Unit 7 - Inferential Statistics Workshop
This compulsory e-portfolio component demonstrates practical application of hypothesis testing and summary measures through analysis of real datasets. The exercises cover descriptive statistics, frequency analysis, paired and independent samples t-tests, and interpretation of statistical significance.
Exercise 7.1.1 & 7.1.2: Summary Measures for Diet B
Background
This exercise analyses weight loss data from Dataset B (Diets). The goal is to calculate summary measures for Diet B and compare them with Diet A to assess the relative effectiveness of the two weight reducing diets.
Results - Exercise 7.1.1 (Summary Statistics)
Diet B Summary Statistics:
- Sample size (n) = 50
- Sample mean weight loss = 3.710 kg
- Sample standard deviation = 2.769 kg
Comparison with Diet A:
- Diet A mean weight loss = 5.341 kg
- Diet A standard deviation = 2.536 kg
Results - Exercise 7.1.2 (Quartiles)
Diet B Quartiles:
- Median (Q2) = 3.745 kg
- First Quartile (Q1) = 1.953 kg
- Third Quartile (Q3) = 5.404 kg
- Interquartile Range (IQR) = 3.451 kg
Comparison with Diet A:
- Diet A Median = 5.642 kg
- Diet A IQR = 3.285 kg
Interpretation
The results clearly indicate that Diet A is more effective than Diet B for weight reduction:
Central Tendency: The mean weight loss for Diet A (5.341 kg) is approximately 1.63 kg higher than Diet B (3.710 kg). Similarly, the median for Diet A (5.642 kg) exceeds Diet B's median (3.745 kg) by about 1.9 kg. Both measures of central tendency consistently favour Diet A.
Variability: The standard deviations are similar (Diet A: 2.536 kg, Diet B: 2.769 kg), indicating comparable spread in weight loss outcomes for both diets. The IQRs are also similar, suggesting the middle 50% of participants experienced similarly variable results.
Practical Significance: Both diets produce positive average weight loss, indicating both are effective to some degree. However, Diet A produces approximately 44% more weight loss on average, which represents a clinically meaningful difference. This suggests Diet A should be recommended over Diet B for individuals seeking to maximise weight loss.
Exercise 7.1.3: Brand Preferences Analysis for Area 2
Background
This exercise analyses brand preference data from Dataset D (Brandprefs). The goal is to calculate frequencies and percentage frequencies for Area 2 respondents and compare brand preference patterns between the two demographic areas.
Results - Area 2 Brand Preferences (n = 90)
- Brand A: 19 respondents (21.1%)
- Brand B: 30 respondents (33.3%)
- Other brands: 41 respondents (45.6%)
Comparison with Area 1 (n = 70):
- Brand A: 11 respondents (15.7%)
- Brand B: 17 respondents (24.3%)
- Other brands: 42 respondents (60.0%)
Interpretation
The brand preference patterns differ notably between the two demographic areas:
Brand A: Shows higher preference in Area 2 (21.1%) compared to Area 1 (15.7%), a difference of 5.4 percentage points.
Brand B: Also shows substantially higher preference in Area 2 (33.3%) compared to Area 1 (24.3%), a difference of 9 percentage points.
Other Brands: The preference for competitor brands is notably lower in Area 2 (45.6%) compared to Area 1 (60.0%), a difference of 14.4 percentage points.
Marketing Implications: These findings suggest that the manufacturer's brands (A and B) have stronger market penetration in Area 2, with over half (54.4%) of respondents preferring either Brand A or B. In contrast, Area 1 shows weaker brand loyalty with only 40% preferring the manufacturer's brands. This could inform targeted marketing strategies. Area 1 may require more intensive promotional efforts to increase brand awareness and loyalty.
Exercise 7.2.4: Filtration Two-Tailed Paired t-Test
Background
This exercise analyses filtration data from Dataset G. Each batch was split and filtered using two different agents, making a paired (related) samples t-test appropriate. The goal is to test whether the population mean impurity differs between the two filtration agents.
Hypotheses
- H₀: μ₁ = μ₂ (no difference in mean impurity between agents)
- H₁: μ₁ ≠ μ₂ (mean impurity differs between agents)
Summary Statistics
- Agent 1 mean impurity: 8.250 parts per 1000
- Agent 2 mean impurity: 8.683 parts per 1000
- Mean difference: -0.433 parts per 1000
- SD of differences: 0.460
Test Statistics
- t statistic: -3.264
- Degrees of freedom: 11
- p-value (two-tailed): 0.0075
Interpretation
Statistical Conclusion: The two-tailed p-value (0.0075) is less than 0.05, so we reject the null hypothesis at the 5% significance level. There is significant evidence that the population mean impurity differs between the two filtration agents.
Practical Interpretation: Agent 1 produces a mean impurity of 8.250 parts per 1000, which is 0.433 parts per 1000 lower than Agent 2's mean of 8.683. This difference is statistically significant (p = 0.0075, which is significant at the 1% level).
Recommendation: Since lower impurity indicates better filtration performance, Agent 1 appears to be the more effective filtration agent and should be preferred for applications where minimising impurity is important.
Exercise 7.2.2: Filtration One-Tailed Test
Background
Building on Exercise 7.2.4, we now conduct a one-tailed test to determine whether Filter Agent 1 is specifically more effective (produces lower impurity) than Agent 2.
Hypotheses
- H₀: μ₁ ≥ μ₂ (Agent 1 impurity is greater than or equal to Agent 2)
- H₁: μ₁ < μ₂ (Agent 1 is more effective—produces lower impurity)
Consistency Check
The sample data show Agent 1 mean (8.250) < Agent 2 mean (8.683). The data are consistent with H₁ (Agent 1 more effective).
Test Statistics
- t statistic: -3.264
- Degrees of freedom: 11
- p-value (one-tailed): 0.0038
Interpretation
Statistical Conclusion: The one-tailed p-value (0.0038) is less than 0.01, so we reject the null hypothesis at the 1% significance level. There is strong evidence that Filter Agent 1 is more effective at removing impurities than Agent 2.
Comparison with Two-Tailed Test: The one-tailed test provides stronger evidence (p = 0.0038 vs p = 0.0075) because we had a directional hypothesis. The one-tailed p-value is exactly half the two-tailed p-value when the sample mean difference is in the predicted direction.
Conclusion: There is statistically significant evidence at the 1% level that Filter Agent 1 produces lower impurity levels, making it the preferred choice for filtration applications.
Exercises 7.2.3 & 7.2.5: Bank Cardholder Income Analysis
Background
This exercise analyses bank cardholder data from Dataset C (Superplus). The goal is to test whether the population mean income for male cardholders exceeds that of female cardholders. Since the male and female samples are independent, an independent samples t-test is appropriate.
Step 1: F-test for Equality of Variances
Hypotheses
- H₀: σ²ₘₐₗₑₛ = σ²fₑₘₐₗₑₛ (variances are equal)
- H₁: σ²ₘₐₗₑₛ ≠ σ²fₑₘₐₗₑₛ (variances are unequal)
Results
- Male variance: 233.129
- Female variance: 190.176
- F statistic: 1.226
- df: (59, 59)
- p-value (two-tailed): approximately 0.44
Conclusion
p > 0.05, so we fail to reject H₀. We assume equal variances and use the equal variances form of the independent samples t-test.
Step 2: Independent Samples t-Test (One-tailed)
Hypotheses
- H₀: μₘₐₗₑₛ ≤ μfₑₘₐₗₑₛ (male mean income does not exceed female)
- H₁: μₘₐₗₑₛ > μfₑₘₐₗₑₛ (male mean income exceeds female)
Summary Statistics
- Male mean income: £52.913k (n = 60)
- Female mean income: £44.233k (n = 60)
- Difference in means: £8.680k
- Pooled variance: 211.652
Test Statistics
- t statistic: 3.268
- Degrees of freedom: 118
- p-value (one-tailed): 0.0007
Interpretation
Statistical Conclusion: The one-tailed p-value (0.0007) is less than 0.01, so we reject the null hypothesis at the 1% significance level. There is strong evidence that the population mean income for male Superplus Diamond cardholders exceeds that of female cardholders.
Practical Interpretation: Male cardholders have a mean income of £52,913, which is £8,680 higher than the female mean income of £44,233. This represents a 19.6% higher income for males on average.
Assumptions and Validation:
- Independence: The samples are independently drawn. Each cardholder appears in only one group.
- Normality: Income should be approximately normally distributed. With n=60 in each group, the Central Limit Theorem supports the validity of the t-test even if distributions are slightly non-normal. Validation could be performed using normal probability plots (Q-Q plots) or histograms for each group.
- Equal Variances: The F-test (p ≈ 0.44) confirms this assumption is reasonable.
- Random Sampling: We assume cardholders were randomly selected from the Superplus Diamond cardholder population.
References
- Field, A. (2013) Discovering statistics using IBM SPSS statistics. 4th edn. London: SAGE Publications.
- Moore, D.S., McCabe, G.P. and Craig, B.A. (2017) Introduction to the practice of statistics. 9th edn. New York: W.H. Freeman.