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Confidence Intervals Act 13 Exploring Sampling Variability for 2 Population Mean or 2 Population Percentage with a Sampling Distribution Part I – Columbian coffee verses Brazilian coffee: Difference between two sample means Our goal is to understand how random samples can estimate the population mean difference between two groups. To explore this topic we will look at random sample means from two populations (Columbian mild and Brazilian coffee price data). Normally we never know the difference between two population means, but for this exercise we have the population census data. The population mean for the Columbian mild coffee was 134.338 cents per pound and the population mean for the Brazilian natural coffee was 111.617 cents per pound. If we subtract the Columbian population mean minus the Brazilian population mean we get 134.338 – 111.617 = +22.721 cents per pound. Our goal is to compare random sample mean differences with the population mean difference of +22.721 cents per pound. Open the Sampling Distribution II data on the statistics / data sets page on www.matt-teachout.org . We have taken 60 random samples from the Columbian coffee data and 60 random samples from the Brazilian coffee data. Each person will compute 2 sample mean differences. For example, the first person in class will calculate the sample mean from “Columbian 1” and the sample mean from “Brazilian 1”. Then subtract Columbian mean – Brazilian mean. Repeat for “Columbian 2” and “Brazilian 2”. Etc. Once everyone in class has calculated two sample mean differences, go up to the board and put up magnets for each of your sample mean differences. Answer the following questions. 1. Describe how the sampling data was collected. Were we comparing means from two independent groups or was it matched pair? How do you know? Suppose that instead of randomly selecting 30 prices from the Columbian data and 30 prices from the Brazilian data, we had the computer randomly select months and then subtracted the prices in those months. Would that be independent groups or matched pairs? Explain. 2. What were your two sample means? Was your Columbian sample mean or the Brazilian sample mean more expensive? How much more expensive? When you subtracted Columbian – Brazilian, did you get a positive or negative value? Remember, the population difference when we subtract Columbian minus Brazilian is +22.721 . How far was your sample difference from +22.721? What does this tell us about sampling variability when trying to estimate a population difference. (Repeat these questions twice for each sample difference calculated.) 3. In general, what does a positive difference tell us? What does a negative difference tell us? If the difference came out to be exactly zero, what would that tell us? 4. Now look at the sampling distribution on the board. Each person in class has put up two magnets (or drawn two dots). (Remember, the population difference when we subtract Columbian minus Brazilian is +22.721) . Were all the sample differences the same or was there a lot of variability in sample mean differences? Were all the sample differences exactly the same as the population value 22.721 or was there a lot of variability from the actual population mean difference. Discuss the implications on the difficulty of finding an unknown population mean difference when all you have is one sample from each of your two groups. 5. What is 95% of the 60 dots on the board? Find two values that 95% of the dots fall in between. 6. Find the shape of the sampling distribution and estimate the center and standard deviation of the sampling distribution. This is “Standard Error”. (Hint: If you look at the two numbers in question #5, find the difference and divide by 4 to find an approximate standard deviation.) 7. Does your sample data meet the assumptions for estimating the difference between two population means? Explain how. Part II – Flipping a coin with the Left hand verses Right hand: Difference between two sample percentages. Our goal is to understand how random samples can estimate the population percentage (proportion) difference between two groups. To explore this topic we will look at random sample percentages from two populations, coin flips with the left hand verses coin flips with the right hand. Normally we never know the difference between two population percentages, but for this exercise we do. The population probability of getting tails with the left hand is 0.5 and the population probability of getting tails with the right hand is also 0.5 . Hence the population mean difference is 0. Just because the population difference is zero, does not mean that two random sample percentage when subtracted will always get zero. Flip the coin 20 times with the right hand counting how many times you got tails. Calculate the sample percentage of getting tails with right handed coin tosses. (Leave your answer in decimal form.) Now flip the coin 20 times with the left hand counting how many times you got tails. Calculate the sample percentage of getting tails with left handed coin tosses. (Leave your answer in decimal form.) Now subtract your right handed sample percent minus your left handed sample percent. Put your difference on the board with a magnet or drawn dot. Repeat this process twice so that you will calculate two sample percent differences. Answer the following questions. 8. Describe how the sampling data was collected. 9. What were your two sample percentage? Was your right handed sampl e percent or your left handed sample percent greater? How much more? When you subtracted right handed sample percent minus left handed sample percent, did you get a positive value, a negative value or zero? Remember, the population difference was zero. How far was your sample difference from zero? What does this tell us about sampling variability when trying to estimate a population difference. (Repeat these questions twice for each sample difference calculated.) 10. In general, what does a positive difference tell us? What does a negative difference tell us? If the difference came out to be exactly zero, what would that tell us? 11. Now look at the sampling distribution on the board. Each person in class has put up two magnets (or drawn two dots). (Remember, the population difference should be zero.) Were all the sample differences the same or was there a lot of variability in sample percent differences? Were all the sample differences exactly the same as the population value of zero or was there a lot of variability from the actual population percent difference. Discuss the implications on the difficulty of finding an unknown population percentage difference when all you have is one sample from each of your two groups. 12. Count the dots on the board. What is 95% of the number of dots on the board? Find two values that 95% of the dots fall in between. 13. Find the shape of the sampling distribution and estimate the center and standard deviation of the sampling distribution. This is “Standard Error”. (Hint: If you look at the two numbers in question number 12, find the difference and divide by 4 to find an approximate standard deviation.) 14. Does your sample data meet the assumptions for estimating the difference between two population percentages? Explain how.