Applied Economics & Statistics Topic 7: Analysis of Variance Flashcards

- How to compare variances, for example, to test whether two samples come from populations that have equal variances. - How to test the equality of 3 or more population means. To do this we use an ANOVA (ANalysis Of VAriance) test. - Both of these tests require use of an F test. This F statistic has an F distribution

1
Q

Which tests require the use of an F test?

A
  • Comparing variances, for example, to test whether two samples
    come from populations that have equal variances
  • Testing the equality of 3 or more population means (using an ANOVA (ANalysis Of VAriance) test)
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2
Q

State the characteristics of the F distribution

A
  • A continuous distribution.
  • Cannot be negative.
  • Asymmetric (positively (towards the left) skewed).
  • The F is a family of distributions,
    with two degrees of freedom pa-
    rameters, one in the numerator,
    one in the denominator.
  • Asymptotic, i.e. the curve ap-
    proaches the x-axis but doesn’t
    reach it
  • It looks like the Maxwell-Boltzamann Distribution Curve
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3
Q

Is a table needed for F distribution? What for?

A

Yes, F distribution table: this table gives the value of the distribution where
5% is in the tail. Each α level gets its own table.

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4
Q

Describe and explain how, generally, an ‘Equal Variances Test’ goes

A
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