Analysis of Variance (ANOVA)

Analysis of Variance (ANOVA)

 Used to compare the means of two or more population
groups.

 ANOVA derives its name from the fact that we are

analyzing variances in the data.
 ANOVA measures variation between groups relative to
variation within groups.
 Analysis of Variance (ANOVA)
 In probability theory and statistics, variance is the
expectation of the squared deviation of a random
variable from its population mean or sample mean.
 Variance is a measure of dispersion, meaning it is a
measure of how far a set of numbers is spread out from
their average value.

Example of samples from two

populations with the same mean but
different variances. The red
population has mean 100 and
variance 100 (SD=10) while the blue
population has mean 100 and
variance 2500 (SD=50).
Assumptions of ANOVA
 The m groups or factor levels being studied
represent populations whose outcome measures
1. are randomly and independently obtained,
2. are normally distributed, and
3. have equal variances.

 If these assumptions are violated, then the level

of significance and the power of the test can be
affected.
Example: Difference in Oddjob Data
 Examine whether customers’ membership status (i.e., status)
relates to their overall price/performance satisfaction (i.e.,
overall_sat) with Oddjob Airways
 H0: mean of the overall price/performance satisfaction is the
same between the status groups
 H1: at least mean of two status groups differ
 Example: Difference in Oddjob Data

The model has an F-value of 9.963, which yields a p-value of 0.00

(less than 0.05), suggesting that at least two of the three groups
differ significantly with regard to the mean of overall
price/performance satisfaction. (Có sự khác biệt có ý nghĩa thống
kê giữa ít nhất 2 nhóm khách hàng về giá trị trung bình của sự hài
lòng về giá.)
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