Analysis of Variance

ANOVA
 Analysis of Variance
(ANOVA)
• Analysis of Variance (ANOVA) is a hypothesis-testing technique used
to test the equality of two or more population (or treatment) means
by examining the variances of samples that are taken.

• If the between variation is much larger than the within variation, the
means of different samples will not be equal.

• If the between and within variations are approximately the same

size, then there will be no significant difference between sample
means.
 Analysis of Variance
(ANOVA)
• Assumptions of ANOVA:
• All populations involved follow a normal distribution.
• All populations have the same variance (or standard deviation).
• The samples are randomly selected and independent of one another.

• Since ANOVA assumes the populations involved follow a normal

distribution, ANOVA falls into a category of hypothesis tests known as
parametric tests.
Analysis of Variance
(ANOVA)
 Analysis of Variance
(ANOVA)
1. State the null and alternative hypotheses
 Analysis of Variance
(ANOVA)
2. Calculate the appropriate test statistic
The test statistic in ANOVA is the ratio of the between and within
variation in the data. It follows an F distribution.

Total Sum of Squares : the total variation in the data. It is the sum of
the between and within variation.
Analysis of Variance
(ANOVA)
 Analysis of Variance
(ANOVA)
Between Sum of Squares (or Treatment Sum of Squares or Population
Sum of Squares) : variation in the data between the different samples
(or treatments or populations).
 Analysis of Variance
(ANOVA)
Within variation (or Error Sum of Squares) : variation in the data from
each individual treatment.
 Analysis of Variance
(ANOVA)
Finding Variances from Variations/ Sum of Squares
Analysis of Variance
(ANOVA)
Analysis of Variance
(ANOVA)
 Analysis of Variance
(ANOVA)
Test Statistic
 Analysis of Variance
(ANOVA)
3 Obtain the Critical Value
Analysis of Variance
(ANOVA)
 Analysis of Variance
(ANOVA)
4. Decision Rule
You reject the null hypothesis if: F (observed value) > FCV (critical value).
In our example 25.17 > 5.14, so we reject the null hypothesis.

5. Interpretation
Since we rejected the null hypothesis, we are 95% confident (1-α ) that
the mean head pressure is not statistically equal for compact, midsize,
and full size cars.
 Example
Consider the a case when energy level (scaled 1 to 50) is to check among 3 drinks, Club Mate,
Rock Star and Red Bull. The data collected from 9 independent respondents is as follows. Is
there any significant difference among the energy level change from the 3 products? Check it
at 95% CI.

Club Mate Rock Star Red Bull

12 22 41
11 25 43
10 24 46
Example: Units Produced by Workers
Consider the a case when the different variants of a certain product produced
by workers to be checked among 3 variants, Variant A, Variant B, & Variant C. 5
samples are collected from each category. Identify if there is any significant
difference among the quality of these variants? Check it at 95% CI.
Variant A Variant B Variant C
58 58 48
64 69 57
55 71 59
66 64 47
67 68 49