ANOVA

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May be there is a significant difference between the firms (H, M and L) with respect to the time taken to

Null hypothesis
H0 mu_h=mu_m=mu_l
Alternative
H1 mu_i!=mu_j

Errors
Type-1 ( Reject H0 |Do not reject H0 )
(mu_i!=mu_j |mu_h=mu_m=mu_l)
Level of significance P() 0.05 Alpha

Type-2
( do not reject H0 | reject H0 )
(mu_h=mu_m=mu_l | mu_i!=mu_j)
P() beta

Given information H M L
n 15 13 13
Mean
Sd

Assumptions 1 Samples are drawn at random


2 All the populations are normal
3 All the population variances are equal

Test statistic
Under H0

F-distribution

F0 BGV/WGV F k-1 n-k


H M L
3.5 3 1
4.8 5.5 2.5
3 6 2
6.5 4 1.5
7.5 4 1.5
8 4.5 6
2 6 3.8
6 2 4.5
5.5 9 0.5
6.5 4.5 2
7 5 3.5
9 2.5 1
5 7 2
10
6

Tukey test for pairwise comparison

Studentized range table


and L) with respect to the time taken to arrive at a strategic decision
Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
H 15 90.3 6.02 4.763143
M 13 63 4.846154 3.641026
L 13 31.8 2.446154 2.512692

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 91.0426 2 45.5213 12.3093 0.0000756 3.244818
Within Groups 140.5286 38 3.698121

Total 231.5712 40

SS Sum of squares <alpha


df degrees of freedom
MS mean sum of squares Reject H0
Yes
F0 BGV/WGV 12.3093
Pairwise comparisons

(H, M) k 3
(H, L) n 41
(M, L) n-k 38
q0 3.449
T 1.839552

|H-M| 1.173846 <T there is no significant difference


|H-L| 3.573846 >T there is a significant difference
|M-L| 2.4 >T there is a significant difference
t difference
RH May there is significant difference between the average ages in the three locations

Null hypothesis mu_1=mu_2=mu_3

Alternative mu_i!=mu_j

errors
Alpha 0.01

Assumptions
1
2
3

test statistic
Under H0

F0 BGV/WGV k-1 n-k

Calculations

1 2 3 Anova: Single Factor


29 32 25
27 33 24 SUMMARY
30 31 24 Groups Count
27 34 25 1 5
28 30 26 2 5
3 5

ANOVA
Source of VariationSS
Between G 129.7333
Within Gro 19.6

Total 149.3333

Tukey pairwise comparisons

k 3
n 15
n-k 12
q0 5.05
T 2.886315

(1 ,2 ) 3.8
(1 ,3) 3.4
(2 ,3) 7.2
age ages in the three locations

Sum Average Variance


141 28.2 1.7
160 32 2.5
124 24.8 0.7

df MS F P-value F crit
2 64.86667 39.71429 5.112E-06 6.926608
12 1.633333

14
<alpha

Reject H0

rwise comparisons
>T
>T
>T
M1 M2 M3 M4
4.05 3.99 3.97 4
4.01 4.02 3.98 3.99
4.02 4.01 3.95 4.01
4.04 3.99 3.97 4.02
4 4
4

Source of Variation
Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
M1 4 16.12 4.03 0.000333
M2 6 24.01 4.001667 0.000137
M3 5 19.87 3.974 0.00033
M4 4 16.02 4.005 0.000167

ANOVA
Source of VariationSS df MS F P-value F crit
Between G 0.007076 3 0.002359 10.0984 0.000685 5.416965
Within Gro 0.003503 15 0.000234

Total 0.010579 18
<ALPHA

Reject H0
Pairwise comparison

(1,2) 0.028333 <T k 4


(1,3) 0.056 >T n 19
(1,4) 0.025 <T n-k 15
(2,3) 0.027667 <T q0 5.25
(2,4) 0.003333 <T T 0.040117
(3,4) 0.031 <T

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