Statistical Test

Statistical Test are intended to decide whether a hypothesis about

distribution of one or more populations should be rejected or
accepted.

Statistical Test

Parametric tests

Non-parametric tests
 Parametric test: -
parametric test is a statistical test that makes assumptions
about the parameters of the population distribution from which one’s data
is drawn.

Application: -
 Used for quantitative data.
 Used for continuous variables.
 Used when data are measured on approximate interval or ratio scales of
measurement.
 Data should follow normal distribution.
 Parametric tests
1.t-test

t-test

t-test for
one sample

t-test for two

Un-paired two
samples sample t-test

Paired two
samples t-test
2. ANOVA

 One way ANOVA

 Two way ANOVA

3.Z- test

4.F- Test
Student’s t-test

Developed by Prof. W.S.Gossett.

A t-test compares the difference between two means of different groups to determine
whether the difference is statistically significant.
one sample t-test
Assumptions:

 Population is normally distributed

 Sample is drawn from the population and it should be random
 We should know the population mean

Conditions:
 Population standard deviation is not known
 Size of the sample is small (<30)

 In one sample t-test, we know the population mean.

 We draw a random sample from the population and then compare the sample

mean with the population mean and make a statistical decision as to whether or
not the sample mean is different from the population.
 Let x1 , X2, ......Xn, be a random sample of size "n" has drawn from a normal
population with mean (µ) and variance σ2. let x̄ is the sample mean of sample size
“n”.
Null hypothesis (H0):
Population mean (µ) is equal to a specified value µ0.
Under H0, H0:µ= µ0
then the test statistic is

t = x̄ - µ0 /s/√n

where s= √∑(Xi- x̄)2 /n-1

Example:
The specimen of copper wires drawn form a large lot have the following breaking strength
(in kg.weight): 578, 572, 570, 568, 572, 578, 570, 572, 596, 544
Test (using Student’s t-statistic)whether the mean breaking strength of the lot may be taken to
be 578 kg. weight (Test at 5 per cent level of significance).

Solution: Taking the null hypothesis that the population mean is equal to hypothesised mean of
578 kg., we can write: H0 :µ = µH0 = 578 g.
Ha : μ ≠ µH0
As the sample size is small (since n = 10) and the population standard deviation is not known,
we shall use t-test assuming normal population and shall work out the test statistic t as under:
t = x̄ - µ0 /s/√n

To find x̄ and s we make the following computations:

 s.no. xi (Xi- x̄ ) (Xi - x̄ )2
1 578 6 16
S.No. xi xi - ( xi -
2 572 0 0
31 578
570 -2 4
42 572
568 -4 16
53 570
572 0 0
64 568
578 6 36
75 572
570 -2 4
86 578
572 0 0
97 570
596 24 576
10 544 -28 784
n = 10 ∑ xi =5720 ∑ (xi - x̄ )2=1456
Hence, t = 572 - 578
Since s = √∑(Xi- x̄)2 /n-1 12. 72/ √ 10 so t =1.488
using table of t-distribution for 9 d.f.: R : | t | > 2.262
=√1456/10-1 =12.72 kg As the observed value of t (i.e., – 1.488) is in the acceptance region, we accept
H0at 5 percent level and conclude that the mean breaking strength of copper
wires lot may be taken as 578 kg.
Two sample t-test

Used when the two independent random samples come from the normal populations having
unknown or same variance.
We test the null hypothesis that the two population means are same
i.e., µ1=µ2
Assumptions
1. Populations are distributed normally
2. Samples are drawn independently and at random

Conditions:
1. Standard deviation in the populations are same and not known
2. Size of the sample is small.
If two independent samples x, (i=1,2,..n,) and y, (j=1,2,...n) of sizes n1,and n2, have been
drawn from two normal populations with means,µ1 and µ2 respectively.
Null hypothesis
Ho: µx=µy vs H1

Under H0, the test statistic is

t = (x̄ - y̅ ) /s √(1/n1+1/n2 )

where s = √[ ∑ (xi - x̄ )2 +∑(yi- y̅ )2 /n1+n2-2]

 Paired t-test
Used when measurements are taken from the same subject before and after some
manipulation or treatment.
Ex: To determine the significance of a difference in blood pressure before and after
administration of an experimental pressure substance.
Assumptions:
1. Populations are distributed normally
2. Samples are drawn independently and at random
Conditions:
3. Samples are related with each other
4. Sizes of the samples are small and equal.
5. Standard deviations in the populations are equal and not known.
Null Hypothesis:
HO: µ1=µ2
Under HO, the test statistic
t = d̅ /s /√n
Where, d is difference between x1 and x2
d̅ = Average of d
S = Standard deviation
n = Sample size

Example:
Memory capacity of 9 students was tested before and after training. State at 5 per
cent level of significance whether the training was effective from the following
scores: stude
nt
1 2 3 4 5 6 7 8 9

before 10 15 9 3 7 12 16 17 4
after 12 17 8 5 6 11 18 20 3
Solution:

Take the score before training as X and the score after training as Y and then taking the null
hypothesis that the mean of difference is zero,
we can write:
H0: µ1=µ2
Ha: μ 1<µ2 (as we want to conclude that training has been effective)
As we are having matched pairs, we use paired t-test and work out the test statistic t as under:

t = d̅ /s /√n
To find the value of t, we shall first have to work out the mean and standard deviation of
differences as shown below:
 students Score before Scores after Di=xi-yi di2
training xi training yi

1 10 12 -2 4
2 15 17 -2 4
3 9 8 1 1
4 3 5 -2 4
5 7 6 1 1
6 12 11 1 1
7 16 18 -2 4
8 17 20 -3 9
9 4 3 1 1
n=9 ∑di= -7 ∑di2=29

∴ Mean of Differences or d̅ = ∑di/n = -7/9 =0.778

and SD of differences sd = √ (∑di2 - d̅2 .n)/n-1 = √ 2.944 = 1.715
hence t = -0.778/ 1.715/ √ 9 = -1.361
Degrees of freedom = n – 1 = 9 – 1 = 8.
As Ha is one-sided, we shall apply a one-tailed test (in the left tail because Ha is of less than
type)
for determining the rejection region at 5 per cent level which comes to as under, using the
table of t-distribution for 8 degrees of freedom:
R : t < – 1.860

The observed value of t is –1.361 which is in the acceptance region and thus, we accept H 0
And conclude that the difference in score before and after training is insignificant i.e., it is
only due to sampling fluctuations. Hence we can infer that the training was not effective.
Large sample test (Z-Test)

Z-test is a statistical test where normal distribution is applied and is basically used for dealing
with problems relating to large samples when the frequency is greater than or equal to30.
It is used when population standard deviation is known
Assumptions:
1. Populations are distributed normally
2. Samples are drawn at random
Conditions:
3. Population standard deviation sigma is known.
4. Size of the sample is large(say n>30)

Z TEST for single mean

Let X1 , X2, ......Xn, be a random sample of size "n" has drawn from a normal population with mean (µ) and
variance σ2. let x̄ is the sample mean of sample size “n”.
Null hypothesis (H0): µ = µ0
Population mean (µ) is equal to a specified valueµ0.
Under H0, the test statistic is:
If the calculated value of Z< table value of Z at 5% level of significance, H 0, is accepted and
hence we conclude that there is no significant difference between the population mean and
the one specified in H0, as µ0.
Z test for differences between means:
In many decision-situations, we may be interested in knowing whether the parameters of two
populations are alike or different. For instance, we may be interested in testing whether
female workers earn less than male workers for the same job. We shall explain now the
technique of hypothesis testing for differences between means. The null hypothesis for
testing of difference between means is generally stated as H0: μ1= μ2, where μ1 is population
mean of one population and μ2 is population mean of the second population, assuming both
the populations to be normal populations. Alternative hypothesis may be of not equal to or
less than or greater than type as stated earlier and accordingly we shall determine the
acceptance or rejection regions for testing the hypotheses.
In this situation we use z-test for difference in means and work out the test statistic z as
under: Z = x̄ 1 - x̄ 2
σ √( 1/n1+1/n2 )
ANOVA( Analysis of variance)

Developed by R.A.Fisher.

Analysis of variance (abbreviated as ANOVA) is an extremely useful technique concerning

researches in the fields of economics, biology, education, psychology, sociology,
business/industry and in researches of several other disciplines. This technique is used when
multiple sample cases are involved. As stated earlier, the significance of the difference
between the means of two samples can be judged through either z-test or the t-test, but the
difficulty arises when we happen to examine the significance of the difference amongst more
than two sample means at the same time. The ANOVA technique enables us to perform this
simultaneous test and as such is considered to be an important tool of analysis in the hands of
a researcher. Using this technique, one can draw inferences about whether the samples have
been drawn from populations having the same mean.
The ANOVA technique is important in the context of all those situations where we want to
compare more than two populations such as in comparing the yield of crop from several varieties
of seeds, the gasoline mileage of four automobiles, the smoking habits of five groups of
university students and so on. In such circumstances one generally does not want to consider all
possible combinations of two populations at a time for that would require a great number of tests
before we would be able to arrive at a decision. This would also consume lot of time and money,
and even then certain relationships may be left unidentified (particularly the interaction effects).
One way ANOVA
Compares two or more unmatched groups when data are categorized in one factor
Ex:
1. Comparing a control group with three different doses of aspirin.
2. Comparing the productivity of three or more employees based on working
hours in a company.

Under the one-way ANOVA, we consider only one factor and then observe that
the reason for said factor to be important is that several possible types of
samples can occur within that factor. We then determine if there are differences
within that factor.
Two way ANOVA
Used to determine the effect of two nominal predictor variables on a continuous outcome
variable.
It analyses the effect of the independent variables on the expected outcome along with their
relationship to the outcome itself.
Ex: Comparing the employee productivity based on the working hours and working
conditions.

Two-way ANOVA technique is used when the data are classified on the basis of two factors.
For example, the agricultural output may be classified on the basis of different varieties of
seeds and also on the basis of different varieties of fertilizers used. A business firm may have
its sales data classified on the basis of different salesmen and also on the basis of sales in
different regions. In a factory, the various units of a product produced during a certain period
may be classified on the basis of different varieties of machines used and also on the basis of
different grades of labour. Such a two-way design may have repeated measurements of each
factor or may not have repeated values.
Assumptions of ANOVA:
 The samples are independent and selected randomly.
Parent population from which samples are taken is of normal distribution.

Various treatment and environmental effects are additive in nature.

 The experimental errors are distributed normally with mean zero and variance o2

ANOVA compares variance by means of F-ratio

F = variance between samples/variance within samples
It again depends on experimental designs
Null hypothesis:H0, = All population means are same
• If the computed Fc is greater than F critical value, we are likely to reject the null
hypothesis.
• If the computed Fc is lesser than the F critical value, then the null hypothesis is
accepted.