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MVP 2

1) The document applies Hotelling's T^2 test to sample data with means of 8.8571, 4.5, and 0.8571. 2) It calculates the test statistic T^2 as 403561361 and compares it to the critical value Ftab of 2.99. 3) Since the calculated value Fcal of 124555976 is greater than Ftab, the null hypothesis that the population averages are 7000, 4000, and 1000 is rejected.

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0% found this document useful (0 votes)
286 views2 pages

MVP 2

1) The document applies Hotelling's T^2 test to sample data with means of 8.8571, 4.5, and 0.8571. 2) It calculates the test statistic T^2 as 403561361 and compares it to the critical value Ftab of 2.99. 3) Since the calculated value Fcal of 124555976 is greater than Ftab, the null hypothesis that the population averages are 7000, 4000, and 1000 is rejected.

Uploaded by

Karin Bhasin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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MVP-2

EX.1 APPLICATION OF HOTELLING`S T^2 TEST

sample mean vactor:


8.8571 H0:µ=µ0 (NULL HYPOTHESIS)
4.5
0.8571

matrix of corrected s.s :s inverse of s:


128.72 61.4076 -21.0211 0.016487 -0.01936
61.4076 56.9259 -28.2958 -0.01936 0.045293
-21.0211 -28.2958 63.5344 -0.003167 0.013767

TEST STATISTICS :
T²=n(n-1)(x-µ)`s -1 (x-µ)

here,n=28 and µ= 7000


4000
1000

x-µ -6991.1429 (x-µ)`=


-3995.5
-999.1429

(X-µ)`S-1= -34.74993 -59.3786 -53.6684

(X-µ)`S-1(X-µ)= 533811.32351

Now, T²= 403561361

(n-1)= 27

F cal=(T²/(n-1))*(n-1)-(p-1)/p
T²/(n-1)= 14946717.074
(n-1)-(p-1)/p 8.3333333333

Fcal= 124555976

F tab=2.99

conclusion: Here, Fcal>Ftab. Hence we reject the null hypothesis and conclude that the population averag
income, average expenditure & average net savings are not Rs 7000, Rs 4000 and Rs 1000 res
-0.003167
0.013767
0.020823

-6991.14 -3995.5 -999.1429

322484350

nclude that the population average gross


Rs 7000, Rs 4000 and Rs 1000 respectively.

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