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• MID-SIZE VEHICLES
COMPARISON AMONG MEANS :

MORE THAN TWO POPULATIONS


• SPORTS UTILITY VEHICLES

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PICKUP TRUCKS
SUV’S MID-SIZE VEHICLES

MID-SIZE
SUV

MIDSIZE
SUV
PICKUP

3 4

• AN O VA

ANOVA

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1
An Introduction to Experimental Design
and Analysis of Variance
 An Introduction to Experimental Design  In this section three types of experimental designs are
and Analysis of Variance introduced.
 Analysis of Variance and • a completely randomized design (One-way
the Completely Randomized Design ANOVA)
 Multiple Comparison Procedures • a randomized block design Two-way
• a factorial experiment ANOVA

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An Introduction to Experimental Design Testing for the Equality of k Population Means:


and Analysis of Variance A Completely Randomized Design
 Example: AutoShine, Inc.
 A factor is a variable that the experimenter has
selected for investigation. AutoShine, Inc. is considering marketing a long-
 A treatment is a level of a factor. lasting car wax. Three different waxes (Type 1, Type 2,
 Experimental units are the objects of interest in the and Type 3) have been developed.
experiment. In order to test the durability of these waxes, 5 new
• Response Variable or Dependent Variable: cars were waxed with Type 1, 5 with Type 2, and 5
information with measurable unit
with Type 3. Each car was then repeatedly run
 A completely randomized design or One-way through an automatic carwash until the wax coating
ANOVA is an experimental design in which the showed signs of deterioration.
treatments are randomly assigned to the
experimental units.

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Testing for the Equality of k Population Means: Testing for the Equality of k Population Means:
A Completely Randomized Design A Completely Randomized Design
 Example: AutoShine, Inc.
The number of times each car went through the Wax Wax Wax
carwash before its wax deteriorated is shown on the Observation Type 1 Type 2 Type 3
next slide. AutoShine, Inc. must decide which wax 1 27 33 29
to market. Are the three waxes equally effective? 2 30 28 28
3 29 31 30
4 28 30 32
5 31 30 31

Sample Mean 29.0 30.4 30.0


Sample Variance 2.5 3.3 2.5

Identify Factors, Treatments and Response Variables

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2
One-way ANOVA: Identifying Factor, Treatments, Experimental Units, and
Response Variables Sampling Scheme for Independent Samples
Wax Wax Wax
Observation Type 1 Type 2 Type 3
1 27 33 29
2 30 28 28
3 29 31 30
4 28 30 32
5 31 30 31

Sample Mean 29.0 30.4 30.0


Sample Variance 2.5 3.3 2.5

Factor . . . Car wax


Treatments . . . Type I, Type 2, Type 3
Experimental units . . . Cars
Response variable . . . Number of washes

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Analysis of Variance: A Conceptual Overview Analysis of Variance: A Conceptual Overview

Analysis of Variance (ANOVA) can be used to test H0: 1=2=3=. . . = k


for the equality of three or more population means.
Ha: Not all population means are equal
Data obtained from observational or experimental
studies can be used for the analysis. If H0 is rejected, we cannot conclude that all
population means are different.
We want to use the sample results to test the
following hypotheses: Rejecting H0 means that at least two population
H0: 1=2=3=. . . = k means have different values.

Ha: Not all population means are equal

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ANOVA Table
Completely Randomized Design for a Completely Randomized Design
One-way ANOVA

Source of Sum of Degrees of Mean p-


Variation Squares Freedom Square F Value
 Between - Treatments Estimate of Population
Variance (Source of Variation) SSTR MSTR
Treatments SSTR k-1 MSTR 
 Within - Treatments Estimate of Population k - 1 MSE
Variance (Source of Variation) SSE
Error SSE nT - k MSE 
nT - k
 Comparing the Variance Estimates: The F Test
 ANOVA Table Total SST nT - 1
SST’s degrees of freedom
SST is partitioned (d.f.) are partitioned into
into SSTR and SSE. SSTR’s d.f. and SSE’s d.f.

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3
ANOVA Table
for a Completely Randomized Design

SST divided by its degrees of freedom nT – 1 is the


overall sample variance that would be obtained if we
treated the entire set of observations as one data set.

With the entire data set as one sample, the formula


for computing the total sum of squares, SST, is:
k nj

SST   ( xij  x )2  SSTR  SSE


j 1 i  1

OR

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Between-Treatments Estimate Within-Treatments Estimate


of Population Variance s2 of Population Variance s2
 The estimate of s 2 based on the variation of the  The estimate of s 2 based on the variation of the
sample means is called the mean square due to sample observations within each sample is called the
treatments and is denoted by MSTR. mean square error and is denoted by MSE.

k k
2
 n (x j j  x )2  (n j  1) s 2j
j1
MSTR 
j 1
MSE 
k1 nT  k

Numerator is called
Denominator is the Numerator is called Denominator is the the sum of squares
degrees of freedom the sum of squares due degrees of freedom due to error (SSE)
associated with SSTR to treatments (SSTR) associated with SSE

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Comparing the Variance Estimates: The F Test Comparing the Variance Estimates: The F Test

 If the null hypothesis is true and the ANOVA  Sampling Distribution of MSTR/MSE
assumptions are valid, the sampling distribution of
MSTR/MSE is an F distribution with MSTR d.f. Sampling Distribution
equal to k - 1 and MSE d.f. equal to nT - k. of MSTR/MSE
 If the means of the k populations are not equal, the
value of MSTR/MSE will be inflated because MSTR Reject H0
overestimates s 2.
 Hence, we will reject H0 if the resulting value of
Do Not Reject H0 
MSTR/MSE appears to be too large to have been MSTR/MSE
selected at random from the appropriate F F
distribution. Critical Value

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4
ANOVA Table Test for the Equality of k Population Means
for a Completely Randomized Design
 Hypotheses
ANOVA can be viewed as the process of partitioning
the total sum of squares and the degrees of freedom H0: 1=2=3=. . . = k
into their corresponding sources: treatments and error. Ha: Not all population means are equal

Dividing the sum of squares by the appropriate  Test Statistic


degrees of freedom provides the variance estimates
and the F value used to test the hypothesis of equal F = MSTR/MSE
population means.

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Test for the Equality of k Population Means Testing for the Equality of k Population Means:
A Completely Randomized Design
 Rejection Rule  Example: AutoShine, Inc.
p-value Approach: Reject H0 if p-value <  AutoShine, Inc. is considering marketing a long-
lasting car wax. Three different waxes (Type 1, Type 2,
Critical Value Approach: Reject H0 if F > F and Type 3) have been developed.
In order to test the durability of these waxes, 5 new
where the value of F is based on an cars were waxed with Type 1, 5 with Type 2, and 5
F distribution with k - 1 numerator d.f.
with Type 3. Each car was then repeatedly run
and nT - k denominator d.f.
through an automatic carwash until the wax coating
showed signs of deterioration.

27 28

Testing for the Equality of k Population Means: Testing for the Equality of k Population Means:
A Completely Randomized Design A Completely Randomized Design
 Example: AutoShine, Inc.
The number of times each car went through the Wax Wax Wax
carwash before its wax deteriorated is shown on the Observation Type 1 Type 2 Type 3
next slide. AutoShine, Inc. must decide which wax 1 27 33 29
to market. Are the three waxes equally effective? 2 30 28 28
3 29 31 30
Factor . . . Car wax 4 28 30 32
Treatments . . . Type I, Type 2, Type 3 5 31 30 31
Experimental units . . . Cars
Sample Mean 29.0 30.4 30.0
Response variable . . . Number of washes
Sample Variance 2.5 3.3 2.5

𝛼 = 0.05

29 30

5
Testing for the Equality of k Population Means: Testing for the Equality of k Population Means:
A Completely Randomized Design A Completely Randomized Design
 Hypotheses  Mean Square Between Treatments
H0: 1=2=3 Because the sample sizes are all equal:
Ha: Not all the means are equal x  ( x1  x2  x 3 )/3 = (29 + 30.4 + 30)/3 = 29.8
where: SSTR = 5(29–29.8)2 + 5(30.4–29.8)2 + 5(30–29.8)2 = 5.2
1 = mean number of washes using Type 1 wax MSTR = 5.2/(3 - 1) = 2.6
2 = mean number of washes using Type 2 wax  Mean Square Error
3 = mean number of washes using Type 3 wax
SSE = 4(2.5) + 4(3.3) + 4(2.5) = 33.2
MSE = 33.2/(15 - 3) = 2.77

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Testing for the Equality of k Population Means: Testing for the Equality of k Population Means:
A Completely Randomized Design A Completely Randomized Design
 Rejection Rule  Test Statistic
p-Value Approach: Reject H0 if p-value < .05 F = MSTR/MSE = 2.60/2.77 = .939
Critical Value Approach: Reject H0 if F > 3.89  Conclusion
The p-value is greater than .10, where F = 2.81.
where F.05 = 3.89 is based on an F distribution
(Excel provides a p-value of .42.)
with 2 numerator degrees of freedom and 12
Therefore, we cannot reject H0.
denominator degrees of freedom
There is insufficient evidence to conclude that
the mean number of washes for the three wax
types are not all the same.

33 34

Testing for the Equality of k Population Means:


A Completely Randomized Design
 ANOVA Table

Source of Sum of Degrees of Mean


Variation Squares Freedom Squares F p-Value

Treatments 5.2 2 2.60 .939 .42


Error 33.2 12 2.77

Total 38.4 14

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