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The yearly tuition costs in dollars for random samples of medical schools that s

ID: 3226826 • Letter: T

Question

The yearly tuition costs in dollars for random samples of medical schools that specialize in research and in primary care are listed. At =0.05, can it be concluded that a difference between the variances of the two groups exists?

Research

Primary care

30890

32285

21943

22068

26044

31897

34194

21275

27590

37208

22817

31691

27618

39500

22310

31783

36065

25008

26234

32297

Research

Primary care

30890

32285

21943

22068

26044

31897

34194

21275

27590

37208

22817

31691

27618

39500

22310

31783

36065

25008

26234

32297

Explanation / Answer

Statistics

Variable N StDev Variance
Research 10 5902.701 3.48419E+07
Primary care 10 5351.638 2.86400E+07

Null hypothesis Sigma(Research) / Sigma(Primary care) = 1
Alternative hypothesis Sigma(Research) / Sigma(Primary care) not = 1

Test statistic

F = s21/s22

Method DF1 DF2 Statistic P-Value
F Test (normal) 9 9 1.22 0.775

The estimated p-value is 0.775 and larger than 0.05 level of significance. Hence, we can not reject the null hypothesis and conclude that there is no significance difference of variance between the Research and Primary Care at 0.05 level of significance.