DASHBOARD LEARN MENU

Learn VEE Mathematical Stats 4 4.2 4.2.2 Hypothesis Test for Variances

Hypothesis Test for Variances

For a random sample of size n drawn from a normal distribution with common mean μ and common variance σ 2 ,

(n − 1)S 2
σ2

has a χ2 distribution with n − 1 degrees of freedom. This is the same setup for constructing a confidence interval for
variances in Section 3.2.3.

As a result, a hypothesis test for σ 2 has a test statistic calculated as

(n − 1)s2
σ2

which comes from a χ2 sampling distribution with n − 1 degrees of freedom.

Unlike standard normal and t , the χ2 distribution is not symmetrical, and thus the critical values no longer have
simplifying relationships across the three variants. If χ2p, ν is the 100p th percentile of a χ2 random variable with ν
degrees of freedom, then

• For left-tailed tests, reject H0 when

(n − 1)s2
≤ χ2α, n−1
σ2

• For two-tailed tests, reject H0 when

(n − 1)s2 (n − 1)s2
[ ≤ χ2
α
, n−1
] ∪ [ ≥ χ21− α , n−1 ]
σ2 2 σ2 2

• For right-tailed tests, reject H0 when

(n − 1)s2
≥ χ21−α, n−1
σ2

EXAMPLE 4.2.4

SAT test scores are reported to follow a normal distribution with variance 125. A researcher questions if the assumed
variance ought to be lower, and randomly samples 20 test scores. The sample variance of the 20 scores is 104.

Let χ2p, ν be the 100p th percentile of a chi-squared random variable with ν degrees of freedom. The following table
lists values of χ2p, ν for specific combinations of p and ν :

p = 0.025 p = 0.05 p = 0.95 p = 0.975

ν = 19 8.907 10.117 30.144 32.852
ν = 20 9.591 10.851 31.410 34.170

Test whether the researcher is justified at the 5% significance level.

SOLUTION

For σ 2 representing the variance of SAT test scores, the hypotheses are

H0 : σ 2 = 125 H1 : σ 2 < 125

Recall this is a left-tailed test. For α = 0.05 , the critical value is

χ2α, n−1 = χ20.05, 19 = 10.117

The test statistic is

(n − 1)s2 19(104)
= = 15.808
σ 2 125

Since 15.808 > 10.117 , we fail to reject H0 at the 5% significance level.

Discussions
Previous Lesson Next Lesson
Watch 4.2.1 Hypothesis Test for Means: Examples Watch 4.2.2 Hypothesis Test for Variances