F - Test #EachforEQUAL

F - Test ; Salary Range by Gender #EachforEQUAL

The below example is about how to perform F – Test in excel. The F-Test is used to test the null hypothesis that the variances of two populations are equal.

Below you can find the different salary ranges of 10 male and 10 female employees.

H0: σ12 = σ22

H1: σ12 ≠ σ22

You can visualize the data by plotting the Bar chart Male Vs Female salary range.

Important: be sure that the variance of Variable 1 is higher than the variance of Variable 2. This is the case, 70363121994 > 19704634615. If not, swap your data. As a result, Excel calculates the correct F value, which is the ratio of Variance 1 to Variance 2 (F = 70363121994/ 19704634615 = 3.57).

Conclusion: if F > F Critical one-tail, we reject the null hypothesis. This is the case, 3.570 > 3.178. Therefore, we reject the null hypothesis. The variances of the two populations are unequal.

Published by - Praveen Kulkarni