--%>
Assignment Help - homework help

Compare the test results

The grade point averages of 61 students who completed a college course in financial accounting have a standard deviation of .790. The grade point averages of 17 students who dropped out of the same course have a standard deviation of .940. Do the data indicate a difference between the variances of grade point averages for students who completed a financial accounting course and students who dropped out? Use α = .05 level of significance. Use both p-value and critical value approaches. Compare the test results.

 

E

Expert

Verified

Data

N1 = 61, SD1 = 0.79, N2 = 17, SD2 = 0.94

S12 = 0.792 = 0.6241

S22 = 0.942 = 0.8836

Hypothesis Formation

H0: σ1 = σ2

H1: σ1 ≠ σ 2

Test Stastistics

F =S12/S22

Critical Region

Reject H0 in favor of alternative if F test statistic lesser than the critical value of F critical value or lesser than -F critical value.

i.e F-test statistic > critical value of F OR F-test statistic < critical value of -F

Critical value of F at 0.05 Significance Level for two tail test

Df1 = N1 - 1 = 61 - 1 = 60

Df2 = N1 - 1 = 17 - 1 = 16

Critical value of F with df 8 and alpha 0.05 = F0.05/2,60,16 = 2.45

Computation

F-Statistic = 0.6241/0.8836

    = 0.71

Decision

As F statistic is neither greater than 2.45 nor smaller than -2.45 so we can not reject null hypothesis. P-value can't be determine in this manually however it can be said that it will be at least greater than the tolerance level of 0.05.

   Related Questions in Basic Statistics

  • Q : Explain Queuing theory Queuing theory :

    Queuing theory: • Queuing theory deals with the analysis of lines where customers wait to receive a service:

    Q : Define Operational Analysis

    Operational Analysis: • Analysis method based on the measurement of the operational characteristics of the system.

    Q : Cumulative Frequency and Relative

    Explain differences between Cumulative Frequency and Relative Frequency?

    		•
  • Q : Compute two sample standard deviations

    Consider the following data for two independent random samples taken from two normal populations. Sample 1 14 26 20 16 14 18 Sample 2 18 16 8 12 16 14 a) Com

    		•
  • Q : FIN512 Entrepreneurial Finance Chapter

      Chapter 6: Discussion Question: #4 p. 223  It is usually easier to forecast sales for a seasoned firm contrast to an early-stage venture because an early-stage venture has limited access to bank credit lines, sho

    		•
  • Q : Sample z test and Sample t test A

    A random sample X1, X2, …, Xn is from a normal population with mean µ and variance σ2. If σ is unknown, give a 95% confidence interval of the population mean, and interpret it. Discuss the major diff

    		•
  • Q : Data Description 1. If the mean number

    1. If the mean number of hours of television watched by teenagers per week is 12 with a standard deviation of 2 hours, what proportion of teenagers watch 16 to 18 hours of TV a week? (Assume a normal distribution.) A. 2.1% B. 4.5% C. 0.3% D. 4.2% 2. The probability of an offender having a s

    		•
  • Q : Problems on ANOVA We are going to

    We are going to simulate an experiment where we are trying to see whether any of the four automated systems (labeled A, B, C, and D) that we use to produce our root beer result in a different specific gravity than any of the other systems. For this example, we would l

    		•
  • Q : Time series what are the four

    what are the four components of time series?

    		•
  • Q : Statistics basic question This week you

    This week you will analyze if women drink more sodas than men.  For the purposes of this Question, assume that in the past there has been no difference.  However, you have seen lots of women drinking sodas the past few months.  You will perform a hypothesis test to determine if women now drink more

    		•