02 a2level

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Appendix Table 9 lists critical values for upper tail probabilities of 0.05 or 0.01. Therefore, when testing against a two‐sided alternative, the information in the printed table offers a choice of the significance level as either α = 0.10 (a 10% level) or α = 0.02 (a 2% level). In applied work, the computer software is used for the calculation of descriptive statistics, the test statistic and an accompanying p‐value. A p‐value for the two‐tailed test is calculated as: ⎛ s2 ⎞ x p‐value = 2 ⋅ P⎜ F( n − 1 , n − 1 ) > 2 ⎟ y ⎜x sy ⎟ ⎝ ⎠ For a chosen significance level α , the decision rule is to reject the null hypothesis if: 15 p‐value < α Chapter 11 A one‐sided alternative can also be specified. Test the null hypothesis: H0 : σ 2 = σ 2 X Y or H0 : σ X ≤ σ Y 2 2 against the alternative: H1 : σ 2 > σ 2 X Y If a comparison of the calculated sample variances shows s x < s y then there is no evidence to reject the null hypothesis. 2 2 If s x > s y then calculate the test statistic: 2 2 s2 x 2 sy For a chosen significance level α , the decision rule is to reject the null hypothesis of equal variances if: s2 x > Fc s2 y where Fc is the critical value fro...
View Full Document

Ask a homework question - tutors are online