Slides Prepared by

JOHN S. LOUCKS
St. Edwards University

2002 South-Western/Thomson Learning

Chapter 11
Inferences About Population Variances

Inference about a Population Variance

Inferences about the Variances of Two
Populations

Inferences About a Population Variance

Chi-Square Distribution
Interval Estimation of 2
Hypothesis Testing

Chi-Square Distribution

The chi-square distribution is the sum of

squared standardized normal random variables
such as
(z1)2+(z2)2+(z3)2 and so on.
The chi-square distribution is based on
sampling from a normal population.
The sampling distribution of (n - 1)s2/2 has a
chi-square distribution whenever a simple
random sample of size n is selected from a
normal population.
We can use the chi-square distribution to
develop interval estimates and conduct
hypothesis tests about a population variance.
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Interval Estimation of 2

Interval Estimate of a Population Variance

( n 1) s2
( n 1) s2
2
2
2
/2
(1 / 2)

where the values are based on a chi-square

distribution with n - 1 degrees of freedom and
where 1 - is the confidence coefficient.

Interval Estimation of

Interval Estimate of a Population Standard

Deviation
Taking the square root of the upper and
lower limits of the variance interval provides
the confidence interval for the population
standard deviation.

Interval Estimation of 2

Chi-Square Distribution With Tail Areas of .025

.025

.025

95% of the
possible 2 values
2

0
.975

2
.025

Example: Buyers Digest

Buyers Digest rates thermostats manufactured
for home temperature control. In a recent test, 10
thermostats manufactured by ThermoRite were
selected
and placed in a test room that was maintained at
a
temperature of 68oF. The temperature readings of
the
ten thermostats are listed below.
We will use the 10 readings to develop a 95%
confidence interval estimate of the population
variance.
Therm.

Example: Buyers Digest

Interval Estimation of 2
n - 1 = 10 - 1 = 9 degrees of freedom and
= .05
2
(
n

1)
s
2
2
.975

.025
2

.025

2
.975

.025

2
.025

Example: Buyers Digest

Interval Estimation of 2
n - 1 = 10 - 1 = 9 degrees of freedom and
= .05
(n 1)s2
2
2.70

.025
2

.025

0 2.70

Area in
Upper Tail
= .975
2

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Example: Buyers Digest

Interval Estimation of 2
n - 1 = 10 - 1 = 9 degrees of freedom and
= .05

( n 1) s2
2. 70
19. 02
2

.025

0 2.70

Area in Upper
Tail = .025

19.02

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Example: Buyers Digest

Interval Estimation of 2
Sample variance s2 provides a point estimate of
2.
2
(
x

x
)
6. 3

2
i
s

. 70
n 1
9
(10 1).interval
70
(10 the
1). 70
2
A 95% confidence
for
population

19. 02
2. 70
variance is given
by:

.33 < 2 < 2.33

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Hypothesis Testing
About a Population Variance

Left-Tailed Test
Hypotheses

H0 : 2 20
Ha : 2 20

Test Statistic
2
(
n

1
)
s
2
20

Rejection Rule
Reject H0 if 2 2

(where
is based on
2
a chi-square distribution with n - 1 d.f.) or
Reject H0 if p-value <
13

Hypothesis Testing
About a Population Variance

Right-Tailed Test
Hypotheses

H0 : 2 20
Ha : 2 20

Test Statistic
2
(
n

1
)
s
2
20

Rejection Rule
2
Reject H0 if 2 2(1 )
(where
is
(1
)
based on
a chi-square distribution with n - 1 d.f.) or
Reject H0 if p-value <
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Hypothesis Testing
About a Population Variance

Two-Tailed Test
Hypotheses

H0 : 2 20
Ha : 2 20

Test Statistic
2
(
n

1
)
s
2
20

Rejection Rule
2
2
Reject H0 if 2 2
(where
or

(1 / 2 )
/2
2
2
(1 / 2) and / 2are based on a chi-square
distribu- tion with n - 1 d.f.) or Reject H0 if pvalue <
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Hypothesis Testing About the

Variances of Two Populations

One-Tailed Test
Hypotheses

H0 : 12 22
Ha : 12 22

Test Statistic

s12
F 2
s2

Rejection Rule
Reject H0 if F > F where the value of F is
based on an F distribution with n1 - 1
(numerator) and n2 - 1 (denominator) d.f.
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Hypothesis Testing About the

Variances of Two Populations

Two-Tailed Test
Hypotheses

H0 : 12 22
Ha : 12 22

Test Statistic

s12
F 2
s2

Rejection Rule
Reject H0 if F > F/2 where the value of F/2 is
based on an F distribution with n1 - 1
(numerator) and n2 - 1 (denominator) d.f.
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Example: Buyers Digest

Buyers Digest has conducted the same test,
as was
described earlier, on another 10 thermostats,
this time
manufactured by TempKing. The temperature
readings
of the ten thermostats are listed below.
We will conduct a hypothesis test with = .10
to see
if the variances are equal for ThermoRites
thermostats
and TempKings thermostats.
Therm. 1 2 3 4 5 6 7 8 9 10

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Example: Buyers Digest

Hypothesis Testing About the Variances of Two

Populations
Hypotheses
H0 : 12 22 (ThermoRite and TempKing
thermostats have same
2
2
temperature
variance)
H
:

a
1
2
(Their variances are not equal)
Rejection Rule
The F distribution table shows that with
= .10,
9 d.f. (numerator), and 9 d.f.
(denominator),
F.05 = 3.18.
Reject H0 if F > 3.18

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Example: Buyers Digest

Hypothesis Testing About the Variances of Two

Populations
Test Statistic
ThermoRites sample variance is .70.
TempKings sample variance is 1.52.
F = 1.52/.70 = 2.17
Conclusion
We cannot reject H0. There is insufficient
evidence to conclude that the population
variances differ for the two thermostat
brands.

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End of Chapter 11

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