Tests for Variance Flashcards
1
Q
Why Does Variance Matter?
A
Measures risk (volatility).
Quality control.
2
Q
What Must be true for a Chi-Square Variance Test?
A
Population normally distributed.
The distribution is not symmetrical.
3
Q
What are features of the F-Distribution?
A
Always positive.
Skewed to the right (long tail).
4
Q
What is Assumed When Testing with the F-Distribution?
A
Populations are normally distributed.
Specify larger sample variance as numerator.
