HWK 7 - with n-1 degrees of freedom Signigicane Level Alpha...

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2 1 Homework #7 2 Problem 12 0 3 Business Issue: The number of vehicles owned by subscribers to Fortune Magazine 2 compared to antoher magazine 2 Buisness Question: Can we conclude the variance of the population is different from .94? 1 Data: Chi Square Test for Variance 2 A sample of 12 from a normal population 1 0 Analyis: 1 Hypotheseses Ho: Var = .94 Test Stat If repeated samples of size n (12) are taken from a Normal population (where Ho is true --> var = 94), (n-1)* ( Samp Var / Pop Var ) If Ho is true (var = .94) this statistic has a known distribution the chisq distribution
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Unformatted text preview: with n-1 degrees of freedom Signigicane Level Alpha = .05 Reject Rule Reject Ho if : ChiSqu > Chiinv: ( .025, 11) > 21.92 Chi Squ < Chiinv: ( .975 , 11) < 3.82 Calculations 0.81 0.81 ChiSqu = 9.48 p-value= ChiDist ( 9.4787, 11 ) = 0.58 0.42 0.84 Conclusion Do Not Reject Ho Business Answer: According to the data, this sample provides insufficent evidence that the popluation variance is different than .94 Ha: Var .94 s 2 =...
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