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This is a photo of a plate with a large pile of eggs in the foreground and six slices of toast in the background. There is a small dish of red jam sitting near the toast on the plate.
If you want to test a claim that involves two groups (the types of breakfasts eaten east and west of the Mississippi River) you can use a slightly different technique when conducting a hypothesis test. (credit: Chloe Lim)

Chapter objectives

By the end of this chapter, the student should be able to:

  • Classify hypothesis tests by type.
  • Conduct and interpret hypothesis tests for two population means, population standard deviations known.
  • Conduct and interpret hypothesis tests for two population means, population standard deviations unknown.
  • Conduct and interpret hypothesis tests for two population proportions.
  • Conduct and interpret hypothesis tests for matched or paired samples.

Studies often compare two groups. For example, researchers are interested in the effect aspirin has in preventing heart attacks. Over the last few years, newspapers and magazines have reported various aspirin studies involving two groups. Typically, one group is given aspirin and the other group is given a placebo. Then, the heart attack rate is studied over several years.

There are other situations that deal with the comparison of two groups. For example, studies compare various diet and exercise programs. Politicians compare the proportion of individuals from different income brackets who might vote for them. Students are interested in whether SAT or GRE preparatory courses really help raise their scores.

You have learned to conduct hypothesis tests on single means and single proportions. You will expand upon that in this chapter. You will compare two means or two proportions to each other. The general procedure is still the same, just expanded.

To compare two means or two proportions, you work with two groups. The groups are classified either as independent or matched pairs . Independent groups consist of two samples that are independent, that is, sample values selected from one population are not related in any way to sample values selected from the other population. Matched pairs consist of two samples that are dependent. The parameter tested using matched pairs is the population mean. The parameters tested using independent groups are either population means or population proportions.

Note

This chapter relies on either a calculator or a computer to calculate the degrees of freedom, the test statistics, and p -values. TI-83+ and TI-84 instructions are included as well as the test statistic formulas. When using a TI-83+ or TI-84 calculator, we do not need to separate two population means, independent groups, or population variances unknown into large and small sample sizes. However, most statistical computer software has the ability to differentiate these tests.


This chapter deals with the following hypothesis tests:

    Independent groups (samples are independent)

  • Test of two population means.
  • Test of two population proportions.

    Matched or paired samples (samples are dependent)

  • Test of the two population proportions by testing one population mean of differences.

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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