20311 Statistics for Business and Economics II

Homework No. 3
Individual homework
10.14, 10.24 (No Excel)
10.17, 10.26 (Using Excel)
10.14 (a)

H0: 1 = 2
Excel output:

H1: 1 2

t-Test: Two-Sample Assuming Equal

Variances
Mean
Variance
Observations
Pooled Variance
Hypothesized Mean Difference
df
t Stat
P(T<=t) one-tail
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail

(b)
(c)

10.17 (a)

Untreated
165.0948
41.6934168
20
52.05375826
0
38
4.104023608
0.000103572
1.685953066
0.000207144
2.024394234

Treated
155.7314
62.4141
20

Decision: Since tSTAT = 4.104 is greater than the upper critical bound of 2.024,
reject H0. There is evidence that the mean surface hardness of untreated steel
plates is different from the mean surface hardness of treated steel plates.
p-value = 0.0002. The probability of obtaining two samples with a mean
difference of 9.3634 or more is 0.0002 if the mean surface hardness of untreated
steel plates is not different from the mean surface hardness of treated steel plates
Since both sample sizes are smaller than 30, you need to assume that the
population of hardness of both untreated and treated steel plates is normally
distributed.
H 0:

where Populations: 1 = unflawed, 2 = flawed

1 2
H1: 1 < 2

Decision rule: d.f. = 56. If t < -1.6725, reject H0.

Test statistic:

Sp

( n 1) S1 + ( n2 1) S2
(17) 0.0219 2 + (39) 0.08402
= 0.0051
= 1
=
( n1 1) + ( n2 1)
17 + 39
( X 1 X 2 ) ( 1 2 ) = -2.9047

t STAT =

1
2 1
S p +
n1 n 2
Decision: Since tSTAT = -2.9047 is less than the lower critical bound of -1.6725,
reject H0. There is enough evidence to conclude that the mean crack size is
smaller for the unflawed specimens than for the flawed specimens.

(b)

H 0:

1 2
H1: 1 < 2

where Populations: 1 = unflawed, 2 = flawed

Decision rule: d.f. = 49. If t < -1.6766, reject H0.

t-Test: Two-Sample Assuming Unequal Variances

Unflawed flawed
Mean
0.035944
0.0946
Variance
0.000481 0.007059
Observations
18
40
Hypothesized Mean Difference
0
df
49
t Stat
-4.11472
P(T<=t) one-tail
7.4E-05
t Critical one-tail
1.676551
P(T<=t) two-tail
0.000148
t Critical two-tail
2.009574

(c)

10.24

(a)

Since p-value is virtually zero and is smaller than 0.05, reject H0. There is
enough evidence to conclude that the mean crack size is lower for the unflawed
specimens than for the flawed specimens.
The conclusions in (a) and (b) are the same. Since the sample variance of the
flawed sample is almost 15 times as big as that of the unflawed sample, the test
in (b) is the appropriate test to perform assuming that both samples are drawn
from normally distributed populations.
Define the difference in bone marrow microvessel density as the density before
the transplant minus the density after the transplant and assume that the
difference in density is normally distributed.

H 0 : D 0 vs. H1 : D > 0
Excel output:
t-Test: Paired Two Sample for Means
Mean
Variance
Observations
Pearson Correlation
Hypothesized Mean Difference
df
t Stat
P(T<=t) one-tail
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail

Before
312.1429
15513.14
7
0.295069
0
6
1.842455
0.057493
1.943181
0.114986
2.446914

After
226
4971
7

D D = 1.8425
Test statistic: t
STAT =
SD
n
Decision: Since tSTAT = 1.8425 is less than the critical value of 1.943, do not
reject H 0 . There is not enough evidence to conclude that the mean bone marrow

(b)

(d)

10.26

(a)

microvessel density is higher before the stem cell transplant than after the stem
cell transplant.
p-value = 0.0575. The probability of obtaining a mean difference in density that
gives rise to a t test statistic that deviates from 0 by 1.8425 or more is .0575 if the
mean density is not higher before the stem cell transplant than after the stem cell
transplant.
You must assume that the distribution of differences between the mean density of
before and after stem cell transplant is approximately normal.

D 0
H 1: D < 0
H 0:

Decision rule: d.f. = 39. If tSTAT < -2.4258, reject H0.

D D = -9.372
Test statistic: t
STAT =
SD

(b)
(c)

n
Decision: Since tSTAT = -9.372 is less than the critical bound of -2.4258, reject H0.
There is enough evidence to conclude that the mean strength is lower at two days
than at seven days.
You must assume that the distribution of the differences between the mean
strength of the concrete is approximately normal.
p-value is virtually 0. The probability of obtaining a mean difference that gives
rise to a test statistic that is -9.372 or less when the null hypothesis is true is
virtually 0.