Question

The confidence interval for the ratio of two variances are found using and F test.

Let's say,

a) the confidence interval is (0.567, 1.635). So the interval contains the value 1. How do i interpret this? Does it mean that both the variances are equal?

b) the confidence interval is (0.678, 0.788). So the interval does not contain the value 1. Does it mean that the variances are not equal?

Im not so clear on the interpretation. Please help, thank you very much.

Answer 1

a) the confidence interval is (0.567, 1.635) contains the value 1. So there is insufficient evidence to conclude that the variances are statistically significantly different. so we can say that the two groups come from the populations having same variances

b)  the confidence interval is (0.678, 0.788) which does not contain the value 1. So there is sufficient evidence to conclude that the variances are statistically significantly different. so we can say that the two groups do not come from the populations having same variances

​Please give thumbs up if you like the answer.