Section 10.

Comparing Two Variances

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 Section 10.3 Objectives

• Interpret the F-distribution and use an F-table to find

critical values
• Perform a two-sample F-test to compare two
variances

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 F-Distribution

2 2
• Let and represent the sample variances of two
s1 s2
different populations.
• If both populations are normal and the population
variances σ 12 and σ 22 are equal, then the sampling
distribution of
s12
F= 2
s2
is called an F-distribution.

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 Properties of the F-Distribution

1. The F-distribution is a family of curves each of

which is determined by two types of degrees of
freedom:
§ The degrees of freedom corresponding to the
variance in the numerator, denoted d.f.N
§ The degrees of freedom corresponding to the
variance in the denominator, denoted d.f.D
2. F-distributions are positively skewed.
3. The total area under each curve of an F-distribution
is equal to 1.
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 Properties of the F-Distribution

4. F-values are always greater than or equal to 0.

5. For all F-distributions, the mean value of F is
approximately equal to 1.

d.f.N = 1 and d.f.D = 8

d.f.N = 8 and d.f.D = 26
d.f.N = 16 and d.f.D = 7
d.f.N = 3 and d.f.D = 11

F
1 2 3 4
F-Distributions
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Finding Critical Values for the F-Distribution

1. Specify the level of significance α.

2. Determine the degrees of freedom for the numerator,
d.f.N.
3. Determine the degrees of freedom for the denominator,
d.f.D.
4. Use Table 7 in Appendix B to find the critical value. If
the hypothesis test is
a. one-tailed, use the α F-table.
b. two-tailed, use the ½α F-table.

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 Example: Finding Critical F-Values

Find the critical F-value for a right-tailed test when

α = 0.10, d.f.N = 5 and d.f.D = 28.
Solution:

The critical value is F0 = 2.06.

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 Example: Finding Critical F-Values

Find the critical F-value for a two-tailed test when

α = 0.05, d.f.N = 4 and d.f.D = 8.

Solution:
•When performing a two-tailed hypothesis test using
the F-distribution, you need only to find the right-
tailed critical value.
•You must remember to use the ½α table.
1 1
a = (0.05) = 0.025
2 2

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 Solution: Finding Critical F-Values

½α = 0.025, d.f.N = 4 and d.f.D = 8

The critical value is F0 = 5.05.

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 Two-Sample F-Test for Variances

To use the two-sample F-test for comparing two

population variances, the following must be true.
1. The samples must be randomly selected.
2. The samples must be independent.
3. Each population must have a normal distribution.

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 Two-Sample F-Test for Variances

• Test Statistic
s12
F= 2
s2
where s12 and s22 represent the sample variances with
s12 ³ s22.
• The degrees of freedom for the numerator is
d.f.N = n1 – 1 where n1 is the size of the sample
having variance s12.
• The degrees of freedom for the denominator is
d.f.D = n2 – 1, and n2 is the size of the sample having
variance s22.
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 Two-Sample F-Test for Variances
In Words In Symbols
1. Verify that the samples are
random and independent, and
the populations have normal
distributions.
2. Identify the claim. State the State H0 and Ha.
null and alternative
hypotheses.
Identify α.
3. Specify the level of
significance.

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 Two-Sample F-Test for Variances
In Words In Symbols
4. Identify the degrees of d.f.N = n1 – 1
freedom for the numerator d.f.D = n2 – 1
and the denominator.
Use Table 7 in
5. Determine the critical
Appendix B.
value.
6. Determine the rejection
region.

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 Two-Sample F-Test for Variances
In Words In Symbols
7. Find the test statistic and s12
F= 2
sketch the sampling s2
distribution.
8. Make a decision to reject or If F is in the
fail to reject the null rejection region,
hypothesis. reject H0.
9. Interpret the decision in the Otherwise, fail to
context of the original reject H0.
claim.

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 Example: Performing a Two-Sample F-Test

A restaurant manager is designing a system that is

intended to decrease the variance of the time customers
wait before their meals are served. Under the old
system, a random sample of 10 customers had a
variance of 400. Under the new system, a random
sample of 21 customers had a variance of 256. At
α = 0.10, is there enough evidence to convince the
manager to switch to the new system? Assume both
populations are normally distributed.

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 Solution: Performing a Two-Sample F-Test

Because 400 > 256, s12 = 400 and s22 = 256

• H0: σ12 ≤ σ22 • Test Statistic:
• Ha: σ12 > σ22 (Claim) s12 400
F= 2 = » 1.56
• α = 0.10 s2 256
• d.f.N= 9 d.f.D= 20 • Decision: Fail to Reject H0
• Rejection Region: There is not enough evidence
at the 10% level of
significance to convince the
0.10
manager to switch to the new
system.
0 1.561.96 F
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 Example: Performing a Two-Sample F-Test

You want to purchase stock in a company and are

deciding between two different stocks. Because a
stock’s risk can be associated with the standard
deviation of its daily closing prices, you randomly select
samples of the daily closing prices for each stock to
obtain the results. At α = 0.05, can you conclude that
one of the two stocks is a riskier investment? Assume
the stock closing prices are normally distributed.
Stock A Stock B
n2 = 30 n1 = 31
s2 = 3.5 s1 = 5.7
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 Solution: Performing a Two-Sample F-Test

Because 5.72 > 3.52, s12 = 5.72 and s22 = 3.52

• H0: σ12 = σ22 • Test Statistic:
• Ha: σ12 ≠ σ22 (Claim) s12 5.7 2
F = 2 = 2 » 2.652
• ½α = 0. 025 s2 3.5
• d.f.N= 30 d.f.D= 29 • Decision: Reject H0
• Rejection Region: There is enough evidence at
the 5% level of significance
to support the claim that one
0.025
of the two stocks is a riskier
investment.
0 2.09 2.652 F
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Solution: Performing a Two-Sample F-Test
TI-84 Plus:
Start with the STAT keystroke. Choose the TESTS menu
and select E:2-SampFtest. Set up as shown in the first
screen. Select the Stats input option. When entering the
original data, select the Data input option. The second
screen shows the Calculate option. The third screen shows
the Draw option.

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 Section 10.3 Summary

• Interpreted the F-distribution and used an F-table to

find critical values
• Performed a two-sample F-test to compare two
variances

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 Section 10.4

Analysis of Variance

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 Section 10.4 Objectives

• How to use one-way analysis of variance to test

claims involving three or more means
• An introduction to two-way analysis of variance

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 One-Way ANOVA

One-way analysis of variance

• A hypothesis-testing technique that is used to
compare means from three or more populations.
• Analysis of variance is usually abbreviated ANOVA.
• Hypotheses:
§ H0: μ1 = μ2 = μ3 =…= μk (all population means are
equal)
§ Ha: At least one of the means is different from the
others.

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 One-Way ANOVA

In a one-way ANOVA test, the following must be true.

1. Each sample must be randomly selected from a
normal, or approximately normal, population.
2. The samples must be independent of each other.
3. Each population must have the same variance.

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 One-Way ANOVA
Variance between samples
Test statistic =
Variance within samples
1. The variance between samples MSB measures the
differences related to the treatment given to each
sample and is sometimes called the mean square
between.
2. The variance within samples MSW measures the
differences related to entries within the same sample.
This variance, sometimes called the mean square
within, is usually due to sampling error.

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 One-Way Analysis of Variance Test

• If the conditions for a one-way analysis of variance

are satisfied, then the sampling distribution for the
test is approximated by the F-distribution.
• The test statistic is
MS B
F=
MSW
• The degrees of freedom for the F-test are
d.f.N = k – 1 and d.f.D = N – k
where k is the number of samples and N is the sum of
the sample sizes.
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 Test Statistic for a One-Way ANOVA
In Words In Symbols
1. Find the mean and å x 2 å(x - x )2
x= s =
variance of each sample. n n -1
2. Find the mean of all
åx
entries in all samples (the x=
N
grand mean).
3. Find the sum of squares SS B = å ni(xi - x)2
between the samples.
4. Find the sum of squares SSW = å(ni - 1)si2
within the samples.

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 Test Statistic for a One-Way ANOVA
In Words In Symbols
5. Find the variance between the SS B å ni(xi - x)2
MS B = =
samples. d.f.N k -1

6. Find the variance within the SSW å(ni - 1)si2

MSW = =
samples d.f.D N -k

MS B
7. Find the test statistic. F=
MSW

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 Performing a One-Way ANOVA Test
In Words In Symbols
1. Verify that the samples are
random and independent, the
populations have normal
distributions, and the
population variances are equal.
2. Identify the claim. State the State H0 and Ha.
null and alternative
hypotheses.
3. Specify the level of Identify α.
significance.
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 Performing a One-Way ANOVA Test
In Words In Symbols
4. Determine the degrees of d.f.N = k – 1
freedom for the numerator d.f.D = N – k
and the denominator.

5. Determine the critical value. Use Table 7 in

Appendix B.

6. Determine the rejection

region.

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 Performing a One-Way ANOVA Test
In Words In Symbols
7. Calculate the test statistic MS B
F=
and sketch the sampling MSW
distribution.
If F is in the
8. Make a decision to reject or rejection region,
fail to reject the null reject H0.
hypothesis. Otherwise, fail to
reject H0.
9. Interpret the decision in the
context of the original claim.
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 ANOVA Summary Table
• A table is a convenient way to summarize the results in
a one-way ANOVA test.

Sum of Degrees of Mean

Variation F
squares freedom squares

SS B MS B
Between SSB d.f.N MS B =
d.f.N MSW

SSW
Within SSW d.f.D MSW =
d.f.D

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 Example: Performing a One-Way ANOVA
A medical researcher wants to determine whether there
is a difference in the mean length of time it takes three
types of pain relievers to provide relief from headache
pain. Several headache sufferers are randomly selected
and given one of the three medications. Each headache
sufferer records the time (in minutes) it takes the
medication to begin working. The results are shown on
the next slide. At α = 0.01, can you conclude that the
mean times are different? Assume that each population
of relief times is normally distributed and that the
population variances are equal.
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 Example: Performing a One-Way ANOVA
Medication 1 Medication 2 Medication 3
12 16 14
15 14 17
17 21 20
12 15 15
19
56 85 66
x1 = = 14 x2 = = 17 x3 = = 16.5
4 5 4
s =6
2
1
s22 = 8.5 s32 = 7
Solution:
k = 3 (3 samples)
N = n1 + n2 + n3 = 4 + 5 + 4 = 13 (sum of sample sizes)
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 Solution: Performing a One-Way ANOVA
• H0: μ1 = μ2 = μ3 • Test Statistic:
• Ha: At least one mean
is different. (Claim)
• α = 0. 01 • Decision:
• d.f.N= 3 – 1 = 2
• d.f.D= 13 – 3 = 10
• Rejection Region:

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 Solution: Performing a One-Way ANOVA

To find the test statistic, the following must be calculated.

å x 56 + 85 + 66
x= = » 15.92
N 13

SS B å ni(xi - x )2
MS B = =
d.f.N k -1
4(14 - 15.92) 2 + 5(17 - 15.92) 2 + 4(16.5 - 15.92) 2
»
3 -1
21.9232
= = 10.9616
2

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 Solution: Performing a One-Way ANOVA

To find the test statistic, the following must be calculated.

SSW å(ni - 1)si2
MSW = =
d.f.D N -k
(4 - 1)(6) + (5 - 1)(8.5) + (4 - 1)(7)
=
13 - 3
73
= = 7.3
10

MS B 10.9616
F= » » 1.50
MSW 7.3

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 Solution: Performing a One-Way ANOVA
• H0: μ1 = μ2 = μ3 • Test Statistic:
• Ha: At least one mean MS B
F= » 1.50
is different. (Claim) MSW
• α = 0.01 • Decision: Fail to Reject H0
• d.f.N= 3 – 1 = 2 There is not enough evidence
at the 1% level of significance
• d.f.D= 13 – 3 = 10
to conclude that there is a
• Rejection Region: difference in the mean length
of time it takes the three pain
relievers to provide relief
from headache pain.
1.50 7.56
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 Example: Using the TI-83/84 to Perform a
One-Way ANOVA
A researcher believes that the mean earnings of top-paid
actors, athletes, and musicians are the same. The
earnings (in millions of dollars) for several randomly
selected from each category are shown in the table in
next slide. Assume that the populations are normally
distributed, the samples are independent, and the
population variances are equal. At α = 0.10, can you
conclude that the mean earnings are the same for the
three categories? Use a technology tool. (Source:
Forbes.com LLC)

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 Example: Using the TI-83/84 to Perform a
One-Way ANOVA

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 Solution: Using the TI-83/84 to Perform a
One-Way ANOVA
• H0: μ1 = μ2 = μ3 (Claim)
• Ha: At least one mean is different.
• Store data into lists L1, L2, and L3

• Decision: P ≈ 0.06 so P < α Reject H0

There is enough evidence at the 10% level of significance
to reject the claim that the mean earnings are the same.

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 Two-Way ANOVA

Two-way analysis of variance

• A hypothesis-testing technique that is used to test the
effect of two independent variables, or factors, on
one dependent variable.

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 Two-Way ANOVA

Example:
• Suppose a medical researcher wants to test the effect
of gender and type of medication on the mean length
of time it takes pain relievers to provide relief.
Gender
Male Female
medication

I Males taking type I Females taking type I

Type of

II Males taking type II Females taking type II

III Males taking type III Females taking type III

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 Two-Way ANOVA Hypotheses

Main effect
• The effect of one independent variable on the
dependent variable.

Interaction effect
• The effect of both independent variables on the
dependent variable.

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 Two-Way ANOVA Hypotheses

Hypotheses for main effects:

• H0: Gender has no effect on the mean length of time it
takes a pain reliever to provide relief.
• Ha: Gender has an effect on the mean length of time it
takes a pain reliever to provide relief.

• H0: Type of medication has no effect on the mean length of

time it takes a pain reliever to provide relief.
• Ha: Type of medication has an effect on the mean length of
time it takes a pain reliever to provide relief.

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 Two-Way ANOVA Hypotheses
Hypotheses for interaction effects:
• H0: There is no interaction effect between gender and type
of medication on the mean length of time it takes a
pain reliever to provide relief.
• Ha: There is an interaction effect between gender and type
of medication on the mean length of time it takes a
pain reliever to provide relief.
Perform a two-way ANOVA test, calculating the F-statistic for
each hypothesis. It is possible to reject none, one, two, or all of
the null hypotheses. The statistics involved with a two-way
ANOVA test is beyond the scope of this course. You can use a
technology tool such as MINITAB to perform the test.
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 Section 10.4 Summary

• Used one-way analysis of variance to test claims

involving three or more means
• Introduced two-way analysis of variance

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