Name: John Frenvie Pamonag

Course/Year/Section: BPA 3-A

ACTIVITY 10 – ANALYSIS OF VARIANCE OR ANOVA

Instruction: Solve for the F-Statistics and decide if the null hypothesis be rejected or accepted.

Problem: Salaries of three groups of employees as High School Graduate, College Graduate and Post
Graduate at a significance level of 0.05 is shown on the table below, test whether there is no difference in
the mean salaries of the group of employees.

# High School Graduate College Graduate Post Graduate

1. 15 16 17
2. 16 19 24
3. 18 28 27
4. 21 24 20
5. 18 28 31
6. 17 30 30
7. 31 30
8. 21 32
9. 27 31
10. 35
n=6 n=9 n=10

1. State the Null and Alternate Hypothesis.

Ho: The Salaries of three groups employees are equal

Ho: µ1=µ2=µ3

Ha: The salaries of three groups employees are not equal

Ha: µ1≠µ2≠µ3

Denoting that the mean of H.S grad is µ1, the mean of College grad is µ2 and the mean of Post grad is
µ3.

2. Select the level of significance.

The alpha level given in the problem is 0.05

dfn= 3-1= 2

dfd= 25-3= 22

3. Find the critical value.

Critical value= 3.44

4. Select the appropriate test statistics

MEAN(x̄) OF SAMPLES

H.S. GRAD COLLEGE GRAD POST GRAD ∑x̄= ∑x / ∑n

15 16 17

16 19 24

18 28 27 =∑XA + ∑XB + ∑XC / nA

+ nB + nC
21 24 20

18 28 31
= 105+224+277/
17 30 30
6+9+10
31 30

21 32
= 606/2̄= 24
27 31
∑X= 24
35

n=6 n=9 n=10

∑XA= 105 ∑XB= 224 ∑XC= 277

x̄= 105/6= 18 x̄= 224/9= 25 x̄= 277/10= 28

VARIANCE OF SAMPLES

H.S GRAD COLLEGE GRAD POST GRAD

X- x̄ (X- x̄) X- x̄ (X- x̄) X- x̄ (X- x̄)

15 -3 9 16 -9 82 17 -11 121

16 -2 4 19 -6 36 24 -4 16

18 0 0 28 3 9 27 -1 1

21 3 9 24 -1 1 20 -8 64

18 0 0 28 3 9 31 3 9

17 -1 1 30 5 25 30 2 4

31 6 36 30 2 4
 21 -4 16 32 4 16

27 2 4 31 3 9

35 7 49

∑(x- x̄)² = 23 ∑(x- x̄)² = 218 ∑(x- x̄)² = 293

DEGREES OF FREEDOM

Dfn= 3-1 Dfd= 25-3

Dfn= 2 Dfd= 22

SUM OF SQUARES (∑X= 24)

SSn= ∑n (X-∑X)²

SSn= ∑n (X-∑X)² n X X-∑X (∑X)² n (X-∑X)²

H.S GRAD 6 18 -6 36 216

COLLEGE GRAD 9 25 1 1 9

POST GRAD 10 28 4 16 160

SSn= ∑n (X-∑X)²= 385

SSd= ∑(n1-1)S²

SSd= ∑(n1-1)S² n n1-1 S² (n1-1)S²

H.S GRAD 6 5 5 25

COLLEGE GRAD 9 8 27 216

POST GRAD 10 9 33 297

SSd= ∑(n1-1)S²= 538

MEAN OF SQUARES

SSn= ∑n (X-∑X)²= 385/2= 192.5

SSd= ∑(n1-1)S²= 538/22= 24

F- STATISTICS

MSSn/MSSd

192.5/25= 8.02

F- STATISTICS SUMMARY TABLE

Source of Sum of Squares Degrees of Mean of Squares F-Value

Vacation Freedom

Numerator 385 2 192.5 8.02

Denominator 538 22 24

5. Formulate the Decision.

The computed F-Value is 8.02, which is greater than the critical value of 3.44 at the 0.05 significance
level. The computed value falls under the area of rejection. It means to say that the salaries of three
groups employees are not equal or we have to reject the null hypothesis