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Chapter 8 Confidence Intervals

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Title: Chapter 8 Confidence Intervals


1
Chapter 8Confidence Intervals
  • 8.3
  • Confidence Intervals about a Population Proportion

2
  • Estimating a Population Proportion
  • Data are often given in the form of
    proportions.

3
  • Estimating a Population Proportion
  • Data are often given in the form of
    proportions.
  • Polls

4
  • Estimating a Population Proportion
  • Data are often given in the form of
    proportions.
  • Polls
  • Marketing Surveys

5
  • Estimating a Population Proportion
  • Data are often given in the form of
    proportions.
  • Polls
  • Marketing Surveys
  • Death Rates for Diseases

6
  • Estimating a Population Proportion
  • Data are often given in the form of
    proportions.
  • Polls
  • Marketing Surveys
  • Death Rates for Diseases
  • Probabilities of events

7
  • Estimating a Population Proportion
  • Data are often given in the form of
    proportions.
  • Polls
  • Marketing Surveys
  • Death Rates for Diseases
  • Probabilities of events
  • Population proportions are denoted by p.

8
  • Estimating a Population Proportion
  • Population proportions are estimated by sample
    proportions.

9
  • Estimating a Population Proportion
  • Population proportions are estimated by sample
    proportions.
  • Take a sample of size n from the population.

10
  • Estimating a Population Proportion
  • Population proportions are estimated by sample
    proportions.
  • Take a sample of size n from the population.
  • Let X the number of individuals in the sample
    with property E.

11
  • Estimating a Population Proportion
  • Population proportions are estimated by sample
    proportions.
  • Take a sample of size n from the population.
  • Let X the number of individuals in the sample
    with property E.
  • The sample proportion is given by
  • p X / n

12
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide

13
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"

14
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318

15
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318 no 636

16
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318 no 636 no opinion 72

17
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318 no 636 no opinion 72
  • Let X number of people in sample who will by
    gifts over the internet.

18
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318 no 636 no opinion 72
  • Let X number of people in sample who will by
    gifts over the internet.
  • Estimate p.

19
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318 no 636 no opinion 72
  • Let X number of people in sample who will by
    gifts over the internet.
  • Estimate p.
  • p X / n

20
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318 no 636 no opinion 72
  • Let X number of people in sample who will by
    gifts over the internet.
  • Estimate p.
  • p X / n 318 / 1026

21
  • EXAMPLE Computing a Point Estimate
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide
  • "Will you use the Internet to buy Christmas or
    other holiday gifts this year, or not?"
  • yes 318 no 636 no opinion 72
  • Let X number of people in sample who will by
    gifts over the internet.
  • Estimate p.
  • p X / n 318 / 1026 0.31

22
  • EXAMPLE Computing a Point Estimate
  • Besides the point estimate p, we would also
    like some measure of how reliable this estimate
    is.

23
  • EXAMPLE Computing a Point Estimate
  • Besides the point estimate p, we would also
    like some measure of how reliable this estimate
    is.
  • In other words, we need a confidence interval
    for the population proportion.

24
  • EXAMPLE Computing a Point Estimate
  • Besides the point estimate p, we would also
    like some measure of how reliable this estimate
    is.
  • In other words, we need a confidence interval
    for the population proportion.
  • To do so, we need to determine the probability
    distribution of the sample proportion p X /
    n.

25
  • EXAMPLE Computing a Point Estimate
  • Besides the point estimate p, we would also
    like some measure of how reliable this estimate
    is.
  • In other words, we need a confidence interval
    for the population proportion.
  • To do so, we need to determine the probability
    distribution of the sample proportion p X /
    n.
  • To do this first find the distribution of X.

26
  • Estimating a Population Proportion
  • What type of random variable is X ?

27
  • Estimating a Population Proportion
  • What type of random variable is X ?
  • X is the number of occurrences of an event E in a
    sample of n.

28
  • Estimating a Population Proportion
  • What type of random variable is X ?
  • X is the number of occurrences of an event E in a
    sample of n.
  • The proportion of the population with property E
    is p.

29
  • Estimating a Population Proportion
  • What type of random variable is X ?
  • X is the number of occurrences of an event E in a
    sample of n.
  • The proportion of the population with property E
    is p.
  • X Bin(n, p)

30
  • Estimating a Population Proportion
  • What type of random variable is X ?
  • X is the number of occurrences of an event E in a
    sample of n.
  • The proportion of the population with property E
    is p.
  • X Bin(n, p)
  • This is true as long as the sample size n is
    much smaller than the population size N.

31
  • Estimating a Population Proportion
  • What type of random variable is X ?
  • X is the number of occurrences of an event E in a
    sample of n.
  • The proportion of the population with property E
    is p.
  • X Bin(n, p)
  • This is true as long as the sample size n is
    much smaller than the population size N.
    (rule of thumb n

32
  • Estimating a Population Proportion
  • X Bin(n, p)

33
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np

34
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np SD(X) sqrtnp(1-p)

35
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np SD(X) sqrtnp(1-p)
  • Also recall that if np(1-p) 10, then X is
    approximately normal

36
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np SD(X) sqrtnp(1-p)
  • Also recall that if np(1-p) 10, then X is
    approximately normal
  • X N(np, sqrtnp(1-p))

37
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np SD(X) sqrtnp(1-p)
  • Also recall that if np(1-p) 10, then X is
    approximately normal
  • X N(np, sqrtnp(1-p))
  • Since p X / n

38
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np SD(X) sqrtnp(1-p)
  • Also recall that if np(1-p) 10, then X is
    approximately normal
  • X N(np, sqrtnp(1-p))
  • Since p X / n
  • E(p) p

39
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np SD(X) sqrtnp(1-p)
  • Also recall that if np(1-p) 10, then X is
    approximately normal
  • X N(np, sqrtnp(1-p))
  • Since p X / n,
  • E(p) p SD(p) sqrtp(1-p)/n

40
  • Estimating a Population Proportion
  • X Bin(n, p)
  • E(X) np SD(X) sqrtnp(1-p)
  • Also recall that if np(1-p) 10, then X is
    approximately normal
  • X N(np, sqrtnp(1-p))
  • Since p X / n,
  • E(p) p SD(p) sqrtp(1-p)/n
  • p N(p, sqrtp(1-p)/n)

41
(No Transcript)
42
  • Estimating a Population Proportion
  • Since p N(p, sqrtp(1-p)/n), we can use the
    confidence interval derived in Section 8.1

43
  • Estimating a Population Proportion
  • Since p N(p, sqrtp(1-p)/n), we can use the
    confidence interval derived in Section 8.1
  • (p - z?/2 sqrtp(1-p)/n, p z?/2
    sqrtp(1-p)/n)

44
  • Estimating a Population Proportion
  • Since p N(p, sqrtp(1-p)/n), we can use the
    confidence interval derived in Section 8.1
  • (p - z?/2 sqrtp(1-p)/n, p z?/2
    sqrtp(1-p)/n)
  • This is the (1 - ?)100 CI for the population
    proportion p.

45
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"

46
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31

47
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion

48
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10

49
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (p - z?/2 sqrtp(1-p)/n, p z?/2
    sqrtp(1-p)/n)

50
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.31 - z?/2 sqrtp(1-p)/n, 0.31 z?/2
    sqrtp(1-p)/n)

51
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.31 1.96 sqrtp(1-p)/n, 0.31 1.96
    sqrtp(1-p)/n)

52
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.31-1.96 sqrt0.31(1- 0.31)/n, 0.311.96
    sqrt0.31(1-0.31)/n)

53
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.31-1.96 sqrt0.31(1-0.31)/1026,0.311.96sqrt0
    .31(1-0.31)/1026)

54
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.31 - 1.96(0.014), 0.31 1.96(0.014))

55
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.31 - 0.028, 0.31 0.028)

56
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.28, 0.34)

57
  • EXAMPLE Constructing a Confidence Interval
    for a Population Proportion
  • ABC News Poll. Nov. 19-23, 2003. n1,026 adults
    nationwide "Will you use the Internet to buy
    Christmas or other holiday gifts this year, or
    not?"
  • p X / n 318 / 1026 0.31
  • Construct a 95 CI for the population
    proportion
  • (n)(p)(1-p) (1026)(0.31)(1-0.31) 219 10
  • (0.28, 0.34)
  • A 95 CI for the population proportion is
    (0.28,0.34)

58
Chapter 9Hypothesis Testing
  • 9.1
  • The Language of Hypothesis Testing

59
Steps in Hypothesis Testing 1. A claim is made.
60
Steps in Hypothesis Testing 1. A claim is made.
2. Evidence (sample data) is collected in order
to test the claim.
61
Steps in Hypothesis Testing 1. A claim is made.
2. Evidence (sample data) is collected in order
to test the claim. 3. The data is analyzed in ord
er to support or refute the claim.
62
  • Examples
  • A drug company claims its cancer drug prolongs
    the lifespan of lung cancer patients.

63
  • Examples
  • A drug company claims its cancer drug prolongs
    the lifespan of lung cancer patients.
  • An engineer claims a new material improves auto
    safety in crashes.

64
  • Examples
  • A drug company claims its cancer drug prolongs
    the lifespan of lung cancer patients.
  • An engineer claims a new material improves auto
    safety in crashes.
  • A social scientist claims a new teaching
    technique improves reading scores.

65
  • Examples
  • A drug company claims its cancer drug prolongs
    the lifespan of lung cancer patients.
  • An engineer claims a new material improves auto
    safety in crashes.
  • A social scientist claims a new teaching
    technique improves reading scores.
  • A new diet is claimed to reduce weight better
    than other diets.

66
A hypothesis is a statement or claim regarding a
characteristic of one or more populations.

67
A hypothesis is a statement or claim regarding a
characteristic of one or more populations.
This chapter looks at hypotheses regarding some
parameter of a single population.
68
Examples of Claims Regarding a Characteristic of
a Single Population
69
Examples of Claims Regarding a Characteristic of
a Single Population
  • In 1997, 43 of Americans 18 years or older
    participated in some form of charity work.

70
Examples of Claims Regarding a Characteristic of
a Single Population
  • In 1997, 43 of Americans 18 years or older
    participated in some form of charity work. A
    researcher believes that this percentage is
    different today.

71
Examples of Claims Regarding a Characteristic of
a Single Population
  • In 1997, 43 of Americans 18 years or older
    participated in some form of charity work. A
    researcher believes that this percentage is
    different today.
  • In June, 2001 the mean length of a phone call
    on a cellular telephone was 2.62 minutes.

72
Examples of Claims Regarding a Characteristic of
a Single Population
  • In 1997, 43 of Americans 18 years or older
    participated in some form of charity work. A
    researcher believes that this percentage is
    different today.
  • In June, 2001 the mean length of a phone call
    on a cellular telephone was 2.62 minutes. A
    researcher believes that the mean length of a
    call has increased since then.

73
Examples of Claims Regarding a Characteristic of
a Single Population
  • In 1997, 43 of Americans 18 years or older
    participated in some form of charity work. A
    researcher believes that this percentage is
    different today.
  • In June, 2001 the mean length of a phone call
    on a cellular telephone was 2.62 minutes. A
    researcher believes that the mean length of a
    call has increased since then.
  • Using an old manufacturing process, the standard
    deviation of the amount of wine put in a bottle
    was 0.23 ounces.

74
Examples of Claims Regarding a Characteristic of
a Single Population
  • In 1997, 43 of Americans 18 years or older
    participated in some form of charity work. A
    researcher believes that this percentage is
    different today.
  • In June, 2001 the mean length of a phone call
    on a cellular telephone was 2.62 minutes. A
    researcher believes that the mean length of a
    call has increased since then.
  • Using an old manufacturing process, the standard
    deviation of the amount of wine put in a bottle
    was 0.23 ounces. With new equipment, the quality
    control manager believes the standard deviation
    has decreased.

75
We test these types of claims using sample data
because it is usually impossible or impractical
to gain access to the entire population.

76
We test these types of claims using sample data
because it is usually impossible or impractical
to gain access to the entire population.
If population data is available, then inferentia
l statistics is not necessary.
77
  • A researcher believes the mean length of a cell
    phone call has increased from mean of 2.62
    minutes.

78
  • A researcher believes the mean length of a cell
    phone call has increased from mean of 2.62
    minutes.
  • He obtains a random sample of 36 cell phone
    calls.

79
  • A researcher believes the mean length of a cell
    phone call has increased from mean of 2.62
    minutes.
  • He obtains a random sample of 36 cell phone
    calls.
  • The mean length of calls is 2.70 minutes.

80
  • A researcher believes the mean length of a cell
    phone call has increased from mean of 2.62
    minutes.
  • He obtains a random sample of 36 cell phone
    calls.
  • The mean length of calls is 2.70 minutes.
  • Is this enough evidence to conclude the length
    of a phone call has increased?

81
  • A researcher believes the mean length of a cell
    phone call has increased from mean of 2.62
    minutes.
  • He obtains a random sample of 36 cell phone
    calls.
  • The mean length of calls is 2.70 minutes.
  • Is this enough evidence to conclude the length
    of a phone call has increased?
  • How likely/unlikely would it be to get a sample
    mean of 2.70 minutes if the population mean
    were still actually 2.62 minutes?

82
  • Assume we know that the population s.d. ?
    0.78.

83
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.

84
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)

85
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , ?/sqrt(n))

86
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , 0.78/sqrt(36))

87
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , 0.13)

88
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , 0.13)
  • What is ??

89
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , 0.13)
  • What is ?? We dont know what ? is now.

90
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , 0.13)
  • What is ?? We dont know what ? is now.
  • The researcher is claiming that the old status
    quo has changed (? is now a different value).

91
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , 0.13)
  • What is ?? We dont know what ? is now.
  • The researcher is claiming that the old status
    quo has changed (? is now a different value).
  • Because of this, we place the burden of proof
    on the researcher.

92
  • Assume we know that the population s.d. ?
    0.78.
  • The population mean used to be ? 2.62.
  • The sample mean X 2.70 (n36)
  • We know that X N(? , 0.13)
  • What is ?? We dont know what ? is now.
  • The researcher is claiming that the old status
    quo has changed (? is now a different value).
  • Because of this, we place the burden of proof
    on the researcher. He must provide overwhelming
    evidence that his hypothesis is true before it is
    accepted.

93
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.

94
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)

95
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?

96
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13

97
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13
  • z ( 2.70 2.62) / 0.13

98
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13
  • z 0.62

99
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13
  • z 0.62
  • How unlikely would it be to get a value of z
    this large or larger?

100
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13
  • z 0.62
  • How unlikely would it be to get a value of z
    this large or larger? I.e., what is P(Z
    0.62) ?

101
What is P(Z 0.62) ?
Z
102
What is P(Z 0.62) ?
0.62
Z
103
What is P(Z 0.62) ?
0.27
0.62
Z
104
What is P(Z 0.62) 0.27
0.27
0.62
Z
105
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13
  • z 0.62
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 0.62)
    0.27

106
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13
  • z 0.62
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 0.62)
    0.27
  • The event is not all that unusual.

107
  • So we assume ? is still equal to 2.62 and ask
    whether the sample collected strongly contradicts
    this assumption.
  • So assume X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.70 if this is true?
  • Z (X 2.62) / 0.13
  • z 0.62
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 0.62)
    0.27
  • The event is not all that unusual. There is
    not enough evidence to claim that the status quo
    has changed.

108
  • What if instead the sample mean X 2.90?

109
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)

110
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?

111
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13

112
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13 2.15

113
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13 2.15
  • How unlikely would it be to get a value of z
    this large or larger?

114
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13 2.15
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 2.15) ?

115
What is P(Z 2.15) ?
Z
116
What is P(Z 2.15) ?
2.15
Z
117
What is P(Z 2.15) ?
0.016
2.15
Z
118
What is P(Z 2.15) 0.016
0.016
2.15
Z
119
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13 2.15
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 2.15) 0.016

120
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13 2.15
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 2.15)
    0.016
  • The event is unusual.

121
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13 2.15
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 2.15)
    0.016
  • The event is unusual. There is enough evidence
    to claim that the status quo has changed.

122
  • What if instead the sample mean X 2.90?
  • X N(2.62, 0.13)
  • How unlikely would it be to get a sample mean
    of 2.90 if this is true?
  • z (2.90 2.62) / 0.13 2.15
  • How unlikely would it be to get a value of z
    this large or larger? P(Z 2.15)
    0.016
  • The event is unusual. There is enough evidence
    to claim that the status quo has changed.
  • Note that the researcher determines at what
    level a result is considered to be unusual.

123
Hypothesis testing is a procedure used to test
claims regarding a characteristic of a
population.
124
Hypothesis testing is a procedure used to test
claims regarding a characteristic of a
population.
It consists of
125
Hypothesis testing is a procedure used to test
claims regarding a characteristic of a
population. It consists of (1) sample evidenc
e.
126
Hypothesis testing is a procedure used to test
claims regarding a characteristic of a
population. It consists of (1) sample evidenc
e. (2) A rejection or acceptance.
127
Hypothesis testing is a procedure used to test
claims regarding a characteristic of a
population. It consists of (1) sample evidenc
e. (2) A rejection or acceptance. (3) A probab
ility statement.
128
  • The null hypothesis, denoted Ho is a statement
    to be tested.

129
  • The null hypothesis, denoted Ho is a statement
    to be tested.
  • It is the status quo situation.

130
  • The null hypothesis, denoted Ho is a statement
    to be tested.
  • It is the status quo situation.
  • The null hypothesis is assumed true until
    evidence overwhelmingly indicates otherwise.

131
  • The null hypothesis, denoted Ho is a statement
    to be tested.
  • It is the status quo situation.
  • The null hypothesis is assumed true until
    evidence overwhelmingly indicates otherwise.
  • It is usually a statement regarding the value
    of a population parameter.

132
  • The alternative hypothesis H1 is a claim to be
    tested.

133
  • The alternative hypothesis H1 is a claim to be
    tested.
  • It is a statement that the status quo has
    changed.

134
  • The alternative hypothesis H1 is a claim to be
    tested.
  • It is a statement that the status quo has
    changed.
  • The researcher want to provide overwhelming
    evidence for the alternative hypothesis.

135
  • The alternative hypothesis H1 is a claim to be
    tested.
  • It is a statement that the status quo has
    changed.
  • The researcher want to provide overwhelming
    evidence for the alternative hypothesis.
  • It is a claim regarding the value of a
    population parameter.

136
There are three ways to set up the Ho and H1
137
There are three ways to set up the Ho and H1
1. Equal versus not equal hypotheses
138
  • There are three ways to set up the Ho and H1
  • Equal versus not equal hypotheses
  • Ho parameter some value

139
  • There are three ways to set up the Ho and H1
  • Equal versus not equal hypotheses
  • Ho parameter some value
  • H1 parameter ? some value

140
  • There are three ways to set up the Ho and H1
  • Equal versus not equal hypotheses
  • Ho parameter some value
  • H1 parameter ? some value
  • Example A researcher claims that the percentage
    of Americans involved in charity work is
    different than it was 6 years ago (43).

141
  • There are three ways to set up the Ho and H1
  • Equal versus not equal hypotheses
  • Ho parameter some value
  • H1 parameter ? some value
  • Example A researcher claims that the percentage
    of Americans involved in charity work is
    different than it was 6 years ago (43).
  • Ho pop. prop. 43

142
There are three ways to set up the Ho and H1
1. Equal versus not equal hypotheses
Ho parameter some value H1 parameter ? so
me value Example A researcher claims that t
he percentage of Americans involved in charity
work is different than it was 6 years ago (43).
Ho pop. prop. 43 H1 pop. prop. ? 43

143
There are three ways to set up the Ho and H1

2. Equal versus less than
144
There are three ways to set up the Ho and H1
2. Equal versus less than Ho parameter s
ome value

145
There are three ways to set up the Ho and H1
2. Equal versus less than Ho parameter s
ome value
H1 parameter
146
There are three ways to set up the Ho and H1
2. Equal versus less than Ho parameter s
ome value H1 parameter e A researcher claims that the mean number of
defects on a manufactured item (0.12) is smaller
when using a new machine tool.
147
There are three ways to set up the Ho and H1
2. Equal versus less than Ho parameter s
ome value H1 parameter e A researcher claims that the mean number of
defects on a manufactured item (0.12) is smaller
when using a new machine tool. Ho ? 0.12
148
There are three ways to set up the Ho and H1
2. Equal versus less than Ho parameter s
ome value H1 parameter e A researcher claims that the mean number of
defects on a manufactured item (0.12) is smaller
when using a new machine tool.
Ho ? 0.12 H1 ?
149
There are three ways to set up the Ho and H1

3. Equal versus greater than
150
There are three ways to set up the Ho and H1
3. Equal versus greater than Ho parameter
some value

151
There are three ways to set up the Ho and H1
3. Equal versus greater than Ho parameter
some value
H1 parameter some value
152
There are three ways to set up the Ho and H1
3. Equal versus greater than Ho parameter
some value H1 parameter some value Exa
mple A researcher claims that a new drug
increases the mean lifespan of lung cancer
patients (? 23 months).
153
There are three ways to set up the Ho and H1
3. Equal versus greater than Ho parameter
some value H1 parameter some value Exa
mple A researcher claims that a new drug
increases the mean lifespan of lung cancer
patients (? 23 months). Ho ? 23
154
There are three ways to set up the Ho and H1
3. Equal versus greater than Ho parameter
some value H1 parameter some value Exa
mple A researcher claims that a new drug
increases the mean lifespan of lung cancer
patients (? 23 months). Ho ? 23 H1 ?
23
155
Four Outcomes from Hypothesis Testing
1. We could reject Ho when in fact H1 is true.
This would be a correct decision.
156
Four Outcomes from Hypothesis Testing
1. We could reject Ho when in fact H1 is true.
This would be a correct decision.
2. We could not reject Ho when in fact Ho is
true. This would be a correct decision.
157
Four Outcomes from Hypothesis Testing
1. We could reject Ho when in fact H1 is true.
This would be a correct decision.
2. We could not reject Ho when in fact Ho is
true. This would be a correct decision.
3. We could reject Ho when in fact Ho is true.
This would be an incorrect decision. This type
of error is called a Type I error.
158
Four Outcomes from Hypothesis Testing
1. We could reject Ho when in fact H1 is true.
This would be a correct decision.
2. We could not reject Ho when in fact Ho is
true. This would be a correct decision.
3. We could reject Ho when in fact Ho is true.
This would be an incorrect decision. This type
of error is called a Type I error.
4. We could not reject Ho when in fact H1 is
true. This would be an incorrect decision. This
type of error is called a Type II error.
159
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160
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