MAT3003 Probability, Statistics and Reliability

Test of Significance

Dr.E.Prasad
Asst Professor, Dept of Mathematics
VIT Bhopal University

Spring 2024-25

Module 4 Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Syllabus
✓ Testing of hypothesis – Introduction - Types of errors, critical region, procedure of
testing hypothesis.
✓ Large sample tests - Z test for Single Proportion, Difference of Proportion, Single
mean and difference of means.
✓ Small sample tests - Student’s t-test, F-test - Chi-square test - Goodness of fit -
Independence of Attributes.

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Testing of Hypothesis

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

What is hypothesis testing?

Hypothesis testing is a statistical method that is used to make a statistical decision

using experimental data. Hypothesis testing is basically an assumption that we make

about a population parameter(𝜇, 𝜎 𝑎𝑛𝑑 𝑒𝑡𝑐). It evaluates two mutually exclusive

statements about a population to determine which statement is best supported by the

sample data.

Hypothesis testing is formulated in terms of two hypotheses:

• H0: the Null hypothesis(H0); This is initially favored claim (H0)

• H1: the Alternate hypothesis((H1) or Ha); Rejected in favor of the Null Hypothesis

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Hypothesis testing is formulated in terms of two hypotheses

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Types of Errors

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Types of Errors

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Critical Value: In a test of hypothesis, a critical

value is a number that separates
two regions:
Critical Region: the critical region, that is, the set
of values of the test statistic that
lead to a rejection of the null
hypothesis;
the acceptance region, that is, the
set of values for which the null is
not rejected.

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): Define or set up a Null Hypothesis H0 by accepting the claim

Step2:Alternative Hypothesis(𝐇𝟏 ): Define or set up a Atlernative Hypothesis H1 so that
we could decide whether we should follow one or two tailed test
Step3:Level of Significance (L.O.S): Select the appropriate level of significance (𝛼) depending
on the reliability of the estimate and permissible risk (Usually we choose 5% L.O.S if it is not
mentioned in the give problem)
Step4:Test statistics: Apply suitable Test statistics from the given information in problem
Step5:Conclussion:
a) If Test statistics value(calculated value) < Table values then Accept H0
b) If Test statistics value(calculated value) ≥ Table values then Reject H0

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Large sample tests (Sample size>30)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Table of Critical Values of Z

Level of Significance
1%(0.01) 5%(0.05) 10%(0.10)
or or or
99%(0.99) 95%(0.95) 90%(0.90)
Two tailed test(𝐻1 : 𝜇 ≠ 𝜇0 ) 𝑍𝛼 =2.58 𝑍𝛼 =1.96 𝑍𝛼 =1.645
Right tailed test (𝐻1 : 𝜇 > 𝜇0 ) 𝑍𝛼 = 2.33 𝑍𝛼 =1.645 𝑍𝛼 =1.28
Left tailed test(𝐻1 : 𝜇 < 𝜇0 ) 𝑍𝛼 =-2.33 𝑍𝛼 =-1.645 𝑍𝛼 = -1.28

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Method-1:Test for Single mean

Hypothesis Test about the Population Mean (μ) when the Population Standard
Deviation (σ) is Known, then the Test statistics(Formula)

𝑥ҧ − 𝜇
𝑍= 𝜎
𝑛

Where
• xത = Sample Mean
• μ = Population Mean
• σ = Standard Deviation population
• n = Sample Size(should be greater than 30)

Confidence Interval:
𝜎 𝜎
( 𝑥ҧ − 𝑍𝛼 , 𝑥ҧ + 𝑍𝛼 )
𝑛 𝑛
𝜎
Standard Error =
𝑛

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Special Case: Test for Single mean

Hypothesis Test about the Population Mean (μ) when the Population Standard
Deviation (σ) is Unknown, then the Test statistics(Formula),given x1 , x2 , … , xn
with number of sample n > 30

𝑥ҧ − 𝜇
𝑍= 𝑠
𝑛
Where
• xത = Sample Mean
• μ = Population Mean
1 2
• 𝑠 2 = 𝑛−1 σ𝑛𝑖=1(𝑥𝑖 − 𝑥)ҧ and “s” is sample S.D
• n = sample size(should be greater than 30)

Confidence Interval:
𝑠 𝑠
( 𝑥ҧ − 𝑍𝛼 , 𝑥ҧ + 𝑍𝛼 )
𝑛 𝑛
𝑠
Standard Error =
𝑛

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝜇 = 𝜇0
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝜇 ≠ 𝜇0 Two tailed test
𝜇 > 𝜇0 Right tailed test
𝜇 < 𝜇0 Left tailed test
Step3:Level of Significance (L.O.S): Select the appropriate level of significance (𝛼) depending
on the reliability of the estimate and permissible risk (Usually we choose 5% L.O.S if it is not
mentioned in the give problem)

Step4:Test statistics:

Step5:Conclussion:
𝑍𝑐𝑎𝑙 < 𝑍𝑡𝑎𝑏 then Accept H0 ,Other wise Reject H0

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Example 1: A light bulb company claims that the 100-watt light bulb it sells has
an average life of 1200 hours with a standard deviation of 100 hours. For testing
the claim 50 new bulbs were selected randomly and allowed to burn out. The
average lifetime of these bulbs was found to be 1180 hours. Is the company’s claim
is true at 5% level of significance? Ans . 𝑍cal = −1.41
Example 2: an ambulance service claims that it takes on the average less than 10
minutes to reach its destination in emergency calls. a sample of 36 calls has a mean
of 11 minutes and the variance of 16 minutes. test the significance at 5% level of
significance. Ans . 𝑍cal = 1.5
Example 3: In the past the average length of an outgoing telephone call from a
business office has been 143 seconds. A manager wishes to check whether that
average has decreased after the introduction of policy changes. A sample of 100
telephone calls produced a mean of 133 seconds, with a standard deviation of 35
seconds. Perform the relevant test at the 1% level of significance
Example 4: A sample of 400 items is taken from a population whose standard
deviation is 10. The mean of sample is 40. Test whether the sample has come from a
population with mean 38. Also calculate 95% confidence interval for the population.
Ans . 𝑍cal = 4 (39.02,40.98)
Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Method-2;Equality of Two means(𝝁𝟏 = 𝝁𝟐 )

Hypothesis Test about the population mean (𝝁𝟏 , 𝝁𝟐 ) when the population standard
deviation (𝝈𝟏 , 𝝈𝟐 ) are known with sample mean 𝒙ഥ and 𝒚
ഥ with sample size 𝒏𝟏 , 𝒏𝟐
respectively and 𝝁𝟏 , 𝝁𝟐 𝐚𝐫𝐞 𝒖𝒌𝒏𝒐𝒘𝒏 ,then the Test statistics(Formula)
𝑥ҧ − 𝑦ത
𝑍=
𝜎1 2 𝜎2 2
𝑛1 + 𝑛2
Where
• xത = Sample Mean with sample size n1
• yത = Sample Mean with sample size n2
• μ1 , μ2 = Population Means
• σ1 , σ2 = Standerd Deviation population
• n1 , n2 = sample size(should be greater than 30)

Confidence Interval:
𝜎1 2 𝜎2 2 𝜎1 2 𝜎2 2
( (𝑥ҧ − 𝑦)
ത − 𝑍𝛼 + , (𝑥ҧ − 𝑦)
ത + 𝑍𝛼 + )
𝑛1 𝑛2 𝑛1 𝑛2
𝜎1 2 𝜎2 2
Standard Error = +
𝑛1 𝑛2

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝝁𝟏 = 𝝁𝟐
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝝁𝟏 ≠ 𝝁𝟐 Two tailed test
𝝁𝟏 > 𝝁𝟐 Right tailed test
𝝁𝟏 < 𝝁𝟐 Left tailed test
Step3:Level of Significance (L.O.S): Select the appropriate level of significance (𝛼) depending
on the reliability of the estimate and permissible risk (Usually we choose 5% L.O.S if it is not
mentioned in the give problem)

𝑥ҧ − 𝑦ത
Step4:Test statistics: 𝑍 =
𝜎1 2 𝜎2 2
+
𝑛1 𝑛1
Step5:Conclussion:
𝑍𝑐𝑎𝑙 < 𝑍𝑡𝑎𝑏 then Accept H0 ,Other wise Reject H0

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Special Case ;Equality of Two means(𝝁𝟏 = 𝝁𝟐 )

Hypothesis Test about the population mean (𝝁𝟏 , 𝝁𝟐 ) when the population standard
deviation (𝝈𝟏 , 𝝈𝟐 ) are known with sample mean 𝒙 ഥ and 𝒚
ഥ with sample size 𝒏𝟏 , 𝒏𝟐
respectively and if it is given 𝝁𝟏 − 𝝁𝟐 = 𝜹, then the Test statistics(Formula)
𝑥ҧ − 𝑦ത − (μ1 − μ2 )
𝑍=
𝜎1 2 𝜎2 2
𝑛 + 𝑛 1 2
Where
• xത = Sample Mean with sample size n1
• yത = Sample Mean with sample size n2
• μ1 , μ2 = Population Means
• σ1 , σ2 = Standerd Deviation population
• n1 , n2 = sample size(should be greater than 30)

Confidence Interval:
𝜎1 2 𝜎2 2 𝜎1 2 𝜎2 2
( (𝑥ҧ − 𝑦)
ത − 𝑍𝛼 + , (𝑥ҧ − 𝑦)
ത + 𝑍𝛼 + )
𝑛1 𝑛1 𝑛1 𝑛2
𝜎1 2 𝜎2 2
Standard Error = +
𝑛1 𝑛2

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝝁𝟏 − 𝝁𝟐 = 𝜹
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝝁𝟏 − 𝝁𝟐 ≠ 𝜹 Two tailed test
𝝁𝟏 − 𝝁𝟐 > 𝜹 Right tailed test
𝝁𝟏 − 𝝁𝟐 < 𝜹 Left tailed test
Step3:Level of Significance (L.O.S): Select the appropriate level of significance (𝛼) depending
on the reliability of the estimate and permissible risk (Usually we choose 5% L.O.S if it is not
mentioned in the give problem)

𝑥ҧ − 𝑦ത − (μ1 − μ2 )
Step4:Test statistics: 𝑍=
𝜎1 2 𝜎2 2
+
𝑛1 𝑛1
Step5:Conclussion:
𝑍𝑐𝑎𝑙 < 𝑍𝑡𝑎𝑏 then Accept H0 ,Other wise Reject H0

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

1. A sample of the height of 6400 Englishmen has a mean of 67.85 inches and a S.D of 2.56 inches
while another sample of heights of 1600 Austrians has a mean of 68.55 inches and S.D of 2.52
inches. Do the data indicate that Austrians are on the average taller than the Englishmen at 1%
level of Significance? (Reject H0)
2. At a certain large university a sociologist speculates that male students spend considerably more
money on junk food than female students. To test her hypothesis the sociologist randomly selects
from records the names of 200 students . Of thee , 125 are men and 75 are women . The mean of
the average amount spent on junk food per week by the men is Rs. 400 and S.D is 100. For the
women the sample mean is Rs. 450 and S.D is 150. Test the hypothesis at 5 % los ?( Z =-2.56)
3. The average marks scored by 32 boys is 72 with a S.D of 8 . While that for 36 girls is 70 with a S.D
of 6. Does this data indicate that the boys perform better than girls at 5% los ?(Z=1.154)
4. The means of two large samples of sizes 1000 and 2000 members are 67.5 inches and 68 inches
respectively . Can the samples be regarded as drawn from the same population of S.D 2.5
inches.(Z=-5.16)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Method-3;Test of Single Proportion (𝑷 = 𝑷𝟎 )

Hypothesis Test about the population Proportion 𝐏 when the sample data x are
drawn from sample size n>30, then the Test statistics(Formula)

𝑝−𝑃
𝑍=
𝑃𝑄
𝑛
Where
𝑥
• 𝑝 =𝑛
• P = Population proportion
• 𝑄 =1−P

Confidence Interval:
𝑝𝑞 𝑝𝑞 𝑥
(𝑝 − 𝑍𝛼 ,𝑝 + 𝑍𝛼 ) where 𝑝 = 𝑛 , 𝑞 = 1 − 𝑝
𝑛 𝑛
𝑝𝑞
Standard Error = 𝑛

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝑷 = 𝑷𝟎
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝑷 ≠ 𝑷𝟎 Two tailed test
𝑷 > 𝑷𝟎 Right tailed test
𝑷 < 𝑷𝟎 Left tailed test
Step3:Level of Significance (L.O.S): Select the appropriate level of significance (𝛼) depending
on the reliability of the estimate and permissible risk (Usually we choose 5% L.O.S if it is not
mentioned in the give problem)

𝑝−𝑃
Step4:Test statistics: 𝑍 =
𝑃𝑄
𝑛
Step5:Conclussion:
𝑍𝑐𝑎𝑙 < 𝑍𝑡𝑎𝑏 then Accept H0 ,Other wise Reject H0

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance
Examples
1. Among 900 people in a state 90 are found to be chapatti eaters . Construct 99%confidence
interval for the true proportion and also test the hypothesis for single proportion ?(Z=-24)
2. A manufacturer claimed that at least 95% of the equipment which he supplied to a factory
conformed to specifications . An experiment of a sample of 200 piece of equipment revealed
that 18 were faulty .Test the claim at 5% los ? (Z=-2.59)
3. In a random sample of 125 cool drinkers , 68 said they prefer Thumsup to Pepsi .Test the null
hypothesis P = 0.5 against the alternative hypothesis P >0.5?(Z=0.9839)
4. In a random sample of 125 cool drinkers , 68 said they prefer Thumsup to Pepsi . Test the
null hypothesis P = 0.5 against the alternative hypothesis P > 0.5?

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Method-4;Equality of Two population Proportions (𝑷𝟏 = 𝑷𝟐 )

Hypothesis Test about the population Proportions (𝑷𝟏 , 𝑷𝟐 )when the population
standard deviation (𝝈𝟏 , 𝝈𝟐 ) are known with sample data x and y are selected out
of sample size 𝒏𝟏 , 𝒏𝟐 respectively and when population proportions
𝑷𝟏 , 𝑷𝟐 𝐚𝐫𝐞 𝒖𝒌𝒏𝒐𝒘𝒏 , then the Test statistics(Formula)
p1 − p2
𝑍=
1 1
PQ(n + n )
Where x1
1 2
• p1 = n
1
x2
• p2 =
n2
• P = Population proportion
• Q=1−P
• n1 , n2 = sample size(should be greater than 30)
Confidence Interval:
1 1 1 1
( (𝑝1 − 𝑝2 ) − 𝑍𝛼 𝑃𝑄(𝑛 + 𝑛 ), (𝑝1 −𝑝2 ) + 𝑍𝛼 𝑃𝑄(𝑛 + 𝑛 ) )
1 2 1 2

1 1
Standard Error = 𝑃𝑄(𝑛 + 𝑛 )
1 2

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝑷𝟏 = 𝑷𝟐
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝑷𝟏 ≠ 𝑷𝟐 Two tailed test
𝑷𝟏 > 𝑷𝟐 Right tailed test
𝑷𝟏 < 𝑷𝟐 Left tailed test
Step3:Level of Significance (L.O.S): Select the appropriate level of significance (𝛼) depending
on the reliability of the estimate and permissible risk (Usually we choose 5% L.O.S if it is not
mentioned in the give problem)

p1 − p2
𝑍=
Step4:Test statistics: 1 1
PQ(n + n )
1 2

Step5:Conclussion:
𝑍𝑐𝑎𝑙 < 𝑍𝑡𝑎𝑏 then Accept H0 ,Other wise Reject H0

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Special Case :Equality of Two means(𝑷𝟏 = 𝑷𝟐 )

Hypothesis Test about the population Proportions (𝑷𝟏 , 𝑷𝟐 )when the population
standard deviation (𝝈𝟏 , 𝝈𝟐 ) are known with sample data x and y are selected out of
sample size 𝒏𝟏 , 𝒏𝟐 respectively and when population proportions 𝑷𝟏 − 𝑷𝟐 = 𝜹,
then the Test statistics(Formula)
p1 − p2 − (𝑃1 −𝑃2 )
𝑍=
1 1
PQ( + )
Where n1 n2
x
• p1 = n1
1
x2
• p2 =
n2
• P = Population proportion
• Q=1−P
• n1 , n2 = sample size(should be greater than 30)
Confidence Interval:
1 1 1 1
( (𝑝1 − 𝑝2 ) − 𝑍𝛼 𝑃𝑄(𝑛 + 𝑛 ), (𝑝1 −𝑝2 ) + 𝑍𝛼 𝑃𝑄(𝑛 + 𝑛 ) )
1 2 1 2

1 1
Standard Error: 𝑃𝑄(𝑛 + 𝑛 )
1 2

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance
Examples

1. Random samples of 400 men and 200 women in a locality were asked whether they
would like to have a bus stop a bus stop near their residence . 200 men and 40 women
in favor of the proposal . Test the significance between the difference of two
proportions at 5% los ?(Z=7.07)
2. A machine puts out 16 imperfect articles in a sample of 500 articles . After the machine
is overhauled it puts out 3 imperfect articles in a sample of 100 articles . Has the
machine is improved ? (Z=0.104)
3. In a city A , 20% of a random sample of 900 schoolboys has a certain slight physical
defect . In another city B ,18.5% of a random sample of 1600 school boys has the same
defect . Is the difference between the proportions significant at 5% los? (Z=-0.918)
4. A cigarette manufacturing firm claims that its brand A line of cigarettes outsells Its
brand B by 8% . If it is found that 42 out of 200 smokers prefer brand A and 18 out of
another sample of 100 smokers prefer brand B . Test whether 8% difference is a valid
claim? (Z=-1.02)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Small sample tests (Sample size n≤30)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Method-1:Test for Single mean

Hypothesis Test about the Population Mean (μ) when the sample Standard Deviation
(s) is Known, then the Test statistics(Formula)
𝑥ҧ − 𝜇
𝑡= 𝑠
𝑛−1
Where
• xത = Sample Mean
• μ = Population Mean
• s − Standard deviation
• n = sample size(should be ≤ 30)

Confidence Interval:
𝑠 𝑠
( 𝑥ҧ − 𝑡(𝑛−1,𝛼) , 𝑥ҧ + 𝑡(𝑛−1,𝛼) ) for two tailed test
𝑛−1 𝑛−1
𝑠 𝑠
( 𝑥ҧ − 𝑡(𝑛−1,𝛼) 𝑛−1 , 𝑥ҧ + 𝑡(𝑛−1,𝛼) 𝑛−1 ) for left or right tailed test
2 2

𝑠
Standard Error = 𝑛−1

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝜇 = 𝜇0
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝜇 ≠ 𝜇0 Two tailed test
𝜇 > 𝜇0 Right tailed test
𝜇 < 𝜇0 Left tailed test
Step3:Level of Significance (L.O.S):

Case1: Left or Right tailed test- 𝑡(𝑛−1,𝛼)

2

Case2:For Two tailed test- 𝑡(𝑛−1,𝛼)

(Usually we choose 5% L.O.S if it is not mentioned in the give problem)
𝑥ҧ − 𝜇
Step4:Test statistics: 𝑡 =
𝑠
𝑛−1
Step5:Conclussion:
𝑡𝑐𝑎𝑙 < 𝑡𝑡𝑎𝑏 then Accept H0 ,Other wise Reject H0
Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Special Case: Test for Single mean

Hypothesis Test about the Population Mean (μ) when the sample Standard Deviation
(s) is unknown, then the Test statistics(Formula)
𝑥ҧ − 𝜇
𝑡= 𝑠
Where 𝑛
• xത = Sample Mean
• μ = Population Mean
1
• 𝑠2 = σ𝑛𝑖=1(𝑥𝑖 − 𝑥)ҧ 2 ,
𝑛−1
• n = sample size(should be ≤ 30)
Confidence Interval:
𝑠 𝑠
( 𝑥ҧ − 𝑡(𝑛,𝛼) , 𝑥ҧ + 𝑡(𝑛,𝛼) ) for two tailed test
𝑛 𝑛
𝑠 𝑠
( 𝑥ҧ − 𝑡(𝑛,𝛼) 𝑛
, 𝑥ҧ + 𝑡(𝑛,𝛼) 𝑛
) for left or right tailed test
2 2
𝑠
Standard Error : 𝑛

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance
Examples

1. A sample of 26 bulbs gives a mean life of 990 hours with a S.D of 20 hours. The
manufacturer claims that the mean life of bulbs is 1000 hours . Is the sample not up to the
standard?(t = -2.5)
2. A random sample of size 16 values from a normal population showed a mean of 53 and sum
of squares of deviations from the mean equals to 150 . Can this sample be regarded as
taken from the population having 56 as mean ? Obtain 95% confidence limits of the mean
of the population? (t = -3.79)(51.34,54.34)
3. A random sample of 10 boys had the following I Q: 70, 120 ,110, 101,88, 83,95,98,107 and
100.
a) Do these data support the assumption of a population mean I.Q of 100?
b) Find a reasonable range in which most of the mean I.Q values of samples of 10 boys lie
(t = -0.62)(87,107.4)
4. The heights of 10 males of a given locality are found to be 70,67,62,68,61,68,70,64,64,66
inches. Is it reasonable to believe that the average height is greater than 64 inches Test at
5%. (t = 1.9)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Method-2;Equality of Two means(𝝁𝟏 = 𝝁𝟐 )

Hypothesis Test about the population mean (𝝁𝟏 , 𝝁𝟐 ) when the sample standard
deviation (𝒔𝟏 , 𝒔𝟐 ) are known with sample mean 𝒙ഥ and 𝒚
ഥ with sample size 𝒏𝟏 , 𝒏𝟐 (≤
𝟑𝟎) respectively,then the Test statistics(Formula)
𝑥ҧ − 𝑦ത
𝑡=
𝑠1 2 𝑠2 2
Where 𝑛1 + 𝑛2
• xത = Sample Mean with sample size n1
• yത = Sample Mean with sample size n2
• μ1 , μ2 = Population Means
• s1 , s2 = Sample standerd Deviations
• n1 , n2 = sample size(should be ≤ 30)
Confidence Interval:
𝑠1 2 𝑠2 2 𝑠1 2 𝑠2 2
( (𝑥ҧ − 𝑦)
ത − 𝑡(n 𝛼 + , (𝑥ҧ − 𝑦)
ത + 𝑡(n 𝛼 + )- for left or right
1 +n2 −2, 2 ) 𝑛1 𝑛2 1 +n2 −2, 2 ) 𝑛1 𝑛2
tailed test
𝑠1 2 𝑠2 2 𝑠1 2 𝑠2 2
( (𝑥ҧ − 𝑦)
ത − 𝑡(n1+n2−2,𝛼) + , (𝑥ҧ − 𝑦)
ത + 𝑡(n1 +n2−2,𝛼) + ) for two tailed test
𝑛1 𝑛2 𝑛1 𝑛2
𝑠1 2 𝑠2 2
Standard Error : +
𝑛1 𝑛2

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝝁𝟏 = 𝝁𝟐
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝝁𝟏 ≠ 𝝁𝟐 Two tailed test
𝝁𝟏 > 𝝁𝟐 Right tailed test
𝝁𝟏 < 𝝁𝟐 Left tailed test
Step3:Level of Significance (L.O.S): Step3:Level of Significance (L.O.S):

Case1: Left or Right tailed test-𝑡(n 𝛼

1 +n2 −2, 2 )

Case2:For Two tailed test-𝑡(n1 +n2−2,𝛼)

(Usually we choose 5% L.O.S if it is not mentioned in the give problem)
Step4:Test statistics: ҧ 𝑦ത
𝑥−
t=
𝑠1 2 𝑠2 2
+
𝑛1 𝑛1
Step5:Conclussion:
𝑡𝑐𝑎𝑙 < 𝑡𝑡𝑎𝑏 then Accept H0 ,Other wise Reject H0

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Special Case ;Equality of Two means(𝝁𝟏 = 𝝁𝟐 )

Hypothesis Test about the population mean (𝝁𝟏 , 𝝁𝟐 ) when the sample standard deviation (𝒔𝟏 , 𝒔𝟐 ) are
unknown with samples mean 𝒙 ഥ and 𝒚ഥ with sample size 𝒏𝟏 , 𝒏𝟐 (≤ 𝟑𝟎) respectively and 𝒔𝟏 ,
𝒔𝟐 𝐚𝐫𝐞 𝒖𝒌𝒏𝒐𝒘𝒏(𝒎𝒆𝒂𝒏𝒔 𝒏𝒐𝒕 𝒈𝒊𝒗𝒆𝒏 𝒅𝒊𝒓𝒆𝒄𝒕𝒍𝒚) ,then the Test statistics(Formula)
x 𝒙𝟏 𝒙𝟐 …𝒙𝑛1

ҧ 𝑦ത
y 𝒚𝟏 𝒚𝟏 …𝒚𝑛2
𝑥−
t= 1 1
𝑆 𝑛 +𝑛
Where 1 2

• xത = Sample Mean with sample size n1

• yത = Sample Mean with sample size n2
• μ1 , μ2 = Population Means
1
• 𝑆2 = σ𝑛𝑖=1[ 𝑥𝑖 − 𝑥ҧ 2 + 𝑦𝑖 − 𝑦ത 2 ] ,
𝑛1 +𝑛2 −2
• n1 , n2 = sample size(should be ≤ 30)

Confidence Interval:
𝑠1 2 𝑠2 2 𝑠1 2 𝑠2 2
( (𝑥ҧ − 𝑦)
ത − 𝑡(n 𝛼 + , (𝑥ҧ − 𝑦)
ത + 𝑡(n 𝛼 + ) for Two tailed test
1 +n2 −2, 2 ) 𝑛1 𝑛2 1 +n2 −2, 2 ) 𝑛1 𝑛2
𝑠1 2 𝑠2 2 𝑠1 2 𝑠2 2
( (𝑥ҧ − 𝑦)
ത − 𝑡(n1 +n2 −2,𝛼) + , (𝑥ҧ − 𝑦)
ത + 𝑡(n1 +n2 −2,𝛼) + ) for Left or Right tailed test
𝑛1 𝑛2 𝑛1 𝑛2

𝑠1 2 𝑠2 2
Standard Error : +
𝑛1 𝑛2

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance
Examples
1. Samples of two types of electric bulbs were tested for length of life and following data were
obtained
Type 1 Type 2
Sample number 8 7
Sample mean , 1234 1036
Sample S.D , 36 40
Is the difference in the mean sufficient to warrant that type 1 is superior to type2 regarding
length of life .(t=10.01)
2. Two horses A and B were tested according to the time to run a particular track with the
following results
Horse A 28 30 32 33 33 29 34
Horse B 29 30 30 24 27 29
Test whether the two horses have the same running capacity(t=2.443)
3. Ten soldiers participated in a shooting competition in the first week. After intensive training
they participated in the competition in the second week . Their scores before and after
training are given below :
Scores Before- 67 24 57 55 63 54 56 68 33 43
Scores after- 70 38 58 58 56 67 68 75 42 38
Do the data indicate that the soldiers have been benefited by the training(t=-0.796)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

4.

(t=-1.19)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Sir Ronald Fisher-F-Test

( or )
F-test

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

F-Test equality of population variance 𝝈𝟏 𝟐 = 𝝈𝟐 𝟐

F-tests are named after the name of Sir Ronald Fisher. The F-statistic is simply a ratio of
two variances. Variance is the square of the standard deviation. For a common person,
standard deviations are easier to understand than variances because they’re in the same
units as the data rather than squared units. F-statistics are based on the ratio of mean
squares. The term “mean squares” may sound confusing but it is simply an estimate of
population variance that accounts for the degrees of freedom (DF) used to calculate that
estimate.
For carrying out the test of significance, we calculate the ratio F, which is defined as:
Case1:
Given standard deviations s1 , s2 (or variance s1 2 , 𝑠2 2 )with sample size 𝑛1 , 𝑛2 respectively,
Case2: If it is given that
x 𝒙𝟏 𝒙𝟐 …𝒙𝑛1
y 𝒚𝟏 𝒚𝟏 …𝒚𝑛2

𝑛1 𝑛2
1 1
S1 2 = ෍ 𝑥𝑖 − 𝑥ҧ 2
𝑎𝑛𝑑 S2 2 = ෍[ 𝑦𝑖 − 𝑦ത 2 ]
𝑛1 − 1 𝑛2 − 1
𝑖=1 𝑖=1

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance

Procedure for Testing of Hypothesis

Step1:Null Hypothesis(𝐇𝟎 ): 𝝈𝟏 𝟐 = 𝝈𝟐 𝟐
Step2:Alternative Hypothesis(𝐇𝟏 ):
𝝈𝟏 𝟐 = 𝝈𝟐 𝟐 Two tailed test
𝝈𝟏 𝟐 > 𝝈𝟐 𝟐 Right tailed test
𝝈𝟏 𝟐 < 𝝈𝟐 𝟐 Left tailed test
Step3:Level of Significance (L.O.S):

Case1: if S1 2 > S2 2 ~𝐹(𝑛1−1,𝑛2−1) degrees of freedom (Or)

Case2: if S2 2 > S1 2 ~𝐹(𝑛2−1,𝑛1−1) degrees of freedom

(Usually we choose 5% L.O.S if it is not mentioned in the give problem)
S1 2
Step4:Test statistics: F = if S1 2 > S2 2
S2 2
(Or)
S2 2
F= if S2 2 > S1 2
S1 2
Step5:Conclussion: If Fcal < Ftab then Accept H0 ,Other wise Reject H0

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Example1:

(F=1.057)
Example2:

(F=1.038)

Example3:

(F=1.018)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Example5:

(F=1.37)

Example6:

(F=4.07)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Chi–squared test for goodness of fit

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Chi–squared test for goodness of fit

The chi-squared ( ) test compares the observed frequencies of data falling into various
classes with the frequencies which would be expected under a given null hypothesis.

If 𝑂𝑖 is the observed frequency of data falling into a certain class, and if 𝐸𝑖 is the expected
frequency, then the test statistic is

where 𝑘 is the number of classes.(rows/columns)

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Procedure for solution:

1.Null Hypothesis ( 𝐻𝑜 ): 𝑂𝑖 = 𝐸𝑖

2.Alternative hypothesis(𝐻1 ):𝑂𝑖 ≠ 𝐸𝑖

3.Level of Significance: [ 𝑘−1 ,𝛼] , 𝛼=0.05 by default if it is not mentioned in Question

4.Test Statistics:

5.Conclusion: If [𝑐𝑎𝑙] < [[𝑡𝑎𝑏𝑙𝑒] then Accept 𝐻𝑜 otherwise Reject 𝐻1

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Special case - Chi–squared test for goodness of fit

No expected cell frequency should be less than (<)5. If any theoretical cell frequency

is <5, then for the application of chi square- test, it is pooled with the preceding or

succeeding frequency so that the pooled frequency is more than 5 and finally adjust

for degree’s of freedom lost in pooling.

Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance
1. The number of automobile accidents per week in a certain community were as follows:
12, 8, 20, 2, 14, 10, 15, 6, 9, 4 Are these frequencies in agreement with the belief that
accident conditions were the same during this 10-week period? (χ2 = 26.6)
2. A sample analysis of examination results of 500 students was made. It was found that 220
students have failed, 170 have secured a third class, 90 have secured a second class and the
rest, a first class. Do these figures, support the general belief that the above categories are
in the ratio 4:3:2:1 respectively?​(χ2 = 23.667)
3. A pair of dice are thrown 360 times and the frequency of each sum is indicated below.
Sum 2 3 4 5 6 7 8 9 10 11 12
frequency 8 24 35 37 44 65 51 42 26 14 14
Would you say that the dice are fair on the basis of the chi-square test at 0.05
los significance?(χ2 = 7.445)
4. A die is rolled 264 times with the following results :
No. that comes up : 1 2 3 4 5 6
Frequency : 40 32 28 50 54 60
Show that the die is biased at 5% level of significance. (χ2 = 18.33)
5. 4 coins were tossed 160 times and the following results were obtained
No. of heads: 0 1 2 3 4
Observed frequencies: 17 52 54 31 6
Under the assumption that the coins are unbiased, find the expected frequencies of getting
0,1,2,3,4 heads and test the goodness ?(χ2 = 12.725)
Dr.E.Prasad
 Probability, Statistics and Reliability Test of Significance
1. The number of automobile accidents per week in a certain community were as follows:
12, 8, 20, 2, 14, 10, 15, 6, 9, 4 Are these frequencies in agreement with the belief that
accident conditions were the same during this 10-week period? (χ2 = 26.6)
2. A sample analysis of examination results of 500 students was made. It was found that 220
students have failed, 170 have secured a third class, 90 have secured a second class and the
rest, a first class. Do these figures, support the general belief that the above categories are
in the ratio 4:3:2:1 respectively?​(χ2 = 23.667)
3. A pair of dice are thrown 360 times and the frequency of each sum is indicated below.
Sum 2 3 4 5 6 7 8 9 10 11 12
frequency 8 24 35 37 44 65 51 42 26 14 14
Would you say that the dice are fair on the basis of the chi-square test at 0.05
los significance?(χ2 = 7.445)
4. A die is rolled 264 times with the following results :
No. that comes up : 1 2 3 4 5 6
Frequency : 40 32 28 50 54 60
Show that the die is biased at 5% level of significance. (χ2 = 18.33)
5. 4 coins were tossed 160 times and the following results were obtained
No. of heads: 0 1 2 3 4
Observed frequencies: 17 52 54 31 6
Under the assumption that the coins are unbiased, find the expected frequencies of getting
0,1,2,3,4 heads and test the goodness ?(χ2 = 12.725)
Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Chi–squared test for Independent of Attributes

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Chi–squared test for Independent of Attributes

An attribute means a quality or characteristic
test is used to test whether the two attributes are associated or independent.

(𝑎 + 𝑐)(𝑎 + 𝑏) 𝐸 𝑏 a+b
𝐸 𝑎 = (𝑏 + 𝑑)(𝑎 + 𝑏)
𝑁
=
𝑁
(𝑎 + 𝑐)(𝑐 + 𝑑) 𝐸 𝑑 c+d H0 : Attributes are independent.
𝐸 𝑐 = (𝑏 + 𝑑)(𝑐 + 𝑑) Degrees of freedom =(𝑟−1)(c−1)
𝑁
=
𝑁 Where
a+c b+d N=(a+b+c+d) r – number of rows
c- number of columns

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Procedure for solution:

1.Null Hypothesis ( 𝐻𝑜 ): Attributes are independent.

2.Alternative Hypothesis(𝐻1 ): Attributes are not independent.
3.Level of Significance: [ 𝑟−1 (𝑐−1),𝛼] , 𝛼=0.05 by default if it is not mentioned in
Question ,where r – number of rows ,c- number of columns

4.Test Statistics:

5.Conclusion: If [𝑐𝑎𝑙] < [𝑡𝑎𝑏𝑙𝑒] then Accept 𝐻𝑜 otherwise Reject 𝐻1

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance
1.

2.

3.

Dr.E.Prasad
Probability, Statistics and Reliability Test of Significance

Dr.E.Prasad