Bartletts homogeneity-of-variance test.* Suppose there are k independent sample variances s 2 1 , s 2 2

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Bartlett€™s homogeneity-of-variance test.* Suppose there are k independent sample variances s21, s22, . . . , s2kwith f1, f2, . . . , fkdf, each from populations which are normally distributed with mean μ and variance σ2i. Suppose further that we want to test the null hypothesis H0: σ2= σ2= · · · =σ2= σ2; that is, each sample variance is an estimate of the same population variance σ2. If the null hypothesis is true, then

Σi Σi3 Σ1


provides an estimate of the common (pooled) estimate of the population variance σ2, where fi = (ni ˆ’ 1), ni being the number of observations in the ith group and where f Σki = 1 fi . Bartlett has shown that the null hypothesis can be tested by the ratio A/B, which is approximately distributed as the χ2 distribution with k ˆ’ 1 df, where

A=fns? - ΣUng) (fi In s


And


Apply Bartlett€™s test to the data of the following table and verify that the hypothesis that population variances of employee compensation are the same in each employment size of the establishment cannot be rejected at the 5 percent level of significance. Note: fi, the df for each sample variance, is 9, since ni for each sample (i.e., employment class) is 10.



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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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