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The second material exam. Question number one. a
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corporation randomly selected or selects 150
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salespeople and finds that 66% who have never
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taken self-improvement course would like such a
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course. So in this case, currently, they select
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150 salespeople and find that 66% would
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like or who have never taken this course. The firm
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did a similar study 10 years ago in which 60% of a
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random sample of 160 salespeople wanted a self
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-improvement course.
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They select a random sample of 160 and tell that
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60% would like to take this course. So we have
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here two information about previous study and
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currently. So currently we have this information.
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The sample size was 150, with a proportion 66% for
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the people who would like to attend or take this
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course. Mid-Paiwan and Pai Tu represent the true
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proportion, it means the population proportion, of
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workers who would like to attend a self
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-improvement course in the recent study and the
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past studies in Taiwan. So recent, Paiwan.
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And Pi 2 is the previous study. This weather, this
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proportion has changed from the previous study by
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using two approaches. Critical value approach and
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B value approach. So here we are talking about Pi
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1 equals Pi 2. Since the problem says that The
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proportion has changed. You don't know the exact
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direction, either greater than or smaller than. So
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this one should be Y1 does not equal Y2. So step
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one, you have to state the appropriate null and
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alternative hypothesis.
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Second step, compute the value of the test
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statistic. In this case, your Z statistic should
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be P1 minus P2 minus Pi 1 minus Pi 2, under the
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square root of P dash 1 minus P dash times 1 over
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N1 plus 1 over N1. Now, P1 and P2 are given under
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the null hypothesis Pi 1 minus Pi 2 is 0. So here
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we have to compute P dash, which is the overall
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B dash equals x1 plus x2 divided by n1 plus n2.
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Now these x's, I mean the number of successes are
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not given directly in this problem, but we can
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figure out the values of x1 and x2 by using this
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information, which is n1 equals 150 and b1 equals
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66%. Because we know that b1 equals x1 over n1.
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So, by using this equation, X1 equals N1 times V1.
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N1 150 times 66 percent, that will give 150 times
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66, so that's 99. So 150 times, it's 99.
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Similarly, X2 equals N2 times V2. N2 is given by
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160, so 160 times 60 percent,
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96. So the number of successes are 96 for the
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second, for the previous. Nine nine.
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So B dash equals x1 99
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plus 96 divided by n1 plus n2, 350. And that will
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give the overall proportions divided by 310, 0
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.629.
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So, this is the value of the overall proportion.
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Now, B dash equals 1.629. So, 1 times 1 minus B
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dash is 1 minus this value times 1 over N1, 1 over
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150 plus 1 over 160. Simple calculation will give
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The value of z, which is in this case 1.093.
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So just plug this information into this equation,
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you will get z value, which is 1.093. He asked to
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do this problem by using two approaches, critical
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value and b value. Let's start with the first one,
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b value approach.
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Now your B value or critical value, start with
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critical value.
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Now since we are taking about a two-sided test, so
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there are two critical values which are plus or
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minus Z alpha over. Alpha is given by five
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percent, so in this case
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is equal to plus or minus 1.96.
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Now, does this value, I mean does the value of
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this statistic which is 1.093 fall in the critical
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region? Now, my critical regions are above 196 or
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below negative 1.96. Now this value actually falls
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In the non-rejection region, so we don't reject
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the null hypothesis. So my decision, don't reject
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the null hypothesis. That means there is not
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sufficient evidence to support the alternative
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which states that the proportion has changed from
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the previous study. So we don't reject the null
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hypothesis. It means there is not sufficient
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evidence to support the alternative hypothesis.
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That means you cannot say that the proportion has
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changed from the previous study. That by using
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critical value approach. Now what's about p-value?
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In order to determine the p-value,
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We have to find the probability that the Z
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statistic fall in the rejection regions. So that
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means Z greater than my values 1093 or
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Z smaller than negative 1.093.
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1093 is the same as the left of negative, so they
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are the same because of symmetry. So just take 1
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and multiply by 2.
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Now simple calculation will give the value of 0
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.276 in chapter 6. So go back to chapter 6 to
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figure out how can we calculate the probability of
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Z greater than 1.0938. Now my B value is 0.276,
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always we reject the null hypothesis if my B value
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is smaller than alpha. Now this value is much much
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bigger than alpha, so we don't reject the null
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hypothesis. So since my B value is much greater
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than alpha, that means we don't reject the null
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hypothesis, so we reach the same conclusion, that
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there is not sufficient evidence to support the
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alternative. Also, we can perform the test by
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using confidence interval approach, because here
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we are talking about two-tailed test. Your
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confidence interval is given by
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B1 minus B2 plus
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or minus Z alpha over 2 times B
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dash 1 minus B dash multiplied by 1 over N1 plus 1
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over N2. By the way, this one
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called the margin of error. So z times square root
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of this sequence is called the margin of error,
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and the square root itself is called the standard
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error of the point estimate of pi 1 minus pi 2,
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which is P1 minus P2. So square root of b dash 1
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minus b dash multiplied by 1 over n1 plus 1 over
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n2 is called the standard error of the estimate of
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pi 1 minus pi 2. So this is standard estimate of
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b1 minus b2. Simply, you will get the confidence
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interval to be between pi 1 minus the difference
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between the two proportions, 4 between negative. 0
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.5 and
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0.7.
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Now this interval actually contains
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The value of 0, that means we don't reject the
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null hypothesis. So since this interval starts
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from negative, lower bound is negative 0.5, upper
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bound is 0.17, that means 0 inside this interval,
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I mean the confidence captures the value of 0,
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that means we don't reject the null hypothesis. So
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by using three different approaches, we end with
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the same decision and conclusion. That is, we
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don't reject null hypotheses. That's all for
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number one.
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Question number two.
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The excellent drug company claims its aspirin
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tablets will relieve headaches faster than any
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other aspirin on the market. So they believe that
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Their drug is better than the other drug in the
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market. To determine whether Excellence claim is
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valid, random samples of size 15 are chosen from
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aspirins made by Excellence and the sample drug
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combined. So sample sizes of 15 are chosen from
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each. So that means N1 equals 15 and N2 also
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equals 15. And aspirin is given to each of the 30
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randomly selected persons suffering from
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headaches. So the total sample size is 30, because
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15 from the first company, and the second for the
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simple company. So they are 30 selected persons
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who are suffering from headaches. So we have
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information about number of minutes required for
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each to recover from the headache. is recorded,
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the sample results are. So here we have two
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groups, two populations. Company is called
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excellent company and other one simple company.
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The information we have, the sample means are 8.4
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for the excellent and 8.9 for the simple company.
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With the standard deviations for the sample are 2
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.05 and 2.14 respectively for excellent and simple
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and as we mentioned the sample sizes are the same
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are equal 15 and 15. Now we are going to test at
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five percent level of significance test whether to
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determine whether excellence aspirin cure
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headaches significantly faster than simple
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aspirin. Now faster it means Better. Better it
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means the time required to relieve headache is
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smaller there. So you have to be careful in this
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case. If we assume that Mu1 is the mean time
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required for excellent aspirin. So Mu1 for
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excellent.
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So Me1, mean time required for excellence aspirin,
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and Me2, mean time required for simple aspirin. So
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each one, Me1, is smaller than Me3.
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Since Me1 represents the time required to relieve
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headache by using excellent aspirin and this one
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is faster faster it means it takes less time in
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order to recover from headache so mu1 should be
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smaller than mu2 we are going to use T T is x1 bar
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minus x2 bar minus the difference between the two
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population proportions divided by
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S squared B times 1 over N1 plus 1 over N2.
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S squared B N1
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minus 1 S1 squared plus N2 minus 1 S2 squared
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divided by N1 plus N2 minus 1. Now, a simple
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calculation will give the following results.
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So again, we have this data. Just plug this
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information here to get the value
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Or you maybe use the B-value approach.
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Now, since the alternative is µ1 smaller than µ2,
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So B value is probability of T smaller than
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negative 0
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.653.
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So we are looking for this probability B of Z
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smaller than negative 0.653.
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The table you have gives the area in the upper
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tail. So this is the same as beauty greater than.
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Because the area to the right of 0.653 is the same
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as the area to the left of negative 0.75. Because
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of symmetry. Just look at the tea table. Now,
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smaller than negative, means this area is actually
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the same as the area to the right of the same
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value, but on the other side. So these two areas
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are the same. So it's the same as D of T greater
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than 0.653. If you look at the table for 28
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degrees of freedom,
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That's your 28.
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I am looking for the value of 0.653. The first
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value here is 0.683. The other one is 0.8. It
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means my value is below this one. If you go back
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here,
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so it should be to the left of this value. Now
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here 25, then 20, 20, 15 and so on. So it should
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be greater than 25. So your B value actually is
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greater than 25%. As we mentioned before, T table
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does not give the exact B value. So approximately
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my B value is greater than 25%. This value
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actually is much bigger than 5%. So again, we
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reject, we don't reject the null hypothesis. So
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again, to compute the B value, it's probability of
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T smaller than the value of the statistic, which
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is negative 0.653. The table you have gives the
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area to the right.
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So this probability is the same as B of T greater
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than 0.653. So by using this table, you will get
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approximate value of B, which is greater than 25%.
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Always, as we mentioned, we reject the null
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hypothesis if my B value is smaller than alpha. In
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this case, this value is greater than alpha, so we
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don't reject the null. So we reach the same
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decision as by using the critical value approach.
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Any question? So that's for number two. Question
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number three.
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To test the effectiveness of a business school
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preparation course, eight students took a general
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business test before and after the course. Let X1
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denote before,
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and X2 after.
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And the difference is X2 minus X1.
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The mean of the difference equals 50. And the
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standard deviation of the difference is 65.03. So
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sample statistics are sample mean for the
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difference and sample standard deviation of the
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difference. So these two values are given. Test to
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determine the effectiveness of a business school
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preparation course. So what's your goal? An
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alternative, null equals zero. An alternative
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should
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be greater than zero. Because D is X2 minus X1. So
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effective, it means after is better than before.
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So my score after taking the course is better than
286
00:26:08,420 --> 00:26:12,080
before taking the course. So X in UD is positive.
287
00:26:19,090 --> 00:26:27,510
T is D bar minus 0 divided by SD over square root
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00:26:27,510 --> 00:26:41,090
of A. D bar is 50 divided by 65 divided
289
00:26:41,090 --> 00:26:54,490
by Square root of 8. So 50 divided by square
290
00:26:54,490 --> 00:26:57,910
root of 8, 2.17.
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00:27:04,070 --> 00:27:09,570
Now Yumi used the critical value approach. So my
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00:27:09,570 --> 00:27:10,930
critical value is T alpha.
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00:27:13,680 --> 00:27:20,140
And degrees of freedom is 7. It's upper 10. So
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00:27:20,140 --> 00:27:27,300
it's plus. So it's T alpha 0, 5. And DF is 7,
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00:27:27,320 --> 00:27:33,820
because N equals 8. Now by using the table, at 7
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00:27:33,820 --> 00:27:34,680
degrees of freedom,
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00:27:38,220 --> 00:27:39,340
so at 7,
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00:27:53,560 --> 00:28:03,380
So my T value is greater than the
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00:28:03,380 --> 00:28:07,020
critical region, so we reject the null hypothesis.
300
00:28:10,740 --> 00:28:17,700
The rejection region starts from 1.9895 and this
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00:28:17,700 --> 00:28:24,800
value actually greater than 1.8. So since it falls
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00:28:24,800 --> 00:28:30,320
in the rejection region, then we reject the null
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00:28:30,320 --> 00:28:35,060
hypothesis. It means that taking the course,
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00:28:36,370 --> 00:28:39,690
improves your score. So we have sufficient
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00:28:39,690 --> 00:28:43,010
evidence to support the alternative hypothesis.
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00:28:44,330 --> 00:28:50,650
That's for number three. The other part, the other
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00:28:50,650 --> 00:28:51,130
part.
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A statistician selected a sample of 16 receivable
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accounts. He reported that the sample information
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indicated the mean of the population ranges from
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00:29:07,790 --> 00:29:12,730
these two values. So we have lower and upper
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00:29:12,730 --> 00:29:21,910
limits, which are given by 4739.
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00:29:36,500 --> 00:29:42,400
So the mean of the population ranges between these
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00:29:42,400 --> 00:29:47,880
two values. And in addition to that, we have
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00:29:47,880 --> 00:29:55,920
information about the sample standard deviation is
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00:29:55,920 --> 00:29:56,340
400.
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00:29:59,500 --> 00:30:03,260
The statistician neglected to report what
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00:30:03,260 --> 00:30:07,440
confidence level he had used. So we don't know C
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00:30:07,440 --> 00:30:14,180
level. So C level is unknown, which actually is 1
320
00:30:14,180 --> 00:30:14,760
minus alpha.
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00:30:20,980 --> 00:30:25,360
Based on the above information, what's the
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00:30:25,360 --> 00:30:28,380
confidence level? So we are looking for C level.
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00:30:29,380 --> 00:30:34,160
Now just keep in mind the confidence interval is
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00:30:34,160 --> 00:30:38,200
given and we are looking for C level.
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00:30:42,920 --> 00:30:46,600
So this area actually is alpha over 2 and other
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00:30:46,600 --> 00:30:49,940
one is alpha over 2, so the area between is 1
327
00:30:49,940 --> 00:30:50,440
minus alpha.
328
00:30:53,340 --> 00:30:58,620
Now since the sample size equal
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00:31:01,950 --> 00:31:10,010
16, N equals 16, so N equals 16, so your
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00:31:10,010 --> 00:31:12,490
confidence interval should be X bar plus or minus
331
00:31:12,490 --> 00:31:14,610
T, S over root N.
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00:31:19,350 --> 00:31:26,390
Now, C level can be determined by T, and we know
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00:31:26,390 --> 00:31:28,130
that this quantity,
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00:31:30,730 --> 00:31:36,970
represents the margin of error. So, E equals TS
335
00:31:36,970 --> 00:31:42,950
over root N. Now, since the confidence interval is
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00:31:42,950 --> 00:31:50,270
given, we know from previous chapters that the
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00:31:50,270 --> 00:31:53,970
margin equals the difference between upper and
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00:31:53,970 --> 00:31:59,560
lower divided by two. So, half distance of lower
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00:31:59,560 --> 00:32:06,320
and upper gives the margin. So that will give 260
340
00:32:06,320 --> 00:32:17,620
.2. So that's E. So now E is known to be 260.2
341
00:32:17,620 --> 00:32:24,320
equals to S is given by 400 and N is 16.
342
00:32:26,800 --> 00:32:29,420
Now, simple calculation will give the value of T,
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00:32:30,060 --> 00:32:31,340
which is the critical value.
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00:32:35,280 --> 00:32:38,160
So, my T equals 2.60.
345
00:32:41,960 --> 00:32:47,220
Actually, this is T alpha over 2. Now, the value
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00:32:47,220 --> 00:32:52,400
of the critical value is known to be 2.602. What's
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00:32:52,400 --> 00:32:56,520
the corresponding alpha over 2? Now look at the
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00:32:56,520 --> 00:32:59,660
table, at 15 degrees of freedom,
349
00:33:02,720 --> 00:33:10,680
look at 15, at this value 2.602, at this value.
350
00:33:12,640 --> 00:33:19,880
So, 15 degrees of freedom, 2.602, so the
351
00:33:19,880 --> 00:33:21,940
corresponding alpha over 2, not alpha.
352
00:33:24,610 --> 00:33:31,830
it's 1% so my alpha over 2 is
353
00:33:31,830 --> 00:33:43,110
1% so alpha is 2% so the confidence level is 1
354
00:33:43,110 --> 00:33:50,510
minus alpha so 1 minus alpha is 90% so c level is
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00:33:50,510 --> 00:33:59,410
98% so that's level or the confidence level. So
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00:33:59,410 --> 00:34:03,990
again, maybe this is a tricky question.
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00:34:07,330 --> 00:34:10,530
But at least you know that if the confidence
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00:34:10,530 --> 00:34:15,270
interval is given, you can determine the margin of
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00:34:15,270 --> 00:34:18,930
error by the difference between lower and upper
360
00:34:18,930 --> 00:34:23,310
divided by two. Then we know this term represents
361
00:34:23,310 --> 00:34:27,150
this margin. So by using this equation, we can
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00:34:27,150 --> 00:34:29,770
compute the value of T, I mean the critical value.
363
00:34:30,670 --> 00:34:35,290
So since the critical value is given or is
364
00:34:35,290 --> 00:34:38,590
computed, we can determine the corresponding alpha
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00:34:38,590 --> 00:34:45,390
over 2. So alpha over 2 is 1%. So your alpha is
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00:34:45,390 --> 00:34:51,710
2%. So my C level is 98%. That's
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00:34:51,710 --> 00:34:56,180
all. Any questions? We're done, Muhammad.