ECON 2142 Lecture Notes - Lecture 2: Pooled Variance, Statistical Hypothesis Testing, 2Degrees
14 Mar 2017
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Hypothesis testing for the difference between two means, two proportions. Hypothesis testing for the difference between two means using independent samples: pooled variance t-test, z-test. Pooled variance t-test: assumptions, sampling from populations that are normal or approximately normally distributed, value(s) of the population standard deviations are unknown, sampling from populations that have equal variance. * note that these assumptions are identical to the ones for the one-mean test. * note also that the denominator is the estimated standard error for the sampling distributions for the difference between two sample means. H0: 1 = 2 ; h1: 1 2. H0: 1 2 ; h1: 1 < 2. Finding the decision rule: /2 go to t- table to find the critical value in order to determine the decision rule. Decision rule: reject h0 if t > upper critical value or t < lower critical value.
