1. To test the Significance of the Mean of a Random Sample.

In determining whether the

mean of a sample drawn from a normal population deviates significantly from a stated value (the
hypothetical value of the populations mean), when variance of the population is unknown we
calculate the statistic:




where X = the mean of the sample
= the actual or hypothetical mean of the population
n=the sample size
S= the standard deviation of the sample

Problems

The manufactures of a certain make of electric bulbs claims that his bulbs have a mean life of 25
months with a standard deviation of 5 months. A random sample of 6 such bulbs gave the
following values.

Life in months: 24, 26, 30, 20, 20, 18

Can you regard the producers claim to be valid at 1% level of significance? (Give that the table
values of the appropriate test statistics at the said level are 4.032, 3.707 and 3.499 for 5.6 and 7
degree of freedom respectively)

Solutions: Let us take the hypothesis that there is no significant difference in the mean life of
bulbs in the sample and that of the population. Applying t-test:









CALCULATION OF X and S

X
x
X X ) (



( )
S
n X
t

=
( )
1
2

=

n
X X
S
( )
S
n X
t

=
2
x
24
26
30
20
20
18
+1
+3
+7
-3
-3
-5
1
9
49
9
9
25
X =138

2
x =102

517 . 4 4 . 20
5
102
1
23
6
138
2
= = =

=
= = =

n
x
S
n
X
X

084 . 1
517 . 4
449 . 2 2
6
517 . 4
| 25 23 |
=

=

=n-1=6-1=5. For =5, t
0.01
=4.032.
The calculated value if t is less than table value. The hypothesis is accepted. Hence, the
producers claim is not valid at 1 level of significance.


Problems

A random sample of size 16 has 53 as mean. The sum of the squares of the deviations taken from
mean is 135. Can this sample be regarded as taken from the population having 56 as mean?
Obtain 95% and 99% confidence limits of the mean of the population. (for =15, t
0.05

= 2.13 for
=15, t
0.01
= 2.95)

Solutions: Let us take the hypothesis that there is no significant difference between the sample
mean and hypothetical population mean. Applying t test:
( )
4
3
4 3
16
3
| 56 53 |
3
15
135
1
135 ) ( , 16 , 56 , 53
2
=

=
= =

=
= = = =

t
n
X X
S
X X N X
n
S
X
t

=16-1=15. . For =16, t
0.05

= 2.13
The calculated value of t is more than the table value. The hypothesis is rejected. Hence, the
sample has not come from a population having 56 as mean.

95% confidence limits of the population mean


6 . 54 4 . 51 6 . 1 53
13 . 2
16
3
53
05 . 0
to
t
n
S
X
= =
=

99% confidence limits of the population means

212 . 55 788 . 50 212 . 2 53
95 . 2
4
3
53
95 . 2
16
3
53
01 . 0
to
t
n
S
X
= =

=

2. Testing Difference Between Means of Two Samples (Independent
Samples)



1 X = mean of the first sample
2 X = mean of the second sample
n
1
= number of observations in the first sample
n
2
= number of observations in the second sample
S = combined standard deviation





The value of S is calculated by the following formula:
Two types of drugs were used on 5 and 7 patients for reducing their weight.
Drug A was imported and drug B indigenous. The decrease in the weight after using the drugs
for six months was as follows:
Drug A : 10 12 13 11 14
2 1
2 1
2 1
n n
n n
S
X X
t
+

=
( ) ( )
2
2 1
2 2
2
1
1
2 +
+
=

n n
X X X X
S
Drug B : 8 9 12 14 15 10 9
If the bias correction due to small is ignored, pooled estimate of the standard deviation can be
obtained by:





Is there a significant difference in the efficacy of the two drugs? If not, which drug should you
buy? (For =10, t
0.05
=2.223)

Solution: Let us take the hypothesis that there is no significant difference in the efficacy of the
two drugs. Applying t-test
2 1
2 1 2 1
n n
n n
S
X X
t
+
=
=

1
X
( )
1 1
X X
( )
2
1 1
X X 2
X
( )
2 2
X X
( )
2
2 2
X X
10
12
13
11
14
-2
0
+1
-1
+2
4
0
1
1
4
8
9
12
14
15
10
9
-3
-2
+1
+3
+4
-1
-2
9
4
1
9
16
1
4

1
X
=60

( )
2
1 1
X X
=10

2
X
=60

( )
2
2 2
X X
=44

However, it is advisable to take account of bias.
( ) ( )
324 . 2
10
54
2 7 5
44 10
2
; 11
7
77
; 12
5
60
2 1
2
1 1
2
1 1
2
2
2
1
1
1
= =
+
+
=
+
+
=
= = = = = =


n n
X X X X
S
n
X
X
n
X
X


735 . 0
324 . 2
708 . 1
7 5
7 5
324 . 2
11 12
2 1
2 1 2 1
= =
+

+
=
=
n n
n n
S
X X
t


=n
1
+n
2
2 = 5+7-2 = 10
=10, t
0.05
= 2.228.

2 1
2
2 2
2
1 1
n n
S n S n
S
+
+
=

For the calculated value of t is less than the table value, the hypothesis is accepted. Hence, there
is no significance in the efficacy of two drugs. Since drug B is indigenous and there is no
difference in the efficacy of impoted and indigenous drug, we should buy indigenous drug, i.e.,
B.






Problems:
For a random sample of 10 persons, fed on die A, the increased weight in pounds in a certain
period were:
10, 6, 16, 17, 13, 12, 8, 14, 15, 9
For another random sample of 12 persons, fed on diet B, increase in the same period were:
7, 13, 22, 15, 12, 14, 18, 8, 21, 23, 10, 17
Test whether the diets A and B differ significantly as regards her effect on increase in weight.
Given the following:
Degree of freedom 19 20 21 22 23
Value of t at 5% level 2.09 2.09 2.08 2.07 2.07


Solutions: Let us take the null hypothesis that A and B do not differ significantly weight regard
to their effect on increase in weight. Applying t-test

2 1
2 1 2 1
n n
n n
S
X X
t
+
=
=
( ) ( )
2
2 1
2
1 1
2
1 1
+
+
=

n n
X X X X
S
Calculating the requires values:

Persons fed on diet A Persons fed on diet B
Increases in
weight
1
X
Deviations
from mean 12
( )
1 1
X X
( )
2
1 1
X X
Increases
in weight
2
X
Deviations
from mean
15
( )
2 2
X X
( )
2
2 2
X X
10
6
16
17
13
-2
-6
+4
+5
+1
4
36
16
25
1
7
13
22
15
12
-8
-2
+7
0
-3
64
4
49
0
9
2 1
2
2 2
2
1 1
n n
S n S n
S
+
+
=
12
8
14
15
9
0
-4
+2
+3
-3
0
16
4
9
9
14
18
8
21
23
10
17
-1
+3
-7
+6
+8
-5
+2
1
9
49
36
64
25
4

1
X =120
( )
1 1
X X =0
( )
2
1 1
X X =
120

2
X =180
( )
2 2
X X
=0
( )
2
2 2
X X
=44

Mean increase in weight of 10 persons fed on diet A
; 12
10
120
1
1
1 = = =

n
X
X pounds
Mean increase in weight of 12 persons fed on diet A
; 15
12
180
2
2
2 = = =

n
X
X pounds
( ) ( )
66 . 4
20
434
2 12 10
314 120
2
2 1
2
1 1
2
1 1
= =
+
+
=
+
+
=

n n
X X X X
S
1 X =12, 2 X =15, n
1
= 12, n
2
= 12, S = 4.66. Substituting the values in the above formula

51 . 1 34 . 2
66 . 4
3
12 10
12 10
66 . 4
15 12
= =
+

= t
=n
1
+n
2
2 = 10+12-2 = 20.

For =20, the table value of t at 5 percent level is 2.09. The calculated value is less than the table
value and hence the experiment provides no evidence against the hypothesis. We, therefore,
conclude that diets A and B do not differ significantly as regards their effect on increase in
weight is concerned.

Testing Difference between Means of Two samples( Dependent Samples or Matched Paired
Observations)
n
S
d
t

=
0
or
S
n d
t =
Where d = the mean of the differences
S = the standard deviation of the differences
The value of S is calculated as follows:
( )
1
2

=

n
d d
S or
1
) (
2

n
d d


It should be noted that t is based on n-1 degree of freedom.


Problems

To verify whether a course in accounting improved performed, a similar test was given to 12
participants both before and after the course, The original marks recorded in alphabetical order
of the participants were44, 40, 61, 52, 32, 44, 70, 41,47,72,53, and 72. After the course, the
marks were in the same order, 53, 38, 69, 57, 46, 39, 73, 48,73,74,60 and 78. Was the course
useful?

Solutions: Let us take the hypothesis that there is no difference in the marks obtained before and
after the course, i.e. the course has not been useful
Applying t-test(difference formula):
S
n d
t =


Participants Before
(1
st
Test)
After
(
2nd
Test)
(2
nd
1
st
Test)
d
d
2

A
B
C
D
E
F
G
H
I
J
K
L
44
40
61
552
32
44
70
41
67
72
53
72
58
38
69
57
46
39
73
48
73
74
60
78
+9
-2
+8
+5
+14
-5
+3
+7
+6
+2
+7
+6
81
4
64
25
196
25
9
49
36
4
49
36
d=60 d
2
=578


443 . 3
03 . 5
464 . 3 5
03 . 5
12
03 . 5
11
278
1 12
) 5 ( 12 578
1
) (
5
12
60
2
2
2
=

=
= =

=
= = =

t
t
n
d n d
S
n
d
d


=n-1=12 1 = 11;
For =11, t
0.05
= 2.201
The calculated value of t is greater than the table value. The hypothesis is rejected. Hence the
course has been useful.

Problems:
A drug is given to 10 patients and the increments in their blood pressure were recorded to be 3,
6, -2, 4, -3, 4, 6, 0, 0, 2. Is it reasonable to believe that the drug has no effect on change of
blood pressure? (5% value of t for 9 d.f.=2.26)
Solution. Let us take the hypothesis that the drug has no effect on charge of blood pressure.
Applying the difference test:
S
n d
t =


2
162 . 3
162 . 3 2
162 . 3
12 2
162 . 3
1 10
) 2 ( 10 130
1
) (
2
10
20
2
2
2
=

= =
=

=
= = =

t
n
d n d
S
n
d
d


=n-1=10 1 = 9; For =6, t
0.05
= 2.26.

The calculated value of t is less than the table value. The hypothesis is accepted. Hence it is
reasonable to believe that the drug has no effect on change of blood pressure.




d d
2

3
6
-2
4
-3
4
6
0
0
2
9
36
4
16
9
16
36
0
0
4
d=0 d
2
=130