Unformatted text preview: 2. For a sample of 25 items of the same category purchased today the mean is $5.12 with a standard deviation of $2.14. 3. The firm decided to ascertain if at = .05, is there a difference in α variance ? Pitcher Granite, LLC used the following parameters: a. Hypotheses: H : 12 = 22 versus H σ σ a : 12 ≠ 22 σ σ b. Level of Significance : = 5% = 0.05 α c. Decision Rule : Reject the null hypothesis if p-value < 0.05. d. Test characteristic: F = s12 ÷ s22 = 3.022 ÷ 2.142 = 1.99 e. For Degrees of Freedom(numerator) = Degrees of Freedom(denominator) = e.i. = 24 and corresponding to F-value = 1.99, the p-value = 0.049 f. Conclusion: Since 0.049 is just less than 0.05, we reject H . There is just about enough statistical evidence to conclude at 5% level of significance that there is a difference in the variances ....
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- Spring '11
- Standard Deviation, quantitative statistical tests