test statistic Critical region

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
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 HYPOTHESIS TESTS FOR DIFFERENCE BETWEEN TWO MEANS
3. Suppose that the makers of Duracell batteries want
to prove that their size AA battery lasts an average of
at least 45 minutes longer than Duracells main
competitors, the Energizer. Two independent random
samples of 100 batteries of each kind are selected, and
the batteries are run continuously until there are no
longer operational. The sample average life for
Duracell is found to be 1 = 308 minutes, and the
sample standard deviation is 1 = 84 minutes. The
results for the Energizer batteries are 2 = 254 minutes
and 2 = 67 minutes. Is there evidence to substantiate
Duracells claim that their batteries last, on the average,
at least 45 minutes longer than Energizer batteries of
the same size? Use = 0.01.
4. The following data represent the running times of
films produced by two different motion picture
companies:
Company Time (in minutes)
A 102 68 98 109 92
B 81 165 97 143 92 78 114
Test hypothesis that the average running time of
films produced by Company B exceeds the average
running time of films produced by Company A by 10
minutes against the alternative that the difference is
more than 10 minutes. Use a 0.05 level of significance
and assume the distribution of times to be
approximately normal and the population variances
are equal.
5. Many companies that cater to teenagers have
learned that young people respond to commercials
that provide dance-beat music, adventure, and a fast
pace, rather than words. In one test, a group of 128
teenagers were shown commercials featuring rock
music, and their purchasing frequency of the
advertised products over the following month were
recorded as a single score for each person in the
group. Then a group of 212 teenagers were shown
commercials for the same products, but with the
music replaced by verbal persuasion. The purchase
frequency scores of this group were computed as well.
The results for the music group were = 23.5 and =
12.2; and the results for the verbal group were =
18.0 and = 10.5. Assume that the two groups were
randomly selected from the entire teenager consumer
population. Using the = 0.01 level of significance,
test the null hypothesis that both methods are equally
effective versus the alternative hypothesis that they
are not equally effective.
6. The photography department of a glamour
magazine needs to choose a camera. Of the two
models the department is considering, one is made by
Nikon and one by Minolta. The department contracts
with an agency to determine if one of the two models
gets a higher average performance rating by the
professional photographers, or whether the average
performance ratings of these two cameras are not
statistically different. The agency asks 60 different
professional photographers to rate one of the cameras
(30 photographers rate each model). The ratings are
on a scale of 1 to 10. The average sample rating for
Nikon is 8.5, and the standard deviation is 2.1. For the
Minolta sample, the mean is 7.8, and the standard
deviation is 1.8. Is there a difference between the
average population ratings of the two cameras? Use
0.05 level of significance.
7. Mark Pollard, financial consultant for Merrill Lynch,
Pierce, Fenner & Smith, Inc., is quoted in national
advertisements for Merrill Lynch as saying: Ive made
more money for clients by saying no than by saying
yes. Suppose that Mr. Pollard allowed you access to
his files so that you could conduct a statistical test of
the correctness of his statement. Suppose further that
you gathered a random sample of 15 clients to whom
Mr. Pollard said yes when presented with their
investment proposals, and you found that the clients
average gain on investments was 12% and the
standard deviation was 2.5%. Suppose you gathered a
random sample of 15 clients to whom Mr. Pollard said
no when asked about possible investments; the clients
were then offered other investments, which they
consequently made. For this sample, you found that
the average return was 13.5% and the standard
deviation was 1%. Test Mr. Pollards claim at =
0.025. Assume equal variances.
8. The manufacturers of compact disc players want to
test whether a small price reduction is enough to
increase sales of their product. Randomly chosen data
on 15 weekly sales totals at outlets in a given area
before the price reduction show a sample mean of
$6,598 and a sample standard deviation of $844. A
random sample of 12 weekly sales totals after the small
price reduction gives a sample mean of $6,870 and a
sample standard deviation of $699. Is there evidence
that a small price reduction is enough to increase sales
of compact disc players? Assume equal variances.
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