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Large Sample Test

1) Large sample tests are used to test hypotheses about population parameters using sample statistics when sample sizes are large. 2) The key steps are: state the null and alternative hypotheses, calculate the test statistic (usually a z-score), and compare it to critical values to determine whether to reject or fail to reject the null hypothesis. 3) Examples of large sample tests provided include tests of a single mean, difference between two means, difference between two standard deviations, a single proportion, and difference between two proportions. These follow similar procedures of defining hypotheses, calculating test statistics and standard errors, and making conclusions based on critical values.

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100% found this document useful (1 vote)
457 views7 pages

Large Sample Test

1) Large sample tests are used to test hypotheses about population parameters using sample statistics when sample sizes are large. 2) The key steps are: state the null and alternative hypotheses, calculate the test statistic (usually a z-score), and compare it to critical values to determine whether to reject or fail to reject the null hypothesis. 3) Examples of large sample tests provided include tests of a single mean, difference between two means, difference between two standard deviations, a single proportion, and difference between two proportions. These follow similar procedures of defining hypotheses, calculating test statistics and standard errors, and making conclusions based on critical values.

Uploaded by

rahul khunti
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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4.

Large sample test


 Introduction:
The main objective of taking a sample from a population is to get
reliable information about the population. From the information
obtained from the sample, conclusions are drawn about the
population. This is called statistical inference. It mainly consists of two
parts (1) Estimation of parameters (2) Tests of statistical hypothesis.
The following are some of the parameters and their statistics.
Parameter Statistic
Mean μ 𝑥
S.D. 𝜎 S
Proportion P p

 Standard Error of a Statistic:


The standard deviation of the sample statistic is called standard error of
that statistic. e.g. if different samples of the same size n are drawn from
a population, we get different values of sample mean 𝑥. The S. D. of is I
called standard error of . It is obvious that the standard error of i will I
depend upon the size of the sample and the variability of the
population.
Statistic S.E.
Mean 𝑥 𝜎
√𝑛
Difference between two means 𝑥1
𝜎12 𝜎22
- 𝑥2 √ +
𝑛1 𝑛2
Sample proportion p
𝑃𝑄

𝑛
Difference between two 𝑃1𝑄1 𝑃2𝑄2
√ +
proportions P1 – P2 𝑛1 𝑛2

 Hypothesis:
Statistical Hypothesis
A statistical hypothesis is an assumption about the parameter of the
population or the nature of the population. e.g.
i. The population mean μ = 25
ii. The average weights of students of college A and college B are
same
iii. 20% of the students of a college are non vegetarians.
iv. The given population is a Binominal population are some of the
hypothesis.
Null Hypothesis:
A statistical hypothesis which is taken for the possible acceptance is
called a null hypothesis and it is denoted by Ho. The neutral attitude of
the decision maker, before the sample observations are taken is the
keynote of the null hypothesis. e.g.
Mean of the population is 60
H0: μ = 60.
Means of both populations are equal
H0: μ1 = μ2
The coin is unbiased
1
H0: P =
2

The proportions of drinkers in both the cities are equal


H0: P1= P2
Alternative Hypothesis:
A hypothesis complementary to the null hypothesis is called alternative
hypothesis and it is denoted by H1. e.g.
H1: u ≠ 60
H1: u1≠ u2
H1: u1 > u2
H1: P1≠ P2, are alternative hypothesis

 Type 1 and Type 2 Errors:


In testing of a statistical hypothesis the following situations may arise:
i. The hypothesis may be true but it is rejected by the test.
ii. The hypothesis may be false but it is accepted by the test.
iii. The hypothesis may be true and is accepted by the test.
iv. The hypothesis may be false and is rejected by the test.
Accept Reject
H1 is true Correct decision Type 1 error
H0 is false Type 2 error Correct decision

 Level of Significance:
In any test procedure both the types of errors should be kept minimum.
But as they are inter-related it is not possible to minimize both the
errors simultaneously. Hence in practice, the probability of type-l error
is fixed and the probability of type-ll error is minimized. The fixed value
of type-I error is called level of significance and it is denoted by a. Thus,
level of significance is the probability of rejecting a hypothesis which
ought to be accepted. The most commonly used level of significance
are 5% and 1%. When a decision is taken at 5% level of significances, it
is meant that in 5 cases out of 100, it is likely to reject a hypothesis
which ought to be accepted. In other words, our decision to reject H0 is
95% correct.
 Two – tailed and One – tailed Test:
In a standard normal curve the critical region may be given ways: (i) on
both the tails of the curve (ii) on one tail of the curve i.e. either on the
right tail of the curve or on the left tail of the curve. If the given null
hypothesis is tested using the critical region represented by both the
tails of the normal curve, it is called two tailed test and if the null
hypothesis is tested using the critical region represented by only one
tail of the normal curve, it is called one-tailed test. Whenever it is
required to test whether the sample statistic is significantly different
from the population parameter. i.e. whether the difference may be
regarded as due to chance or due to sampling fluctuations, the two tail
test is used. If we want to test that the mean of the population is
greater than specified value or the mean of one population is greater
than the mean another population or the proportion of defectives in
the population is less than a specified proportion, one tail test is used.
The following figures show the critical regions corresponding to 5% and
1% levels of significance for two-tailed and one tailed test.
 Decision Making:
From the given data the value of test statistic Z is computed. If the
computed value of Z falls in the acceptance region i.e. for two tailed
test the value of Z is less than 1.96, the null hypothesis may be
accepted. If the computed value of Z falls in the critical region i.e. for
two tailed test Z is greater than 1.96 the null hypothesis may be
rejected.
 Large Sample Test:
Step 1: Stating clearly null and alternative hypothesis.
Step 2: Finding out the difference between observed value and the
value taken in null hypothesis.
Step 3: Calculating S.E. of statistic
Step 4: Computing the value of Z
𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒
Z=
𝑆.𝐸.

1% 5% 10%
Two-tailed test 2.58 1.96 1.645
One-tailed test 2.33 1.645 1.282

(a)Test of significance of a mean:


Suppose a random sample of size n is drawn from a large
population. Suppose the mean of the sample is𝑥̅ . If we want to
test the hypothesis that population mean is μ0 i.e. H0: μ = μ0. We
can use the following steps:
1. H0: μ = μ0
H1: μ ≠ μ0
2. Difference = ǀ 𝑥̅ - μ0 ǀ
𝜎
3. S.E. of 𝑥̅ =
√𝑛
𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒
4. Z =
𝑆.𝐸.

(b)Test of significance of difference between two means


Suppose two independent random samples are drawn from two
different populations and their means are respectively 𝑥̅ 1 and 𝑥̅ 2.
If we want to test the hypothesis that the population means are
equal i.e. H0: μ1 = μ2, we can follow the steps given below.
1. H0: μ1 = μ2
H1: μ1 ≠ μ2
2. Difference = ǀ 𝑥̅ 1-𝑥̅ 2 ǀ
𝜎12 𝜎22
3. S.E. of 𝑥̅ 1-𝑥̅ 2 = √ +
𝑛1 𝑛2
𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒
4. Z =
𝑆.𝐸.

(c) Test of significance of difference between two standard deviations


Here we want to test that the standard deviations of the two
populations do not differ significantly. For this we shall follow the steps
given below.
1. H0: 𝜎1 = 𝜎2
H1: 𝜎1 ≠ 𝜎2
2. Difference = ǀ S1 - S2 ǀ

𝜎1 2 𝜎22
3. S.E. of S1 – S2 = √ +
2𝑛1 2𝑛2
𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒
4. Z =
𝑆.𝐸.

(d) Test of significance of a sample proportion


Suppose a random sample of n units is drawn from a population and
x units of them posses a particular attribute. i.e. the sample proportion
𝑥
of that attributes is p= .
𝑛

1. H0: Population proportion = P


H1: Population proportion ≠ P
2. Difference = ǀ p - P ǀ
𝑃𝑄
3. S.E. of p = √ ; Q=1-P
𝑛

𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒
4. Z =
𝑆.𝐸.

(e) Test of significance of difference between two sample proportions


Suppose a random sample of size n1 is taken from one population
𝑥1
and x1 units of them possess some attribute. Hence p1 = is the
𝑛1
proportion of units possessing that attribute in the sample. Suppose
another independent random sample of size n2 is taken from another
population and x2 units possess the same attribute, i.e. sample
𝑥2
proportion of that attribute in the second sample is p2 = . Now if we
𝑛2
want to test the hypothesis that the population proportions of that
attribute are equal i.e. H0: P1 = P2.
1. H0: P1 = P2
H1: P1 ≠ P2
2. Difference = ǀ P1 – P2 ǀ
𝑃1𝑄1 𝑃2𝑄2 1 1
3. S.E. of p1 – p2 = √ + OR = √𝑃𝑄 ( + )
𝑛1 𝑛2 𝑛1 𝑛2

𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒
4. Z =
𝑆.𝐸.

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