Chapter 12
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Learning Objectives
LO12-1 Apply the F distribution to test a hypothesis that
two population variances are equal.
LO12-2 Use ANOVA to test a hypothesis that three or
more population means are equal.
LO12-3 Use confidence intervals to test and interpret
differences between pairs of population means.
LO12-4 Use a blocking variable in a two-way ANOVA to
test a hypothesis that three or more population
means are equal.
LO12-5 Perform a two-way ANOVA with interaction and
describe the results.
12-2
12-3
LO12-1
Characteristics of a F-Distribution
There is a family of F- distributions.
A particular member of the family is
determined by two parameters: the
degrees of freedom in the numerator
and the degrees of freedom in the
denominator.
The F-distribution is continuous.
A F-value cannot be negative.
The F-distribution is positively
skewed.
It is asymptotic. As F , the curve
approaches the X-axis but never
touches it.
12-4
LO12-1
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 technology stocks.
A study by the marketing department for a large newspaper found that men and
women spend 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.
12-5
LO12-1
12-6
LO12-1
s2 = (8.9947)2 = 80.9046
s2 = (4.3759)2 =19.1433
12-7
LO12-1
LO12-1
F > F/2,v1,v2
F > F.10/2,7-1,8-1
F > F.05,6,7
12-9
LO12-1
Step 6: Interpret the result. The data indicates that there is a difference in
the variation of the travel times along the two routes.
12-10
LO12-1
12-11
LO12-2
The null hypothesis is when the population means are all the
same.
The alternative hypothesis is when at least one of the means is
different.
The test statistic is the F distribution.
The decision rule is whether to reject the null hypothesis if F
(computed) is greater than F (table) with numerator and denominator
degrees of freedom.
Hypothesis Setup and Decision Rule:
H0: 1 = 2 == k
H1: The means are not all equal.
Reject H0 if F > F,k-1,n-k
12-13
LO12-2
141212-14
6.
7.
8.
9.
Write Ho and H1
Draw normal diagram one tail/two tails- label the two
regions (acceptance and rejection)
Determine the critical value (CV)
Write the decision rule (DR)
Compute z/t/F (depends on type of question) DIAGRAM FOR
CH.12, ONE-TAIL RIGHT SIDE SHADED AREA-REFER TO
DIAGRAM AT APPENDIX F
Locate the computed z/t/F into the normal diagram
Make decision on Ho (Accept Ho /reject Ho)
Find p-value and interpret it (to accept Ho/to reject Ho) OMIT
THIS STEP FOR CH.12
Interpret the result (conclusion)
11-15
LO12-2
12-16
LO12-2
12-17
LO12-2
12-18
LO12-2
LO12-2
12-20
LO12-2
12-21
LO12-2
12-22
LO12-2
TreatmentMS 296.90
F=
=
= 8.99
ErrorMS
33.02
12-23
LO12-2
12-24
Do it Now
Page 393
Self
Review 12-2
12-25
LO12-2
12-26
12-27
LO12-3
12-28
LO12-3
12-29
12-30
LO12-2
WARTA conducted several tests to determine whether there was a difference in the mean
travel times along the four routes. Because there will be many different drivers, the test
was set up so each driver drove along each of the four routes. The next slide shows the
travel time, in minutes, for each driver-route combination. At the .05 significance level, is
there a difference in the mean travel time along the four routes? If we remove the effect of
the drivers, is there a difference in the mean travel time?
This is a two-way ANOVA. The routes are the treatments and the drivers are the blocks.
12-31
LO12-4
12-32
LO12-4
12-33
LO12-4
12-34
LO12-4
12-35
LO12-4
SSB k( x b x G ) 2
12-36
LO12-4
Step 5: Compute the value of F and make a decision. The computed value of F is
7.93, which is greater than the critical value of 3.49, so the null hypothesis is rejected.
F=
SST ( k -1)
72.8 / 3 24.27
=
= 7.93
36.7 /12
3.06
Step 6: Interpret the Result. At least one pair of mean route times are different.
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LO12-4
12-38
12-39
LO12-5
12-40
LO12-5
LO12-5
12-42
LO12-5
2.
3.
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LO12-5
LO12-5
12-45