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Explain what conditions must hold true to use the \(t\) distribution to make a confidence interval and to test a hypothesis about \(\mu_{1}-\mu_{2}\) for two independent samples selected from two populations with unknown but equal standard deviations.

Short Answer

Expert verified
To use the \(t\) distribution for creating a confidence interval or testing a hypothesis about \(\mu_{1}-\mu_{2}\) for two independent samples from populations with unknown but equal standard deviations, three conditions must hold: Independence of the samples, Normality of the distribution (or large sample sizes), and Equal variance across the two populations.

Step by step solution

01

Identifying the Conditions

First, identify the conditions under which the \(t\) distribution can be applied. The \(t\) distribution is typically used when the sample size is small (\(n<30\)) and the population standard deviation (\(\sigma\)) is unknown. Specifically with regards to comparing two means (\(\mu_{1}-\mu_{2}\)), the \(t\) distribution can be applied if the following conditions are met:
02

Stating the First Condition

The first condition is **Independence**. The two samples taken should be independent from each other. In practical terms, this typically means that the data has been randomly sampled and one sample does not affect the other.
03

Detailing the Second Condition

The second condition is **Normality**. Each of the populations from which the samples are taken should be normally distributed or the sample sizes should be large enough (\(n>30\)) to invoke the central limit theorem.
04

Outlining the Third Condition

The third condition is **Equal Variance**. It should be reasonable to assume that the two populations from which the samples are taken have the same variance. In other words, the standard deviations of the two populations are equal but unknown.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Confidence Interval
A confidence interval provides a range of values within which we can be fairly certain that a population parameter lies. In the case of comparing two means, the confidence interval helps us estimate the difference between the means (\(\mu_1 - \mu_2\)). We use the **t distribution** to calculate this interval when the sample size is small and the population standard deviations are unknown, but assumed to be equal. When creating a confidence interval, you need:
  • A chosen level of confidence (e.g., 95%), representing how sure you are that the interval contains the true population mean difference.
  • The sample means and sizes from both groups.
  • Estimated standard error, reflecting the variability of the sample means.
The interval is then calculated using the formula:\[CI = (\bar{x}_1 - \bar{x}_2) \pm t_{\alpha/2} \times SE\]where \(t_{\alpha/2}\) is the t-score for your chosen confidence level, and \(SE\) is the standard error of the difference between the sample means.
Hypothesis Testing
Hypothesis testing is a systematic method for evaluating a hypothesis about a population parameter based on sample data. When comparing two independent samples: the null hypothesis (\(H_0\)) typically states there is no difference between the population means (\(\mu_1 = \mu_2\)). The alternative hypothesis (\(H_a\)) proposes a difference exists (\(\mu_1 e \mu_2\)). To test these, we use the **t distribution** under the conditions of small sample sizes and unknown, but equal variances.The process involves:
  • Calculating the test statistic using the sample data, which measures how far your sample statistic is from the assumed population parameter under \(H_0\).
  • Finding the critical value from the t distribution, which corresponds to the chosen level of significance (e.g., 0.05).
  • Comparing the test statistic to the critical value to determine whether to reject or fail to reject the null hypothesis.
A significant test result indicates that the sample provides sufficient evidence to conclude a difference exists between the group means, while a non-significant result suggests there is insufficient evidence to support \(H_a\).
Independent Samples
When we refer to independent samples, we mean that the samples are selected in a way that ensures the selection of one sample does not influence the selection of the other. This is crucial because lack of independence can bias the results, making the statistical tests invalid. Common ways to ensure independence include:
  • Random Sampling: Selecting samples randomly from each population.
  • Random Assignment: Randomly assigning subjects to each group in an experiment.
Independence allows researchers to confidently use statistical methods like **t tests** and **confidence intervals** to compare means between two groups. Without independence, any statistical inferences made may not be reliable.
Equal Standard Deviations
Assuming equal standard deviations means that you believe the variability within each of the populations is the same. This assumption simplifies the calculations needed for hypothesis testing and confidence intervals involving two groups. To check and justify this assumption, consider:
  • Pooled Variance: Combining variances from the samples as a weighted average, which assumes homogeneity of variance.
  • F-test for Equality of Variances: A preliminary test that can confirm if the varances between the groups are really equal. However, this test can be sensitive to non-normality.
When the assumption of equal variances holds true, the data analysis is more straightforward and allows for the application of pooled variances in t calculations. If the standard deviations are not equal, alternative methods like the Welch's t-test might be needed for accurate analysis.

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Most popular questions from this chapter

According to the credit rating agency Equifax, credit limits on newly issued credit cards increased between January 2011 and May 2011 (money.cnn.com/2011/08/19/pf/credit_card_issuance/index.htm). Suppose that random samples of 400 credit cards issued in January 2011 and 500 credit cards issued in May 2011 had average credit limits of \(\$ 2635\) and \(\$ 2887\), respectively. Suppose that the sample standard deviations for these two samples were \(\$ 365\) and \(\$ 412\), respectively, and the assumption that the population standard deviations are equal for the two populations is reasonable. a. Let \(\mu_{1}\) and \(\mu_{2}\) be the average credit limits on all credit cards issued in January 2011 and in May 2011 , respectively. What is the point estimate of \(\mu_{1}-\mu_{2}\) ? b. Construct a \(98 \%\) confidence interval for \(\mu_{1}-\mu_{2}\) c. Using a \(1 \%\) significance level, can you conclude that the average credit limit for all new credit cards issued in January 2011 was lower than the corresponding average for all credit cards issued in May 2011 ? Use both the \(p\) -value and the critical-value approaches to make this test.

Conduct the following tests of hypotheses, assuming that the populations of paired differences are normally distributed. a. \(H_{0} \cdot \mu_{d f}=0, \quad H_{1}: \mu_{d} \neq 0, \quad n=26, \quad \bar{d}=9.6, \quad s_{d}=3.9, \quad \alpha=.05\) b. \(H_{0}: \mu_{d}=0, \quad H_{1}: \mu_{d}>0, \quad n=15, \quad \bar{d}=8.8, \quad s_{d}=4.7, \quad \alpha=.01\) c. \(H_{0}=\mu_{d}=0, \quad H_{1}: \mu_{d}<0, \quad n=20, \quad \bar{d}=-7.4, \quad s_{d}=2.3, \quad \alpha=.10\)

Maria and Ellen both specialize in throwing the javelin. Maria throws the javelin a mean distance of 200 feet with a standard deviation of 10 feet, whereas Ellen throws the javelin a mean distance of 210 feet with a standard deviation of 12 feet. Assume that the distances cach of these athletes throws the javelin are normally distributed with these population means and standard deviations. If Maria and Ellen each throw the javelin once, what is the probability that Maria's throw is longer than Ellen's?

Construct a \(95 \%\) confidence interval for \(p_{1}-p_{2}\) for the following. $$ n_{1}=100, \quad \hat{p}_{1}=.81, \quad n_{2}=150, \quad \hat{p}_{2}=.77 $$

Gamma Corporation is considering the installation of govemors on cars driven by its sales staff. These devices would limit the car speeds to a preset level, which is expected to improve fuel economy. The company is planning to test several cars for fuel consumption without governors for 1 week. Then governors would be installed in the same cars, and fuel consumption will be monitored for another week. Gamma Corporation wants to estimate the mean difference in fuel consumption with a margin of error of estimate of 2 mpg with a 90 \% confidence level. Assume that the differences in fuel consumption are normally distributed and that previous studies suggest that an estimate of \(s_{d}=3 \mathrm{mpg}\) is reasonable. How many cars should be tested? (Note that the critical value of \(t\) will depend on \(n\), so it will be necessary to use trial and error.)

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