16 3 HYPOTHESIS TEST 1 Measured Response v Attribute Explanatory Variable with exactly two levels ☆Ⅲ lustrative Example s Response Variable: AMOUnT Spent on clothes per month s Attribute Explanatory Variable GENDER (Male/Female oo If Males and Females have the same ' spending on clothes characteristics then the average amounts spent monthly by males and by Female should be the same oo If Male and Females have different spending on clothes characteristics then the average amount spent monthly by Males and Female would be different
16.3 HYPOTHESIS TEST 1 Measured Response v Attribute Explanatory Variable with exactly two levels ❖ Illustrative Example Response Variable: AMOUNT Spent on Clothes per month Attribute Explanatory Variable GENDER (Male/Female) If Males and Females have the same 'spending on clothes' characteristics then the average amounts spent monthly by Males and by Female should be the same. If Male and Females have different 'spending on clothes' characteristics then the average amount spent monthly by Males and Female would be different
o Total population can be split into two or more sub-populations according to the level of the attribute, a population of Males and a population of Females
❖ Total population can be split into two or more sub-populations according to the level of the attribute, a population of Males and a population of Females
POPULATION MEANS THE SAME AmALE MALE ↓ AMOUNT POPULATION MEANS DIFERENT MALE PEALE MOUNT
POPULATION MEANS THE SAME
o Stage 1: Specifying the hypotheses 06 NULL HYPOTHESIS: Hl0:;0= ALTERNATIVE HYPOTHESIS H1:1≠1
❖ Stage 1: Specifying the hypotheses. NULL HYPOTHESIS: ALTERNATIVE HYPOTHESIS 0 0 1 H : = 1 0 1 H :
Stage 2: The Decision Rule os Results of ida for Illustrative Example 6 Outcome 1 Male Mean=￡45( Stand dev=￡20 Female mean=￡55( Stand dev=￡20) noenough evidence to form a clear judgement ☆ FDA is required MALD WALE AMOUNT 25
❖ Stage 2: The Decision Rule Results of IDA for Illustrative Example Outcome 1 ❖Male Mean = £45 (Stand Dev = £20) ❖Female Mean = £55 (Stand Dev = £20) ❖Noenough evidence to form a clear judgement ❖FDA is required