Chapter 10, Part A

Statistical Inferences About Means

and Proportions with Two Populations

 Inferences About the Difference Between

Two Population Means:  1 and  2 Known
 Inferences About the Difference Between
Two Population Means:  1 and  2 Unknown

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 Inferences About the Difference Between
Two Population Means:  1 and  2 Known
 Interval Estimation of  1 –  2
 Hypothesis Tests About  1 –  2

when the difference

between the two population means are of prime
importance

Difference in the starting salaries of men and

women

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 Estimating the Difference Between
Two Population Means
 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 independent
simple random sample of size n1 from population 1
and a simple random sample of size n2 from
population 2.
 Let x equal the mean of sample 1 and x equal the
1 2
mean of sample 2.
 The point estimator of the difference between the
means of the populations 1 and 2 is x1  x2.

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 Sampling Distribution of x1  x2

 Expected Value
E ( x1  x 2 )   1   2

 Standard Deviation (Standard Error)

12  22
 x1  x2  
n1 n2

where: 1 = standard deviation of population 1

2 = standard deviation of population 2
n1 = sample size from population 1
n2 = sample size from population 2

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 Interval Estimation of 1 - 2:
 1 and  2 Known
 Interval Estimate

 12  22
x1  x2  z / 2 
n1 n2
where:
1 -  is the confidence coefficient

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 Interval Estimation of 1 - 2:
 1 and  2 Known
 Example: Par, Inc.
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.

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 Interval Estimation of 1 - 2:
 1 and  2 Known
 Example: Par, Inc.

Sample #1 Sample #2
Par, Inc. Rap, Ltd.
Sample Size 120 balls 80 balls
Sample Mean 275 yards 258 yards

Based on data from previous driving distance

tests, the two population standard deviations are
known with  1 = 15 yards and  2 = 20 yards.

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 Interval Estimation of 1 - 2:
 1 and  2 Known
 Example: Par, Inc.
Let us develop a 95% confidence interval estimate
of the difference between the mean driving distances of
the two brands of golf ball.

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 Estimating the Difference Between
Two Population Means
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
1 – 2 = difference between
the mean distances
Simple random sample Simple random sample
of n11 Par golf balls of n22 Rap golf balls
x11 = sample mean distance x22 = sample mean distance
for the Par golf balls for the Rap golf balls
x1 - x2 = Point Estimate of 1 – 2

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 Point Estimate of 1 - 2

Point estimate of 1  2 = x1  x2
= 275  258
= 17 yards
where:
1 = mean distance for the population
of Par, Inc. golf balls
2 = mean distance for the population
of Rap, Ltd. golf balls

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 Interval Estimation of 1 - 2:
1 and 2 Known

 12  22 (15) 2 ( 20) 2
x1  x2  z / 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 is 11.86 to 22.14 yards.

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 Hypothesis Tests About  1   2:
 1 and  2 Known
 Hypotheses

H 0 :  1   2  D0 H 0 :  1   2  D0 H 0 :  1   2  D0
H a :  1   2  D0 H a :  1   2  D0 H a :  1   2  D0
Left-tailed Right-tailed Two-tailed
 Test Statistic

( x1  x2 )  D0
z
 12  22

n1 n2

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 Hypothesis Tests About  1   2:
 1 and  2 Known
 Example: Par, Inc.
Can we conclude, using
 = .01, that the mean driving
distance of Par, Inc. golf balls
is greater than the mean driving
distance of Rap, Ltd. golf balls?

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 Hypothesis Tests About  1   2:
 1 and  2 Known
 p –Value and Critical Value Approaches

1. Develop the hypotheses. H0: 1 - 2 < 0 

Ha: 1 - 2 > 0
where:
1 = mean distance for the population
of Par, Inc. golf balls
2 = mean distance for the population
of Rap, Ltd. golf balls
2. Specify the level of significance.  = .01

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 Hypothesis Tests About  1   2:
 1 and  2 Known
 p –Value and Critical Value Approaches

3. Compute the value of the test statistic.

( x1  x2 )  D0
z
 12  22

n1 n2
(235  218)  0 17
z   6.49
(15)2 (20)2 2.62

120 80

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 Hypothesis Tests About  1   2:
 1 and  2 Known
 p –Value Approach

4. Compute the p–value.

For z = 6.49, the p –value < .0001.

5. Determine whether to reject H0.

Because p–value <  = .01, we reject H0.
At the .01 level of significance, the sample evidence
indicates the mean driving distance of Par, Inc. golf
balls is greater than the mean driving distance of Rap,
Ltd. golf balls.

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 Hypothesis Tests About  1   2:
 1 and  2 Known
 Critical Value Approach

4. Determine the critical value and rejection rule.

For  = .01, z.01 = 2.33

Reject H0 if z > 2.33

5. Determine whether to reject H0.

Because z = 6.49 > 2.33, we reject H0.
The sample evidence indicates the mean driving
distance of Par, Inc. golf balls is greater than the mean
driving distance of Rap, Ltd. golf balls.

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 Inferences About the Difference Between
Two Population Means:  1 and  2 Unknown
 Interval Estimation of  1 –  2
 Hypothesis Tests About  1 –  2

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 Interval Estimation of 1 - 2:
 1 and  2 Unknown
When  1 and  2 are unknown, we will:
• use the sample standard deviations s1 and s2
as estimates of  1 and  2 , and
• replace z/2 with t/2.

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 Interval Estimation of 1 - 2:
 1 and  2 Unknown
 Interval Estimate

s12 s22
x1  x2  t / 2 
n1 n2

Where the degrees of freedom for t/2 are:

2
s s 
2 2

  
1 2

 n1 n2 
df  2 2
1  s1 2
1  s2 
2

    
n1  1  n1  n2  1  n2 

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 Difference Between Two Population Means:
 1 and  2 Unknown
 Example: Specific Motors
Specific Motors of Detroit
has developed a new automobile
known as the M car. 24 M cars
and 28 J cars (from Japan) were road
tested to compare miles-per-gallon (mpg) performance.
The sample statistics are shown on the next slide.

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 Difference Between Two Population Means:
 1 and  2 Unknown
 Example: Specific Motors

Sample #1 Sample #2
M Cars J Cars
24 cars 28 cars Sample Size
29.8 mpg 27.3 mpg Sample Mean
2.56 mpg 1.81 mpg Sample Std. Dev.

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 Difference Between Two Population Means:
 1 and  2 Unknown
 Example: Specific Motors
Let us develop a 90% confidence
interval estimate of the difference
between the mpg performances of
the two models of automobile.

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 Point Estimate of  1   2

Point estimate of 1  2 = x1  x2
= 29.8 - 27.3
= 2.5 mpg
where:
1 = mean miles-per-gallon for the
population of M cars
2 = mean miles-per-gallon for the
population of J cars

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 Interval Estimation of  1   2:
 1 and  2 Unknown
The degrees of freedom for t/2 are:
2 2
 (2.56) (1.81) 
2

  
 24 28 
df  2 2
 24.07  24
1  (2.56) 2  1  (1.81) 2 
    
24  1  24  28  1  28 

With /2 = .05 and df = 24, t/2 = 1.711

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 Interval Estimation of  1   2:
 1 and  2 Unknown

s12 s22 (2.56) 2 (1.81) 2

x1  x2  t / 2   29.8  27.3  1.711 
n1 n2 24 28
2.5 + 1.069 or 1.431 to 3.569 mpg

We are 90% confident that the difference between

the miles-per-gallon performances of M cars and J cars
is 1.431 to 3.569 mpg.

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 Hypothesis Tests About  1   2:
 1 and  2 Unknown
 Hypotheses

H 0 :  1   2  D0 H 0 :  1   2  D0 H 0 :  1   2  D0
H a :  1   2  D0 H a :  1   2  D0 H a :  1   2  D0
Left-tailed Right-tailed Two-tailed
 Test Statistic

( x1  x2 )  D0
t
2 2
s s
1
 2
n1 n2

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 Hypothesis Tests About  1   2:
 1 and  2 Unknown
 Example: Specific Motors
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?

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 Hypothesis Tests About  1   2:
 1 and  2 Unknown
 p –Value and Critical Value Approaches
1. Develop the hypotheses.
H0: 1 - 2 < 0 
Ha: 1 - 2 > 0
where:
1 = mean mpg for the population of M cars
2 = mean mpg for the population of J cars

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 Hypothesis Tests About  1   2:
 1 and  2 Unknown
 p –Value and Critical Value Approaches
2. Specify the level of significance.  = .05

3. Compute the value of the test statistic.

( x1  x2 )  D0 (29.8  27.3)  0
t   4.003
s12 s22 (2.56) 2 (1.81) 2
 
n1 n2 24 28

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 Hypothesis Tests About  1   2:
 1 and  2 Unknown
 p –Value Approach
4. Compute the p –value.
The degrees of freedom for t are:
2
 (2.56) (1.81) 
2 2

  
 24 28 
df  2 2
 40.566  41
1  (2.56) 2  1  (1.81) 2 
    
24  1  24  28  1  28 

Because t = 4.003 > t.005 = 1.683, the p–value < .005.

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 Hypothesis Tests About  1   2:
 1 and  2 Unknown
 p –Value Approach
5. Determine whether to reject H0.
Because p–value <  = .05, we reject H0.
We are at least 95% confident that the miles-per-
gallon (mpg) performance of M cars is greater than
the miles-per-gallon performance of J cars?.

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 Hypothesis Tests About  1   2:
 1 and  2 Unknown
 Critical Value Approach
4. Determine the critical value and rejection rule.
For  = .05 and df = 41, t.05 = 1.683
Reject H0 if t > 1.683

5. Determine whether to reject H0.

Because 4.003 > 1.683, we reject H0.
We are at least 95% confident that the miles-per-
gallon (mpg) performance of M cars is greater than
the miles-per-gallon performance of J cars.

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 Points to remember

 Whenever possible equal sample sizes are

recommended

 The procedure discussed are robust even for small

sample sizes.

 When population is normal -nearly equal or equal

sample sizes are recommended

 When highly skewed – or outliers are there – larger

sample size

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 Researchers at Purdue University and Wichita State University found that
airlines are doing a better job of getting passengers to their destinations on
time (Associated Press, April 2, 2012). AirTran Airways and Southwest
Airlines were among the leaders in on-time arrivals with both having 88% of
their flights arriving on time. But for the 12% of flights that were delayed,
how many minutes were these flights late? Sample data showing the number
of minutes that delayed flights were late are provided in the file named
AirDelay. Data are shown for both airlines.

 a. Formulate the hypotheses that can be used to test for a difference between
the population mean minutes late for delayed flights by these two airlines.
 b. What is the sample mean number of minutes late for delayed flights for
each of these two airlines?
 c. Using a .05 level of significance, what is the p-value and what is your
conclusion?

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 Let µ1= population mean minutes late for delayed AirTran flights
 µ2= population mean minutes late for delayed Southwest flights

The difference between sample mean delay times is 50.6 – 52.8 = -2.2 minutes,
which indicates the sample mean delay time is 2.2 minutes less for AirTran
Airways.

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© 2008 Thomson South-Western. All Rights Reserved Slide
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 Inferences About the Difference Between
Two Population Means: Matched Samples
 With a matched-sample design each sampled item
provides a pair of data values.
 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.

EG. TWO PRODUCTION METHODS ARE TESTED UNDER SIMILAR

CONDITIONS I.E. SAME WORKERS

the analysis of a matched sample design by assuming it is the

method used to test the difference between population means for
the two production methods.

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 Inferences About the Difference Between
Two Population Means: Matched Samples
 Example: Express Deliveries
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.

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 Inferences About the Difference Between
Two Population Means: Matched Samples
 Example: Express Deliveries
In testing the delivery times
of the two services, the firm sent
two reports to a random sample
of its district offices with one
report carried by UPX and the
other report carried by INTEX. Do the data on the
next slide indicate a difference in mean delivery
times for the two services? Use a .05 level of
significance.

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 Inferences About the Difference Between
Two Population Means: Matched Samples

Delivery Time (Hours)

District Office UPX INTEX Difference
Seattle 32 25 7
Los Angeles 30 24 6
Only
Boston 19 15 4
consider
Cleveland 16 15 1 the
New York 15 13 2 difference
Houston 18 15 3 it in
Atlanta 14 15 -1 matched
St. Louis 10 8 2 sample
Milwaukee 7 9 -2 design
Denver 16 11 5

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 Inferences About the Difference Between
Two Population Means: Matched Samples
 p –Value and Critical Value Approaches
1. Develop the hypotheses.
H0: d = 0 
Ha: d 
Let d = the mean of the difference values for the
two delivery services for the population
of district offices

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 Inferences About the Difference Between
Two Population Means: Matched Samples
 p –Value and Critical Value Approaches
2. Specify the level of significance.  = .05

3. Compute the value of the test statistic.

 d i ( 7  6  ... 5)
d    2. 7
n 10
2
 ( di  d ) 76.1
sd    2. 9
n 1 9
d  d 2.7  0
t   2.94
sd n 2.9 10

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 Inferences About the Difference Between
Two Population Means: Matched Samples
 p –Value Approach
4. Compute the p –value.
For t = 2.94 and df = 9, the p–value is between
.02 and .01. (This is a two-tailed test, so we double
the upper-tail areas of .01 and .005.)

5. Determine whether to reject H0.

Because p–value <  = .05, we reject H0.
We are at least 95% confident that there is a
difference in mean delivery times for the two
services.

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 Inferences About the Difference Between
Two Population Means: Matched Samples
 Critical Value Approach
4. Determine the critical value and rejection rule.

For  = .05 and df = 9, t.025 = 2.262.

Reject H0 if t > 2.262

5. Determine whether to reject H0.

Because t = 2.94 > 2.262, we reject H0.
We are at least 95% confident that there is a
difference in mean delivery times for the two
services?

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© 2008 Thomson South-Western. All Rights Reserved Slide
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 End of Chapter 10
Part A

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