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Analysis of Variance Chapter 12 GOALS List the characteristics of the F distribution. Conduct a test of hypothesis to determine whether the variances of two populations are equal. Discuss the general idea of analysis of variance. Organize data into a one-way ANOVA table. Conduct a test of hypothesis among three or more treatment means. Develop confidence intervals for the difference in treatment means. Characteristics of F-Distribution There is a “family” of F Distributions. Each member of the family is determined by two parameters: the numerator degrees of freedom and the denominator degrees of freedom. The F distribution is continuous The F distribution cannot be negative. The F distribution is positively skewed. It is asymptotic. Comparing Two Population Variances The F distribution is used to test the hypothesis that the variance of one normal population equals the variance of another normal population. The following examples will show the use of the test: Two Barth shearing machines are set to produce steel bars of the same length. The bars, therefore, should have the same mean length. We want to ensure that in addition to having the same mean length they also have similar variation. The mean rate of return on two types of common stock may be the same, but there may be more variation in the rate of return in one than the other. A sample of 10 technology and 10 utility stocks shows the same mean rate of return, but there is likely more variation in the Internet stocks. A study by the marketing department for a large newspaper found that men and women spent about the same amount of time per day reading the paper. However, the same report indicated there was nearly twice as much variation in time spent per day among the men than the women. Test for Equal Variances Test for Equal Variances - Example Lammers Limos offers limousine service from the city hall in Toledo, Ohio, to Metro Airport in Detroit. Sean Lammers, president of the company, is consideri
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