In: Statistics and Probability
1] NULL HYPOTHESIS H0:
ALTERNATIVE HYPOTHESIS Ha:
Testing for Equality of Variances
A F-test is used to test for the equality of variances. The following F-ratio is obtained:
F=s1^2/s2^2
F= 30/25
F= 1.2
The critical values are FL=0.354 and FU=2.564, and since F=1.201, then the null hypothesis of equal variances is not rejected.
Therefore Variances are EQUAL.
2] NULL HYPOTHESIS H0:
ALTERNATIVE HYPOTHESIS Ha:
LEVEL OFSIGNIFICANCE =0.05
Based on the information provided, the significance level is α=0.05, and the degrees of freedom are df=35. In fact, the degrees of freedom are computed as follows, assuming that the population variances are equal:
Hence, it is found that the critical value for this two-tailed test is tc=2.03, for α=0.05 and df=35.
The rejection region for this two-tailed test is R={t:∣t∣>2.03}.
DECISION: DO NOT REJECT H0.
COCNLUSION: WE DONT HAVE SUFFICIENT EVIDENCE TO CONCLUDE THAT THERE IS DIFFERENCE IN MEANS.