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Chapter 10 Section 3 Hypothesis Tests for a Population Mean in Practice Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 1 of 14 Chapter 10 – Section 3 ● Learning objectives 1 Test hypotheses about a population mean with σ unknown Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 2 of 14 Chapter 10 – Section 3 ● In the previous section, we assumed that the population standard deviation, σ, was known ● This is not a realistic assumption ● There is a parallel between Chapters 9 and 10 Sections 9.1 and 10.2 … solving the problems assuming that σ was known Sections 9.2 and 10.3 … solving the problem assuming that σ was not known ● σ not being known is a much more practical assumption Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 3 of 14 Chapter 10 – Section 3 ● The parallel between Confidence Intervals and Hypothesis Tests carries over here too ● For Confidence Intervals We estimate the population standard deviation σ by the sample standard deviation s We use the Student’s t-distribution with n-1 degrees of freedom ● For Hypothesis Tests, we do the same Use σ for s Use the Student’s t for the normal Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 4 of 14 Chapter 10 – Section 3 ● Thus instead of the test statistic knowing σ x 0 z0 / n we calculate a test statistic using s x 0 t s/ n ● This is the appropriate test statistic to use when σ is unknown Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 5 of 14 Chapter 10 – Section 4 ● We can perform our hypotheses for tests of a population proportion in the same way as when the sample standard deviation is known Two-tailed Left-tailed Right-tailed H0: μ = μ0 H1: μ ≠ μ0 H0: μ = μ0 H1: μ < μ0 H0: μ = μ0 H1: μ > μ0 Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 6 of 14 Chapter 10 – Section 3 ● The process for a hypothesis test of a mean, when σ is unknown is Set up the problem with a null and alternative hypotheses Collect the data and compute the sample mean Compute the test statistic x 0 t s/ n Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 7 of 14 Chapter 10 – Section 3 ● Either the Classical and the P-value approach can be applied to determine the significance Classical approach P-value approach Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 8 of 14 Chapter 10 – Section 3 ● There are thus only differences between this process and the one using the normal distribution, covered in Section 10.2 We use the sample standard deviation s instead of the population standard deviation σ We use the Student’s t-distribution, with n-1 degrees of freedom, instead of the normal distribution Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 9 of 14 Chapter 10 – Section 3 ● An example (the same one as in Section 10.2) ● A gasoline manufacturer wants to make sure that the octane in their gasoline is at least 87.0 The testing organization takes a sample of size 40 The sample standard deviation is 0.5 The sample mean octane is 86.94 ● Our null and alternative hypotheses H0: Mean octane = 87 HA: Mean octane < 87 α = 0.05 Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 10 of 14 Chapter 10 – Section 3 ● Do we reject the null hypothesis? 86.94 is 0.06 lower than 87.0 The standard error is (0.5 / √ 40) = 0.08 0.06 is 0.75 standard error less The critical t value, with 39 degrees of freedom, is 1.685 –1.685 < –0.75, it is not unusual ● Our conclusion We do not reject the null hypothesis We have insufficient evidence that the true population mean (mean octane) is less than 87.0 Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 11 of 14 Chapter 10 – Section 3 ● Comparing using the classical approach Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 12 of 14 Chapter 10 – Section 3 ● Comparing using the P-value approach Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 13 of 14 Summary: Chapter 10 – Section 3 ● A hypothesis test of means, with σ unknown, has the same general structure as a hypothesis test of means with σ known ● Any one of our three methods can be used, with the following two changes to all the calculations Use the sample standard deviation s in place of the population standard deviation σ Use the Student’s t-distribution in place of the normal distribution Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 3 – Slide 14 of 14