06 Hypothesis Examples

Two sample t for totaldebt own 0 1 n 35 65 mean 10272

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Unformatted text preview: verage debt for renters in the population of all households? Use a 5% level of significance. Hypotheses: H 0 : µOwn ! µ Re nt " 0 H1 : µOwn ! µ Re nt > 0 ! = .05 Minitab Output: Two- Sample T- Test and CI: TotalDebt, Own? Two-sample T for TotalDebt Own? 0 1 N 35 65 Mean 10272 12577 StDev 3848 3973 SE Mean 650 493 Difference = mu (0) - mu (1) Estimate for difference: -2305 95% CI for difference: (-3932, -678) T-Test of difference = 0 (vs not =): T-Value = -2.82 P-Value = 0.006 DF = 71 Decision: Reject H 0 since p-value = .006 < .05 = ! . There is sufficient evidence to conclude that H 0 is false. The population average debt is different for owners and renters. 6 Hypothesis Tests and Confidence Intervals for a Difference in Population Means (Paired Data) Hypotheses: Two-sided test H 0 : µ1 ! µ2 = µ D = 0 Lower-tail test H 0 : µ1 ! µ2 = µ D " 0 Upper-tail test H 0 : µ1 ! µ2 = µ D " 0 H1 : µ1 ! µ2 = µ D " 0 H1 : µ1 ! µ2 = µ D < 0 H1 : µ1 ! µ2 = µ D > 0 Test Statistics and Distributions under H 0 : D= T= ! di ~ N ( µ n D ! µD 0 sD = D = µ D = 0, " D ) , where di = X1i...
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