1.

A health services corporation manages two hospitals in Ampang, Kuala Lumpur which are
Prince Court Hospital and Gleneagles Hospital. The mean waiting time in the Emergency
Department for the two hospitals is 41.5 minutes. The hospital administrator wants to know
whether the variation in waiting time for Prince Court Hospital’s Emergency Department are
the same as the variation in waiting time for Gleneagles Hospital’s Emergency Department.
A random sample of six customers were selected from each hospital. The following table
gives the information (in minutes) obtained from the customers.

Prince Court Hospital’s waiting time Gleneagles Hospital’s waiting time

(minutes) (minutes)
40 41
42 45
41 42
44 40
43 38
39 43

Using 5% significance level, can you conclude that there is a difference in the variation in the
waiting time for the two hospitals?

Answer:

Step 1: H0: σ12 = σ22

H1: σ12 ≠ σ22

Step 2: The requested significance level is 0.05

Step 3: The appropriate test statistic to test a hypothesis of equal variances is the F statistic.

Step 4: Reject H0 if F > 7.15 (critical value). Otherwise, do not reject H0.

Step 5:

Prince Court Hospital:

∑x 249 ∑( x− x̄)² 17.5

x̄ =
n
=
6
= 41.5 s=
√ n−1 √
=
6−1
= 1.8708

Gleneagles Hospital:
 ∑x 249 ∑( x− x̄)² 29.5
x̄ =
n
=
6
= 41.5 s=
√ n−1 √
=
6−1
= 2.4290

s ²₁ (2.4290)² 5.9000
F= = = = 1.6858
s ²₂ (1.8708)² 3.4999

Do not reject H0. This is because F (1.6858) < 7.15.

Step 6: There is insufficient evidence to conclude that there is a difference in the variation in
the waiting time for the two hospitals at 5% significance level.

2. A senior lecturer of Faculty of Business, University of Wales wants to study the average
hours per week that the Bachelor’s Degree’s students from the faculty, by type of major,
spend on doing revision. The lecturer selected a sample of six students from each of three
majors. The following table gives the information (in hours) obtained from the students.

Accounting Business Administration Finance

20.0 19.3 17.5
20.5 18.5 17.8
21.0 19.5 16.5
21.1 18.1 17.0
20.2 20.0 18.0
22.0 17.6 16.1

Can the lecturer conclude that there is a difference in the mean number of hours spent per
week by major at 1% significance level?

Answer:

Step 1: H0: μA = μB = μF

H1: The means are not all equal.

Step 2: The requested significance level is 0.01.

Step 3: Because we are comparing means of more than two groups, F statistic is used.

Step 4:

The degrees of freedom in the numerator:

(Number of treatments – 1) = (k - 1) = 3 - 1 = 2

The degrees of freedom in the denominator:

(Total number of observations – Number of treatments) = (n – k) = 18 - 3 = 15

Reject H0 if F > 6.51 (critical value). Otherwise, do not reject H0.

Step 5:

Accounting Business Finance Total

Administratio
n
20 19.3 17.5
20.5 18.5 17.8
21 19.5 16.5
21.1 18.1 17
20.2 20 18
22 17.6 16.1
Column 124.8 113 102.9 340.7
total
n 6 6 6 18
Mean 20.8 18.8333 17.15 18.9278

Grand mean = 18.9278

Accounting Business Finance SS Total [

Administration ∑( x− x̄ G)²]
1.1496 0.1385 2.0386
2.4718 0.1830 1.2719
4.2940 0.3274 5.8942
4.7185 0.6853 3.7164
1.6185 1.1496 0.8608
9.4384 1.7631 7.9965
Total 23.6908 4.2469 21.7784 49.7161

Accounting Business Finance SSE [

Administration ∑( x− x̄ C) ²]
0.64 0.2178 0.1225
0.99 0.1111 0.4225
0.04 0.4445 0.4225
0.09 0.5377 0.0225
0.36 1.3612 0.7225
1.44 1.5210 1.1025
Total 3.56 4.1933 2.815 10.5683
SST = SS Total – SSE

SST = 49.7161 – 10.5683

SST = 39.1478

ANOVA TABLE

Source of Sum of squares Degrees of Mean square F

variation freedom
Treatments 39.1478 2 19.5739 27.7802
Error 10.5683 15 0.7046
Total 49.7161 17

Reject H0 since F (27.7802) > 6.51

Step 6: There is sufficient evidence to conclude that there is a difference in the mean number
of hours spent per week by the three majors at 1% significance level.

3. A DVD company collects data from customers who purchase movie DVDs from them.
Each person is asked to state his or her favourite movie genre from the following list:
Comedy, Horror, and Romance. A random sample of six customers were selected from each
genre. Each customer was asked how much he or she spent (in RM) on movie DVDs in the
last month. The following table gives the information (in RM) obtained from the customers.

Comedy Horror Romance

50 45 30
45 50 41
48 49 32
43 46 44
52 51 29
52 52 28

Using 5% significance level, can you conclude that the mean monthly expenditures of all
customers in each of the three movie genres are the same?

Answer:

Step 1: H0: μC = μH = μR

H1: The means are not all equal.

Step 2: The requested significance level is 0.05.

Step 3: Because we are comparing means of more than two groups, F statistic is used.

Step 4:

The degrees of freedom in the numerator:

(Number of treatments – 1) = (k - 1) = 3 - 1 = 2

The degrees of freedom in the denominator:

(Total number of observations – Number of treatments) = (n – k) = 18 - 3 = 15

Reject H0 if F > 3.74 (critical value). Otherwise, do not reject H0.

Step 5:

Comedy Horror Romance Total

50 45 30
45 50 41
48 49 32
43 46 44
52 51 29
52 52 28
Column 290 293 204 787
total
n 6 6 6 18
Mean 48.3333 48.8333 34 43.7222

Grand mean = 43.7222

Comedy Horror Romance SS Total [

∑( x− x̄ G)²]
39.4108 1.6328 188.2988
1.6328 39.4108 7.4104
18.2996 27.8552 137.4100
0.5216 5.1884 0.0772
68.5220 52.9664 216.7432
68.5220 68.5220 247.1876
Total 196.9088 195.5756 797.1272 1,189.6116

Comedy Horror Romance SSE [

 ∑( x− x̄ C) ²]
2.7779 14.6942 16
11.1109 1.3612 49
0.1111 0.0278 4
28.4441 8.0276 100
13.4447 4.6946 25
13.4447 10.0280 36
Total 69.3334 38.8334 230 338.1668

SST = SS Total – SSE

SST = 1,189.6116 – 338.1668

SST = 851.4448

ANOVA TABLE

Source of Sum of squares Degrees of Mean square F

variation freedom
Treatments 851.4448 2 425.7224 18.8836
Error 338.1668 15 22.5445
Total 1,189.6116 17

Reject H0 since F (18.8836) > 3.74

Step 6: There is sufficient evidence to conclude that there is a difference in the mean monthly
expenditures of all customers in each of the three movie genres at 5% significance level