Dr.
Gurjeet Singh Walia
Assistant Professor of Statistics
Department of Mathematics, Statistics & Physics
PAU Ludhiana
Chapter-2
Large Sample Tests (n>30)
In this chapter, we will study four tests
1. Test of Significance for Single Mean
2. Test of Significance for Difference of Means
3. Test of Significance for Single Proportion
4. Test of Significance for Difference of Proportions
Test of Significance for Single Mean
Null Hypothesis
H 0 : 0
Alternative Hypothesis
H1 : 0 or H1 : 0 or H1 : 0
Test Statistic
x 0
Z N 0,1
n
Table value
Z or Z 2
Conclusion
If Z Cal > Table value then H 0 may be rejected
Confidence Interval
x Z 2 n
Two-tail table value
Ex1: From a field of paddy, a sample of 40 plants were selected at random.
From these plants the mean and standard deviation of panicle lengths were
observed as 28.6 cm and 9.6 cm respectively. Test at 5% level of significance
whether the mean length of panicle of paddy is 31 cm. Find 95% confidence
interval for mean length of panicle.
Null Hypothesis
H 0 : 31
Alternative Hypothesis
H1 : 31
Test Statistic
x 0 28.6 31.0
Z 1.58
n 9.6 40
Table value
Z 0.05 2 1.96
Conclusion
Since Z Cal < Table value then H 0 may not be rejected
Confidence Interval
x Z 2
n 28.6 1.96 9.6
40 25.62, 31.57
Conclusions of a Test of Hypothesis…
If we reject the null hypothesis, we conclude that
there is enough evidence to infer that the
alternative hypothesis is true.
If we fail to reject the null hypothesis, we conclude
that there is not enough statistical evidence to
infer that the alternative hypothesis is true. This
does not mean that we have proven that the null
hypothesis is true!
Test of Significance
P-Values
Example:Continued
So the P-value is:
P(z < -1.58) + P(z > 1.58) =
2*P(z > |1.58|) = 2*0.057 =
0.114
What is the p-value if Ha:
< 31%
P-value is:
P(z < -1.58) = 0.057
9
Test of Significance
Statistical Significance
“Significant” in the statistical sense does not
mean “important”
The term is used to indicate only that the
evidence against the null hypothesis reached the
standard set by
11
Test of Significance
Test Statistic
Previously, we calculated P-value = 0.057
With Ha: < 31%
Is this significant at the = 0.10 level?
0.057 < 0.10 => There is enough evidence to reject H0 at this -level
Is there statistical significance at the = 0.05 level?
0.057 > 0.05 => There is not significant evidence to reject H0
12
Test of Significance for difference of Means
Null Hypothesis
H 0 : 1 2
Alternative Hypothesis
H1 : 1 2 or H1 : 1 2 or H1 : 1 2
Test Statistic
x1 x2
Z N 0,1
2
2
1
2
n1 n2
Table value
Z or Z 2
Conclusion
If Z Cal > Table value then H 0 may be rejected
Confidence Interval
2 2
x1 x2 Z 2 1 2
n1 n2
Two-tail table value
Ex2: The average hourly wage of a sample of 150 workers in a plant ‘A’ was Rs.
2.56 with a standard deviation of Rs. 1.08. The average hourly wage of a sample
of 200 workers in a plant ‘B’ was Rs. 2.87 with a standard deviation of Rs. 1.28.
Can an applicant safely assume that the hourly wages paid by plant ‘B’ are
higher than those paid by plant ‘A’.
Null Hypothesis
H 0 : A B
Alternative Hypothesis
H1 : A B
Test Statistic
x1 x2 2.56 2.87
Z 2.46
2
2 2
1.08 1.28 2
1
2
n1 n2 150 200
Table value
Z 0.05 1.645
Conclusion
Since Z Cal > Table value then H 0 may be rejected
Test of Significance for Single Proportion
Null Hypothesis
H 0 : P P0
Alternative Hypothesis
H1 : P P0 or H1 : P P0 or H1 : P P0
Test Statistic
p P0
Z N 0,1
P0Q0
n
Table value
Z or Z 2
Conclusion
If Z Cal > Table value then H 0 may be rejected
Confidence Interval
p Z 2 pq n
Two-tail table value
Ex3: Forty people were attacked by a disease and only 36 survived.
Test the hypothesis that the survival rate, if attacked by this
disease, is more than 85%.
Null Hypothesis
H 0 : P 0.85
Alternative Hypothesis
H1 : P 0.85
Test Statistic
p P0 0.90 0.85
Z 0.885
P0Q0 0.85 0.15
n 40
Table value
Z 0.05 1.645
Conclusion
Since Z Cal < Table value then H 0 may be accepted
Test of Significance for Difference of Proportions
Null Hypothesis
H 0 : P1 P2
Alternative Hypothesis
H1 : P1 P2 or H1 : P1 P2 or H1 : P1 P2
Test Statistic
p1 p2
Z N 0,1
1 1
PQ
n1 n2 where P n1 p1 n2 p2 Q 1 P
n1 n2
Table value
Z or Z 2
Conclusion
If Z Cal > Table value then H 0 may be rejected
Confidence Interval
p1q1 p2 q2
p1 p2 Z 2
n1 n2
Two-tail table value
Ex4: Random samples of 400 men and 600 women were asked
whether they would like to have a flyover near their residence.
200 men and 325 women were in favour of the proposal. Test the
hypothesis that proportions of men and women in favour of the
proposal are same against that they are not at 5% level of
significance.
Null Hypothesis H 0 : P1 P2
Alternative Hypothesis H1 : P1 P2
Test Statistic
200 325
p1 0.5 p2 0.541
400 600
n1 p1 n2 p2 200 325 Q 1 P 0.475
P 0.525
n1 n2 400 600
p1 p2 0.5 0.541
Z 1.269
1 1 1 1
PQ 0.525 0.475
n1 n2 400 600
Table value Z 0.05 2 1.96
Conclusion
Since Z Cal < Table value then H 0 may not be rejected
Table Values
