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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

it is the relatively stable flow of income
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what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
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is gdp a reliable measurement of wealth
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introduction to econometrics
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Tom
Why is unemployment rate never zero at full employment?
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bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
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what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
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what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
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how to calculate actual output?
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how to calculate the equilibrium income
Beshir
Criteria for determining money supply
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who we can define macroeconomics in one line
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Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
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I want to know how can we define macroeconomics in one line
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it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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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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