


The t Tests Lecture 7

The t Distribution 
The
ttests are similar to the ztests
However,
you assumed you knew the population variance
In
reality, the variance has to be estimated too!
Switch
to the t distribution
The
tdistribution is shorter and fatter because you estimated two
parameters, the mean and the variance
The
Rule of Thumb
If
the observations are less than 30, then use the tdistribution
If
the number of observations are equal to or greater than 31, then
use the zdistribution as an approximation
Example
You
survey 30 people in Almaty. The average income,
= $600 per month and variance,
= 10,000
Find
the 95% Confidence Interval
Use
an a
= 0.05 and df = 30 – 1 = 29
Using
Excel, = tinv(a,
df)
t_{c}
= 2.04523
If
this was a normal distribution, then z_{c}
= 1.96
The
standard error (SE) is

The
95% Confidence Interval is

There
is a 95% chance that the true population mean lies between
[562.5, 637.5]

Testing the Means between Two Samples 
Testing
the Difference of the means of two samples
This
is more complicated because you are estimating the variance
Two
methods
If
the variances are equal, then pool the variances
If
the variances are unequal, then use a different method to pool the
variance
Assume
the variances are equal
Example
You
survey 80 people at Mega Center
The
average income is
=
$800 per month
The
estimated variance is
=
10,000
You
survey 60 people at Thieves’ Market
The
average income is
=
$500 per month
The
estimated variance is
=
2,500
Note
– you should test data to determine if data is normally
distributed
Variance
is calculated at
Variance in Sample 1



(n_{1}
– 1)

(80
1)(10,000)

790,000

Variance
in Sample 2



(n_{2}
– 1)

(60 – 1)(2,500)

147,500


Total Variance 
937,500 
Total
degrees of freedom = n_{1}
– 1 + n_{2} –
1 = 80 + 60 – 2 = 138
The
pooled variance is
The
standard error is
The
tstatistic is
If
a
= 0.05, then the t_{c}
= 1.977304
The
pvalue is 5.01 X 10^{15}
The
hypothesis test is
Reject
the H_{0} and
conclude the population means are different
Can
use a Confidence Interval for hypothesis test
Assume
variances are unequal
Same
example
The
=10,000,
n_{1} = 80,
=2,500,
and n_{2} = 60
However,
we have to adjust the degrees of freedom
Round
the degrees of freedom to 122
The
tstatistic is
Reject
the H_{0} and
conclude the population means are different

Difference of Means of Paired Observations 
We
have observations that are paired
Two
treatments, A and B
Example:
Patients are given two types of blood pressure medicine
Observations

Treatment A

Treatment B

Difference 
1 
64 
84 
20 
2 
67 
51 
16 
3 
49 
61 
12 
. 
. 
. 
. 
23 
72 
70 
2 
Calculate
the average for the differences,
Calculate
the standard deviation of the differences
The
standard error is
The
hypothesis test is
The
tstatistic is
The
a
= 0.05, df = 23 – 1 = 22, and t_{c}
= tdist(a,
df) = 2.034
Fail
to reject the H_{0}
and conclude both treatments are similar
The
paired test is a more powerful test than the other two
Contains
more information, because you took the extra step of pairing the
observations


FOLLOW ME