Estimation & Hypothesis

Module- 5

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Estimation

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 Sample , Population – Definition &
Notations
 Population:
 Population consists of the totality of the
observations with which we are concerned.
 Population Parameter:
 A numerical measure of a population is called
population parameter. Eg. Mean , standard deviation.
 Sample:
 A Sample is a subset of a Population.
 Statistic:
 A numerical measure of the sample is
called statistic
 Population parameters are estimated
using the sample statistic.
 E.G : Mean, Median,ManavazhaganR@Bsnl.in
Mode, S.D,etc
 Sampling Distribution – Definition
& Notations
 Sampling Distribution:
 The probability distribution of a statistic
is called sampling distribution.
 Sampling Distribution of mean:
The probability distribution of sample mean is


called the sampling distribution of the

mean.


ManavazhaganR@Bsnl.in
 Sampling Distribution – Definition
& Notations
 Sampling Distribution:
 The probability distribution of a statistic
is called sampling distribution.
 Sampling Distribution of mean:
 The probability distribution of sample mean is
called the sampling distribution of the
mean.
Population Sample Sample Sampling

Water in Statistic
10 – Gallon Mean Distribution
no. of Sampling
river
Basket ball containers
Group of 5 bacteria
Median / distribution
Sampling
team players million
height of mean
distribution
parts of median.

ManavazhaganR@Bsnl.in
 Sampling Distribution –
Notations


Type Mean Standard

Population µ Deviation
σ
Sample x s
Sample x s
Frequency
Sampling
Distribution of
distribution
the mean

ManavazhaganR@Bsnl.in
 Sampling Distribution of mean
Im p o rta n ce o f S a m p lin g D istrib u tio n

on
, th e sa m p lin g d istrib u tio n o f m e a n , still w ill b e N o rm

C e n tra l L im it T h e o re m
ple of size n taken from a population with mean μ and S.D σ , the

bution.

ManavazhaganR@Bsnl.in
 Sampling Distribution of Standard
Deviation
Estimation
om sample of size n taken from a population having v

n with v = n - 1 degrees of freedom .

ManavazhaganR@Bsnl.in
Estimation – Definition & Notations
 Estimator:
Estimation
 When a sample statistic is used to
estimate a population parameter, the
statistic is called an estimator of the
parameter. It is the statistical inference
about
Estimator the Populatio
--------- Population
( Sample Estimates nµ
xStatistic


) Estimates
---- Paramete
s 

 ---
σ
r


ManavazhaganR@Bsnl.in
Estimation – Definition & Notations

Estimation
• The two types of estimators:
 1. Point estimates – Mean, Median, S.D,
etc.
 2. Interval estimates – Standard error of
the mean , t, z , F tests

ManavazhaganR@Bsnl.in
 Point Estimates
Type Mean Standard Deviation



Sample X=

Sample
Frequency
Sampling -do- -do-
Distribution
distribution
Sampling =µ =
distribution ( Finite
(Infinite Population
Population )
) =µ = ( sampling
error ) ( sampling
error )

ManavazhaganR@Bsnl.in
 Interval Estimates –
Confidence Interval


A C o n fid e n ce in te rv a l is a ra n g e o f
n u m b ManavazhaganR@Bsnl.in
e rs
 Confidence Interval – Format

erval Estimate =
Point Estimate
±
Value of Confidence Level * Sampling E

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 Confidence Interval :– σ known

e = P o in t E stim a te ± Z , t, f v a lu e o f C o n fid e n ce L e v e l *

nterval Estimate of population mean = x ± value of C. L

Confidence
Level
90 % 1.65
95% 1.96
99% 2.58

ManavazhaganR@Bsnl.in
 Confidence Interval :– Sample size > 30, σ
estimated by s

e = P o in t E stim a te ± Z , t, f v a lu e o f C o n fid e n ce L e v e l *

nterval Estimate of population mean = x ± value of C. L

Confidence
Level
90 % 1.65
95% 1.96
99% 2.58

ManavazhaganR@Bsnl.in
 Confidence Interval :– Sample size < 30, σ
estimated by s

e = P o in t E stim a te ± v a lu e o f C o n fid e n ce L e v e l

Interval Estimate of population mean = x ± of C. L *

ManavazhaganR@Bsnl.in
Sampling Distribution – Definition
& Notations

Property Symbol
The sampling = µ
distribution
The samplingof mean
equal to the population
distribution has a
mean
standard deviation =
( Standard error )
equal to the population
standard deviation
divided by the square
root of the sample size

ManavazhaganR@Bsnl.in
Hypothesis

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 Hypothesis
• Usually the Experiments are done to
test a specific question.
• This question is written in a specific
format called a hypothesis.
•
se t o u t to te st a specific qu

ManavazhaganR@Bsnl.in
Experiments set out to test a
specific question
Case - 1 :
A car manufacturer has
redesigned an existing engine.
The old model engine can be
used to travel 20 Km. per liter
of petrol. He wishes to test
that, the new design
increases the mean mileage
per liter. ManavazhaganR@Bsnl.in
 Hypothesis Testing -
Procedure
Write Hypothesis

Choose a Test Statistic & Type of

Tail

Calculate Summary value from our sample

using the Test Statistics -  Calculated

culate Critical Value using the Test Statist

le

Accept Or Reject Hypothesis

ManavazhaganR@Bsnl.in
out to test a specific 1. Write Hypothesis
2. Choose a Test Statistic & Type of Tail
3.Calculate Summary value from our sample using the Test Statistics----

4.Calculate Critical Value using the Test Statistics Table

Case -1 : 5. Accept Or Reject Hypothesis
 A car manufacturer has redesigned
an existing engine. The old model
engine can be used to travel 20 Km. per
liter of petrol. He wishes to test that,
the new design increases the mean
mileage per liter.
1.What is the specific question to be
tested in this case ?
Format Hypothesis
2.What is the Research of in
this case ? ManavazhaganR@Bsnl.in
out to test a specific question
1. Write Hypothesis
2. Choose a Test Statistic & Type of Tail
3. Calculate Summary value from our sample using the Test Statistics

4.Calculate Critical Value using the Test Statistics Table

 Checklist -1: 5. Accept Or Reject Hypothesis

1.Hypothesis comes in pairs, the Null hypothesis

(Ho) and Alternative Hypothesis (H1)
 The research hypothesis is H1
 The Negative of research hypothesis is
Ho
Case-1:

Research question : To test whether the new design

increases the mileage

Ho: The new design does not increase the
mean mileage or
Ho <=20

Format
H1 : The new design increases of the mean
mileage or ManavazhaganR@Bsnl.in
out to test a specific question
1. Write Hypothesis
2. Choose a Test Statistic & Type of Tail
3. Calculate Summary value from our sample using the Test Statistics

4.Calculate Critical Value using the Test Statistics Table

Checklist - 2: 5. Accept Or Reject Hypothesis

Ø The Specific hypothesis includes

details of the particular trend you
believe is present in data.
Case-1:

Ho: The new design does not increase

the mean mileage. Ho<=20

H1 :The new design increases the mean

Increase in Mileage  Trend we believe that may

mileage.H1>20
result due to new design
 Format of Hypothesis
ManavazhaganR@Bsnl.in
 1. Write
t o u t to te st a sp e cific q u e stio n Hypothesis
2. Choose a Test Statistic & Type of Tail
3. Calculate Summary value from our sample using the Test Statistics

4.Calculate Critical Value using the Test Statistics Table

5. Accept Or Reject Hypothesis
Checklist - 3:
Ø The hypothesis usually indicate the
statistic being examined.
Case-1:

Ho: The new design does not increase the mean

mileage. Ho <=20
 H1 :The new design increases the mean
mileage.H1>20
Mean Mileage  Mean is the
Format of

test statistic
1. ManavazhaganR@Bsnl.in
 1. Write
t o u t to te st a sp e cific q u e stio n Hypothesis
2. Choose a Test Statistic & Type of Tail
3. Calculate Summary value from our sample using the Test Statistics

4.Calculate Critical Value using the Test Statistics Table

5. Accept Or Reject Hypothesis
Checklist - 4:
Ø The hypothesis being tested refers to
the statistical population under
investigation rather than the sample
Case-1:

Ho: The new design does not increase the

mean mileage. Ho <=20

H1 : The new design increases the mean

mileage. H1 >20

M e a n M ile a g e o f n e w e n g in e 
1. N e w E n g inFormat
e ManavazhaganR@Bsnl.inof
 Format of Hypothesis Exercise-1

1. The Manager of MTR Hotel says that



the mean bill for a customer is not

Rs.300. He decides to test the
manager’s claim . He uses a sample of
monthly bills to test the Manager’s
claim. Form the hypothesis :


Ho = 300 ; 300 < H1 >

300

ManavazhaganR@Bsnl.in
 Format of Hypothesis Exercise-2

2. The Manager of TVS has developed



an advertisement to increase the

sale of Two – Wheeler. It’s current
mean sales is 1000 vehicles per day.
It has decided to test whether the
new advertisement will increase the
mean sales. Hence it selected Mysore
as a sample to advertise and collect
sales data.
Ho : µ =<
Ø Develop the1000 ; H1 : for this
hypothesis
µ > 1000 situation.
research ManavazhaganR@Bsnl.in
Why should Hypotheses come in pairs ?
Case - 1 :
A car manufacturer has redesigned an existing
engine . The old model engine can be used to travel
20 Km . per liter of petrol . He wishes to test that ,
the new design increases the mean mileage per liter .
1 . Eng
Eng Due Eng
to Eng Eng style
driving Eng Eng
2 . Eng
poorEng Eng
performance of new engine 3 .
130 235 320 418 526 617 723 828 932 10
42
Km Km Km Km Km Km Km Km Km Km

asons for this variation in mileage

hesis explains the variation in data due to the Samp
Hypothesis explains the variation in data due to the
1 . Chance or
ur test criteria , then these variations are called Sampling Er

ManavazhaganR@Bsnl.in
 What are we going to do in
Hypothesis Testing ?

 Hypothesis Testing is
examining our data to
accept one of the two
questions :
1.Is the variation in our data due to


sampling error (Ho) OR

2. Is the variation in our data due to the

factor(s ) we are investigating

( treatment ) (H1).
ManavazhaganR@Bsnl.in
 1. Write Hypothesis
2.Choose a Test Statistic & Type of Tail
alculate Summary value from our sample using the Test Statistics ---- Calculated
4.Calculate Critical Value using the Test Statistics Table
5. Accept Or Reject Hypothesis

• Test Statistic is a mathematical

distribution to use in hypothesis
testing.
• Point estimates like Mean, Median etc,
Chi-squared, U, F, t,z,etc.. are fewTest
statistics.
• Each of these mathematical distributions
has got its own characteristics called
criteria
• Test Statistics are given a letter or symbol
ManavazhaganR@Bsnl.in
 Test Statistics
Type of Test Parametric Non-Parametric
Single Sample t and Z test Sign test, Chi-
Two independent t and Z test squared
Wilcoxon signed
samplesindependentANOVA
Several rank test
Kruskal-Wallace
samples
Several Matched ANOVA Friedman Test
Samples
Correlation Pearson Spearman Rank
Correlation Kendal’s Rank
Correlation

ManavazhaganR@Bsnl.in
Test Statistics - Formulae
Test Statistic Formula
Z – test
(Z-Single
test Mean )
(t Difference
– Test of two means )
(t –Single
Test Mean )
( Difference of two
means )

n - 1 degrees of freed

Chi squared – test n - 1 degrees of fr

( Goodness of FitManavazhaganR@Bsnl.in
)
 Choosing the Test Statistic-
Quiz..
 Case-1
 A car manufacturer has
redesigned an existing engine. The
old model engine can be used to
travel 20 Km. per liter of petrol. He
wishes to test that, the new design
increases the mean mileage per
liter.
 Case-2
 With the attendance data if a
Faculty wishes to find out whether
the attendance of students is high on
ManavazhaganR@Bsnl.in
 Choosing Type of Tail

Null Hypothesis Alternate Hypothesis Type of Tail Test

H0 = M , H1 > 0 or H 1<0 Two-Tailed Test
H0 >=
M – Any Specified H1 < 0 Lower Tail
M valueH0<= M H1 > 0 Upper Tail

ManavazhaganR@Bsnl.in
 Choosing the Tail - Quiz..
 Case-1
 A car manufacturer has
redesigned an existing engine. The
old model engine can be used to
travel 20 Km. per liter of petrol. He
wishes to test that, the new design
Upper
increases the mean mileage
tail per
liter.
 Case-2
 With the attendance data if a
Faculty wishes to find outUpper
whether
the attendance of students is high on
tail
ManavazhaganR@Bsnl.in
 Choosing the Tail - Quiz..
C a se - 3 :
T h e M a n a g e r o f M T R H o te lsa ys
th a t th e m e a n b illfo r a cu sto m e r is
n o t R s. 3 0 0 . H e d e cid e s to te st th e
m a n a g e r’ s cla im . H e u se s a sa m p le o f
m o n th ly b ills to te st th e MTwoa n a g e r’ s
cla im . tail

ManavazhaganR@Bsnl.in
 1. Write Hypothesis
2. Choose a Test Statistic
mmary value from our sample using the Test Statistics ---- C

4.Calculate Critical Value using the Test Statistics Table

5. Accept Or Reject Hypothesis
Ø Calculated value for a test statistic is a single
number that provides summary of your
observed data.
Ø This summary is derived from the
mathematical relationship of a chosen Test
Eng EngAsEng
Eng Engstatistic. these data
Eng Eng Enghave a mean , S . D , we can ch
Eng Eng
1
30 2
35 3 18
20 4 5
26 6 23
17 7 8
28 9 42
32 10
Km Km Km Km Km Km Km Km Km Km
heofamount of variation
this sample = 27 . 1 , Swithin
. D = 7 .your
9 data against a sin

calculated = 0 . 02 ManavazhaganR@Bsnl.in
 Calculated Value of Test
Statistics
Test Statistic Formula
Z – test
(Z-Single
test Mean )
(t Difference
– Test of two means )
(t –Single
Test Mean )
( Difference of two
means )

n - 1 degrees of freed

1. Write Hypothesis
2. Choose a Test Statistic
mary value from our sample using the Test Statistics ----

Chi squared – test

4.Calculate Critical Value using the Test StatisticsnTable
- 1 degrees of fr
( Goodness of FitManavazhaganR@Bsnl.in
)
5. Accept Or Reject Hypothesis
 1. Write Hypothesis
2. Choose a Test Statistic

3. Calculate Summary value from our sample using the Test Statistics ---- Calculated Value

4.Calculate Critical Value using the Test Statistics Table

5. Accept Or Reject Hypothesis

 Critical value: 1. It is the boundary mark against

which you compare the Calculated
Value

(i.e)The amount of evidence required
to accept that an event is unlikely to
have arisen by chance is known as the
significance level or critical p-val
 2. It is derived from the critical values
Calculate
table Critical Value of You
the need
chosenthe
test Followi
statistic
Probability Value ( p )


Degrees of Freedom ( v )


ManavazhaganR@Bsnl.in
 1. Write Hypothesis
2. Choose a Test Statistic

3. Calculate Summary value from our sample using the Test Statistics ---- Calculated Valu

4.Calculate Critical Value using the Test Statistics Table

5. Accept Or Reject Hypothesis

 Critical value: 1. It is the boundary mark

against which you compare the
Calculated Value
 2. It is derived from the
critical values table of
the chosen test statistic using p-value &
Degrees of freedom

C a lcu la te C ritica l V a lu e Y o u n e e d th e F o llo w in


P ro b a b ility V a lu e ( p )
D e g re e s o f F re e d o m ( v ) ManavazhaganR@Bsnl.in
 Lower Critical Value Mean Upper
M Critical
ean= Val
15
Lower Tail Upper Tail

jection Region p = 0 . 001 Rejection Region p = 0 .

p - value ( Significance level ) is the

probability of incorrectly rejecting a
true null hypothesis .  Type - 1 error .
Confidence Level : 1 - p = Acceptance Level
Acceptance Regi

Normal Distribution & p - Value

ManavazhaganR@Bsnl.in
 L o w e r C ritica l V a lu e M e a nU p p e r
M Ce ritica
a n = l V a lu
15
L o w e r Ta il U p p e r Ta il

e je ctio n R e g io n R e je ctio n R e g io n
=0 . 0 0 1 p =0 . 0 0 1

Size of Tail M± M ± 1.96 M ± 2.58 M ± 3.29 S

1. No. of Data in Central 1Std.
68 S
95 S
99 99.9
range
2. No. of Data in two tails 32 5 1 0.1
(Both
3. No. )of Data in two tails 16 2.5 0.5 0.05
(Each )
Probability of 1 (p) = 0.68 0.95 0.99 0.999
Probability of 2 (p) = 0.32 0.05 0.01 0.001
Number of time make wrong 1/3 1/20
ManavazhaganR@Bsnl.in 1/100 1/1000
 L o w e r C ritica l V a lu e M e a nU p p e r
M Ce ritica
a n = l V a lu
15
L o w e r Ta il U p p e r Ta il

e je ctio n R e g io n R e je ctio n R e g io n
=0 . 0 0 1 p =0 . 0 0 1

p - v a lu e ( S ig n ifica n ce le v e l ) is th e p ro b a b ility
o f in co rre ctly re je ctin g a tru e n u ll
h y p o th e sis .  Ty p e - 1 e rro r.
Øp -V a lu e is ch o se n a rb itra rily . A cce p ta n ce
ØN o rm a lly p -V a lu e w ill b e ch o se n e ithR eerg 0io. n0 5
o r 0 .0 0 1
ManavazhaganR@Bsnl.in
P-Value & Confidence Level-
Quiz….
• P-Value = 0.02 Confidence Level 98 %
=?
• Sign.Level = 0.08 Confidence 92 %
Level= ? 82 %

• P-Value = 0.18 Confidence Level= 0 . 05 ?

Confidence
•Type LevelCritical
of Test ( Hypothesis = 95 % p-value
Level =?
Critical Level
Z ) tailed µ ≠ sample
•Two ( 0.05 )
1.96 ( ).01 )
2.58
One tailed mean
µ > sample 1.04 2.33
mean

One Tailed µ < sample 1.04 2.33

mean
ManavazhaganR@Bsnl.in
Type of Test ( Z ) Accept Ho
Two tailed If the Z calculated value
One tailed(L) liescalbetween
Z the two critical
> Z table
values of Z found using Z
One Tailed ( R) Z cal .<Otherwise
table Z table eject.

5.
Type of Test ( t ) Accept Ho Decisio
Two tailed If the t calculated value
One tailed(L) tlies
calbetween
> t tablethe two critical
n
One Tailed ( R)
values of t found using t
t cal < t table Rule
table . Otherwise reject.

Type of Test ( Chi squared )

Accept Ho if chi squared calculated < Chi squared table value
Type of Test (ANOVA )
Accept Ho if F ratio calculated < F – table value
ManavazhaganR@Bsnl.in
 • A Manager wishes to test whether the average
number of absence per worker has changed this
year compared with the average absence of 8 days
in the past with S.D of 14 days. A random sample
of 49 workers is taken giving a mean of 1o.6 days
of absence this year. It is decided to conduct the
test
Step - 1 at the 5% level
: Formulate of significance.
Hypothesis : H o =8 ; H1 ≠ 8 ( Two tail
test )
Step - 2 : Choose test statistic : It is parametric
data & One sample & sample
size > 30 hence use Z statistic
Step - 3 : Find the Test statistic ’ s calculated value :

= 1.3
Step - 4 : Find the Z critical value : 5 % level of
significance . i . e α = 0 . 05
Critical values of Z for 2 tails = 1 . 96 , - 1 . 96
Step - 5 : Decision rule : Z value calculated in step - 3 lies
between the critical values + 1 . 96 and - 1 . 96 . Hence Ho has to be
accepted . That is this year ’ s absenteeism is not significantly
ManavazhaganR@Bsnl.in
different from the past .
 • A Manager wishes to test whether the average
number of absence per worker has changed this
year compared with the average absence of 8 days
in the past . A random sample of 25 workers is
taken giving a mean of 1o.6 days of absence this
year and s.d of 14 days. It is decided to conduct
the
Step - 1 test at the 5%
: Formulate level of
Hypothesis : significance.
H o =8 ; H1 ≠ 8 ( Two tail
test )
Step - 2 : Choose test statistic : It is parametric
data & One sample & sample
size < 30 hence use t statistic
Step - 3 : Find the Test statistic ’ s calculated value :

= 0 . 928
Degrees of Freedom = Sample size - 1 = 25 - 1 = 24
Step - 4 : Find the t critical value : 5 % level of
significance . i . e α = 0 . 05
Critical values of t for 24 d . f = 1 . 711
Step - 5 : Decision rule : t value calculated in step - 3 < t –
table value . Hence Ho has to be accepted .
ManavazhaganR@Bsnl.in
Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0 0.0000 0.0040 0.0080 0.0120 0.0160 0.0199 0.0239 0.0279 0.0319 0.0359
0.1 0.0398 0.0438 0.0478 0.0517 0.0557 0.0596 0.0636 0.0675 0.0714 0.0753
0.2 0.0793 0.0832 0.0871 0.0910 0.0948 0.0987 0.1026 0.1064 0.1103 0.1141
0.3 0.1179 0.1217 0.1255 0.1293 0.1331 0.1368 0.1406 0.1443 0.1480 0.1517
0.4 0.1554 0.1591 0.1628 0.1664 0.1700 0.1736 0.1772 0.1808 0.1844 0.1879
0.5 0.1915 0.1950 0.1985 0.2019 0.2054 0.2088 0.2123 0.2157 0.2190 0.2224

Standard Normal Distributi

0.6 0.2257 0.2291 0.2324 0.2357 0.2389 0.2422 0.2454 0.2486 0.2517 0.2549
0.7 0.2580 0.2611 0.2642 0.2673 0.2704 0.2734 0.2764 0.2794 0.2823 0.2852
0.8 0.2881 0.2910 0.2939 0.2967 0.2995 0.3023 0.3051 0.3078 0.3106 0.3133
0.9 0.3159 0.3186 0.3212 0.3238 0.3264 0.3289 0.3315 0.3340 0.3365 0.3389
1.0 0.3413 0.3438 0.3461 0.3485 0.3508 0.3531 0.3554 0.3577 0.3599 0.3621
1.1 0.3643 0.3665 0.3686 0.3708 0.3729 0.3749 0.3770 0.3790 0.3810 0.3830
1.2 0.3849 0.3869 0.3888 0.3907 0.3925 0.3944 0.3962 0.3980 0.3997 0.4015
1.3 0.4032 0.4049 0.4066 0.4082 0.4099 0.4115 0.4131 0.4147 0.4162 0.4177
1.4 0.4192 0.4207 0.4222 0.4236 0.4251 0.4265 0.4279 0.4292 0.4306 0.4319
1.5 0.4332 0.4345 0.4357 0.4370 0.4382 0.4394 0.4406 0.4418 0.4429 0.4441
1.6 0.4452 0.4463 0.4474 0.4484 0.4495 0.4505 0.4515 0.4525 0.4535 0.4545
1.7 0.4554 0.4564 0.4573 0.4582 0.4591 0.4599 0.4608 0.4616 0.4625 0.4633
1.8 0.4641 0.4649 0.4656 0.4664 0.4671 0.4678 0.4686 0.4693 0.4699 0.4706
1.9 0.4713 0.4719 0.4726 0.4732 0.4738 0.4744 0.4750 0.4756 0.4761 0.4767
2.0 0.4772 0.4778 0.4783 0.4788 0.4793 0.4798 0.4803 0.4808 0.4812 0.4817
2.1 0.4821 0.4826 0.4830 0.4834 0.4838 0.4842 0.4846 0.4850 0.4854 0.4857
2.2 0.4861 0.4864 0.4868 0.4871 0.4875 0.4878 0.4881 0.4884 0.4887 0.4890
2.3 0.4893 0.4896 0.4898 0.4901 0.4904 0.4906 0.4909 0.4911 0.4913 0.4916
2.4 0.4918 0.4920 0.4922 0.4925 0.4927 0.4929 0.4931 0.4932 0.4934 0.4936
2.5 0.4938 0.4940 0.4941 0.4943 0.4945 0.4946 0.4948 0.4949 0.4951 0.4952
2.6 0.4953 0.4955 0.4956 0.4957 0.4959 0.4960 0.4961 0.4962 0.4963 0.4964
2.7 0.4965 0.4966 0.4967 0.4968 0.4969 0.4970 0.4971 0.4972 0.4973 0.4974
2.8 0.4974 0.4975 0.4976 0.4977 0.4977 0.4978 0.4979 0.4979 0.4980 0.4981
2.9 0.4981 0.4982 0.4982 0.4983 0.4984 0.4984 0.4985 0.4985 0.4986 0.4986
3.0 0.4987 0.4987 0.4987 0.4988 0.4988 0.4989
ManavazhaganR@Bsnl.in 0.4989 0.4989 0.4990 0.4990
ManavazhaganR@Bsnl.in
ManavazhaganR@Bsnl.in
ManavazhaganR@Bsnl.in
ManavazhaganR@Bsnl.in
Chi- Squared Table

ManavazhaganR@Bsnl.in
ManavazhaganR@Bsnl.in
 Chi-
Purpose Squared Types
Test
es and Expected value Chi - Squared Goodness of Fi
a have a particular distribution like Normal , Poisson & Binomi

Heterogeneity
er samples are similar or different from in
eachGoodnes
other

Test for association Chi - Squared

between Test for Ass
variables
ManavazhaganR@Bsnl.in
 Chi-
eria to Select the type of TestSquared

Test
variable
on Chi - Squared Goodness of Fi
has more than two categories of result

categories
Heterogeneity in Goodnes
samples are similar or different from each other

ent variables
Chi - Squared
ne variable has 2 categories Test for Ass
st for association between variables
ManavazhaganR@Bsnl.in
 Chi-Squared Goodness-of-Fit
test
Items to be Checked Criteria
Purpose Whish to compare your observed values to those
predicted by an a priori expectation:
Treatment Variable One, Category variable
To find the good fit between Observed value &

Outcome of Treatment Two or more

Expected value categories
Type of Data Countable, Frequency
To Confirm that your data have a particular distribution

Number of Samples like

OneNormal, Poisson & Binomial.
Observation Have Observations that are independent

ManavazhaganR@Bsnl.in
Procedure-1 for Chi-Squared Goodness-of-Fit test

to be tested
e is no difference between the Expected & Observed v
e is a difference between the Expected & Observed

lue ?
lated using the numerical formula you are expecting

How
3. to find Chi - squared Calculated ?
χ2 Calculated = ∑ ( Observed - expected ) 2
expected

ManavazhaganR@Bsnl.in
 Procedure-1 for Chi-Squared Goodness-of-Fit test

wthedegreesof freedom(v) . Inthistest thedegreesof freedomarethenumber of categories(a

Usea χ2 tableof critical valuestolocatethevalueat p=0.05

d is less than χ 2 Critical you may accept null hyp

ManavazhaganR@Bsnl.in
Chi-Squared Goodness-of-Fit test
Case-1:
 A Company XYZ is accused of Sexual
discrimination in its employment practice. It has
200 employees .If any company has 40% female
employees , then that company will not be
accused of sexual discrimination. The Gender
breakup of the company XYZ is as follows:
 Male Female Total
 150 50 200
 Examine the accusation at 5% level of
significance.
Expected value is 40 % Female employees:- a Priori

Observed value is 30 % Female employees
Treatment variable is : Gender
Treatment outcome is : Category variables : M/F
Data type : ManavazhaganR@Bsnl.in
Countable; Sample : one
tep - 1 : Form Hypothesis :
o : No difference between expected and observed value
1 : Both Observed and expected value are different .
 Step-2 : Find the Expected Values:
 Male Female Total
 Observed value ( O) 150 50
200
 Expected Value ( E ) 120 80
Step-3 : Find the chi-squared value:


= 18.75
4 : F in d th e ch i- sq u a re d critica l v a lu e :
es of freedom = no . of categories - 1 = 2 ( M / F ) - 1 = 1
ficance level = 0 . 05
uared critical value from table for 1 d . f and 0 . 05 S . L = 3 . 84

p - 5 : Decision rule :
culated value > Critical value , reject null hypothes
ManavazhaganR@Bsnl.in
df 0.995 0.99 0.975 0.95 0.90 0.10 0.05 0.025 0.01 0.005
1 --- --- 0.001 0.004 0.016 2.706 3.841 5.024 6.635 7.879
2 0.010 0.020 0.051 0.103 0.211 4.605 5.991 7.378 9.210 10.597
3 0.072 0.115 0.216 0.352 0.584 6.251 7.815 9.348 11.345 12.838
4 0.207 0.297 0.484 0.711 1.064 7.779 9.488 11.143 13.277 14.860
5 0.412 0.554 0.831 1.145 1.610 9.236 11.070 12.833 15.086 16.750
6 0.676 0.872 1.237 1.635 2.204 10.645 12.592 14.449 16.812 18.548
7 0.989 1.239 1.690 2.167 2.833 12.017 14.067 16.013 18.475 20.278
8 1.344 1.646 2.180 2.733 3.490 13.362 15.507 17.535 20.090 21.955
9 1.735 2.088 2.700 3.325 4.168 14.684 16.919 19.023 21.666 23.589
10 2.156 2.558 3.247 3.940 4.865 15.987 18.307 20.483 23.209 25.188
11 2.603 3.053 3.816 4.575 5.578 17.275 19.675 21.920 24.725 26.757
12 3.074 3.571 4.404 5.226 6.304 18.549 21.026 23.337 26.217 28.300
13 3.565 4.107 5.009 5.892 7.042 19.812 22.362 24.736 27.688 29.819
14 4.075 4.660 5.629 6.571 7.790 21.064 23.685 26.119 29.141 31.319
15 4.601 5.229 6.262 7.261 8.547 22.307 24.996 27.488 30.578 32.801
16 5.142 5.812 6.908 7.962 9.312 23.542 26.296 28.845 32.000 34.267
17 5.697 6.408 7.564 8.672 10.085 24.769 27.587 30.191 33.409 35.718
18 6.265 7.015 8.231 9.390 10.865 25.989 28.869 31.526 34.805 37.156
19 6.844 7.633 8.907 10.117 11.651 27.204 30.144 32.852 36.191 38.582
20 7.434 8.260 9.591 10.851 12.443 28.412 31.410 34.170 37.566 39.997
21 8.034 8.897 10.283 11.591 13.240 29.615 32.671 35.479 38.932 41.401
22 8.643 9.542 10.982 12.338 14.041 30.813 33.924 36.781 40.289 42.796
23 9.260 10.196 11.689 13.091 14.848 32.007 35.172 38.076 41.638 44.181
24 9.886 10.856 12.401 13.848 15.659 33.196 36.415 39.364 42.980 45.559
25 10.520 11.524 13.120 14.611 16.473 34.382 37.652 40.646 44.314 46.928
26 11.160 12.198 13.844 15.379 17.292 35.563 38.885 41.923 45.642 48.290
27 11.808 12.879 14.573 16.151 18.114 36.741 40.113 43.195 46.963 49.645
28 12.461 13.565 15.308 16.928 18.939 37.916 41.337 44.461 48.278 50.993

Chi - Squared Table

ManavazhaganR@Bsnl.in
 Procedure-1 for Chi-Squared Independence test

ypothesis to be tested
Ho: The variables are independent of each other .
H1 : The variables are not independent

lue ?
lated using the numerical formula you are expecting

How
3. to find Chi - squared Calculated ?
χ2 Calculated = ∑ ( Observed - expected ) 2
expected

ManavazhaganR@Bsnl.in
 Procedure-1 for Chi-Squared Independence test

wthedegreesof freedom(v) . Inthistest thedegreesof freedomarethenumber of categories(a

Usea χ2 tableof critical valuestolocatethevalueat p=0.05

d is less than χ 2 Critical you may accept null hyp

ManavazhaganR@Bsnl.in
 ANOVA - One Way

nce between the means of the populations from which

ce between the means of the populations from which t

e of the population variance from the variance among

mean
ean using all the sample means found in step - a above
in the ‘ Variance among sample means ’ formula :

sample

ManavazhaganR@Bsnl.in
 ANOVA - One Way
within the samples :

Variance within the

sample
Sample Variance of the
jth sample
Size of the jth sample

Total sample size = k- numbe

4. Calculate the F ratio:

F ratio calculated =

k - no . ofgroups . The degrees of freedom for denomina

ManavazhaganR@Bsnl.in
 ANOVA - One Way

cision Rule :
If F calculated < F Table value , accept Ho .

ManavazhaganR@Bsnl.in