Exam 10: Two-Sample Tests

The statistical distribution used for testing the difference between two population variances is the distribution.

SCENARIO 10-15 The table below presents the summary statistics for the starting annual salaries (in thousands of dollars) for individuals entering the public accounting and financial planning professions. Sample I (public accounting): $\bar { X } _ { 1 } = 60.35 , S _ { 1 } = 3.25 , n _ { 1 } = 12$ Sample II (financial planning): $\bar { X } _ { 2 } = 58.20 , S _ { 2 } = 2.48 , n _ { 2 } = 14$ Test whether the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning assuming that the two population variances are the same. -Referring to Scenario 10-15, suppose $\alpha$ = 0.05.Which of the following represents the correct conclusion for a test on a difference in the variances?

SCENARIO 10-7 A buyer for a manufacturing plant suspects that his primary supplier of raw materials is overcharging.In order to determine if his suspicion is correct, he contacts a second supplier and asks for the prices on various identical materials.He wants to compare these prices with those of his primary supplier.The data collected is presented in the table below, with some summary statistics presented (all of these might not be necessary to answer the questions which follow).The buyer believes that the differences are normally distributed and will use this sample to perform an appropriate test at a level of significance of 0.01. Material Primary Supplier Secondary Supplier Difference 1 \ 55 \ 45 \ 10 2 \ 48 \ 47 \ 1 3 \ 31 \ 32 -\ 1 4 \ 83 \ 77 \ 6 5 \ 37 \ 37 \ 0 6 \ 55 \ 54 \ 1 Sum: \ 309 \ 292 \ 17 Sum of Squares: \ 17,573 \ 15,472 \ 139 -Referring to Scenario 10-7, what is the 95% confidence interval estimate for the mean difference in prices?

SCENARIO 10-4 Two samples each of size 25 are taken from independent populations assumed to be normally distributed with equal variances.The first sample has a mean of 35.5 and standard deviation of 3.0 while the second sample has a mean of 33.0 and standard deviation of 4.0. -Referring to Scenario 10-4, there are degrees of freedom for this test.

SCENARIO 10-3 As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles.She took 3 of each brand and determined their maximum downhill speeds.The results are presented in miles per hour in the table below. Trial Barth Tornado Reiser Shaw 1 43 37 41 43 2 46 38 45 45 3 43 39 42 46 -Referring to SCENARIO 10-3, the test is valid only if the population of speeds is normally distributed.

SCENARIO 10-3 As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles.She took 3 of each brand and determined their maximum downhill speeds.The results are presented in miles per hour in the table below. Trial Barth Tornado Reiser Shaw 1 43 37 41 43 2 46 38 45 45 3 43 39 42 46 -Referring to SCENARIO 10-3, the value of MSA is , while MSW is _.

SCENARIO 10-15 The table below presents the summary statistics for the starting annual salaries (in thousands of dollars) for individuals entering the public accounting and financial planning professions. Sample I (public accounting): $\bar { X } _ { 1 } = 60.35 , S _ { 1 } = 3.25 , n _ { 1 } = 12$ Sample II (financial planning): $\bar { X } _ { 2 } = 58.20 , S _ { 2 } = 2.48 , n _ { 2 } = 14$ Test whether the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning assuming that the two population variances are the same. -Referring to Scenario 10-15, what is the highest level of significance at which a test on a difference in the variances will not be rejected?

SCENARIO 10-6 To investigate the efficacy of a diet, a random sample of 16 male patients is selected from a population of adult males using the diet.The weight of each individual in the sample is taken at the start of the diet and at a medical follow-up 4 weeks later.Assuming that the population of differences in weight before versus after the diet follow a normal distribution, the t-test for related samples can be used to determine if there was a significant decrease in the mean weight during this period.Suppose the mean decrease in weights over all 16 subjects in the study is 3.0 pounds with the standard deviation of differences computed as 6.0 pounds. -Referring to Scenario 10-6, there are degrees of freedom for this test.

SCENARIO 10-13 The amount of time required to reach a customer service representative has a huge impact on customer satisfaction.Below is the Excel output from a study to see whether there is evidence of a difference in the mean amounts of time required to reach a customer service representative between two hotels.Assume that the population variances in the amount of time for the two hotels are not equal. t-Test: Two-Sample Assuming Unequal Variances Hotel 1 Hotel 2 Mean 2.214 2.0115 Variance 2.951657 3.57855 Observations 20 20 Hypothesized Mean Difference 0 df 38 t Stat 0.354386 P (T<=t) one-tail 0.362504 t Critical one-tail 1.685953 P ( T < t) two-tail 0.725009 t Critical two-tail 2.024394 -Referring to Scenario 10-13, what is the critical value for testing if there is evidence of a difference in the variabilities of the amount of time required to reach a customer service representative between the two hotels at the 5% level of significance?

SCENARIO 10-3 A real estate company is interested in testing whether the mean time that families in Gotham have been living in their current homes is less than families in Metropolis.Assume that the two population variances are equal.A random sample of 100 families from Gotham and a random sample of 150 families in Metropolis yield the following data on length of residence in current homes. Gotham: $\bar { X } _ { \mathrm { G } } = 35 \text { months, } \quad S _ { \mathrm { G } } { } ^ { 2 } = 900 \quad \text { Metropolis: } \quad \bar { X } _ { \mathrm { M } } = 50 \text { months, } \mathrm { S } _ { \mathrm { M } } { } ^ { 2 } = 1050$ -Referring to Scenario 10-3, suppose $\alpha$ = 0.05.Which of the following represents the result of the relevant hypothesis test?

SCENARIO 10-3 A real estate company is interested in testing whether the mean time that families in Gotham have been living in their current homes is less than families in Metropolis.Assume that the two population variances are equal.A random sample of 100 families from Gotham and a random sample of 150 families in Metropolis yield the following data on length of residence in current homes. Gotham: $\bar { X } _ { \mathrm { G } } = 35 \text { months, } \quad S _ { \mathrm { G } } { } ^ { 2 } = 900 \quad \text { Metropolis: } \quad \bar { X } _ { \mathrm { M } } = 50 \text { months, } \mathrm { S } _ { \mathrm { M } } { } ^ { 2 } = 1050$ -Referring to Scenario 10-3, what is(are) the critical value(s) of the relevant hypothesis test if the level of significance is 0.01? a) $t \cong Z = - 1.96$ b) $t \cong Z = \pm 1.96$ c) $t \cong Z = - 2.080$ d) $t \cong Z = - 2.33$

SCENARIO 10-4 An agronomist wants to compare the crop yield of 3 varieties of chickpea seeds.She plants 15 fields, 5 with each variety.She then measures the crop yield in bushels per acre.Treating this as a completely randomized design, the results are presented in the table that follows. Trial Smith Walsh Trevor 1 11.1 19.0 14.6 2 13.5 18.0 15.7 3 15.3 19.8 16.8 4 14.6 19.6 16.7 5 9.8 16.6 15.2 -Referring to SCENARIO 10-4, the value of MSA is , while MSW is _.

SCENARIO 10-5 A hotel chain has identically small sized resorts in 5 locations in different small islands.The data that follow resulted from analyzing the hotel occupancies on randomly selected days in the 5 locations. ROW Location A Location B Location C Location D Location E 1 28 40 21 37 22 2 33 35 21 47 19 3 41 33 27 45 25 Analysis of Variance Source df SS MS F p Location 4 963.6 11.47 0.001 Error 10 210.0 Total -Referring to SCENARIO 10-5, what is the value of the test statistic for Levene's test for homogeneity of variances?

SCENARIO 10-2 A realtor wants to compare the mean sales-to-appraisal ratios of residential properties sold in four neighborhoods (A, B, C, and D).Four properties are randomly selected from each neighborhood and the ratios recorded for each, as shown below. A: 1.2,1.1,0.9,0.4 C: 1.0,1.5,1.1,1.3 B: 2.5,2.1,1.9,1.6 D: 0.8,1.3,1.1,0.7 Interpret the results of the analysis summarized in the following table: Source df SS MS F PR > F Neighborhoods 3.1819 1.0606 10.76 0.001 Error 12 Total 4.3644 -Referring to SCENARIO 10-2, the within group sum of squares is

SCENARIO 10-3 As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles.She took 3 of each brand and determined their maximum downhill speeds.The results are presented in miles per hour in the table below. Trial Barth Tornado Reiser Shaw 1 43 37 41 43 2 46 38 45 45 3 43 39 42 46 -Referring to SCENARIO 10-3, what should be the decision for the Levene's test for homogeneity of variances at a 5% level of significance?

SCENARIO 10-5 To test the effectiveness of a business school preparation course, 8 students took a general business test before and after the course.The results are given below. Student Exam Score BeforeCourse(1) Exam Score AfterCourse(2) 1 530 670 2 690 770 3 910 1,000 4 700 710 5 450 550 6 820 870 7 820 770 8 630 610 -Referring to Scenario 10-5, at the 0.05 level of significance, the decision for this hypothesis test would be:

SCENARIO 10-10 A corporation randomly selects 150 salespeople and finds that 66% who have never taken a self- improvement course would like such a course.The firm did a similar study 10 years ago in which 60% of a random sample of 160 salespeople wanted a self-improvement course.The groups are assumed to be independent random samples.Let $\pi$ 1 and $\pi$ 2 represent the true proportion of workers who would like to attend a self-improvement course in the recent study and the past study, respectively. -Referring to Scenario 10-10, what is the estimated standard error of the difference between the two sample proportions?

SCENARIO 10-15 The table below presents the summary statistics for the starting annual salaries (in thousands of dollars) for individuals entering the public accounting and financial planning professions. Sample I (public accounting): $\bar { X } _ { 1 } = 60.35 , S _ { 1 } = 3.25 , n _ { 1 } = 12$ Sample II (financial planning): $\bar { X } _ { 2 } = 58.20 , S _ { 2 } = 2.48 , n _ { 2 } = 14$ Test whether the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning assuming that the two population variances are the same. -Referring to Scenario 10-15, suppose $\alpha$ = 0.10.Which of the following represents the correct conclusion?

When testing for the difference between 2 population variances with sample sizes of n1 = 8 andn2 = 10, where n1 has the larger variance, the number of degrees of freedom are

SCENARIO 10-13 The amount of time required to reach a customer service representative has a huge impact on customer satisfaction.Below is the Excel output from a study to see whether there is evidence of a difference in the mean amounts of time required to reach a customer service representative between two hotels.Assume that the population variances in the amount of time for the two hotels are not equal. t-Test: Two-Sample Assuming Unequal Variances Hotel 1 Hotel 2 Mean 2.214 2.0115 Variance 2.951657 3.57855 Observations 20 20 Hypothesized Mean Difference 0 df 38 t Stat 0.354386 P (T<=t) one-tail 0.362504 t Critical one-tail 1.685953 P ( T < t) two-tail 0.725009 t Critical two-tail 2.024394 -Referring to Scenario 10-13, what is the smallest level of significance at which the null hypothesis will still not be rejected?