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					|  |  |  |  | ** T Test for means                                                  :slide: | 
			
		
	
		
			
				
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					|  |  |  |  | ***  Testing if the mean is different from a specified value (say zero) :slide: | 
			
		
	
		
			
				
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					|  |  |  |  | $H_{0}: \mu = 0$ | 
			
		
	
		
			
				
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					|  |  |  |  | ** t-test for means                                                  :slide: | 
			
		
	
		
			
				
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					|  |  |  |  | ***  Testing if the mean is different from a specified value (say zero) :slide: | 
			
		
	
		
			
				
					|  |  |  |  | $H_{a}: \mu \neq 0$ | 
			
		
	
		
			
				
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					|  |  |  |  | #+name: ttest1 | 
			
		
	
		
			
				
					|  |  |  |  | #+begin_src R :results output list org | 
			
		
	
	
		
			
				
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					|  |  |  |  | *** Testing equality of means                                       :slide: | 
			
		
	
		
			
				
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					|  |  |  |  | + Here we test if the mean wages of men and women are equal. | 
			
		
	
		
			
				
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					|  |  |  |  | $H_{0}: \mu_{women} = \mu_{men}$ | 
			
		
	
		
			
				
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					|  |  |  |  | $H_{a}: \mu_{women} \neq \mu_{men}$ | 
			
		
	
		
			
				
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					|  |  |  |  | #+name: ttest2 | 
			
		
	
		
			
				
					|  |  |  |  | #+begin_src R :results output list org | 
			
		
	
	
		
			
				
					|  |  |  | @ -332,9 +338,14 @@ | 
			
		
	
		
			
				
					|  |  |  |  | #+end_src | 
			
		
	
		
			
				
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					|  |  |  |  | ** Testing for equality of proportions                               :slide: | 
			
		
	
		
			
				
					|  |  |  |  | ** Z Test for equality of proportions                                :slide: | 
			
		
	
		
			
				
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					|  |  |  |  | $H_{0}: p_{women} = p_{men}$ | 
			
		
	
		
			
				
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					|  |  |  |  | $H_{a}: p_{women} \neq p_{men}$ | 
			
		
	
		
			
				
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					|  |  |  |  | + Here we test if proportion of person who have passed high school is different for men and women | 
			
		
	
		
			
				
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					|  |  |  |  | #+name: proptest1 | 
			
		
	
		
			
				
					|  |  |  |  | #+begin_src R :results output list org | 
			
		
	
	
		
			
				
					|  |  |  | @ -361,3 +372,34 @@ | 
			
		
	
		
			
				
					|  |  |  |  | - 0.09245986 0.25348253 | 
			
		
	
		
			
				
					|  |  |  |  | #+end_src | 
			
		
	
		
			
				
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					|  |  |  |  | ** F Test for equality of variances                                  :slide: | 
			
		
	
		
			
				
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					|  |  |  |  | $H_{0}: \sigma_{women}^{2} = \sigma_{men}^{2}$ | 
			
		
	
		
			
				
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					|  |  |  |  | $H_{a}: \sigma_{women}^{2} \neq \sigma_{men}^{2}$ | 
			
		
	
		
			
				
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					|  |  |  |  | #+name: ftest1 | 
			
		
	
		
			
				
					|  |  |  |  | #+begin_src R :results output list org | 
			
		
	
		
			
				
					|  |  |  |  |   subset(worker,sex!=3)->t9 | 
			
		
	
		
			
				
					|  |  |  |  |   factor(t9$sex)->t9$sex | 
			
		
	
		
			
				
					|  |  |  |  |   var.test(wage~sex,data=t9) | 
			
		
	
		
			
				
					|  |  |  |  | #+end_src | 
			
		
	
		
			
				
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					|  |  |  |  | #+RESULTS: ftest1 | 
			
		
	
		
			
				
					|  |  |  |  | #+begin_src org | 
			
		
	
		
			
				
					|  |  |  |  | - F test to compare two variances | 
			
		
	
		
			
				
					|  |  |  |  | - data:  wage by sex | 
			
		
	
		
			
				
					|  |  |  |  | - F = 1.8352, num df = 30652, denom df = 6975, p-value < | 
			
		
	
		
			
				
					|  |  |  |  | - 0.00000000000000022 | 
			
		
	
		
			
				
					|  |  |  |  | - alternative hypothesis: true ratio of variances is not equal to 1 | 
			
		
	
		
			
				
					|  |  |  |  | - 95 percent confidence interval: | 
			
		
	
		
			
				
					|  |  |  |  | - 1.768532 1.903506 | 
			
		
	
		
			
				
					|  |  |  |  | - sample estimates: | 
			
		
	
		
			
				
					|  |  |  |  | - ratio of variances  | 
			
		
	
		
			
				
					|  |  |  |  | - 1.835174 | 
			
		
	
		
			
				
					|  |  |  |  | #+end_src | 
			
		
	
		
			
				
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