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Hypothesis Testing About the

Variances of Two Populations


 Whenever the variances of two normal populations
are equal , the sampling distribution of the ratio of
the two sample variances is as follows

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 F distribution is not symmetric,

 the F values can never be negative.

 The shape of any particular F distribution depends


 on its numerator and denominator degrees of freedom.

 Fα to denote the value of F that provides an area or


probability of α in the upper tail of the distribution

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We begin with a test of the equality of two population
variances.
The hypotheses are stated as follows

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Steps

 Draw sample from each population


 Find the variances
 Larger sample variance is taken as population 1
 A sample size of n1 and a sample variance of s1
correspond to population 1,
 A sample size of n2 and a sample variance of s2
correspond to population 1

 Based on the assumption that both populations have a


normal distribution, the ratio of sample variances provides
the following F test statistic.
 F test statistic is constructed with the larger sample
variance in the numerator, the value of the test
statistic will be in the upper tail of the F distribution.

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Hypothesis Testing About the
Variances of Two Populations
 Two-Tailed Test
•Hypotheses
H 0 :  12   22
H a :  12   22

Denote the population providing the


larger sample variance as population 1.

•Test Statistic 2
s
F 1
s22

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Hypothesis Testing About the
Variances of Two Populations
 Two-Tailed Test (continued)
•Rejection Rule
Critical value approach: Reject H0 if F > F/2

where the value of F/2 is based on an


F distribution with n1 - 1 (numerator)
and n2 - 1 (denominator) d.f.

p-Value approach: Reject H0 if p-value < 

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Hypothesis Testing About the
Variances of Two Populations
 Example: Buyer’s Digest (C)
Buyer’s Digest has conducted the
Test on 10 thermostats, manufactured by TempKing.
The temperature readings of the ten
thermostats are listed on the next slide.
We will conduct a hypothesis test with  = .10 to see
if the variances are equal for ThermoRite’s thermostats
and TempKing’s thermostats.

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Hypothesis Testing About the
Variances of Two Populations
 Example: Buyer’s Digest (C)
ThermoRite Sample

Thermostat 1 2 3 4 5 6 7 8 9 10
Temperature 67.4 67.8 68.2 69.3 69.5 67.0 68.1 68.6 67.9 67.2

TempKing Sample

Thermostat 1 2 3 4 5 6 7 8 9 10
Temperature 67.7 66.4 69.2 70.1 69.5 69.7 68.1 66.6 67.3 67.5

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Hypothesis Testing About the
Variances of Two Populations
 Hypotheses
H 0 :  12   22 (TempKing and ThermoRite thermostats
have the same temperature variance)
H a :  12   22 (Their variances are not equal)
 Rejection Rule
The F distribution table (on next slide) shows that with
with  = .10, 9 d.f. (numerator), and 9 d.f. (denominator),
F.05 = 3.18.
Reject H0 if F > 3.18

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Hypothesis Testing About the
Variances of Two Populations
Selected Values from the F Distribution Table
Denominator Area in
Degrees Upper Numerator Degrees of Freedom
of Freedom Tail 7 8 9 10 15
8 .10 2.62 2.59 2.56 2.54 2.46
.05 3.50 3.44 3.39 3.35 3.22
.025 4.53 4.43 4.36 4.30 4.10
.01 6.18 6.03 5.91 5.81 5.52

9 .10 2.51 2.47 2.44 2.42 2.34


.05 3.29 3.23 3.18 3.14 3.01
.025 4.20 4.10 4.03 3.96 3.77
.01 5.61 5.47 5.35 5.26 4.96

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Hypothesis Testing About the
Variances of Two Populations
 Test Statistic
TempKing’s sample variance is 1.768
ThermoRite’s sample variance is .700
s12
F 2 = 1.768/.700 = 2.53
s
2
Conclusion
We cannot reject H0. F = 2.53 < F.05 = 3.18.
There is insufficient evidence to conclude that
the population variances differ for the two
thermostat brands.

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Hypothesis Testing About the
Variances of Two Populations
 Determining and Using the p-Value

Area in Upper Tail .10 .05 .025 .01


F Value (df1 = 9, df2 = 9) 2.44 3.18 4.03 5.35

• Because F = 2.53 is between 2.44 and 3.18, the area


in the upper tail of the distribution is between .10
and .05.
• But this is a two-tailed test; after doubling the upper-
tail area, the p-value is between .20 and .10. (A precise
p-value can be found using Minitab or Excel.)
• Because  = .10, we have p-value >  and therefore
we cannot reject the null hypothesis.

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 A sample of 26 arrival times for the Milbank service
provides a sample variance of 48 and a sample of 16
arrival times for the Gulf Park service provides a
sample variance of 20. Because the Milbank sample
provided the larger sample variance, we will denote
Milbank as population 1.

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α = .10 as the level of significance, the
p-value < α = .10.

Thus, the null hypothesis is rejected.

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 conclusion
 two bus services differ in terms of pickup/delivery
time variances.
 The recommendation is that the Dullus County
School administrators give special consideration to
the better or lower variance service offered by the
Gulf Park Company.

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 One-tailed tests involving two population variances
are also possible.

 In this case, we use the F distribution to determine


whether one population variance is significantly
greater than the other.

 A one-tailed hypothesis test about two population


variances will always be formulated as an upper tail
test:

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Hypothesis Testing About the
Variances of Two Populations
 One-Tailed Test
•Hypotheses
H 0 :  12   22
H a :  12   22

Denote the population providing the


larger sample variance as population 1.

•Test Statistic
s12
F
s22

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Hypothesis Testing About the
Variances of Two Populations
 One-Tailed Test (continued)
•Rejection Rule
Critical value approach: Reject H0 if F > F

where the value of F is based on an


F distribution with n1 - 1 (numerator)
and n2 - 1 (denominator) d.f.
p-Value approach: Reject H0 if p-value < 

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