Test for Equal Variances

Tests and Confidence Intervals - Method

  

The method table shows the following:

·    Null hypothesis-For the test of equal variances, the null hypothesis is always that the variances (and the standard deviations) are all equal.

·    Alternative hypothesis-For the test of equal variances, the alternative hypothesis is always that at least one variance is different from one other variance.

·    Significance level-The significance level (also called alpha or a) for the tests and the multiple comparison intervals is determined by the confidence level. The significance level = 1 - (confidence level / 100). For example, if you choose 95 as the confidence level, then the significance level is 1 - (95 / 100) = 0.05.

Example Output

Method

 

Null hypothesis         All variances are equal

Alternative hypothesis  At least one variance is different

Significance level      α = 0.05

Interpretation

The significance level for the driving date analysis is 0.05. If the p-value is less than 0.05, we reject the null hypothesis and conclude that the variances are not equal.