16MBA1649

EXPERIMENT-7
ONE WAY ANNOVA

A company wants to compare the sources of CBSE students from the four electro cities, i.e.
Delhi, Mumbai, Kolkata and Chennai. A random sample of 10 sources from every city is given
below. Check @5% level of significance whether there is a difference between the sources of
CBSE students from the 4 electro cities.

HYPOTHESIS:

The hypothesis of ANOVA is as follows:

H0: 1 = 2 = 3 ... = k
There is no difference between CBSE students from the 4 electro cities.
H1: Means are not all equal.
There is a difference between CBSE students from the 4 electro cities.

Where k = the number of independent comparison groups.

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The null hypothesis in ANOVA is always that there is no difference in means. The alternative
hypothesis is always that the means are not all equal and is usually written in words rather than
in mathematical symbols. The alternative hypothesis captures any difference in means and
includes, for example, the situation where all four means are unequal, where one is different
from the other three, where two are different, and so on.

THEORY:
Analysis of variance (ANOVA) is an analysis tool used in statistics that splits the
aggregate variability found inside a data set into two parts: systematic factors and random
factors. Analysts use the analysis of the variance test to determine the result independent
variables have on a dependent variable.

One-Way ANOVA:

One-way ANOVA is a hypothesis test in which only one categorical variable or single factor
is considered. It is a technique which enables us to make a comparison of means of three or
more samples with the help of F- distribution. It is used to find out the difference among its
different categories having several possible values.
It compares three or more unmatched groups when data are categorized in one way.
The one-way ANOVA is used to determine whether there are any statistically significant
differences between the means of three or more independent (unrelated) groups.

ASSUMPTIONS:

The observations are from a random sample and they are independent from each other.

The observations are normally distributed within each group.

ANOVA is still appropriate if this assumption is not met when the small size in each group is
at least 30.

The variances are approximately equal between group- if the ratio of the largest SD/smallest
SD <2, this assumption is considered to be met.

It is not required to have equal sample sizes in all groups.

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PROCEDURE:
STEP 1: Click analyze>compare means>one way ANOVA on the top menu as shown below:

STEP 2: Then there appears a one-way ANOVA dialogue box.

STEP 3: Transfer the dependent variable, sources into the dependent list box and independent
variable, electro city into the factor box.

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STEP 4: Click on the Post Hoc button and then click on the continue button.

OUTPUT:

CONCLUSION:
As the value of p=0.764 i.e p>0.05 therefore null hypothesis Ho is accepted. There is no
difference between CBSE students from the 4 electro cities.