12-1

Chapter

Twelve

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

 12-2
Chapter Twelve
Analysis of Variance
GOALS
When you have completed this chapter, you will be able to:

ONE
List the characteristics of the F distribution.
TWO
Conduct a test of hypothesis to determine whether the variances of two
populations are equal.
THREE
Discuss the general idea of analysis of variance.
FOUR
Organize data into a one-way and a two-way ANOVA table.

Goals
 12-3

Characteristics of the F-Distribution

There is a “family” of F Distributions.

Each member of the family is
determined by two parameters: the
numerator degrees of freedom and
the denominator degrees of
4.5
1
freedom. Its values range from 0
to  . As F   the
F cannot be
The F curve approaches the X-
negative, and
distribution is axis but never touches it.
it is a
continuous positively
distribution. skewed. Characteristics of F-
Distribution
 12-4

The ANOVA Test of Means

The F distribution is also This technique is called

used for testing whether two analysis of variance or
or more sample means came ANOVA
from the same or equal
populations.

The null and alternate hypotheses for four sample

means is given as:
Ho: 1 = 2 = 3 = 4
H1: 1 = 2 = 3 = 4
The ANOVA Test of Means
 12-5

ANOVA requires the following conditions

The sampled
populations follow the
normal distribution.

The samples are independent

The populations have equal

standard deviations.
Underlying assumptions for
ANOVA
 Estimate of the population variance 12-6

based on the differences among the sample means

F
Estimate of the population variance
= based on the variation within the samples

If there are k populations

being sampled, the numerator
Degrees of freedom degrees of freedom is k – 1
for the F statistic in
ANOVA If there are a total of n
observations the denominator
degrees of freedom is n – k.

ANOVA Test of Means

 12-7

ANOVA divides the Total Variation into the

variation due to the treatment, Treatment Variation,
and to the error component, Random Variation.

In the following table,

i stands for the ith observation
xG is the overall or grand mean
k is the number of treatment groups

ANOVA Test of Means

 12-8

ANOVA Table
Source of Sum of Degrees Mean F
Variation Squares of Square
Freedom
Treatments SST k-1 SST/(k-1)
(k) k =MST MST
nk(Xk-XG)2 MSE
Error SSE n-k SSE/(n-k)
=MSE
i k Treatment variation
(Xi.k-Xk)2 Random variation
Total TSS n-1 Total variation
i

(Xi-XG)2
Anova Table
 12-9

Rosenbaum Restaurants specialize in meals for

families. Katy Polsby, President, recently
developed a new meat loaf dinner. Before
making it a part of the regular menu she decides
to test it in several of her restaurants.
She would like to know if
there is a difference in the
mean number of dinners sold
per day at the Anyor, Loris,
and Lander restaurants. Use
the .05 significance level.

Example 2
 12-10

Number of Dinners Sold by Restaurant

Restaurant Aynor Loris Lander
Day
Day 1 13 10 18
Day 2 12 12 16
Day 3 14 13 17
Day 4 12 11 17
Day 5 17

Example 2 continued
 12-11

Step One: State the null hypothesis and the alternate

hypothesis.
Ho: Aynor = Loris = Landis
H1: Aynor = Loris = Landis

Step Two: Select the level of significance. This is

given in the problem statement as .05.

Step Three: Determine the test statistic. The test

statistic follows the F distribution.

Example 2 continued
 12-12

Step Four: Formulate the decision rule.

The numerator degrees of freedom, k-1, equal 3-1 or 2.
The denominator degrees of freedom, n-k, equal 13-3 or
10. The value of F at 2 and 10 degrees of freedom is
4.10. Thus, H0 is rejected if F>4.10 or p<  of .05.

Step Five: Select the sample, perform the calculations,

and make a decision.

Using the data provided, the

ANOVA calculations follow.

Example 2 continued
 Computation of SSE i k
12-13

(Xi.k-Xk)2

Anyor SS(Anyor) Loris SS(Loris) Lander SS(Lander)

#sold #sold #sold
13 (13-12.75)2 10 (10-11.5)2 18 (18-17)2
12 (12-12.75)2 12 (12-11.5)2 16 (16-17)2
14 (14-12.75)2 13 (13-11.5)2 17 (17-17)2
12 (12-12.75)2 11 (11-11.5)2 17 (17-17)2
17 (17-17)2
2.75 5 2
Xk 12.75 11.5 17

SSE: 2.75 + 5 + 2 = 9.75

XG: 14.00
 Computation of TSS i
12-14

(Xi-XG)2

Anyor TSS(Anyor) Loris TSS(Loris) Lander TSS(Lander)

#sold #sold #sold
13 (13-14)2 10 (10-14)2 18 (18-14)2
12 (12-14)2 12 (12-14)2 16 (16-14)2
14 (14-14)2 13 (13-14)2 17 (17-14)2
12 (12-14)2 11 (11-14)2 17 (17-14)2
17 (17-14)2
9.00 30 47
TSS: 9.00 + 30 + 47 = 86.00
SSE: 9.75
XG: 14.00
Example 2 continued
Computation of TSS
Computation of SST k 12-15

nk(Xk-XG)2

Restaurant XT SST
Anyor 12.75 4(12.75-14)2
Loris 11.50 4(11.50-14)2
Lander 17.00 5(17.00-14)2
76.25

Shortcut: SST = TSS – SSE

= 86 – 9.75
= 76.25 Example 2 continued
Computation of SST
 12-16

ANOVA Table
Source of Sum of Degrees Mean F
Variation Squares of Square
Freedom
Treatments 76.25 3-1 76.25/2
=2 =38.125 38.125
Error 9.75 13-3 9.75/10 .975
=10 =.975 = 39.103
Total 86.00 13-1
=12

Example 2 continued

The p(F> 39.103) is .000018.
Since an F of 39.103 > the
critical F of 4.10, the p
of .000018 < a of .05, the
decision is to reject the
null hypothesis and
conclude that
The ANOVA tables on the next two slides are from the
Minitab and EXCEL systems.
12-17
At least two of the
treatment means are
not the same.
The mean number of
meals sold at the three
locations is not the
same.
Example 2continued
 12-18

Analysis of Variance
Source DF SS MS F P
Factor 2 76.250 38.125 39.10 0.000
Error 10 9.750 0.975
Total 12 86.000
Individual 95% CIs For Mean
Based on Pooled StDev
Level N Mean StDev ---------+---------+---------
+-------
Aynor 4 12.750 0.957 (---*---)
Loris 4 11.500 1.291 (---*---)
Lander 5 17.000 0.707 (---*---)
---------+---------+---------
+-------
Pooled StDev = 0.987 12.5 15.0 17.5

Example 2 continued
 12-19
Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Aynor 4 51 12.75 0.92
Loris 4 46 11.50 1.67
Lander 5 85 17.00 0.50

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 76.25 2 38.13 39.10 2E-05 4.10
Within Groups 9.75 10 0.98

Total 86.00 12

Example 2 continued