MVP-2

EX.1 APPLICATION OF HOTELLING`S T^2 TEST

sample mean vactor:

8.8571 H0:µ=µ0 (NULL HYPOTHESIS)
4.5
0.8571

matrix of corrected s.s :s inverse of s:

128.72 61.4076 -21.0211 0.016487 -0.01936
61.4076 56.9259 -28.2958 -0.01936 0.045293
-21.0211 -28.2958 63.5344 -0.003167 0.013767

TEST STATISTICS :
T²=n(n-1)(x-µ)`s -1 (x-µ)

here,n=28 and µ= 7000

4000
1000

x-µ -6991.1429 (x-µ)`=

-3995.5
-999.1429

(X-µ)`S-1= -34.74993 -59.3786 -53.6684

(X-µ)`S-1(X-µ)= 533811.32351

Now, T²= 403561361

(n-1)= 27

F cal=(T²/(n-1))*(n-1)-(p-1)/p
T²/(n-1)= 14946717.074
(n-1)-(p-1)/p 8.3333333333

Fcal= 124555976

F tab=2.99

conclusion: Here, Fcal>Ftab. Hence we reject the null hypothesis and conclude that the population averag
income, average expenditure & average net savings are not Rs 7000, Rs 4000 and Rs 1000 res
 -0.003167
0.013767
0.020823

-6991.14 -3995.5 -999.1429

322484350

nclude that the population average gross

Rs 7000, Rs 4000 and Rs 1000 respectively.