ANOVA TWO WAY METHOD:

A tea company appoints four sales men A,B,C,D and observes their sales in three seasons- Summer,
winter and Monsoon. The figures(in lakhs) are given in the following table:

Seasons Salesmen
A B C D
Summer 36 36 21 35
Winter 28 29 31 32
Monsoo 26 28 29 29
n

1. Do the salesmen significantly differ in the performance?

2. Is there a significant difference between the seasons?

Sol)

For columns: Salesmen

H0: There is no significant difference in the performance of salesmen.
H1: There is a significant difference in the performance of sales men.

For rows: Seasons

Ho: There is no significant difference in the performance of sales men on the basis of seasons.
H1: There is a significant difference in the performance of salesmen on the basis of seasons.

Level of significance: At 5 % level of significance,

For rows(seasons): df = (r-1) , (r-1) (c-1) = (3-1), (3-1) (4-1) = 2,6 => Ftab = 5.14
For columns(salesmen): df= (c-1), (r-1)(c-1) = (4-1), (3-1)(4-1)= 3,6 =>Ftab = 4.76

Applying the procedure of ANOVA of two way classification:

Step1: Taking 21 as source and subtracting all the values with 21, we get the revised table.

Seasons Salesmen
A B C D TOTAL
Summer 15 15 0 14 44
Winter 7 8 10 11 36
Monsoo 5 7 8 8 28
n
Total 27 30 18 33 108
Step2: Correction factor for the given data: CF= T 2/N = (108)2/12 = 972
(27) ² + (30)² + (18)² + (33)² -
Step3: Sum of squares between columns(SSC) = CF
3 3 3 3
SSC = 243+300+108+363-972 = 42
(44) ² + (36) ² + (28) ²
Step4: Sum of squares between rows (SSR) = - CF
4 4 4
SSR =484+324+196-972 = 32
Step5: Total sum of squares (TSS) =
[(15)2+(15)2+(0)2+(14)2+(7)2+(8)2+(10)2+(11)2+(5)2+(7)2+(8)2+(8)2] –CF
TSS = 1182-972 = 210
Step6: Residual Error (or) Sum of Squares between Errors (SSE) =
SSE = TSS-(SSC+SSR)
SSE = 210-(42+32) = 136
Step7: ANOVA table is given by:
Source of variation Sum of Df Mean Squares F-ratio
squares
Columns(Salesmen) 42 (c-1) = 4-1 = MSC =SSC/DF = Fcal =MSC/MSE =
3 42/3 =14 14/22.66 = 0.617
Rows (seasons) 32 (r-1) = (3-1) MSR = SSR/DF = Fcal = MSR/MSE =
=2 32/2 = 16 16/22.66 = 0.706
Errors (residual 136 (r-1)(c-1) = MSE = SSE/DF =
error) (3-1)(4-1) =6 136/6 =22.66

For sales men: Fcal = 0.617, Ftab = 4.76, there fore : Fcal<Ftab , we accept H0.
Conclusion: There is no significant difference in the performance of salesmen

For seasons: Fcal = 0.706, F tab = 5.14, therefore: Fcal< Ftab, we accept H0.
Conclusion: There is no significant difference in the performance of sales men on the basis of
seasons.

1.The following table gives the number of refrigerators sold by four salesmen in 3 months, May,
June, July.

Mont Salesman
h

A B C D

May 50 40 48 39

June 46 48 50 45

July 39 44 40 39

1. Is there a significant difference in the sales made by the four sales men?
2. Is there a significant difference in the sales made during different months?