12. Hypothesis Tests Concerning Differences between Variances
j. identify the appropriate test statistic and interpret the results for a hypothesis test concerning 1) the variance of a normally distributed population, and 2) the equality of the variances of two normally distributed populations based on two independent random samples;
What is the math notation for the test statistic to test the equality of variances between two normally distributed populations?
\(F = \frac{S_1^2}{S_2^2}\)
- F
= Fisher (the name of the person who formulated this distribution)
- S
= Sample variances from the two populations
Which statistic is the F-test most like: z-test, t-test, chi-square? The F-test is asymmetrical and bounded at zero, like chi-square.
What does the F-test check about the test statistic (S_1)^2 / (S_2)2
?
If the test statistic ratio is close to 1 you will get a non-rejection of the null hypothesis (H_0
), otherwise you will get a rejection.
Unlike the chi-square test which is only determined by one parameter, the F-test is determined by two parameters. What are they? The degrees of freedom in the numerator and the degrees of freedom in the denominator.
In an F-test, do both populations need to be normally distributed and independent? Yes
Source:
CFA
Graph:
- 115.020.60 Reading 11 - Hypothesis Testing to 115.020.60.12 Reading 11 - 12. Hypothesis Tests Concerning Differences between Variances