ANOVA - Analysis of Variance - Session 15 & 16

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8/18/2012

ANOVA ANOVA AnalysisofVariance BusinessStatistics Business Statistics 2012


Dr.Gunjan Malhotra gmalhotra@imt.edu;mailforgunjan@gmail.com

Analysisofvariance(ANOVA)isatechniqueof testinghypothesesaboutthesignificant differenceinseveralpopulationmeans. Experimentaldesignswillbeanalyzedusing ANOVA.(theplanusedtocollectthedata). ANOVA (the plan used to collect the data) PurposeofANOVA todetectthedifferenceamongvarious populationmeansbasedontheinformation gatheredfromthesamples(samplemeans)of therespectivepopulations.

OnewayANOVA
A oneindependent variable experiment is called oneway ANOVA. ANOVA stands for Analysis of Variance, the generic name given to a set of techniques for studying causeandeffect of one or more factors on a single dependent variable.

GeneralANOVASetting
Investigatorcontrolsoneormore independentvariables
Calledfactors (ortreatmentvariables) Eachfactorcontainstwoormorelevels (orgroups ( g p orcategories/classifications)

Observeeffectsonthedependent variable
Responsetolevelsofindependentvariable

OneWayANOVA
Evaluatethedifferenceamongthe meansofthreeormoregroups.
A Assumptions i Populationsarenormallydistributed Populationshaveequalvariances Samplesarerandomlyandindependently drawn

HypothesesofOneWayANOVA
H 0 : 1 = 2 = 3 = L = c
Allpopulationmeansareequal i.e.,notreatmenteffect(novariationinmeans amonggroups) )
H1 : Not all of the population means are the same

Atleastonepopulationmeanisdifferent i.e.,thereisatreatmenteffect Doesnotmeanthatallpopulationmeansare different(somepairsmaybethesame)

8/18/2012

VariablesusedinANOVA
the independent variables
nominal scale (categorical) and

4majortypesofDesign
1. Completely Randomized Design in a OneWay ANOVA (Single Factor) 2. Randomized Block Design (Single Blocking Factor) (Two way ANOVA) 3. Latin Square Design (Two Blocking Factors) 4. Factorial Design with 2 or more Factors.

the dependent variable


metric scale (continuous).

OneWayANOVATable
Sourceof Variation Among Groups Within Groups Total SS SSA SSW SST= SSA+SSW df c 1 n c n 1
c=numberofgroups n=sumofthesamplesizesfromallgroups df=degreesoffreedom

MS (Variance) MSA= MSW= SSA c c 1 SSW n c

Fratio MSA MSW

F=

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