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Unformatted text preview: xact p‐value is obtained as the upper tail area of the F‐distribution probability density function to the right of the calculated test statistic: p‐value = P( F( 3 , 6 ) > 7.095 ) With Microsoft Excel select Insert Function: numerator degrees of freedom ↓ FDIST(7.095, 3, 6) ↑ denominator degrees of freedom This returns the answer: p‐value = 0.021 20 Chapter 11 The calculated p‐value falls between 0.01 and 0.05. The interpretation is that, although the null hypothesis can be rejected at a 5% level, it is not rejected at a 1% significance level. This conclusion can be confirmed by checking the F‐distribution tables. With α = 0.01 the critical value from the F( 3 , 6 ) distribution is: Fc = 9.78 The calculated test statistic of 7.095 is below the 1% level critical value to suggest that the null hypothesis of equal population variances in the two sample periods is not rejected. Comment on methodology – in applied work the computer software used for the statistical analysis of the data can also be used for the calculation of p‐values for test statistics. Ther...
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