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64 views269 pages

RM Final Slides

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B M Sadikullah Mahmud

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Sampling, Sampling Design

and
Sample Size Determination
Enumeration:

Population Census

Sample Sample Survey

□ Features of a Good Sample Design:
A good sample design is expected to:

 result in a sample that is representative of the population

 produce small sampling error
 be viable with respect to available funds
 be viable in the context of time allocated for the study
 result in a sample where results can be generalized, for the
population, with confidence
□ Basic Sampling Designs:
□ How to select a (simple) Random Sample?

1. Identify the Sample Frame

2. Determine the Sample Size
3. Use a Random Number Table or Generator
4. Find/Identify the Respondents
5. Collect the Data
□ Determining the Sample Size:
Sample Size Determination:

 Finding a Sample Size Calculator

 Using different values, calculate the

required Sample Size
Thank you!
CHAPTER 8
ESTIMATION OF THE
MEAN AND
PROPORTION

Prem Mann, Introductory Statistics, 7/E

Definition
The assignment of value(s) to a population
parameter based on a value of the
corresponding sample statistic is called
estimation.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
ESTIMATION: AN INTRODUCTION
Definition
The value(s) assigned to a population
parameter based on the value of a sample
statistic is called an estimate.
The sample statistic used to estimate a
population parameter is called an
estimator.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
ESTIMATION: AN INTRODUCTION
The estimation procedure involves the
following steps.

 Select a sample.
 Collect the required information from the
members of the sample.
 Calculate the value of the sample statistic.
 Assign value(s) to the corresponding
population parameter.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
POINT AND INTERVAL ESTIMATES

 A Point Estimate
 An Interval Estimate

Prem Mann, Introductory Statistics, 7/E

Definition
The value of a sample statistic that is used
to estimate a population parameter is
called a point estimate.

Prem Mann, Introductory Statistics, 7/E

 Usually, whenever we use point estimation,

we calculate the margin of error associated
with that point estimation.
 The margin of error is calculated as follows:

Margin of error  1.96 x or  1.96sx

Prem Mann, Introductory Statistics, 7/E

Definition
In interval estimation, an interval is
constructed around the point estimate,
and it is stated that this interval is likely to
contain the corresponding population
parameter.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Confidence Level and Confidence Interval
 Definition
 Each interval is constructed with regard to a given
confidence level and is called a confidence
interval. The confidence interval is given as
Point estimate ± Margin of error
 The confidence is associated with a confidence
interval states how much confidence we have that
this interval contains the true population parameter.
The confidence level is denoted by (1 – α)100%.

Prem Mann, Introductory Statistics, 7/E

Case I. If the following three conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is normally distributed.

Prem Mann, Introductory Statistics, 7/E

Case II. If the following two conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is large (i.e., n ≥ 30)

Prem Mann, Introductory Statistics, 7/E

Case III. If the following three conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is not normally distributed (or its
distribution is unknown).

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
ESTIMATION OF A POPULATION MEAN: 
KNOWN
Confidence Interval for μ

The (1 – α)100% confidence interval for μ

under Cases I and II is

x  z x
where  x = / n
The value of z used here is obtained from the
standard normal distribution table (Table IV of
Appendix C) for the given confidence level.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
ESTIMATION OF A POPULATION MEAN: 
KNOWN
Definition
The margin of error for the estimate
for μ, denoted by E, is the quantity that is
subtracted from and added to the value of
x to obtain a confidence interval for μ.
Thus,
E  z x

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-1
A publishing company has just published a new
college textbook. Before the company decides the
price at which to sell this textbook, it wants to
know the average price of all such textbooks in the
market. The research department at the company
took a sample of 25 comparable textbooks and
collected information on their prices. This
information produces a mean price of $145 for this
sample. It is known that the standard deviation of
the prices of all such textbooks is $35 and the
population of such prices is normal.

Prem Mann, Introductory Statistics, 7/E

(a) What is the point estimate of the mean

price of all such textbooks?
(b) Construct a 90% confidence interval for
the mean price of all such college
textbooks.

Prem Mann, Introductory Statistics, 7/E

a)
n = 25, x = $145, and σ = $35

 35
x    $7.00
n 25
Point estimate of μ = x = $145

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-1: Solution
b)
Confidence level is 90% or .90. Here, the
area in each tail of the normal distribution
curve is α/2=(1-.90)/2=.05. Hence, z =
1.65.

x  z x  145  1.65(7.00)  145  11.55

 (145-11.55) to (145  11.55)
 $133.45 to $156.55
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-1: Solution

We can say that we are 90% confident that

the mean price of all such college textbooks
is between $133.45 and $156.55.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-2
In a 2009 survey by I-Pension LLC, adults with
annual household incomes of $50,000 to
$125,000 were asked about the average time they
spend reviewing their 401(k) statements. Of the
adults surveyed, about 72% said that they spend
less than 5 minutes, and 27% said that they
spend 5 to 10 minutes to review their 401(k)
statements (USA TODAY, February 16, 2009).
Suppose a random sample of 400 adults of all
income levels, who have 401(k) statements, were
asked. The sample produced a mean of 8
minutes. Assume that the standard deviation of
such times for all 401(k) account holders is 2.20
minutes. Construct a 99% confidence interval for
the mean time spent by all 401(k) holders
reviewing their 401(k) statements.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-2: Solution

 Confidence level 99% or .99

 The sample size is large (n > 30)
 Therefore, we use the normal distribution
 z = 2.58

 2.20
x    .11
n 400

Prem Mann, Introductory Statistics, 7/E

x  z x  8  2.58(.11)  8  .28
 7.72 to 8.28 minutes

Thus, we can state with 99% confidence that

the mean time spent by all 401(k) account
holders reviewing their 401(k) statements is
between 7.72 and 8.28 minutes.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
ESTIMATION OF A POPULATION MEAN: 
KNOWN
Width of a Confidence Interval
The width of a confidence interval
depends on the size of the margin of
error, z x . Hence, the width of a
confidence interval can be controlled using
1. The value of z, which depends on the
confidence interval
2. The sample size, n

Prem Mann, Introductory Statistics, 7/E

Determining the Sample Size for the Estimation

of μ
Given the confidence level and the standard
deviation of the population, the sample size that
will produce a predetermined margin of error E of
the confidence interval estimate of μ is

z 2 2
n 2
E
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-3
An alumni association wants to estimate
the mean debt of this year’s college
graduates. It is known that the population
standard deviation of the debts of this
year’s college graduates is $11,800. How
large a sample should be selected so that
the estimate with a 99% confidence level is
within $800 of the sample mean?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-3: Solution
 The maximum size of the margin of error of
estimate is to be $800; that is, E = $800.
 The value of z for a 99% confidence level is z =
2.58.
 The value of σ is $11,800.

z 2 2 (2.58)2 (11,800)2
n 2
 2
 1448.18  1449
E (800)
 Thus, the required sample size is 1449.

Prem Mann, Introductory Statistics, 7/E

Case I. If the following three conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is normally distributed.

Prem Mann, Introductory Statistics, 7/E

Case II. If the following two conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is large (i.e., n ≥ 30)

Prem Mann, Introductory Statistics, 7/E

Case III. If the following three conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is not normally distributed (or its
distribution is unknown).

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
The t Distribution
The t distribution is a specific type of bell-shaped
distribution with a lower height and a wider
spread than the standard normal distribution. As
the sample size becomes larger, the t distribution
approaches the standard normal distribution. The
t distribution has only one parameter, called the
degrees of freedom (df). The mean of the t
distribution is equal to 0 and its standard
deviation is .
df /( df  2)

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Figure 8.5 The t distribution for df = 9 and the
standard normal distribution.

Prem Mann, Introductory Statistics, 7/E

Find the value of t for 16 degrees of

freedom and .05 area in the right tail of a
t distribution curve.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Figure 8.6 The value of t for 16 df and .05 area in
the right tail.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Figure 8.7 The value of t for 16 df and .05 area in
the left tail.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Confidence Interval for μ Using the t Distribution
The (1 – α)100% confidence interval for μ is
s
x  ts x where s x 
n
The value of t is obtained from the t distribution
table for n – 1 degrees of freedom and the
given confidence level. Here ts x is the margin
of error of the estimate; that is,

E  ts x
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-5
Dr. Moore wanted to estimate the mean
cholesterol level for all adult men living in
Hartford. He took a sample of 25 adult men from
Hartford and found that the mean cholesterol level
for this sample is 186 mg/dL with a standard
deviation of 12 mg/dL. Assume that the
cholesterol levels for all adult men in Hartford are
(approximately) normally distributed. Construct a
95% confidence interval for the population mean
μ.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-5: Solution
 σ is not known, n < 30, and the
population is normally distributed (Case I)
 Use the t distribution to make a
confidence interval for μ
 .n=25, x=186, s=12, and confidence level  95%
 s 12
sx    2.40
n 25

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-5: Solution
 df = n – 1 = 25 – 1 = 24
 Area in each tail = .5 – (.95/2)
= .5 - .4750 = .025
 The value of t in the right tail is 2.064

x  tsx  186  2.064(2.40)  186  4.95

 181.05 to 190.95

Prem Mann, Introductory Statistics, 7/E

 Thus, we can state with 95% confidence

that the mean cholesterol level for all
adult men living in Harford lies between
181.05 and 190.95 mg/dL.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-6
Sixty-four randomly selected adults who buy
books for general reading were asked how much
they usually spend on books per year. The
sample produced a mean of $1450 and a
standard deviation of $300 for such annual
expenses. Determine a 99% confidence interval
for the corresponding population mean.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-6: Solution
 σ is not known, n > 30 (Case II)
 Use the t distribution to make a
confidence interval for μ
 n=64, x=$1450, s=$300, and confidence level  99%

s 300
sx    $37.50
n 64

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-6: Solution
 df = n – 1 = 64 – 1 = 63
 Area in each tail = .5 – (.99/2)
= .5 - .4950 = .005
 The value of t in the right tail is 2.656

x  ts x  $1450  2.656(37.50)  $1450  $99.60

 $1350.40 to $1549.60

Prem Mann, Introductory Statistics, 7/E

 Thus, we can state with 99% confidence

that based on this sample the mean
annual expenditure on books by all
adults who buy books for general
reading is between $1350.40 and
$1549.60.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Confidence Interval for μ Using the t Distribution
What If the Sample Size Is Too Large?

1. Use the t value from the last row (the

row of ∞) in Table V.
2. Use the normal distribution as an
approximation to the t distribution.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
ESTIMATION OF A POPULATION
PROPORTION: LARGE SAMPLES
Estimator of the Standard Deviation of p̂

The value of s pˆ , which gives a point

estimate of  p̂ , is calculated as follows.
Here, s pˆ is an estimator of  p̂

pˆ qˆ
s pˆ 
n
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
ESTIMATION OF A POPULATION
PROPORTION: LARGE SAMPLES
Confidence Interval for the Population
Proportion, p

The (1 – α)100% confidence interval for the

population proportion, p, is

pˆ  zs pˆ
The value of z used here is obtained from the
standard normal distribution table for the given
confidence level, and s pˆ  pˆ qˆ/n. The term zs
p̂
is called the margin of error, E.

Prem Mann, Introductory Statistics, 7/E

According to a survey by Pew Research

Center in June 2009, 44% of people aged 18
to 29 years said that religion is very
important to them. Suppose this result is
based on a sample of 1000 people aged 18
to 29 years.

Prem Mann, Introductory Statistics, 7/E

a) What is the point estimate of the

population proportion?
b) Find, with a 99% confidence level, the
percentage of all people aged 18 to 29
years who will say that religion is very
important to them. What is the margin
of error of this estimate?

Prem Mann, Introductory Statistics, 7/E

 n = 1000, p̂ = .44, and, q̂ = .56

ˆˆ
pq (.44)(.56)
 spˆ    .01569713
n 1000
 Note that npˆ and nqˆ are both greater
than 5.

Prem Mann, Introductory Statistics, 7/E

a)
Point estimate of p = p̂ = .44

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-7: Solution
b)
The confidence level is 99%, or .99. z = 2.58.
pˆ  zs pˆ  .44  2.58(.01569713)  .44  .04
 .40 to .48 or 40% to 48%

Margin of error = ±1.96 s pˆ

= ±1.96(.01569713)
= ±.04 or ±4%

Prem Mann, Introductory Statistics, 7/E

According to a Harris Interactive survey of

2401 adults conducted in April 2009, 25%
of adults do not drink alcohol. Construct a
97% confidence interval for the
corresponding population proportion.

Prem Mann, Introductory Statistics, 7/E

 Confidence level = 97% or .97

ˆˆ
pq (.25)(.75)
 spˆ    .00883699
n 2401
 The value of z for .97 / 2 = .4850 is 2.17.

Prem Mann, Introductory Statistics, 7/E

pˆ  zspˆ  .25  2.17(.00883699)

 .25  .019
 .231 to .269 or 23.1% to 26.9%

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
DETERMINING THE SAMPLE SIZE FOR
THE ESTIMATION OF PROPORTION
Given the confidence level and the values
of p̂ and q̂ , the sample size that will
produce a predetermined maximum of
error E of the confidence interval
estimate of p is

ˆˆ
z pq 2
n 2
E
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
DETERMINING THE SAMPLE SIZE FOR
THE ESTIMATION OF PROPORTION
In case the values of p̂ and q̂ are not known

1. We make the most conservative estimate

of the sample size n by using pˆ  .5 and
qˆ  .5

2. We take a preliminary sample (of

arbitrarily determined size) and calculate
p̂ and q̂ from this sample. Then use
these values to find n.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-9

Lombard Electronics Company has just installed a

new machine that makes a part that is used in
clocks. The company wants to estimate the
proportion of these parts produced by this
machine that are defective. The company
manager wants this estimate to be within .02 of
the population proportion for a 95% confidence
level. What is the most conservative estimate of
the sample size that will limit the maximum error
to within .02 of the population proportion?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-9: Solution
 The value of z for a 95% confidence level
is 1.96.
 pˆ  .50 and qˆ  .50
 ˆ ˆ (1.96)2 (.50)(.50)
z 2 pq
n 2
 2
 2401
E (.02)
 Thus, if the company takes a sample of
2401 parts, there is a 95% chance that
the estimate of p will be within .02 of the
population proportion.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 8-10

Consider Example 8-9 again. Suppose a

preliminary sample of 200 parts produced
by this machine showed that 7% of them
are defective. How large a sample should
the company select so that the 95%
confidence interval for p is within .02 of the
population proportion?

Prem Mann, Introductory Statistics, 7/E

p̂ = .07 and q̂ = .93

ˆ ˆ (1.96)2 (.07)(.93)
z 2 pq
n 2

E (.02)2
(3.8416)(.07)(.93)
  625.22  626
.0004

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
HYPOTHESIS TESTS: AN INTRODUCTION
 Two Hypotheses
 Rejection and Nonrejection Regions
 Two Types of Errors
 Tails of a Test

Prem Mann, Introductory Statistics, 7/E

Definition
A null hypothesis is a claim (or statement)
about a population parameter that is
assumed to be true until it is declared false.

Prem Mann, Introductory Statistics, 7/E

Definition
An alternative hypothesis is a claim about
a population parameter that will be true if
the null hypothesis is false.

Prem Mann, Introductory Statistics, 7/E

Figure 9.1 Nonrejection and rejection

regions for the court case.

Prem Mann, Introductory Statistics, 7/E

Table 9.1 Four Possible Outcomes for a

Court Case

Prem Mann, Introductory Statistics, 7/E

Definition
A Type I error occurs when a true null
hypothesis is rejected. The value of α
represents the probability of committing
this type of error; that is,
α = P(H0 is rejected | H0 is true)
The value of α represents the significance
level of the test.

Prem Mann, Introductory Statistics, 7/E

Definition
A Type II error occurs when a false null
hypotheses is not rejected. The value of β
represents the probability of committing a Type II
error; that is,
β = P (H0 is not rejected | H0 is false)
The value of 1 – β is called the power of the
test. It represents the probability of not making
a Type II error.

Prem Mann, Introductory Statistics, 7/E

Definition
A two-tailed test has rejection regions in
both tails, a left-tailed test has the
rejection region in the left tail, and a
right-tailed test has the rejection region
in the right tail of the distribution curve.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
A Two-Tailed Test
 According to a survey by Consumer Reports
magazine conducted in 2008, a sample of sixth
graders selected from New York schools showed
that their backpacks weighed an average of 18.4
pounds (USA TODAY, August 3, 2009). Another
magazine wants to check whether or not this
mean has changed since that survey. The key
word here is changed.
 The mean weight of backpacks for sixth-graders in
New York has changed if it has either increased or
decreased since 2008. This is an example of a two
tailed test.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
A Two-Tailed Test

 Let μ be the weight of backpacks for the

current sixth-graders in New York. The
two possible decisions are
 H0 : μ = 18.4 pounds (The mean weight of
backpacks for sixth-graders in New York has
not changed)
 H1 : μ ≠ 18.4 pounds (The mean weight of
backpacks for sixth-graders in New York has
changed)

Prem Mann, Introductory Statistics, 7/E

 Whether a test is two–tailed or one–tailed

is determined by the sign in the alternative
hypothesis.
 If the alternative hypothesis has a not
equal to (≠) sign, it is a two–tailed test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
A Left-Tailed Test
Reconsider the example of the mean amount of
soda in all soft-drink cans produced by a company.
The company claims that these cans, on average,
contain 12 ounces of soda. However, if these cans
contain less than the claimed amount of soda,
then the company can be accused of cheating.
Suppose a consumer agency wants to test whether
the mean amount of soda per can is less than 12
ounces. Note that the key phrase this time is less
than, which indicates a left-tailed test.

Prem Mann, Introductory Statistics, 7/E

 Let μ be the mean amount of soda in all

cans. The two possible decisions are
 H0 : μ = 12 ounces (The mean is equal to 12
ounces)
 H1 : μ < 12 ounces (The mean is less than 12
ounces)

Prem Mann, Introductory Statistics, 7/E

In this case, we can also write the null

hypothesis as H0 : μ ≥ 12. This will not
affect the result of the test as long as the
sign in H1 is less than (<).
When the alternative hypothesis has a less
than (<) sign, the test is always left–tailed.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
A Right-Tailed Test
According to www.city-data.com, the
average price of homes in West Orange,
New Jersey, was $461,216 in 2007.
Suppose a real estate researcher wants to
check whether the current mean price of
homes in this town is higher than
$461,216. The key phrase in this case is
higher than, which indicates a right-tailed
test.

Prem Mann, Introductory Statistics, 7/E

 Let μ be the current mean price of homes in

this town. The two possible decisions are
 H0 : μ = $461,216 (The current mean price of
homes in this town is not higher than $461,216)
 H1 : μ > $461,216 (The current mean price of
homes in this town is higher than $461,216)

Prem Mann, Introductory Statistics, 7/E

When the alternative hypothesis has a

greater than (>) sign, the test is always
right–tailed.

Prem Mann, Introductory Statistics, 7/E

Two procedures to make tests of

hypothesis

1. The p-value approach

2. The critical-value approach

Prem Mann, Introductory Statistics, 7/E

Three Possible Cases

Case I. If the following three conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is normally distributed.

Prem Mann, Introductory Statistics, 7/E

Three Possible Cases

Case II. If the following two conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is large (i.e., n ≥ 30)

Prem Mann, Introductory Statistics, 7/E

Three Possible Cases

Case III. If the following three conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is not normally distributed (or its
distribution is unknown).

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
HYPOTHESIS TESTS ABOUT μ: σ KNOWN
Definition
Assuming that the null hypothesis is true, the p-
value can be defined as the probability that a
sample statistic (such as the sample mean) is at
least as far away from the hypothesized value in
the direction of the alternative hypothesis as the
one obtained from the sample data under
consideration. Note that the p–value is the
smallest significance level at which the null
hypothesis is rejected.

Prem Mann, Introductory Statistics, 7/E

When using the normal distribution, the

value of z for x for a test of hypothesis
about μ is computed as follows:
x  
z where  x 
x n

The value of z calculated for x using this

formula is also called the observed value
of z.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Steps to Perform a Test of Hypothesis Using the
p–Value Approach

1. State the null and alternative hypothesis.

2. Select the distribution to use.
3. Calculate the p–value.
4. Make a decision.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-1
At Canon Food Corporation, it used to take an average of 90
minutes for new workers to learn a food processing job.
Recently the company installed a new food processing
machine. The supervisor at the company wants to find if the
mean time taken by new workers to learn the food
processing procedure on this new machine is different from
90 minutes. A sample of 20 workers showed that it took, on
average, 85 minutes for them to learn the food processing
procedure on the new machine. It is known that the
learning times for all new workers are normally distributed
with a population standard deviation of 7 minutes. Find the
p–value for the test that the mean learning time for the food
processing procedure on the new machine is different from
90 minutes. What will your conclusion be if α = .01?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-1: Solution
 Step 1: H0: μ = 90 H1: μ ≠ 90
 Step 2: The population standard deviation
σ is known, the sample size is small (n <
30), but the population distribution is
normal. We will use the normal
distribution to find the p–value and make
the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-1: Solution
 Step 3:
 7
x    1.56524758 min utes
n 20
x  85  90
z   3.19
x 1.56524758
p-value = 2(.0007) = .0014

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-1: Solution
 Step 4: Because α = .01 is greater than
the p-value of .0014, we reject the null
hypothesis at this significance level.

Therefore, we conclude that the mean

time for learning the food processing
procedure on the new machine is
different from 90 minutes.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-2
The management of Priority Health Club claims
that its members lose an average of 10 pounds or
more within the first month after joining the club.
A consumer agency that wanted to check this
claim took a random sample of 36 members of
this health club and found that they lost an
average of 9.2 pounds within the first month of
membership with a population standard deviation
of 2.4 pounds. Find the p–value for this test. What
will you decision be if α = .01? What if α = .05?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-2: Solution
 Step 1: H0: μ ≥ 10 H1: μ < 10
 Step 2: The population standard deviation
σ is known, the sample size is large (n >
30). Due to the Central Limit Theorem,
we will use the normal distribution to find
the p–value and perform the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-2: Solution
 Step 3:
 2.4
x    .40
n 36
x   9.2  10
z   2.00
x .40
p-value = .0228

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-2: Solution
 Step 4:
 Since α = .01 is less than the p-value of .0228,
we do not reject the null hypothesis at this
significance level. Consequently, we conclude
that the mean weight lost within the first month
of membership by the members of this club is
10 pounds or more.

 Because α = .05 is greater than the p-value of

.0228, we reject the null hypothesis at this
significance level. Therefore, we conclude that
the mean weight lost within the first month of
membership by the members of this club is less
than 10 pounds.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
HYPOTHESIS TESTS ABOUT :  KNOWN
Test Statistic
In tests of hypotheses about μ using the
normal distribution, the random variable
x  
z where x 
x n

is called the test statistic. The test

statistic can be defined as a rule or
criterion that is used to make the decision
whether or not to reject the null
hypothesis.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
HYPOTHESIS TESTS ABOUT μ: σ KNOWN
Steps to Perform a Test of Hypothesis
with the Critical-Value Approach

1. State the null and alternative hypotheses.

2. Select the distribution to use.
3. Determine the rejection and nonrejection
regions.
4. Calculate the value of the test statistic.
5. Make a decision.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-3
The TIV Telephone Company provides long-distance
telephone service in an area. According to the company’s
records, the average length of all long-distance calls placed
through this company in 2009 was 12.44 minutes, with a
standard deviation of 2.65 minutes. The company’s
management wanted to check if the mean length of the
current long-distance calls is different from 12.44 minutes.
A sample of 150 such calls placed through this company
produced a mean length of 13.71 minutes. Using the 2%
significance level, can you conclude that the mean length of
all current long-distance calls is different from 12.44
minutes?

Prem Mann, Introductory Statistics, 7/E

 Step 1: H0 : μ = 12.44 H1 : μ ≠ 12.44

 Step 2: The population standard deviation
σ is known, and the sample size is large (n
> 30). Due to the Central Limit Theorem,
we will use the normal distribution to
perform the test.

Prem Mann, Introductory Statistics, 7/E

 Step 3: α = .02
 The ≠ sign in the alternative hypothesis
indicates that the test is two-tailed
 Area in each tail = α / 2= .02 / 2 = .01
 The z values for the two critical points are
-2.33 and 2.33

Prem Mann, Introductory Statistics, 7/E

When using the normal distribution, the

value of the test statistic z for x for a
test of hypothesis about μ is computed as
follows:
x  
z where  x 
x n

The value of z for x is also called the

observed value of z.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-3: Solution
 Step 4:
 2.65
x    .21637159
n 150
x   13.71  12.44
z   5.87
x .21637159

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-3: Solution
 Step 5: This value of z = 5.87 is greater
than the critical value of z = 2.33, and it
falls in the rejection region in the right
tail in Figure 9.9. Hence, we reject H0
and conclude that based on the sample
information, it appears that the mean
length of all such calls is not equal to
12.44 minutes.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-4
The mayor of a large city claims that the average
net worth of families living in this city is at least
$300,000. A random sample of 25 families
selected from this city produced a mean net
worth of $288,000. Assume that the net worths
of all families in this city have a normal
distribution with the population standard
deviation of $80,000. Using the 2.5%
significance level, can you conclude that the
mayor’s claim is false?

Prem Mann, Introductory Statistics, 7/E

 Step 1: H0 : μ ≥ $300,000
H1 : μ < $300,000
 Step 2: The population standard deviation
σ is known, the sample size is small (n <
30), but the population distribution is
normal. Consequently, we will use the
normal distribution to perform the test.

Prem Mann, Introductory Statistics, 7/E

 Step 3: α = .025
 The < sign in the alternative hypothesis
indicates that the test is left-tailed
 Area in the left tail = α = .025
 The critical value of z is -1.96

Prem Mann, Introductory Statistics, 7/E

 80,000
x    $16,000
n 25
x   288,000  300,000
z   .75
x 16,000

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-4: Solution
 Step 5: This value of z = -.75 is greater
than the critical value of z = -1.96, and it
falls in the nonrejection region. As a
result, we fail to reject H0. Therefore, we
can state that based on the sample
information, it appears that the mean net
worth of families in this city is not less
than $300,000.

Prem Mann, Introductory Statistics, 7/E

Three Possible Cases

Case I. If the following three conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is normally distributed.

Prem Mann, Introductory Statistics, 7/E

Three Possible Cases

Case II. If the following two conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is large (i.e., n ≥ 30)

Prem Mann, Introductory Statistics, 7/E

Three Possible Cases

Case III. If the following three conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is not normally distributed (or its
distribution is unknown).

Prem Mann, Introductory Statistics, 7/E

Test Statistic
The value of the test statistic t for the
sample mean x is computed as
x  s
t where s x 
sx n

The value of t calculated for x by using this

formula is also called the observed value
of t.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-5
A psychologist claims that the mean age at which
children start walking is 12.5 months. Carol
wanted to check if this claim is true. She took a
random sample of 18 children and found that the
mean age at which these children started walking
was 12.9 months with a standard deviation of .80
month. It is known that the ages at which all
children start walking are approximately normal
distributed. Find the p-value for the test that the
mean age at which all children start walking is
different from 12.5 months. What will your
conclusion be if the significance level is 1%?

Prem Mann, Introductory Statistics, 7/E

 Step 1: H0 : μ = 12.5
H1 : μ ≠ 12.5
 Step 2: The population standard deviation
σ is not known, the sample size is small (n
< 30), and the population is normally
distributed. Consequently, we will use the
t distribution to find the p-value for the
test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-5: Solution
 Step 3: The ≠ sign in the alternative
hypothesis indicates that the test is two-
tailed
s .80
sx    .18856181
n 18
x   12.9  12.5
t   2.121
sx .18856181

and df = n – 1 = 18 – 1 = 17
.02 < p-value < .05

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-5: Solution
 Step 4: For any α greater than .05, we
will reject the null hypothesis. For any α
less than .02, we will not reject the null
hypothesis. For our example, α = .01,
which is less than the lower limit of the p-
value ranges of .02. As a result, we fail
to reject H0 and conclude that the mean
age at which all children start walking is
not different from 12.5 months.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-6
Grand Auto Corporation produces auto batteries.
The company claims that its top-of-the-line Never
Die batteries are good, on average, for at least 65
months. A consumer protection agency tested 45
such batteries to check this claim. It found the
mean life of these 45 batteries to be 63.4 months
with a standard deviation of 3 months. Find the
p-value for the test that mean life of all such
batteries is less than 65 months. What will your
conclusion be if the significance level is 2.5%?

Prem Mann, Introductory Statistics, 7/E

 Step 1: H0 : μ ≥ 65
H1 : μ < 65
 Step 2: The population standard deviation
σ is not known and the sample size is large
(n > 30). Consequently, we will use the t
distribution to find the p-value for the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-6: Solution
 Step 3: The < sign in the alternative
hypothesis indicates that the test is left-
tailed
s 3
sx    .44721360
n 45
x  63.4  65
t   3.578
sx .44721360

and df = n – 1 = 45 – 1 = 44
p-value < .001

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-7
Refer to Example 9-5. A psychologist claims that
the mean age at which children start walking is
12.5 months. Carol wanted to check if this claim
is true. She took a random sample of 18 children
and found that the mean age at which these
children started walking was 12.9 months with a
standard deviation of .80 month. Using the 1%
significance level, can you conclude that the mean
age at which all children start walking is different
from 12.5 months? Assume that the ages at
which all children start walking have an
approximately normal distribution.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-7: Solution
 Step 3: Significance level = .01. The ≠ sign
in the alternative hypothesis indicates
that the test is two-tailed and the
rejection region lies in both tails.
 Area in each tail = α/2 = .01/2 = .005
 df = n – 1 = 18 – 1 = 17
 The critical values for t for 17 df and
.005 area in each tail are -2.898 and
2.898.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-7: Solution
 Step 4: s  s  .80  .18856181
x
n 18
x   12.9  12.5
t   2.121
sx .18856181
The value of the test statistic t = 2.121 falls
between the two critical points, -2.898 and
2.898, which is the nonrejection region.
Consequently, we fail to reject H0. As a result,
we can state the difference between the
hypothesized population mean and the sample
mean is so small that it may have occurred
because of sampling error.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8
The management at Massachusetts Savings Bank
is always concerned about the quality of service
provided to its customers. With the old computer
system, a teller at this bank could serve, on
average, 22 customers per hour. The
management noticed that with this service rate,
the waiting time for customers was too long.
Recently the management of the bank installed a
new computer system in the bank, expecting that
it would increase the service rate and
consequently make the customers happier by
reducing the waiting time.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8
To check if the new computer system is more
efficient than the old system, the management of
the bank took a random sample of 70 hours and
found that during these hours the mean number
of customers served by tellers was 27 per hour
with a standard deviation of 2.5. Testing at the
1% significance level, would you conclude that
the new computer system is more efficient than
the old computer system?

Prem Mann, Introductory Statistics, 7/E

 Step 1: H0 : μ = 22
H1 : μ > 22
 Step 2: The population standard deviation
σ is not known and the sample size is large
(n > 30). Consequently, we will use the t
distribution to perform the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8: Solution
 Step 3: Significance level = .01. The > sign
in the alternative hypothesis indicates
that the test is right-tailed and the
rejection region lies in the right tail.
 Area in the right tail = α = .01
 df = n – 1 = 70 – 1 = 69
 The critical value for t for 69 df and .01
area in the right tail is 2.382.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8: Solution
 Step 4: s  s  2.5  .29880715
x
n 70
x  27  22
t   16.733
sx .29880715
Step 5:
The value of the test statistic t = 16.733 is
greater than the critical value of t = 2.382, and it
falls in the rejection region. Consequently, we
reject H0.
As a result, we conclude that the value of the
sample mean is too large compared to the
hypothesized value of the population mean, and
the difference between the twoPrem may
Mann, not be Statistics, 7/E
Introductory
attributed to chance alone.
Copyright © 2010 John Wiley & Sons. All right reserved
Tests of Hypothesis for μ Using the t Distribution
What If the Sample Size Is Too Large?

1. Use the t value from the last row (the

row of ∞) in Table V of Appendix C.
2. Use the normal distribution as an
approximation to the t distribution.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
HYPOTHESIS TESTS ABOUT A POPULATION
PROPORTION: LARGE SAMPLES
Test Statistic
The value of the test statistic z for the sample
proportion, p̂, is computes as
pˆ  p pq
z where  pˆ 
 pˆ n

The value of p that is used in this formula is the

one from the null hypothesis. The value of q is
equal to 1-p. The value of z calculated for p̂
using the above formula is also called the
observed value of z.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9
According to a Nationwide Mutual Insurance
Company Driving While Distracted Survey
conducted in 2008, 81% of the drivers
interviewed said that they have talked on their
cell phones while driving (The New York Times,
July 19, 2009). The survey included drivers
aged 16 to 61 years selected from 48 states.
Assume that this result holds true for the 2008
population of all such drivers in the United
States. In a recent random sample of 1600
drivers aged 16 to 61 years selected from the
United States, 83% said that they have talked
on their cell phones while driving.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9
Find the p-value to test the hypothesis that the
current percentage of such drivers who have
talked on their cell phones while driving is
different from 81%. What is your conclusion if
the significance level is 5%?

Prem Mann, Introductory Statistics, 7/E

 Step 1: H0 : p = .81
H1 : p ≠ .81
 Step 2: To check whether the sample is
large, we calculate the values of np and nq:
np = 1600(.81) = 1296 > 5
nq = 1600(.19) = 304 > 5
Consequently, we will use the normal
distribution to find the p-value for this test.

Prem Mann, Introductory Statistics, 7/E

pq (.81)(.19)
 pˆ    .00980752
n 1600
pˆ  p .83  .81
z   2.04
 pˆ .00980752

p-value = 2(.0207) = .0414

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9: Solution
 Step 4: We can state that for any α greater
than .0414 we will reject the null hypothesis.
For our example, α = .05, which is greater than
the p-value of .0414. As a result, we reject H0
and conclude that the current percentage of all
U.S. drivers aged 16 to 61 years who have
talked on their cell phones while driving is
different from .81.

Prem Mann, Introductory Statistics, 7/E

When working properly, a machine that is used

to make chips for calculators does not produce
more than 4% defective chips. Whenever the
machine produces more than 4% defective chips,
it needs an adjustment. To check if the machine
is working properly, the quality control
department at the company often takes samples
of chips and inspects them to determine if they
are good or defective.

Prem Mann, Introductory Statistics, 7/E

One such random sample of 200 chips taken

recently from the production line contained 12
defective chips. Find the p-value to test the
hypothesis whether or not the machine needs an
adjustment. What would your conclusion be if the
significance level is 2.5%?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-10: Solution
 Step 1: H0: p ≤ .04
H1: p > .04
 Step 2: To check whether the sample is
large, we calculate the values of np and nq:
np = 200(.04) = 8 > 5
nq = 200(.96) = 192 > 5
Consequently, we will use the normal
distribution to find the p-value for this test.

Prem Mann, Introductory Statistics, 7/E

pq (.04)(.96)
 pˆ    .01385641
n 200
pˆ  p .06  .04
z   1.44
 pˆ .01385641

p-value = .0749

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-10: Solution
 Step 4: We can state that for any α greater
than .0749 we will reject the null hypothesis,
and for any α less than or equal to .0749 we
will not reject the null hypothesis. For our
example, α = .025, which is less than the p-
value of .0749. As a result, we fail to reject H0
and conclude that the machine does not need
an adjustment.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11
Refer to Example 9-9. According to a
Nationwide Mutual Insurance Company Driving
While Distracted Survey conducted in 2008,
81% of the drivers interviewed said that they
have talked on their cell phones while driving
(The New York Times, July 19, 2009). The
survey included drivers aged 16 to 61 years
selected from 48 states. Assume that this
result holds true for the 2008 population of all
such drivers in the United States. In a recent
random sample of 1600 drivers aged 16 to 61
years selected from the United States, 83%
said that they have talked on their cell phones
while driving.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11
Using the 5% significance level, can you
conclude that the current percentage of such
drivers who have talked on their cell phones
while driving is different from 81%.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11: Solution
 Step 3: The ≠ sign in the alternative hypothesis
indicates that the test is two-tailed. The
significance level is .05. Therefore, the total
area of the two rejection regions is .05.

Area in each tail = α / 2 = .05 / 2 = .025

The critical values of z are -1.96 and 1.96.

Prem Mann, Introductory Statistics, 7/E

pq (.81)(.19)
 pˆ    .00980752
n 1600
pˆ  p .83  .81
z   2.04
 pˆ .00980752

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11: Solution
 Step 5: the value of test statistic z = 2.04 falls
in the rejection region. As a result, we reject
H0 and conclude that the current percentage of
all U.S. drivers aged 16 to 61 years who have
talked on their cell phones while driving is
different from .81.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-12
Direct Mailing Company sells computers and
computer parts by mail. The company claims that
at least 90% of all orders are mailed within 72
hours after they are received. The quality control
department at the company often takes samples to
check if this claim is valid. A recently taken
sample of 150 orders showed that 129 of them
were mailed within 72 hours. Do you think the
company’s claim is true? Use a 2.5% significance
level.

Prem Mann, Introductory Statistics, 7/E

 Step 1: H0 : p ≥ .90
H1 : p < .90
 Step 2: To check whether the sample is
large, we calculate the values of np and nq:
np = 150(.90) = 135 > 5
nq = 150(.10) = 15 > 5
Consequently, we will use the normal
distribution to make the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-12: Solution
 Step 3: Significance level = .025. The < sign in
the alternative hypothesis indicates that the
test is left-tailed, and the rejection region leis
in the left tail.
The critical values of z for .0250 area in the left
tail is -1.96.

Prem Mann, Introductory Statistics, 7/E

pq (.90)(.10)
 pˆ    .02449490
n 150
pˆ  p .86  .90
z   1.63
 pˆ .02449490

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-12: Solution
 Step 5: The value of test statistic z = -1.63 is
greater than the critical value of z = -1.96, and
it falls in the nonrejection region. Therefore,
we fail to reject H0. We can state that the
difference between the sample proportion and
the hypothesized value of the population
proportion is small, and this difference may
have occurred owing to the chance alone.

Prem Mann, Introductory Statistics, 7/E

Screen 9.1 Prem Mann, Introductory Statistics, 7/E

Screen 9.2 Prem Mann, Introductory Statistics, 7/E

Screen 9.4 Prem Mann, Introductory Statistics, 7/E

Screen 9.5 Prem Mann, Introductory Statistics, 7/E

Prem Mann, Introductory Statistics, 7/E

Definition
1. The F distribution is continuous and
skewed to the right.
2. The F distribution has two numbers of
degrees of freedom: df for the numerator
and df for the denominator.
3. The units of an F distribution, denoted F,
are nonnegative.

Prem Mann, Introductory Statistics, 7/E

Find the F value for 8 degrees of freedom

for the numerator, 14 degrees of freedom
for the denominator, and .05 area in the
right tail of the F distribution curve.

Prem Mann, Introductory Statistics, 7/E

 Calculating the Value of the Test Statistic

 One-Way ANOVA Test

Prem Mann, Introductory Statistics, 7/E

Definition
ANOVA is a procedure used to test the null
hypothesis that the means of three or more
populations are equal.

Prem Mann, Introductory Statistics, 7/E

The following assumptions must hold true to

use one-way ANOVA.
1. The populations from which the samples are
drawn are (approximately) normally distributed.
2. The populations from which the samples are
drawn have the same variance (or standard
deviation).
3. The samples drawn from different populations
are random and independent.

Prem Mann, Introductory Statistics, 7/E

Test Statistic F for a One-Way ANOVA Test

The value of the test statistic F for an
ANOVA test is calculated as

Variance between samples MSB

F or
Variance within samples MSW

The calculation of MSB and MSW is

explained in Example 12-2.

Prem Mann, Introductory Statistics, 7/E

Fifteen fourth-grade students were

randomly assigned to three groups to
experiment with three different methods of
teaching arithmetic. At the end of the
semester, the same test was given to all
15 students. The table gives the scores of
students in the three groups.

Prem Mann, Introductory Statistics, 7/E

Calculate the value of the test statistic F.

Assume that all the required assumptions
mentioned in Section 12.2 hold true.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 12-2: Solution
Let
 x = the score of a student
 k = the number of different samples (or treatments)
 ni = the size of sample i
 Ti = the sum of the values in sample i
 n = the number of values in all samples
= n1 + n2 + n3 + . . .
 Σx = the sum of the values in all samples
= T1 + T2 + T3 + . . .
 Σx² = the sum of the squares of the values in all samples

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 12-2: Solution
To calculate MSB and MSW, we first
compute the between-samples sum of
squares, denoted by SSB and the within-
samples sum of squares, denoted by SSW.
The sum of SSB and SSW is called the
total sum of squares and is denoted by
SST; that is,
SST = SSB + SSW
The values of SSB and SSW are calculated
using the following formulas.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Between- and Within-Samples Sums of Squares

The between-samples sum of squares,

denoted by SSB, is calculates as

T T2
T 2
 ( x )
2 2

SSB    1
  ...  
2 3

 n1 n2 n3  n

Prem Mann, Introductory Statistics, 7/E

T T T 
2 2 2
SSW   x      ... 
2 1 2 3

 n1 n2 n3 

Prem Mann, Introductory Statistics, 7/E

∑x = T1 + T2 + T3 = 324+369+388 = 1081
n = n1 + n2 + n3 = 5+5+5 = 15
Σx² = (48)² + (73)² + (51)² + (65)² +
(87)² + (55)² + (85)² + (70)² +
(69)² + (90)² + (84)² + (68)² +
(95)² + (74)² + (67)²
= 80,709

Prem Mann, Introductory Statistics, 7/E

 (324)2 (369)2 (388)2  (1081)2

SSB       432.1333
 5 5 5  15
 (324)2 (369)2 (388)2 
SSW  80,709       2372.8000
 5 5 5 
SST  432.1333  2372.8000  2804.9333

Prem Mann, Introductory Statistics, 7/E

MSB and MSW are calculated as

SSB SSW
MSB  and MSW 
k 1 nk

where k – 1 and n – k are, respectively,

the df for the numerator and the df for the
denominator for the F distribution.
Remember, k is the number of different
samples.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 12-2: Solution

SSB 432.1333
MSB    216.0667
k 1 3 1
SSW 2372.8000
MSW    197.7333
nk 15  3
MSB 216.0667
F   1.09
MSW 197.7333

Prem Mann, Introductory Statistics, 7/E

Reconsider Example 12-2 about the scores

of 15 fourth-grade students who were
randomly assigned to three groups in order
to experiment with three different methods
of teaching arithmetic. At the 1%
significance level, can we reject the null
hypothesis that the mean arithmetic score
of all fourth-grade students taught by each
of these three methods is the same?
Assume that all the assumptions required
to apply the one-way ANOVA procedure
hold true.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 12-3: Solution
 Step 1:
 H0: μ1 = μ2 = μ3 (The mean scores of the
three groups are all equal)
 H1: Not all three means are equal

 Step 2: Because we are comparing the

means for three normally distributed
populations, we use the F distribution to
make this test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 12-3: Solution
 Step 3:
 α = .01
 A one-way ANOVA test is always right-
tailed
 Area in the right tail is .01
 df for the numerator = k – 1 = 3 – 1 = 2
 df for the denominator = n – k = 15 – 3
= 12
 The required value of F is 6.93

Prem Mann, Introductory Statistics, 7/E

 Step 4 & 5:
 The value of the test statistic F = 1.09
 It is less than the critical value of F = 6.93
 It falls in the nonrejection region
 Hence, we fail to reject the null hypothesis
 We conclude that the means of the three
population are equal.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 12-4
From time to time, unknown to its employees, the
research department at Post Bank observes various
employees for their work productivity. Recently
this department wanted to check whether the four
tellers at a branch of this bank serve, on average,
the same number of customers per hour. The
research manager observed each of the four tellers
for a certain number of hours. The following table
gives the number of customers served by the four
tellers during each of the observed hours.

Prem Mann, Introductory Statistics, 7/E

At the 5% significance level, test the null

hypothesis that the mean number of
customers served per hour by each of
these four tellers is the same. Assume that
all the assumptions required to apply the
one-way ANOVA procedure hold true.

Prem Mann, Introductory Statistics, 7/E

 Step 1:
 H0: μ1 = μ2 = μ3 = μ4 (The mean number of
customers served per hour by each of the
four tellers is the same)
 H1: Not all four population means are equal

Prem Mann, Introductory Statistics, 7/E

 Step 2:
 Because we are testing for the equality of
four means for four normally distributed
populations, we use the F distribution to
make the test.

Prem Mann, Introductory Statistics, 7/E

 Step 3:
 α = .05.
 A one-way ANOVA test is always right-
tailed.
 Area in the right tail is .05.
 df for the numerator = k – 1 = 4 – 1 = 3
 df for the denominator = n – k = 22 – 4
= 18
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Figure 12.4 Critical value of F for df = (3, 18) and
α = .05.

Prem Mann, Introductory Statistics, 7/E

 Σx² = (19)² + (21)² + (26)² + (24)² + (18)² +

(14)² + (16)² + (14)² + (13)² + (17)² +
(13)² + (11)² + (14)² + (21)² + (13)² +
(16)² + (18)² + (24)² + (19)² + (21)² +
(26)² + (20)²
= 7614

Prem Mann, Introductory Statistics, 7/E

 n1 n2 n3 n4  n
 (108)2 (87)2 (93)2 (110)2  (398)2
       255.6182
 5 6 6 5  22
 T12 T22 T32 T42 
SSW   x  2
   
 1n n2 n3 n 4 

 (108)2 (87)2 (93)2 (110)2 

 7614        158.2000
 5 6 6 5 

Prem Mann, Introductory Statistics, 7/E

SSB 255.6182
MSB    85.2061
k 1 4 1
SSW 158.2000
MSW    8.7889
nk 22  4
MSB 85.2061
F    9.69
MSW 8.7889

Prem Mann, Introductory Statistics, 7/E

 Step 5:
 The value for the test statistic F = 9.69
 It is greater than the critical value of F = 3.16
 It falls in the rejection region
 Consequently, we reject the null
hypothesis
 We conclude that the mean number of
customers served per hour by each of the
four tellers is not the same.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
TI-84

Prem Mann, Introductory Statistics, 7/E

Screen 12.5 Prem Mann, Introductory Statistics, 7/E

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