In: Statistics and Probability
Is there a difference in the variance of the satisfaction rating of traditional cellphone provider who bill for service at the end of a month (often under a contract) and prepaid cellphone service providers who bill in advance without a contract? The file CellphoneProviders (see folder) contains the satisfaction rating for 10 traditional cellphone providers and 13 prepaid cellphone service. A. At the 0.05 level of significance, is there evidence of a difference in the variability of the satisfaction rating between the types of cellphone providers? B. Determine the p-value in (A) and interpret its meaning.
CellPhone Provider | Type | Rating |
Consumer Cellular | Traditional | 89 |
Ting | Traditional | 88 |
Grat Cell/Jitterbug | Traditional | 79 |
Credo Mobile | Traditional | 78 |
Virgin Mobile | Traditional | 76 |
U. S. Cellular | Traditional | 73 |
T-Mobile | Traditional | 73 |
Verizon Wireless | Traditional | 70 |
AT&T | Traditional | 68 |
Sprint | Traditional | 67 |
Republic Wireless | PrePaid | 87 |
Cricket | PrePaid | 85 |
Page Plus Cellular | PrePaid | 84 |
Straight Talk | PrePaid | 80 |
TracFone | PrePaid | 79 |
MetroPCS | PrePaid | 78 |
Virgin Mobile | PrePaid | 76 |
Net10 | PrePaid | 76 |
Boost Mobile | PrePaid | 75 |
T-Mobile | PrePaid | 74 |
Verizon Wireless | PrePaid | 70 |
AT&T | PrePaid | 70 |
Sprint | PrePaid | 66 |
PLEASE SOLVE IT ON EXCEL. STEP BY STEP THANK YOU
Answer(A):
To test the difference in the variability of the satisfaction rating between the types of cellphone providers, we need to run the F test for two sample variances. In Excel, we can do it as below:
1. Copy the data in Excel.
2. Go to the data
3. open the data analysis toolpack
4. select the data for both variables(shown in screen shot)
The output of F test is as below:
F-Test Two-Sample for Variances | ||
Variable 1 | Variable 2 | |
Mean | 76.1 | 76.9231 |
Variance | 58.3222 | 38.4103 |
Observations | 10 | 13 |
df | 9 | 12 |
F | 1.5184 | |
P(F<=f) one-tail | 0.2457 | |
F Critical one-tail | 2.7964 |
Answer(B):
the p-value of the test is 0.2457 which is greater than 0.05 and it suggest that the F test is not significant and we can conclude that there is no difference in the variability of the satisfaction rating between the types of cellphone providers.