MODULE- 4
LARGE SAMPLE TESTS:
Introduction: The testing of hypothesis is vary widely used in business, Research, production
engineering, clinical, pharmaceutical fields. It is also powerful tool in research and quality analysis.
Population: A population is a group of homogeneous units or observation is called population the
population are two types namely
1. finite population
2. Infinite population
Finite population: In a population, the number of observations countable number in this type of
population is called finite population.
Example: In a TVS company the production of bikes is a finite population
Infinite population: In a population, the number of observations uncountable number in this type of
population is called infinite population
Example: The number of stars in the sky is an infinite, this type of population is called infinite
population.
Parameter: A parameter is an important characteristic of the entire population which represent as
constant, that constant is called parameter. This is represented by the Greek alfa bets letters.
Example: In normal population µ and σ are parameters.
Sample: A sample is a sub part of the population which represents entire population that sub
patrician is called sample. In general representation x 1 , x 2 , x 3 , x 4 … … … … … . x n.
Statistic: A statistics is a real valued function of sample observation this is denoted by
t=t (x 1 , x 2 , x 3 , x 4 … … … … … . x n) this is estimating the population parameter values.
❑ ❑
Example: ∑ xi
, ∑ 2
( x i−x ) are statistics
x= ❑
S2=
❑
❑ ❑
Degree of freedom: any statistics which make free number of observations is called Degree of
freedom this is denoted by ν=n−1.
Sample size: In sample the number of observations is called sample size this is denoted by “n”
Small sample: If the sample the sample size less than 30 i.e. n < 30 this sample is called Small
sample.
Large sample: If the sample the sample size n=30 and more than 30 i.e. n ≥ 30 this sample is called
large sample.
Estimation: In a population the population parameter they can Estimate through the statistic that
value is called estimation
Estimator: In a population the population parameter they can Estimate through the statistic that
statistic is called estimator.
Point estimation: In a population the population parameter value they can Estimate through the
statistic in a single value is called point estimation.
Interval estimation: In a population the population parameter value they can Estimate through the
statistic between the two constants this type of estimation is called Interval estimation.
Sampling Distribution: sampling distribution means from the population we draw the sample in
different all possible ways with fixed sample size those samples we compute the statistics, those
values from a distribution this type of distribution is called Sampling Distribution or Sampling
Distribution of statistics.
Standard Error: The standard deviation of or Sampling Distribution of statistics is called Standard
Error this is denoted by S.E(t)
STATISTICS LARGE SAMPLE SMALL SAMPLE (S.E(t))
(S.E(t))
x σ S
√❑ √❑
x− y √❑ √❑
S σ S
√❑ √❑
s1−s 2 √❑ √❑
p √❑ √❑
p1− p2 √❑ √❑
Inference:
Hypothesis: Hypothesis is a make assumption about on data this type of state meant is called
Hypothesis. The hypothesis may be classified into two types namely
1. Null Hypothesis
2. Alternative Hypothesis
Null Hypothesis: Null Hypothesis is a statement. That statement is there is no significance
difference between them this type of statement is called null hypothesis denoted by H o
Example: a product manufacturing in two method in this case H o : There is no significance
difference between two method this type statement is called Null Hypothesis
Alternative Hypothesis: Alternative Hypothesis is a quit opposite statement of Null hypothesis.
there is significance difference between them this type of statement is called Alternative
hypothesis denoted by H 1
Example: a product manufacturing in two method in this case H 1 : There is significance
difference between two method this type statement is called Alternative Hypothesis
Simple Hypothesis is a statistical Hypothesis which completely specifies an exact parameter.
N.H is always simple hypothesis stated as a equality specifying an exact value of the parameter
H0 : μ = μ0
VS
H1 : μ1 > μ2 or μ1 < μ2 is called Simple VS simple
Composite Hypothesis is stated in terms of several possible values.
H0: μ = μ0
VS
H1: μ1 ≠ μ2 is called Simple VS com posit statement
Critical region: In sample space total regions can be divided into two mutually exclusive
regions those are one is acceptance region this denoted by W and another is rejection this
denoted by W. A sample will follow on the acceptance region they can acceptance lot and a
sample will follow on that rejection region they can reject the sample this type of region is
called critical region
W Acceptance Region W Reaction Region
Types of errors: In decision making system a product come to the market, that lot checking
through
The Sampling inspection in this situation two types error may be occurs namely
1. Type-I error or producer`s risk
2. Type-II error or consumer`s risk
Type-I error or producer`s risk: In decision making system a sample follow on the rejection
region then reject lot when lot is good this type of error is called Type-I error or producer`s risk in
mathematically X∈W/ when H0 true
Type-II error or consumer`s risk: In decision making system a sample follow on the acceptance
region then accept that lot when lot is bad this type of error is called Type-II error or consumer`s
risk in mathematically X∈W / when H0 false
Accept H0 Reject H0
H0 is True Correct Decision Type-I error
H0 is False Type -II error Correct Decision
Level of significance: the probability of type-I error is called Level of significance that is up this
level there is no significance more than that level there is significance this is denoted by α P
(X∈W/ when H0 true) = α.
One tailed Test: In testing of hypothesis the total critical region can be exits only one side this
type test is called one tailed test. The one tailed test is can be classified two types namely
1. Right tailed test
2. Left tailed test
Right tailed Test: In testing of hypothesis the total critical region can be exits only right-hand
side this type test is called right tailed test. In this case null and alternative as follows
H0: μ = μ0
VS
H1: μ1 > μ2
Left tailed Test: In testing of hypothesis the total critical region can be exits only left-hand side
this type test is called left tailed test. In this case null and alternative as follows
H0: μ = μ0
VS
H1: μ1 < μ2
Two tailed tests: In testing of hypothesis the total critical region can be exits on both sides left-
hand and right-hand side this type test is called Two tailed test. In this case null and alternative as
follows
H0: μ = μ0
VS
H1: μ1 ≠ μ2
Testing Procedure: any data can be testing trough the procedure. The procedure as follows
1. To the given data develop the null and alternative hypothesis as follows
H o :there is no significance difference between them
Vs
H 1 : there is significance differencebetween them
2. To the given data select appropriate test statistics. In general, the test statistics as follows
|t−E(t)|
Z=
S . E (t)
Where t = is the statistics
E(t) = expected value of t
S.E(t) = standard error
3. Compute the above statistics and compare with critical values, the critical values observed
from concerned tables at α% with n-1 degree of freedom.
4. If |Z| ≤ Z ° α we accept H o
2
If |Z| ≥ Z ° α we reject H o
2
One sample mean test:
Assumptions: 1. The sample drawn from normal population
2 . If the sample size is larger
Let 1 2 3 4 … … … … … . x nbe random sample of size n with sample mean x and sample
x , x , x , x
mean square s2 drawn from normal population. The population mean μ∧σ .we want test they
have any significance difference between sample and population means in this situation we can
apply
one sample mean test the test procedure as follows.
1. To the given data develop the null and alternative hypothesis as follows
H o :there is no significance difference between smple∧ population mean
Vs
H 1 : there is significance differencebetween smple∧ population mean
Or
H0: μ = x
VS
H1: μ≠ x
2. To the given data select appropriate test statistics. In small sample case the difference means
that error follows t- distribution in this situation we can apply t-test statistics as follows
| x−μ|
¿ Z∨¿
σ
√❑
Where x = is the sample mean
μ = population mean
σ = population standard deviation
n = sample size
3. Compute the above statistics and compare with critical values, the critical values observed
from concerned tables at α% with n-1 degree of freedom.
4. If |Z| ≤ Z ° α we accept H o
2
If |Z| ≥ Z ° α we reject H o
2
Confidence intervals:
The (1-α )% confidence interval for one sample mean given by
( x−Z α
2
)
√❑
Two sample mean test:
Assumptions: 1. The sample drawn from normal population
2. the sample size is smaller
Let x 1 , x 2 , x 3 , x 4 … … … … … . x nbe random sample of size n1with sample mean x and sample mean
square s21 drawn from normal population. The population mean μ1∧σ 1 . Let
y 1 , y 2 , y 3 , y 4 … … … … … . y nbe another random sample of size n2 with sample mean y and sample
mean square s22 drawn from normal population. The population mean μ2∧σ 2 we want test they have
any significance difference between two sample means in this situation we can apply Two sample
mean test. The test procedure as follows.
1. To the given data develop the null and alternative hypothesis as follows
H o :There is no significance difference between smple means
Vs
H 1 : Thereis significance difference between smple means
Or
H0: x= y
VS
H1: x ≠ y
2. To the given data select appropriate test statistics. In small sample case the difference of two
sample means that error follows t- distribution in this situation we can apply t- test statistics as
follows.
| x− y|
¿ Z∨¿
√❑
3. Compute the above statistics and compare with critical values, the critical values observed
°α
from concerned tables at % with n1 +n 2-1 degree of freedom.
2
4. If |Z| ≤ Z ° α we accept H o
2
If |Z| ≥ Z ° α we reject H o
2
Confidence intervals:
The (1-α )% confidence interval for two sample mean given by
(( x )
y)−Z α √ ❑
2
One sample proportion test:
Assumptions: 1. The sample drawn from normal population
2. If the sample size is larger
Let 1 2 3 , x 4 … … … … … . x nbe random sample of size n with sample proportions p and q
x , x , x
drawn from normal population having proportions P∧Q .we want test they have any significance
difference between sample and population proportions in this situation we can apply one sample
proportion test the test procedure as follows.
1. To the given data develop the null and alternative hypothesis as follows
H o :there is no significance difference between smple∧ population mean
Vs
H 1 : there is significance differencebetween smple∧ population mean
Or
H0:P = p
VS
H1: P ≠ p
2. To the given data select appropriate test statistics. In small sample case the difference means
that error follows t- distribution in this situation we can apply t-test statistics as follows
| p−P|
¿ Z∨¿
√❑
Where p = is the sample Proportion
P = population Proportion
Q=1−P = population Proportion of opposite characteristic of x
n = sample size
3. Compute the above statistics and compare with critical values, the critical values observed
from concerned tables at α% with n-1 degree of freedom.
4. If |Z| ≤ Z ° α we accept H o
2
If |Z| ≥ Z ° α we reject H o
2
Confidence intervals for one sample proportion:
The (1-α )% confidence interval for one sample proportion given by
( p−Z α
2
√❑
)
Two sample proportion test:
Assumptions: 1. The sample drawn from normal population
2. the sample size is smaller
Let x 1 , x 2 , x 3 , x 4 … … … … … . x nbe random sample of size n1 with sample Proportion p1 and q 1 drawn
from normal population. The population Proportions P1∧Q1 . Let y 1 , y 2 , y 3 , y 4 … … … … … . y nbe
another random sample of size n2 with sample Proportions p2 and q 2 drawn from normal population
Proportions having P2∧Q2. we want test they have any significance difference between two sample
Proportions in this situation we can apply Two sample Proportions test, The test procedure as
follows.
3. To the given data develop the null and alternative hypothesis as follows
H o :There is no significance difference between smple means
Vs
H 1 : Thereis significance difference between smple means
Or
p
H0: 1 1 =q
VS
H1: p1 ≠ q 1
4. To the given data select appropriate test statistics. In small sample case the difference of two
sample means that error follows t- distribution in this situation we can apply t- test statistics as
follows.
| p 1−p 2|
¿ Z∨¿
√❑
5. Compute the above statistics and compare with critical values, the critical values observed
°α
from concerned tables at % with n1 +n 2-1 degree of freedom.
2
6. If |Z| ≤ Z ° α we accept H o
2
If |Z| ≥ Z ° α we reject H o
2
Confidence intervals for difference of difference between two sample Proportions:
The (1-α )% confidence interval for difference between two sample Proportions by
(( p
1 p2 )−Z α √❑
2
)
