Chapter 7

Inferences Regarding Population

Variances

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Introduction

Population Variance: Measure of average squared

deviation of individual measurements around the mean

Sample Variance: Measure of average squared

deviation of a sample of measurements around their
sample mean. Unbiased estimator of 2

Sampling Distribution of s2 (Normal Data)

Population variance (2) is a fixed (unknown) parameter
based on the population of measurements
Sample variance (s2) varies from sample to sample (just
as sample mean does)
When Y~N(,), the distribution of (a multiple of) s2 is
Chi-Square with n-1 degrees of freedom.
(n1)s2/2 ~ 2 with df=n-1
Chi-Square distributions
Positively skewed with positive density over (0,)
Indexed by its degrees of freedom (df)
Mean=df, Variance=2(df)
Critical Values given in Table 7, pp. 1095-1096

Chi-Square Distributions

Chi-Square Distribution Critical Values

0.995
0.990
0.975
0.950
0.900
0.100
0.050
0.025
0.010
0.005

2( ) df=10
2.156
2.558
3.247
3.940
4.865
15.987
18.307
20.483
23.209
25.188

Chi-Square Critical Values (2-Sided Tests/CIs)

2L

2U

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(1-)100% Confidence Interval for 2 (or )

Step 1: Obtain a random sample of n items from the
population, and compute s2

Step 2: Choose confidence level (1- )

Step 3: Obtain 2L and 2U from the table of critical
values for the chi-square distribution with n-1 df
Step 4: Compute the confidence interval for 2 based on
the formula below
Step 5: Obtain confidence interval for standard
deviation by taking square roots of bounds for 2

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Statistical Test for 2

Null and alternative hypotheses

1-sided (upper tail): H0: 2 02 Ha: 2 > 02

1-sided (lower tail): H0: 2 02 Ha: 2 < 02
2-sided: H0: 2 = 02 Ha: 2 02

Test Statistic

Decision Rule based on chi-square distribution w/ df=n-1:

1-sided (upper tail): Reject H0 if obs2 > U2 = 2
1-sided (lower tail): Reject H0 if obs2 < L2 = 1-2
2-sided: Reject H0 if obs2 < L2 = 1-/22 (Conclude 2 < 02)
or if obs2 > U2 = /22 (Conclude 2 > 02 )

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Inferences Regarding 2 Population Variances

Goal: Compare variances between 2 populations
Parameter:
(Ratio is 1 when variances are equal)
Estimator:

(Ratio of sample variances)

Distribution of (multiple) of estimator (Normal Data):

F-distribution with parameters df1 = n1-1 and df2 = n2-1

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Properties of F-Distributions

Take on positive density over the range (0 , )

Cannot take on negative values
Non-symmetric (skewed right)
Indexed by two degrees of freedom (df1 (numerator df)
and df2 (denominator df))

Critical values given in Table 8, pp 1097-1108

Parameters of F-distribution:

Critical Values of F-Distributions

Notation: Fa, df1, df2 is the value with upper tail area of a
above it for the F-distribution with degrees of freedom
df1 and df2, respectively
F1-a, df1, df2 = 1/ Fa, df2, df1 (Lower tail critical values can be
obtained from upper tail critical values with reversed
degrees of freedom)
Values given for various values of a, df1, and df2 in
Table 8, pp 1097-1108

Critical Values of F (df1=5,df2=5)

0.7

upper area middle area lower area

0.25
0.5
0.25
0.1
0.8
0.1
0.05
0.9
0.05
0.025
0.95
0.025
0.01
0.98
0.01
0.005
0.99
0.005
0.001
0.998
0.001

0.6

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Density Function of F

0.5

0.4

upper cv
1.8947
3.4530
5.0503
7.1464
10.9671
14.9394
29.7514

lower cv
0.5278
0.2896
0.1980
0.1399
0.0912
0.0669
0.0336

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0.3

0.2

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0.1

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Test Comparing Two Population Variances

Assumption: the 2 populations are normally distributed

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(1-)100% Confidence Interval for 12/22

Obtain ratio of sample variances s12/s22 = (s1/s2)2
Choose , and obtain:
FL = F, n2-1, n1-1 = 1/ F, n1-1, n2-1
FU = F, n2-1, n1-1

Compute Confidence Interval:

Conclude population variances unequal if interval does not contain 1

Tests Among t > 2 Population Variances

Hartleys Fmax Test

Very simple to compute Test Statistic

Must have equal sample sizes (n1 = = nt)
Test based on assumption of normally distributed data
Uses special table for critical values

Levenes Test

More difficult to compute by hand

No assumptions regarding sample sizes/distributions
Uses F-distribution for the test
Computed automatically by software packages
(SAS,SPSS, Minitab)

Hartleys Fmax Test

H0: 12 = = t2 (homogeneous variances)
Ha: Population Variances are not all equal
Data: smax2 is largest sample variance, smin2 is smallest
Test Statistic: Fmax = smax2/smin2
Rejection Region: Fmax F* (Values from class website,
indexed by (.05, .01), t (number of populations) and df2
(n-1, where n is the individual sample sizes)

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Levenes Test

H0: 12 = = t2 (homogeneous variances)

Ha: Population Variances are not all equal
Data: For each group, obtain the following quantities: