ANOVA which is also called as analysis of variance

So, why do we use this ANOVA??

It is used for experimental study and this is a way to find out if the survey or experiment results are
significant or not, like when we do some study we get some result out of the experiment right!!??

So, whether these results are significant or not!!??

This can be explained very easily by ANOVA

Let’s take a very quick real life example:

A grocery chain wants to know if three different types of advertisements affect mean sales
differently. They use each type of advertisement at 10 different stores for one month and measure
total sales for each store at the end of the month.

To see if there is a statistically significant difference in mean sales between these three types of
advertisements, researchers can conduct a one-way ANOVA, using “type of advertisement” as the
factor and “sales” as the response variable.

If the overall p-value of the ANOVA is lower than our significance level, then we can conclude that
there is a statistically significant difference in mean sales between the three types of
advertisements. We can then conduct post hoc tests to determine exactly which types of
advertisements lead to significantly different results.

CLASSIFICATION OF ANOVA

• The Analysis of variance is classified into two ways:

1. One-way ANOVA

2. Two-way ANOVA

With a One Way, you have one independent variable affecting a dependent variable. A two way
anova is an extension of the one way anova. With a two way anova there are two independents.

Formula:
Now let us take a quick look at the problem:

When we are taking any hypothesis we follow 4 major steps

Develop null and alternate hypothesis

Null H of mu1=mu2=…….muk

Ha is not all population means are equal

Level of significance (alpha)

3.Test statistics

F is equal to MSTR divided by MSE

Rejection rule

Rejection rule for anova is reject Hnot if F is greater than F alpha here F is calculated value f alpha is
formulated value