In: Statistics and Probability
H0:σ^2 (1) ≤σ^2 (2), HA:σ^2 (1)>σ^2 (2)
n(1) = 15, s^2 (1) = 1000;
n(2) = 27, s^2 (2) = 689
α=0.05
Reject or do not reject H0?
Solution :
The null and alternative hypotheses are as follows :
Test statistic :
To test the hypothesis the most appropriate test is F-test for testing the equality of two population variances. The test statistic is given as follows :
Where, s12 and s22 are sample variances.
We have, s12 = 1000 and s22 = 689
The value of the test statistic is 1.4514.
Degrees of freedom = (n1 - 1, n2 - 1) = (15 - 1, 27 - 1)
Degrees of freedom = (14, 26)
P-value :
Since, our test is right-tailed test, therefore we shall obtain right-tailed p-value for the test statistic. The right-tailed p-value is given as follows :
P-value = P(F > value of the test statistic)
P-value = P(F > 1.4514)
P-value = 0.1993
The p-value is 0.1993.
Conclusion :
α=0.05 and p-value = 0.1993
Since, p-value is greater than α=0.05, therefore do not reject H0.
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