The assumption of equal variances, which was made in Exercise 8.41, is not always tenable. In such

Question:

The assumption of equal variances, which was made in Exercise 8.41, is not always tenable. In such a case, the distribution of the statistic is no longer a t. Indeed, there is doubt as to the wisdom of calculating a pooled variance estimate. (This problem, of making inference on means when variances are unequal, is, in general, quite a difficult one. It is known as the Behrens-Fisher Problem.) A natural test to try is the following modification of the two-sample t test: Test
H0:μx = μY versus H1 : μx ‰  μY,
where we do not assume that σ2x- σ2Y, using the statistic
The assumption of equal variances, which was made in Exercise

Where

The assumption of equal variances, which was made in Exercise

The exact distribution of Tʹ is not pleasant, but we can approximate the distribution using Satterthwaite's approximation (Example 7.2.3).
(a) Show that

The assumption of equal variances, which was made in Exercise

where v can be estimated with

The assumption of equal variances, which was made in Exercise

(b) Argue that the distribution of Tʹ can be approximated by a t distribution with u degrees of freedom.
(c) Re-examine the data from Exercise 8.41 using the approximate t test of this exercise; that is, test if the mean age of the core is the same as the mean age of the periphery using the T' statistic.
(d) Is there any statistical evidence that the variance of the data from the core may be different from the variance of the data from the periphery? (Recall Example 5.4.1.)

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Statistical Inference

ISBN: 978-0534243128

2nd edition

Authors: George Casella, Roger L. Berger

Question Posted: