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350 Chapter 10 Statistical Inferences about Two Populations<br />

Rejection Region<br />

z .001 = –3.08<br />

Observed z = –10.42<br />

x 1 – x 2 = –701.9<br />

x 1 – x 2 = –2,375<br />

z = 0.0<br />

μ1 – μ 2 = 0.0<br />

z<br />

x 1 – x 2<br />

The probability of obtaining an observed z value of -10.42 by chance is virtually<br />

zero, because the value is beyond the limits of the z table. By the p-value, the null<br />

hypothesis is rejected because the probability is .0000, or less than a = .001.<br />

If this problem were worked by the critical value method, what critical value of<br />

the difference in the two means would have to be surpassed to reject the null hypothesis<br />

for a table z value of -3.08? The answer is<br />

(x 1 - x 2 ) c = (m 1 - m 2 ) - z s 2 1<br />

+ s2 2<br />

A n 1 n 2<br />

= 0 - 3.08(227.9) = -701.9<br />

The difference in sample means would need to be at least 701.9 to reject the null<br />

hypothesis. The actual sample difference in this problem was -2375 (3352 - 5727),<br />

which is considerably larger than the critical value of difference. Thus, with the critical<br />

value method also, the null hypothesis is rejected.<br />

Confidence Intervals<br />

Sometimes being able to estimate the difference in the means of two populations is valuable.<br />

By how much do two populations differ in size or weight or age? By how much do two<br />

products differ in effectiveness? Do two different manufacturing or training methods produce<br />

different mean results? The answers to these questions are often difficult to obtain<br />

through census techniques. The alternative is to take a random sample from each of the two<br />

populations and study the difference in the sample means.<br />

Algebraically, formula 10.1 can be manipulated to produce a formula for constructing<br />

confidence intervals for the difference in two population means.<br />

CONFIDENCE INTERVAL TO<br />

s 2 1<br />

ESTIMATE m 1 - m 2 (10.2)<br />

(x 1 - x 2 ) - z<br />

A n<br />

+ s2 2<br />

s 2 1<br />

… m<br />

1 n 1 - m 2 … (x 1 - x 2 ) + z<br />

2 A n<br />

+ s2 2<br />

1<br />

n 2<br />

Suppose a study is conducted to estimate the difference between middle-income shoppers<br />

and low-income shoppers in terms of the average amount saved on grocery bills per<br />

week by using coupons. Random samples of 60 middle-income shoppers and 80 lowincome<br />

shoppers are taken, and their purchases are monitored for one week. The average<br />

amounts saved with coupons, as well as sample sizes and population standard deviations<br />

are in the table on the next page.

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