by: Sudheer pai

Page 1 of 9
Session 10
Problems : The standard deviation of heights of plants is know to be 2 cms. Eight
randomly selected plants have heights 172, 156, 154, 163, 170,169,172 and 164 cms.
Test whether the sample standard deviation differs significantly from population
standard deviation
Solution:
Here, n-8 and
0
= 2 cms.
H
0
: The sample standard deviation does not differ significantly from population
standard deviation
H
1
: The sample standard deviation differ significantly from population standard
deviation
The test statistic is ---
2
0
2
2
) 1 (

s n
=
x
(x- x )=(x-165) (x- x )
2
172 7 49
156 -9 81
154 -11 121
163 -2 4
170 5 25
169 4 16
172 7 49
164 -1 1
1320 0 346
5 . 86
2
346 ) 1 (
346 ) ( ) 1 (
43 . 49
1 8
346
1
) (
165
8
1320
2 2
0
2
2
2
2
2
2
= =

=
= =
=

=
= = =
_
_
_

s n
x x s n
n
x x
s
n
x
x
cal
The degree of freedom is (n-1) = (8-1) = 7
The level of significance is =5%
The critical value are k
1
= 1.69 and k
2
= 16.01
Since
2
cal
=86.5>16.01, H
0
is rejected.
Conclusion: The sample standard deviation differ significantly from population
deviation.
by: Sudheer pai
Page 2 of 9
Problems: A Milk filling machine fills sachets with milk. The contention is that
standard deviation of quantity of milk filled is 3ml. To test this, 24 sachets are
randomly selected and their contents noted. If the standard deviation of these
observations is 3.9ml. What is your conclusion?
Solution:
Here, n=24,
0
=3ml. And s = 3.9ml
H0: Standard deviation is 3ml.
H: Standard deviation differs from 3ml
The test statistic is
2
0
2
2
) 1 (

s n
cal

=
Here, 87 . 38
3
) 9 . 3 ( 23 ) 1 (
2
2
2
0
2
2
=

s n
cal
The degree of freedom is (n-1) = (24-1) = 23
The level of significance is =5%
The critical value are k
1
= 11.69 and k
2
= 38.08
Since
2
cal
=38.87.>38.08, H
0
is rejected.
Conclusion: The standard deviation differ from 3ml.
CHI-SQUARE TEST OF GOODNESS OF FIT
Suppose there is an observed (empirical) frequency distribution with frequencies,
O
1
,O
2
, O
n
. According to certain theoretical assumptions, let a theoretical frequency
distribution be fitted to the observed distribution. Let the theoretical frequencies be
E
1
,E
2
,E
n.
Suppose we intend to test the null hypothesis-----
H
0
: The theoretical frequency distribution is a good fit to the observed
frequency distribution. H1 : The theoretical frequency distribution is not a good
fit to the observed frequency distribution.
To test H
2
against H
1
, Karl Pearsons Chi-square test of goodness of fit is applied.
Here, the test statistic is ---
Under H
0
this is a Chi-square variate with (n-c) d.f
Here, n is the number of terms in
2
and c is the number of constraints.
This test is one-tailed.
If
0
2
, H k
cal
> is rejected. And if
0
2
, H k
cal
s is accepted.
For different degree of freedom and =0.05 and =0.01, the critical values are
obtained from the Chi-square table.
The Chi-square test of goodness of fit is applicable subjects to the following
conditions.
1.The observation should be independent (random)
2.The total frequency N should be large.
3.The theoretical frequencies E
i
should be 5 or more. If any E
i
is less than 5, it should
be pooled with the adjacent frequency.
, )
i
i i
E
E O
2
2

X =
by: Sudheer pai
Page 3 of 9
4.If any parameter is estimated from the observed distribution, corresponding to every
such estimation one degree of freedom should be lessened.
Problems
To an observed frequency distribution, binomial distribution is fitted after estimating
p from the observed data. The observed and theoretical frequencies are given below.
Test whether binomial distribution is a good fit.
x
i
0 1 2 3 4 5 6 7 Total
O
i
3 3 17 31 28 11 1 2 96
E
i
1 7 19 27 24 13 4 1 96
Test whether binomial distribution is a good fit.
Solution :
H
0
: Binomial distribution is a good fit.
H
1
: Binomial distribution is not a good fit
x
i
O
i
E
i
(O
i
- E
i)
2
(O
i
- E
i)
2
/ E
i
0
1
2
3
4
5
6
7
3
3 6
17
31
28
11
1
2 3
1
7 8
19
27
24
13
4
1 5
4
4
16
16
4
4
0.5000
0.2105
0.5926
0.6667
0.3077
0.2000
Total 96 96 2.4775
The frequencies are pooled in such a way that none of the theoretical is less than 5.
However observed frequencies may be less than 5.
The test statistic is--------
Ultimately, the number of items in the
2
is n = 6. Since p is estimated, the degree
of freedom is (n-c) = (6-2) = 4.
The level of significance is =5%
The critical value is k = 9.49
Since
2
cal
=2.4775<9.49, H
0
is accepted..
Conclusion: Binomial distribution is a good fit.
, )
i
i i
E
E O
2
2

X =
by: Sudheer pai
Page 4 of 9
Problems:
The following table gives the observed and theoretical distributions concerning a
survey. To find theoretical frequencies if mean has been estimated, test whether
it is a good fit.
Solutions:
H
0
: Theoretical distributions is a good fit to the observed distributions
H
1
: Theoretical distribution is a not a good fit to the observed distributions
2
cal
=10.3692
2
tab
=11.070 at 5% l.o.s for 5 d 5
Since
2
cal
<
2
tab
, we accept H
0
at 5% l.o.s. i.e. Theoretical distributions is a good fit to
the observed distributions
CHI-SQUARE TEST FOR INDEPENDENCE OF ATTRIBUTES
N random observations are drawn from the population. These observations are
classified with respect to the two attributes and they are written down in the form of a
2*2 contingency table as follows
Class Observed Theoretical
0-2 13 16
2-4 27 25
4-6 58 42
6-8 34 38
8-10 16 23
10-12 12 16
C.I O
i
E
i
_

i
i i
E
E O
2
) (
0-2 13 16 0.5625
2-4 27 25 0.16
4-6 58 42 6.0952
6-8 34 38 0.4211
8-10 16 23 2.1304
10-12 12 16 1.000
10.3692
N=a+b+c+d b+d a+c Total
c+d d c A
2
a+b b a A
1
Total
B
2
B
1 A/B
B
by: Sudheer pai
Page 5 of 9
H
0
: Attributes A and B are independent.
H
1
: Attributes A and B are not independent.
The Chi-square test statistic is ------
Under H
0
this is a Chi-square variate with 1 d.f
This test is one-tailed.
If
0
2
, H k
cal
> is rejected. And if
0
2
, H k
cal
s is accepted.
For =0.05 the critical value is k = 3.84
For =0.01 the critical value is k = 6.63
The Chi-square test for independence of attributes is applicable subject to the
following conditions.
1. The observations should be independent (random)
2. The total frequency N should be large
3. Each of the frequencies a, b ,c, and d should be 5 or more.
Problems:
46 rabbits are divided into two groups one group consisting of 23 rabbits is called
experimental group, and the other group consisting of 23 rabbits is called control
group. The experimental group is inocculated against a disease and the control group
is not inocculated. Afterwards, all the rabbits of both the groups are exposed to the
disease. In the control group, 13 contracted the disease. In the experimental group 10
contracted the disease. In the experimental group 8 contracted the disease. Test
whether inocculation and contract of disease are independent.
Solutions:
The Chi-square test
H
0
: Inocculation and contract of disease are independent
H
1
: Inocculation and contract of disease are not independent
The test statistic is
The given data is tabulated as follows.
Control Experimental
Group
Total
Contracted 13 8 21
Not Contracted 10 15 25
Total 23 23 46
) )( )( )( (
) (
2
2
d b c a d c b a
bc ab N
+ + + +

=
) )( )( )( (
) (
2
2
d b c a d c b a
bc ab N
+ + + +

=
by: Sudheer pai
Page 6 of 9
Here 19 . 2
23 23 25 21
) 10 8 15 13 ( 46
2
2
=


=
cal

The degree of freedom is 1.

The level of significance is =5%
The critical value is k = 3.84
Since
2
cal
=2.19<3.84, H
0
is accepted.
Conclusion: Inocculation and contract of disease are independent.
Test for equality of proportions:
|
|
.
|

=
2 1
2 1
1 1
| |
| |
n n
PQ
p p
Z
Here
and
48 . 1
23
1
23
1
5435 . 0 4565 . 0
5652 . 0 3478 . 0 |
| |
4565 . 0
23 23
12 8
5652 . 0
23
13
3478 . 0
23
8
2
1
=
|
.
|

=
=
+
+
=
= =
= =
cal
Z
P
p
p
Since this value is less than k = 1.96. H
0
is accepted.
Conclusion: Inocculation and contract of disease are independent.
Problems:
A Milk producers union wishes to test whether the preference pattern of consumers
for its products is dependent on income levels. A random sample of 500 individuals
gives the following data
Income
Product preferred
Product A Product B Product C Total
Low 170 30 80 280
Medium 50 25 60 135
High 20 10 55 85
Can you conclude that the preference patterns are independent of income levels?
Solutions:
H
0
: Preference pattern of consumers & income level are independent
H
1
: Preference pattern of consumers & income level are not independent
by: Sudheer pai
Page 7 of 9
Income
Product preferred
Product
A
Product
B
Product
C
Total
Low 170
(134)
30
(36)
80
(110)
280
Medium 50
(65)
25
(18)
60
(52)
135
High 20
(41)
10
(11)
55
(33)
85
Total 240 65 195 500
78 . 51
2
2
=
|
|
.
|

\

=
_
i
i i
E
E o

488 . 9
2
=
tab
for 4 df at 5% l.o.s.
Since ,
2 2
tab cal
> reject H
0
at 5% l.o.s i.e. preference pattern of consumers & income
level are independent.
Problems:
Among 79 students, 58 were hard working. Among these hard working students, 52
passed in the examination. Whereas, among the non-hard working students, only 5
passed. Apply chi-square test at 1% level of significance to test whether hard work
and pass are independent.
Solutions:
H
0
: Hardworking & result are independent
H
1
: Hardworking & result are not Independent
52
(42)
05
(15)
57
06
(16)
16
(06)
22
58 21 79
96 . 31
2
2
=
|
|
.
|

\

=
_
i
i i
E
E o

635 . 6
2
=
tab
for 41df at 1% l.o.s.
Since ,
2 2
tab cal
> we reject H
0
at 5% l.o.s i.e. Hard working & results are not
independent
THE F-TEST OR THE VARIANCE RATIO TEST
The F-test is named in honour of the great statistician R.A. fisher. The object of the F-
test is to find out whether the two independent estimates of population variance differ
significantly, or whether the two samples may be regarded as drawn from the normal
populations having the same variance. For carrying out the test of significance, we
calculate the ratio F.
pass
Fail
by: Sudheer pai
Page 8 of 9
F is defined as:
It should be noted that S
1
2
is always the larger estimate of variance, i.e. S
1
2
> S
2
2

1
= degree of freedom for sample having large variance

2
= degree of freedom for samzple having smaller variance.
Assumptions in F-test. The F test is based on the following assumptions:
1. Normality i.e., the values in each group are normally
distributed
2.Homogeneity, i.e., the variance within each group should be equal for all
groups(
1
2
=
2
2
=.=
c
2
) This assumption is needed in order to combine or pool
the variances within the groups into a single within groups source of variation.
3. Independence of error. It states that the error (variation of each value around its
own group mean) should be independent for each value.
The following few examples would illustrate the application of F-test:
1.Two random samples were drawn from two normal populations and their values are:
A: 66 67 75 76 82 84 88 90 92
B: 64 66 74 78 82 85 87 92 93 95 97
Test whether the two populations have the same variance at the 5% level of
significance (F=3.36) at 5% level for
1
=10 and
2
=8.
Solutions: Let us take the hypothesis that the two populations have the same variance.
Applying F-test
2
2
2
1
S
S
F =
A
1
X
1
1 1
) (
x
X X
2
1
x
B
2
X
2
2 2
) (
x
X X
2
2
x
,
2
2
2
1
S
S
F =
wher
e
, )
2
1
1 1
2
1
1

=
n
X X
S
and
, )
1
2
2
2 2
2
2

X
=
n
X X
S
Large estimate of variance
Smaller estimate of variance
F =
1
1 1
= n 1
2 2
= n and
by: Sudheer pai
Page 9 of 9
66
67
75
76
82
84
88
90
92
-14
-13
-5
-4
+2
+4
+8
+10
+12
196
168
25
16
4
16
64
100
144
64
66
74
78
82
85
87
92
93
95
97
-19
-17
-9
-5
-1
+2
+4
+9
+10
+12
+14
361
289
81
25
1
4
16
81
100
144
196

1
X =720
1
x =0

2
1
x =734

2
X =913
2
x =0

2
2
x =1298
415 . 1
75 . 91
8 . 129
8 . 129
1 11
8 . 129
1
75 . 91
1 9
734
1
83
11
913
; 80
9
720
2
2
2
1
2
2
2 2
2
1
2
1 2
1
2
2
2
1
1
1
= = =
=

=
=

=
= = = = = =
_
_
_ _
S
S
F
n
x
S
n
x
S
n
X
X
n
X
X
for
1
=10 and
2
=8. F
0.05
=3.36
The calculated value of F is less than the table value. The hypothesis is accepted.
Hence it may be calculated that two populations have the same variance.