Quality Leadership University

Prof. Hilmar Castro

June 2018
§ Day 2
§ Why differences are important
§ Testing for significant differences
between two groups
§ Differences between percentages
§ Differences between means
§ Oneway ANOVA
§ Market segmentation is based on differences between groups of consumers.
§ The differences must be significant : Statistical significance of differences
means that the differences found in the sample(s) truly exist in the
population(s) from which the random samples are drawn.
§ The differences must be meaningful : A meaningful difference is one that the
marketing manager can potentially use as a basis for marketing decisions.
§ The differences should be stable : A stable difference is one that will be in
place for the foreseeable future.
§ The differences must be actionable : An actionable difference means that the
marketer can focus various marketing strategies and tactics, such as product
design or advertising, on the market segments to accentuate the differences
between the segments.
§ Statistical
tests are used when a researcher wants to compare the
means or percentages of two different groups or samples.
§ Independent samples are treated as representing two potentially
different populations.
Difference
between
percentages
Two groups,
independent
samples
Difference
between means
§ To test
whether a true difference exists between two group
percentages, we test the null hypothesis ( the difference in their
population parameters is equal to zero).
§ The alternative hypothesis is that there is a true difference between
them.
Formula for significance of the difference between two percentages

Formula for the standard error of the difference between two

percentages
§ Totest whether a true difference exists between two group
means, we test the null hypothesis ( the difference in their mean
parameters is equal to zero).
§ Thealternative hypothesis is that there is a true difference
between them.
Formula for significance of the difference between two means

Formula for the standard error of the difference between two means
§ ANOVA is used when comparing the means of three or more groups.
§ ANOVA will “signal” when at least one pair of means has a statistically
significant difference, but it does not tell which pair.
§ ANOVA uses the F test statistic, and the significance level (sometimes
referred to as the p value) that appears on the output in this F test is
the probability of support for the null hypothesis.
§ A paired samples test for the difference between two means, is a test
to determine if two means of two different questions using the same
scale format and answered by the same respondents in the sample are
significantly different.
§ The variables must be measured on the same scale
§ Assumption #1: Your dependent variable should be measured at the
interval or ratio level (i.e., they are continuous).
§ Assumption #2: Your independent variable should consist of two or more
categorical, independent groups.
§ Assumption #3: You should have independence of observations, which
means that there is no relationship between the observations in each group or
between the groups themselves.
§ Assumption #4: There should be no significant outliers.
§ Assumption #5: Your dependent variable should be approximately
normally distributed for each category of the independent variable.
§ Assumption #6: There needs to be homogeneity of variances.
This is the table that shows the output of the ANOVA analysis and whether there is a statistically
significant difference between our group means.

The significance value is 0.021 (i.e., p = .021), which is below 0.05. and, therefore, there is a
statistically significant difference in the mean length of time to complete the spreadsheet
problem between the different courses taken.
We know that there are statistically significant differences between the groups as a whole. The
table below, Multiple Comparisons, shows which groups differed from each other.

We can see from the table below that there is a statistically significant difference in time to
complete the problem between the group that took the beginner course and the intermediate
course (p = 0.046), as well as between the beginner course and advanced course (p = 0.034).
However, there were no differences between the groups that took the intermediate and advanced
course (p = 0.989).
Based on the results above, you could report the results of the study as
follows:
There was a statistically significant difference between groups as
determined by one-way ANOVA (F(2,27) = 4.467, p = .021). A Tukey post
hoc test revealed that the time to complete the problem was statistically
significantly lower after taking the intermediate (23.6 ± 3.3 min, p = .046)
and advanced (23.4 ± 3.2 min, p = .034) course compared to the
beginners course (27.2 ± 3.0 min). There was no statistically significant
difference between the intermediate and advanced groups (p = .989).