ANOVA

(Analysis of Variance)
One-Way Analysis of Variance
 Outline
• What is ANOVA and its use ?
• Assumptions in ANOVA
• Example : One –way ANOVA
 One-Way ANOVA
• The one-way analysis of variance
is used to test the claim that three
or more population means are
equal
• This is an extension of the two
independent samples t-test
 ANOVA test is a parametric test which
assumes :
• Population normality : Data is numerical data
representing samples from normally distributed
populations.
• Homogeneity of Variance: the variances of the groups
are “similar”
• The sizes of the groups are “similar”
• The groups should be independent.
• The residuals are normally distributed
 One -way ANOVA
Test Factor Variable Response Sample(s) Application
/Independent Variable/
Variable Dependent
/predictor Variable/
Criterion

ANOVA Non-Metric Metric Three or Compare

More Means
Samples
 One-Way ANOVA
• The null hypothesis is that the
means are all equal

• The alternative hypothesis is that

at least one of the means is
different
 Example : One way ANOVA
• Suppose , a marketer of a brand of Jeans , wanted
to find out the perception of the customers of Delhi,
Mumbai and Kolkatta.
• For that, they had conducted a survey in all the
three cities and got ratings on an interval scale
(assume it is 7 point scale rating from 1 to 7) from
their customers.
• Now, They want to do a “statistical test” to find out
if the three sets of rating are “significantly”
different from each other or not.
 Topic

• Perception of customers for a brand of

Jeans of ABC Company: An empirical
study
 Objectives
• To study the perception of the
customers of Mumbai, Delhi and
Kolkata.
• To find and compare the mean
values of the perceptions of the
customers of Mumbai, Delhi and
Kolkata.
 Hypotheses

H0: There is no significant difference in the

perception of the customers of Mumbai, Delhi and
Kolkata for a brand of Jeans of ABC Company.

H1: There is a significant difference in the perception

of the customers of Mumbai, Delhi and Kolkata for
a brand of Jeans of ABC Company.
Data Analysis
 Test of Homogeneity of Variances

Test of Homogeneity of Variances

Perception

Levene
Statistic df1 df2 Sig.
2.091 2 90 .130

• The significant value of levene statistic is

0.130>0.05, it means there is equal
variances in the groups. It holds one of the
assumption of ANOVA.
 Hypothesis Testing
• The significant value (p-value) of ANOVA is 0.000
<0.05, it means that null hypothesis is rejected and
alternative hypothesis is accepted.
ANOVA
Perception
Sum of Mean
  Squares df Square F Sig.
Between
Groups 26.581 2 13.290 11.908 .000
Within
Groups 100.452 90 1.116   
Total 127.032 92     

• It means, there is a significant difference in the

perception of the customers of Mumbai, Delhi and
Kolkatta for a brand of Jeans.
HSD Tukey Test for Multiple Comparison
Multiple Comparisons
Dependent Variable: Perception
Tukey HSD
95% Confidence
Mean Interval
Differenc Lower Upper
(I) City e (I-J) Std. Error Sig. Bound Bound
Mumbai Delhi -.839* .268 .007 -1.48 -.20
Kolkata -1.290* .268 .000 -1.93 -.65
Delhi Mumbai .839* .268 .007 .20 1.48
Kolkata -.452 .268 .217 -1.09 .19
Kolkata Mumbai 1.290* .268 .000 .65 1.93
Delhi .452 .268 .217 -.19 1.09
*. The mean difference is significant at the 0.05 level.
 Conclusion
• The significant value (p-value) of ANOVA is 0.000 <0.05, it
means that null hypothesis is rejected and alternative hypothesis
is accepted.
• It means, there is a significant difference in the perception of the
customers of Mumbai, Delhi and Kolkatta for a brand of Jeans.
• But in the HSD Tukey test for multiple comparisons, it has been
observed that the p-values between MUMBAI and DELHI is
0.007<0.05 and between MUMBAI and KOLKATA is
0.000<0.05, so there is significant difference between Mumbai
and Delhi and Mumbai and Kolkata.

• But the p-value between DELHI and KOLKATA is 0.217>0.05,

so there is no significant difference between DELHI &
KOLKATA.