Hypothesis Testing - II

S. Devi Yamini

March 27, 2018

Module 6 March 27, 2018 1 / 65

Overview

1 Introduction

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Overview

1 Introduction

2 Small Sample tests

Test of single mean
Test of difference of means
F-test (Test of equality of variance)

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Overview

1 Introduction

2 Small Sample tests

Test of single mean
Test of difference of means
F-test (Test of equality of variance)

3 Chi-square Test
Test for Independence
Test for goodness of fit

Module 6 March 27, 2018 2 / 65

Overview

1 Introduction

2 Small Sample tests

Test of single mean
Test of difference of means
F-test (Test of equality of variance)

3 Chi-square Test
Test for Independence
Test for goodness of fit

4 Design of Experiments
One-way ANOVA
Two-way ANOVA

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Small sample tests

1. If the population is normally distributed and σ is known (OR) if

σ is unknown and n ≥ 30 then we can apply Z test (standard
normal distribution).

2. If the population is normally distributed, σ is unknown, and

n < 30, then we apply t -test (Student’s t distribution).

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Small sample tests

1. If the population is normally distributed and σ is known (OR) if

σ is unknown and n ≥ 30 then we can apply Z test (standard
normal distribution).

2. If the population is normally distributed, σ is unknown, and

n < 30, then we apply t -test (Student’s t distribution).

Student’s t-distribution
The p.d.f of the t-distribution is

Γ( (r +2 1) ) 1
f (t ) = √ r
π r Γ( 2 ) (1 + t 2 ) (r +2 1)
r

with r degrees of freedom (the number of independent values or

quantities which can be assigned to a statistical distribution).
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Test of single mean

Null Hyp H0 : µ = µ0

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Test of single mean

Null Hyp H0 : µ = µ0

Test statistic :

x̄ − µ
t =
√S
n

follows t-distribution with n − 1 degrees of freedom.

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Test of single mean

Here,
(xi − x̄ )2
P
2
S =
n −1
is an unbiased estimator of population standard deviation σ 2 .

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Test of single mean

Here,
(xi − x̄ )2
P
2
S =
n −1
is an unbiased estimator of population standard deviation σ 2 .
The relation between S and s (sample standard deviation) is
r
n
S = s( )
n −1

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Test of single mean

Here,
(xi − x̄ )2
P
2
S =
n −1
is an unbiased estimator of population standard deviation σ 2 .
The relation between S and s (sample standard deviation) is
r
n
S = s( )
n −1

Standard error = √Sn

1 − α confidence limits for the mean are

S S
(x̄ − t α ,n −1 √ , x̄ + t α ,n −1 √ )
2 n 2 n

Module 6 March 27, 2018 5 / 65

T-table
Integre Technical Publishing Co., Inc. Moore/McCabe November 16, 2007 1:29 p.m. moore page T-11

Tables T-11
•

Table entry for p and C is Probability p

the critical value t ∗ with
probability p lying to its
right and probability C lying
between −t ∗ and t ∗ . t*

TABLE D
t distribution critical values
Upper-tail probability p

df .25 .20 .15 .10 .05 .025 .02 .01 .005 .0025 .001 .0005

1 1.000 1.376 1.963 3.078 6.314 12.71 15.89 31.82 63.66 127.3 318.3 636.6
2 0.816 1.061 1.386 1.886 2.920 4.303 4.849 6.965 9.925 14.09 22.33 31.60
3 0.765 0.978 1.250 1.638 2.353 3.182 3.482 4.541 5.841 7.453 10.21 12.92
4 0.741 0.941 1.190 1.533 2.132 2.776 2.999 3.747 4.604 5.598 7.173 8.610
5 0.727 0.920 1.156 1.476 2.015 2.571 2.757 3.365 4.032 4.773 5.893 6.869
6 0.718 0.906 1.134 1.440 1.943 2.447 2.612 3.143 3.707 4.317 5.208 5.959
7 0.711 0.896 1.119 1.415 1.895 2.365 2.517 2.998 3.499 4.029 4.785 5.408
8 0.706 0.889 1.108 1.397 1.860 2.306 2.449 2.896 3.355 3.833 4.501 5.041
9 0.703 0.883 1.100 1.383 1.833 2.262 2.398 2.821 3.250 3.690 4.297 4.781
10 0.700 0.879 1.093 1.372 1.812 2.228 2.359 2.764 3.169 3.581 4.144 4.587
11 0.697 0.876 1.088 1.363 1.796 2.201 2.328 2.718 3.106 3.497 4.025 4.437
12 0.695 0.873 1.083 1.356 1.782 2.179 2.303 2.681 3.055 3.428 3.930 4.318
13 0.694 0.870 1.079 1.350 1.771 2.160 2.282 2.650 3.012 3.372 3.852 4.221
14 0.692 0.868 1.076 1.345 1.761 2.145 2.264 2.624 2.977 3.326 3.787 4.140
15 0.691 0.866 1.074 1.341 1.753 2.131 2.249 2.602 2.947 3.286 3.733 4.073
16 0.690 0.865 1.071 1.337 1.746 2.120 2.235 2.583 2.921 3.252 3.686 4.015
17 0.689 0.863 1.069 1.333 1.740 2.110 2.224 2.567 2.898 3.222 3.646 3.965
18 0.688 0.862 1.067 1.330 1.734 2.101 2.214 2.552 2.878 3.197 3.611 3.922
19 0.688 0.861 1.066 1.328 1.729 2.093 2.205 2.539 2.861 3.174 3.579 3.883
20 0.687 0.860 1.064 1.325 1.725 2.086 2.197 2.528 2.845 3.153 3.552 3.850
21 0.686 0.859 1.063 1.323 1.721 2.080 2.189 2.518 2.831 3.135 3.527 3.819
22 0.686 0.858 1.061 1.321 1.717 2.074 2.183 2.508 2.819 3.119 3.505 3.792
23 0.685 0.858 1.060 1.319 1.714 2.069 2.177 2.500 2.807 3.104 3.485 3.768
24 0.685 0.857 1.059 1.318 1.711 2.064 2.172 2.492 2.797 3.091 3.467 3.745
25 0.684 0.856 1.058 1.316 1.708 2.060 2.167 2.485 2.787 3.078 3.450 3.725
26 0.684 0.856 1.058 1.315 1.706 2.056 2.162 2.479 2.779 3.067 3.435 3.707
27 0.684 0.855 1.057 1.314 1.703 2.052 2.158 2.473 2.771 3.057 3.421 3.690
28 0.683 0.855 1.056 1.313 1.701 2.048 2.154 2.467 2.763 3.047 3.408 3.674
29 0.683 0.854 1.055 1.311 1.699 2.045 2.150 2.462 2.756 3.038 3.396 3.659
30 0.683 0.854 1.055 1.310 1.697 2.042 2.147 2.457 2.750 3.030 3.385 3.646
40 0.681 0.851 1.050 1.303 1.684 2.021 2.123 2.423 2.704 2.971 3.307 3.551
50 0.679 0.849 1.047 1.299 Module 6
1.676 2.009 2.109 2.403 2.678 2.937 3.261 3.496 March 27, 2018 6 / 65
Problems

1. A random sample of 16 households is taken from a large block of

flats, and shows that household expenditure on food is 42 dollars
per week, with a standard deviation of 10 dollars. Assuming that
household expenditure on food is normally distributed, find the 95%
confidence interval for the population mean.

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Problems

1. A random sample of 16 households is taken from a large block of

flats, and shows that household expenditure on food is 42 dollars
per week, with a standard deviation of 10 dollars. Assuming that
household expenditure on food is normally distributed, find the 95%
confidence interval for the population mean.

Solution:
Given that n = 16, x̄ = 42, s = 10, α = 0.05

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Problems

1. A random sample of 16 households is taken from a large block of

flats, and shows that household expenditure on food is 42 dollars
per week, with a standard deviation of 10 dollars. Assuming that
household expenditure on food is normally distributed, find the 95%
confidence interval for the population mean.

Solution:
Given that n = 16, x̄ = 42, s = 10, α = 0.05
Since n < 30, we use t-distribution.
r r
n 16
S = s( ) = 10( ) = 10.33
n −1 15
α
2
= 0.025, degrees of freedom = n − 1 = 15.

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Test of single mean

Solution contd.
From the table for t-distribution, t0.025,15 = 2.1314.
Thus the 95% confidene interval for population mean µ is

S S
(x̄ − t0.025,n −1 √ , x̄ + t0.025,n −1 √ )
n n

10.33 10.33
(42 − 2.1314( ), 42 + 2.1314( ))
4 4
(36.5, 47.5)

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Test of single mean

2. 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?

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Test of single mean

2. 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?

Solution
Given n = 10

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Test of single mean

2. 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?

Solution
Given n = 10 P
(xi −x̄ )2
x̄ = 66, S 2 = n −1
= 10

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Test of single mean

2. 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?

Solution
Given n = 10 P
(xi −x̄ )2
x̄ = 66, S 2 = n −1
= 10
1. H0 : µ = 64 against H1 : µ > 64 (Right tailed test)
2. Level of significance α = 0.05

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Test of single mean

solution contd.
3. Test statistic:
Since population standard deviation is not known and n < 30,
we use t-test.

x̄ − µ 66 − 64
t = = √ =2
√S √10
n 10

follows t-distribution with 9 degrees of freedom.

4. Rejection region:
α = 0.05, Critical value is tα,9 = 1.833
The critical region is t ≥ 1.833.
Since Cal t > tα,9 , we reject H0 .
5. Conclusion:
There is sufficient evidence to believe that the average height
is greater than 64 inches.
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Test of difference of means

Null Hyp H0 : µ1 − µ2 = d

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Test of difference of means

Null Hyp H0 : µ1 − µ2 = d

Test statistic :

(x¯1 − x¯2 ) − (µ1 − µ2 )

t = q
S n1 + n1
1 2

follows t-distribution with n1 + n2 − 2 degrees of freedom.

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Test of difference of means

Here,
(x1i − x¯1 )2 + (x2i − x¯2 )2
P P
2
S =
n1 + n2 − 2
OR
n1 s12 + n2 s22
S2 =
n1 + n2 − 2
Problems:
1. Samples of two types of electric light bulbs were tested for
length of life and the following data were obtained.
Type I: n1 = 8, x¯1 = 1234 hours, s1 = 36 hours
Type II: n2 = 7, x¯2 = 1036 hours, s2 = 40 hours
Is the differnce in mean sufficient to warrant that Type I is superior
than Type II regarding the length of life?

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Problems

Solution
Given n1 = 8, n2 = 7, x¯1 = 1234, x¯2 = 1036.
1. H0 : µ1 = µ2 aginst H1 : µ1 > µ2
2. Level of significance α = 0.05
3. Test statistic:
Since population standard deviation is unknown and n < 30, we
apply t-distribution with n1 + n2 − 2 = 13 degrees of freedom.

(x¯1 − x¯2 ) − (µ1 − µ2 )

t = q = 9.3925
S n1 + n1
1 2

follows t-distribution with 13 degrees of freedom.

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Problems

Solution contd
4. Critical region:
tα,13 = 1.77 and critical region is t > 1.77
Since Cal t > 1.77, we reject H0 .
5. Conclusion:
There is a statistical evidence that Type I is superior to Type II.

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F-distribution

F-distribution is used to test the equality of the variances of two

populations from which two samples have been drawn.

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F-distribution

F-distribution is used to test the equality of the variances of two

populations from which two samples have been drawn.

H0 : σ12 = σ22

Test Statistic:
S12
F =
S22
(x1i −x¯1 )2 (x2i −x¯2 )2
P P
where S12 = n1 −1
and S22 = n2 −1
.
(Note: The larger among S12 and S22 will be the numerator)

Here F follows F-distribution with (n1 − 1, n2 − 1) degrees of

freedom.
The critical value is F(n1 −1,n2 −1)

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Test of Variances
Two samples of 6 and 7 items have the following values for a
variable.
Sample 1: 39,41,42,42,44,40
Sample 2: 40,42,39,45,38,39,40
Do the sample variances differ significantly?

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Test of Variances
Two samples of 6 and 7 items have the following values for a
variable.
Sample 1: 39,41,42,42,44,40
Sample 2: 40,42,39,45,38,39,40
Do the sample variances differ significantly?

Solution
n1 = 6, n2 = 7, x¯1 = 41.33, x¯2 = 40.43

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Test of Variances
Two samples of 6 and 7 items have the following values for a
variable.
Sample 1: 39,41,42,42,44,40
Sample 2: 40,42,39,45,38,39,40
Do the sample variances differ significantly?

Solution
n1 = 6, n2 = 7, x¯1 = 41.33, x¯2 = 40.43
1. H0 : σ12 = σ22 (There is no significant difference between the
variances)
H1 : σ12 6= σ22
2. Level of significance α = 0.05
3. Test statistic:
S12
F =
S22

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Test of variances - problem

solution contd.
(x1i −x¯1 )2 (x2i −x¯2 )2
P P
where S12 = n1 −1
= 3.06668 and S22 = n2 −1
= 5.61905.

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Test of variances - problem

solution contd.
(x −x¯ )2 (x2i −x¯2 )2
P P
where S12 = 1i
n1 −1
1
= 3.06668 and S22 = n2 −1
= 5.61905.
Hence, F = 1.8323.

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Test of variances - problem

solution contd.
(x −x¯ )2 (x −x¯ )2
P P
where S12 = 1i
n1 −1
1
= 3.06668 and S22 = 2i
n2 −1
2
= 5.61905.
Hence, F = 1.8323.
From the table of F for (5,6) degrees of freedom, F(6,5) = 4.95.
The critical region is F > 4.95

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Test of variances - problem

solution contd.
(x −x¯ )2 (x −x¯ )2
P P
where S12 = 1i
n1 −1
1
= 3.06668 and S22 = 2i
n2 −1
2
= 5.61905.
Hence, F = 1.8323.
From the table of F for (5,6) degrees of freedom, F(6,5) = 4.95.
The critical region is F > 4.95
Since cal F < 4.95, we accept H0 .

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Test of variances - problem

solution contd.
(x −x¯ )2 (x −x¯ )2
P P
where S12 = 1i
n1 −1
1
= 3.06668 and S22 = 2i
n2 −1
2
= 5.61905.
Hence, F = 1.8323.
From the table of F for (5,6) degrees of freedom, F(6,5) = 4.95.
The critical region is F > 4.95
Since cal F < 4.95, we accept H0 .
5. Conclusion:
There is no significant difference between the population
variances.

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Try these problems

1. The price of a popular tennis racket at a national chain store is

179 dollars. Ria bought five of the same racket at an online auction
site for the following prices: 155, 179,175,175,161. Assuming that
the auction prices of rackets are normally distributed, determine
whether there is sufficient evidence in the sample, at the 5% level
of significance, to conclude that the average price of the racket is
less than 179 dollars if purchased at an online auction.
(Hint: n = 5. Calculate x̄ and S from the data. H0 : µ = 179 against
H1 : µ < 179. Apply t-test.)

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Problems

2. Find the rejection region for each hypothesis test based on the
information given. The population is normally distributed.
(a) H0 : µ = 27 Against H1 : µ < 27, α = 0.05, n = 12, σ = 2.2 (Hint:
Since σ is given and population is normally distributed, we apply
Z -test. )

(b) H0 : µ = 52 Against H1 : µ 6= 52,α = 0.05, n = 6, σ is unknown.

(Hint: Since σ is unknown and n < 30, we apply t -test)

(c) H0 : µ = −105 Against H1 : µ > −105, α = 0.10, n = 24, σ is

unknown. (Hint: Since σ is unknown and n < 30, we apply t -test)

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Try these
3. An economist wishes to determine whether people are driving
less than in the past. In one region of the country, the number of
miles driven per household per year in the past was 18.59 thousand
miles. A sample of 15 households produced a sample mean of 16.23
thousand miles for the last year, with sample standard deviation
4.06 thousand miles. Assuming a normal distribution of household
driving distances per year, perform the relevant test at the 5% level
of significance.

4. Two random samples gave the following results:

Sample 1: n1 = 10, x¯1 = 15, (x1i − x¯1 )2 = 90 (sum of squared
P

deviations from the mean)

Sample 2: n2 = 12, x¯2 = 14, (x2i − x¯2 )2 = 108
P

Test whether the samples come from the same normal population at
5% significance level. (Hint: We need to test for (i) population mean
and (ii) population variance. H0 : σ12 = σ22 and µ1 = µ2 . First apply
F-test and then apply t-test) Module 6 March 27, 2018 20 / 65
Chi-square distribution

The sum of k independent squared standard normal variables is a

Chi-square random variable with k degrees of freedom. That is,
χ2 = Z12 + Z22 + . . . + Zk2

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Chi-square distribution

The sum of k independent squared standard normal variables is a

Chi-square random variable with k degrees of freedom. That is,
χ2 = Z12 + Z22 + . . . + Zk2

The curve is non symmetrical and skewed to the right

The curve differs for each degrees of freedom

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Chi-square distribution

The sum of k independent squared standard normal variables is a

Chi-square random variable with k degrees of freedom. That is,
χ2 = Z12 + Z22 + . . . + Zk2

The curve is non symmetrical and skewed to the right

The curve differs for each degrees of freedom

Applications
- Goodness of fit
- Test for independence

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Test for independence

Procedure
1 Formulate the null and alternate hypothesis:
H0 : Two variables are independent
H1 : Two variables are not independent

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Test for independence

Procedure
1 Formulate the null and alternate hypothesis:
H0 : Two variables are independent
H1 : Two variables are not independent
2 Calculate the Expected frequencies
E = (row total)(column total) / sample size
Note that each expected value must be greater than or equal to
5 for the chi square test to be valid

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Test for independence

Procedure
1 Formulate the null and alternate hypothesis:
H0 : Two variables are independent
H1 : Two variables are not independent
2 Calculate the Expected frequencies
E = (row total)(column total) / sample size
Note that each expected value must be greater than or equal to
5 for the chi square test to be valid
3 Calculate the test statistic:
X (O − E )2
χ2 =
E

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Test for independence

4 Find the degrees of freedom

df = (r − 1)(c − 1)

where r is the number of rows and c is the number of columns

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Test for independence

4 Find the degrees of freedom

df = (r − 1)(c − 1)

where r is the number of rows and c is the number of columns

5 Calculate the critical value (cv) at the given LOS

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Test for independence

4 Find the degrees of freedom

df = (r − 1)(c − 1)

where r is the number of rows and c is the number of columns

5 Calculate the critical value (cv) at the given LOS
6 Conclusion: If χ2 < cv, then accept H0 (Variables are
independent)
else reject H0 (Variables are not independent)

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Problems

1. The side effects of a new drug are being tested against a placebo.
A simple random sample of 565 patients yields the results below. At
a significance level α = 0.10, is there enough evidence to conclude
that the treatment is independent of the side effect of nausea?

Result Drug Placebo Total

Nausea 36 13 49
No Nausea 254 262 516
Total 290 275 565

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Problems

1. The side effects of a new drug are being tested against a placebo.
A simple random sample of 565 patients yields the results below. At
a significance level α = 0.10, is there enough evidence to conclude
that the treatment is independent of the side effect of nausea?

Result Drug Placebo Total

Nausea 36 13 49
No Nausea 254 262 516
Total 290 275 565

Solution
H0 : The treatment and the response are independent.
H1 : The treatment and the response are dependent.

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Problems

1. The side effects of a new drug are being tested against a placebo.
A simple random sample of 565 patients yields the results below. At
a significance level α = 0.10, is there enough evidence to conclude
that the treatment is independent of the side effect of nausea?

Result Drug Placebo Total

Nausea 36 13 49
No Nausea 254 262 516
Total 290 275 565

Solution
H0 : The treatment and the response are independent.
H1 : The treatment and the response are dependent.
α = 0.10

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Problems

solution contd.
Expected frequencies

Result Drug Placebo Total

Nausea 25.15 23.85 49
No Nausea 264.85 251.15 516
Total 290 275 565

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Problems

solution contd.
Expected frequencies

Result Drug Placebo Total

Nausea 25.15 23.85 49
No Nausea 264.85 251.15 516
Total 290 275 565

degrees of freedom df = (2 − 1)(2 − 1) = 1

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Problems

solution contd.
Expected frequencies

Result Drug Placebo Total

Nausea 25.15 23.85 49
No Nausea 264.85 251.15 516
Total 290 275 565

degrees of freedom df = (2 − 1)(2 − 1) = 1

Test statistic: χ2 = 10.53

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Problems

solution contd.
Expected frequencies

Result Drug Placebo Total

Nausea 25.15 23.85 49
No Nausea 264.85 251.15 516
Total 290 275 565

degrees of freedom df = (2 − 1)(2 − 1) = 1

Test statistic: χ2 = 10.53
Critical value is 2.71 (df = 1, α = 0.10)

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Problems

solution contd.
Expected frequencies

Result Drug Placebo Total

Nausea 25.15 23.85 49
No Nausea 264.85 251.15 516
Total 290 275 565

degrees of freedom df = (2 − 1)(2 − 1) = 1

Test statistic: χ2 = 10.53
Critical value is 2.71 (df = 1, α = 0.10)
Since χ2 > 2.71, there is enough evidence to reject H0 . Hence,
there is a relation between the treatment and response.

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Problems

2. Suppose the undergraduate degrees are BA, BE, BBA, and

several others. There are three possible majors for the MBA
students which are accounting, finance, and marketing. Can the
statistician conclude that the undergraduate degree affects the
choice of major from the given table?

UG/ MBA Accounting Finance Marketing Total

BA 31 13 16 60
BE 8 16 7 31
BBA 12 10 17 39
Other 10 5 7 22
Total 61 44 47 152

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Solution

1 H0 : The undergraduate degree and MBA major are independent

H1 : The undergraduate degree and MBA major are dependent
2 Expected frequencies:
UG/MBA Accounting Finance Marketing Total
BA 24.08 17.37 18.55 60
BE 12.44 8.97 9.59 31
BBA 15.65 11.29 12.06 39
Other 8.83 6.37 6.8 22
Total 61 44 47 152

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Solution contd.

3 Test statistic:
X (O − E )2
χ2 =
E
2
(31 − 24.08) (13 − 17.37)2 (7 − 6.8)2
χ2 = + + ... + = 14.7
24.08 17.37 6.8

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Solution contd.

3 Test statistic:
X (O − E )2
χ2 =
E
2
(31 − 24.08) (13 − 17.37)2 (7 − 6.8)2
χ2 = + + ... + = 14.7
24.08 17.37 6.8

4 degrees of freedom df = (r − 1)(c − 1) = (4 − 1)(3 − 1) = 6

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Solution contd.

3 Test statistic:
X (O − E )2
χ2 =
E
2
(31 − 24.08) (13 − 17.37)2 (7 − 6.8)2
χ2 = + + ... + = 14.7
24.08 17.37 6.8

4 degrees of freedom df = (r − 1)(c − 1) = (4 − 1)(3 − 1) = 6

5 α = 0.05, Critical value χ2(0.05,6) = 12.59

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Solution contd.

3 Test statistic:
X (O − E )2
χ2 =
E
2
(31 − 24.08) (13 − 17.37)2 (7 − 6.8)2
χ2 = + + ... + = 14.7
24.08 17.37 6.8

4 degrees of freedom df = (r − 1)(c − 1) = (4 − 1)(3 − 1) = 6

5 α = 0.05, Critical value χ2(0.05,6) = 12.59
The critical region is χ2 > 12.59.
Since calculated χ2 > 12.59, we reject H0 .
6 Conclusion: There is sufficient evidence to the claim that the
undergraduate degree and the MBA major are related.

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Problems
3. The operations manager of a company that manufactures tyres
wants to determine whether there are any differences in the quality
of workmanship among the three daily shifts. She randomly selects
496 tyres and carefully inspects them. Each tyre is either classified
as perfect, satisfactory, or defective, and the shift that produced it is
also recorded. The two categorical variables of interest are : shift
and condition of the tyre produced. Do these data provide sufficient
evidence at 5% significance level to infer that there are differences
in quality among the three shifts?

Perfect Satisfactory Defective Total

Shift 1 106 114 11 231
Shift 2 67 70 16 153
Shift 3 37 65 10 112
Total 210 249 37 496

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Problems

4. Various countries are compared using two variables- composition

of economy and growth band as shown in the table.

High growth Medium growth Low growth

Predominant 20 25 5
agriculture
Predominant 40 5 6
manufacturing
Predominant 5 55 20
services

Test whether the predominant function in an economy has an

impact on the growth of the economy.

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Goodness of fit

Chi-square test enables us to check whether the given data fits the
theoretical distributions such as Binomial, Poisson, Normal, etc.

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Goodness of fit

Chi-square test enables us to check whether the given data fits the
theoretical distributions such as Binomial, Poisson, Normal, etc.
Formulate null and alternate hypothesis
Calculate the expected frequencies
Level of significance
Test statistic:
X (O − E )2
χ2 =
E
degrees of freedom df = k − 1 where k represents the number
of categories
Calculate the critical value (cv) at the given LOS

Module 6 March 27, 2018 31 / 65

Goodness of fit

Chi-square test enables us to check whether the given data fits the
theoretical distributions such as Binomial, Poisson, Normal, etc.
Formulate null and alternate hypothesis
Calculate the expected frequencies
Level of significance
Test statistic:
X (O − E )2
χ2 =
E
degrees of freedom df = k − 1 where k represents the number
of categories
Calculate the critical value (cv) at the given LOS
Conclusion: If χ2 < cv, then accept H0
else reject H0

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Problems

1. The number of defects per unit in a sample of 330 units of a

manufactured product was found as follows:

No. of defects: 0 1 2 3 4
No. of units: 214 92 20 3 1

Fit a Poisson distribution to the data and test for goodness of fit.

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Problems

1. The number of defects per unit in a sample of 330 units of a

manufactured product was found as follows:

No. of defects: 0 1 2 3 4
No. of units: 214 92 20 3 1

Fit a Poisson distribution to the data and test for goodness of fit.

Solution
H0 : The data fits the Poisson distribution
H1 : The data doesnot fit the Poisson distribution

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Problems

1. The number of defects per unit in a sample of 330 units of a

manufactured product was found as follows:

No. of defects: 0 1 2 3 4
No. of units: 214 92 20 3 1

Fit a Poisson distribution to the data and test for goodness of fit.

Solution
H0 : The data fits the Poisson distribution
H1 : The dataPdoesnot fit the Poisson distribution
fx
Mean = λ = P f = 145 330
= 0.439
Expected frequencies:
−λ 0
P (X = 0) = e 0!λ = 0.645
Similarly calculate P (X = 1), P (X = 2), P (X = 3), P (X = 4)

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Problems

Solution contd.
X 0 1 2 3 4
O 214 92 20 3 1
E 212.75 93.4 20.5 3 0.35

Test statistic:
(O − E )2
χ2 = = 0.0292
E

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Problems

Solution contd.
X 0 1 2 3 4
O 214 92 20 3 1
E 212.75 93.4 20.5 3 0.35

Test statistic:
(O − E )2
χ2 = = 0.0292
E
Degrees of freedom df = k − 1 = (5 − 3) − 1 = 1

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Problems

Solution contd.
X 0 1 2 3 4
O 214 92 20 3 1
E 212.75 93.4 20.5 3 0.35

Test statistic:
(O − E )2
χ2 = = 0.0292
E
Degrees of freedom df = k − 1 = (5 − 3) − 1 = 1
Critical value is χ20.05,1 = 3.84

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Problems

Solution contd.
X 0 1 2 3 4
O 214 92 20 3 1
E 212.75 93.4 20.5 3 0.35

Test statistic:
(O − E )2
χ2 = = 0.0292
E
Degrees of freedom df = k − 1 = (5 − 3) − 1 = 1
Critical value is χ20.05,1 = 3.84
Critical region is χ2 > 3.84.

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Problems

Solution contd.
X 0 1 2 3 4
O 214 92 20 3 1
E 212.75 93.4 20.5 3 0.35

Test statistic:
(O − E )2
χ2 = = 0.0292
E
Degrees of freedom df = k − 1 = (5 − 3) − 1 = 1
Critical value is χ20.05,1 = 3.84
Critical region is χ2 > 3.84.
Since calculated χ2 < 3.84, we accept H0 . Hence the given data fits
well with Poisson distribution.

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Problems

1. An experiment is conducted in which a die is rolled 240 times.

The outcomes are in the table below. At a significance level
α = 0.05, is there enough evidence to support the hypothesis that
the die is unbiased?

Outcome 1 2 3 4 5 6
Frequency 34 44 30 46 51 35

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Problems

1. An experiment is conducted in which a die is rolled 240 times.

The outcomes are in the table below. At a significance level
α = 0.05, is there enough evidence to support the hypothesis that
the die is unbiased?

Outcome 1 2 3 4 5 6
Frequency 34 44 30 46 51 35

Solution
H0 : The die is unbiased
H1 : The die is biased

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Problems

Solution contd.
240
Expected frequencies: E = 6
= 40 where Total frequency is 240.

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Problems

Solution contd.
240
Expected frequencies: E = 6
= 40 where Total frequency is 240.

Outcome 1 2 3 4 5 6
Frequency 40 40 40 40 40 40

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Problems

Solution contd.
240
Expected frequencies: E = 6
= 40 where Total frequency is 240.

Outcome 1 2 3 4 5 6
Frequency 40 40 40 40 40 40

(O −E )2
Outcome O E (O − E ) (O − E )2 E
1 34 40 -6 36 0.9
2 44 40 4 16 0.4
3 30 40 -10 100 2.5
4 46 40 6 36 0.9
5 51 40 11 121 3.025
6 35 40 -5 25 0.625

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Solution contd.
X (O − E )2
χ2 = = 8.35
E

Module 6 March 27, 2018 36 / 65

Solution contd.
X (O − E )2
χ2 = = 8.35
E
Degrees of freedom df = k − 1 = 6 − 1 = 5

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Solution contd.
X (O − E )2
χ2 = = 8.35
E
Degrees of freedom df = k − 1 = 6 − 1 = 5

Critical value at α = 0.05 with 5 degrees of freedom is 11.07

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Solution contd.
X (O − E )2
χ2 = = 8.35
E
Degrees of freedom df = k − 1 = 6 − 1 = 5

Critical value at α = 0.05 with 5 degrees of freedom is 11.07

Since Calculated χ2 < 11.07, we accept H0 .

Conclusion: There is no sufficient evidence that the die is biased OR

The die is unbiased.

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Problems
2. A sample analysis of examination results of 500 students was
made. It was found that 220 students had failed, 170 had secured a
third class, 90 were placed in the second class and 20 got a first
class. Are these figures commensurate with the general
examination result which is the ratio 4 : 3 : 2 : 1 for various
categories respectively?

Module 6 March 27, 2018 37 / 65

Problems
2. A sample analysis of examination results of 500 students was
made. It was found that 220 students had failed, 170 had secured a
third class, 90 were placed in the second class and 20 got a first
class. Are these figures commensurate with the general
examination result which is the ratio 4 : 3 : 2 : 1 for various
categories respectively? (Expected frequencies are 200,150,100,50.
χ2 = 23.667, critical value is 7.81, reject H0 .)

Module 6 March 27, 2018 37 / 65

Problems
2. A sample analysis of examination results of 500 students was
made. It was found that 220 students had failed, 170 had secured a
third class, 90 were placed in the second class and 20 got a first
class. Are these figures commensurate with the general
examination result which is the ratio 4 : 3 : 2 : 1 for various
categories respectively? (Expected frequencies are 200,150,100,50.
χ2 = 23.667, critical value is 7.81, reject H0 .)
3. The demand for a particular spare part in a factory was found to
vary from day to day. In a sample study the following information
was obtained:
Days Mon Tue Wed Thurs Fri Sat
Demand 1124 1125 1110 1120 1126 1115
Test the hypothesis that the number of parts demanded does not
depend on the day of the week.

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Problems
2. A sample analysis of examination results of 500 students was
made. It was found that 220 students had failed, 170 had secured a
third class, 90 were placed in the second class and 20 got a first
class. Are these figures commensurate with the general
examination result which is the ratio 4 : 3 : 2 : 1 for various
categories respectively? (Expected frequencies are 200,150,100,50.
χ2 = 23.667, critical value is 7.81, reject H0 .)
3. The demand for a particular spare part in a factory was found to
vary from day to day. In a sample study the following information
was obtained:
Days Mon Tue Wed Thurs Fri Sat
Demand 1124 1125 1110 1120 1126 1115
Test the hypothesis that the number of parts demanded does not
depend on the day of the week.
(Expected frequencies are 1120. χ2 = 0.179, critical value is 11.07,
accept H0 ) Module 6 March 27, 2018 37 / 65