One-Way ANOVA:

ANOVA is a commonly used statistical method for making simultaneous comparisons between two or more population means, that yield values that can be tested to determine whether a significant relation exist between variables or not. Its simplest form is One-Way ANOVA, it involves only one dependent variable and one or more independent variables.

Data Source:
C:\SPSSEVAL\Employee Data

Variables: Here we analyze two different variables by One-Way ANOVA, i.e.

A) Current salary of the employees. B) Employment Category.

Hypothesis:
H 0: H A: 1 = 2 = 3 at least one mean is not equal.

SPSS Need:
SPSS need two types of variables for analyzing one-way ANOVA. Numerical Variable (Scale). Categorical Variable (with more than two categories).

Method:
First of all enter the data in the data editor and the variables are labeled as employee's current salary and employment category respectively. Click on Analyze which will produce a drop down menu, choose Compare means from that and click on One-Way ANOVA, a dialogue box appears, in which all the input variables appear in the left-hand side of that box. To perform one-way ANOVA, transfer the dependent variable into the box labeled Dependent List and all factoring variable into the box labeled Factor. In our case Current salary is the dependent variable and should be transferred to the dependent list box by clicking on the first arrow in the middle of the two boxes. Employment Category is the factoring variable and should be transferred to the factor box by clicking on the second arrow and then click OK to run the analysis. If the null hypothesis is rejected, ANOVA only tells us that all population means are not equal. Multiple comparisons are used to assess which group mean are differ from which other, once the overall F-test shows that at least one difference exists. Many tests are listed under Post Hoc in SPSS, LSD (Least Significant Difference) and Tukey test is one of the most conservative and commonly used tests.

Pictorial Representation
Analyze & Factors Compare Means Post Hoc (Optional) One-Way ANOVA OK Drag Dependent List

Output:
ANOV A Current Salary Betw een Groups Within Groups Total Sum of Squares 89438483925.943 48478011510.397 137916495436.340 df 2 471 473 Mean Square 44719241962.972 102925714.459 F 434.481 Sig. .000

The above table gives the test results for the analysis of one-way ANOVA. The results are given in three rows. The first row labeled between groups gives the variability due to the different designations of the employees (known reasons). The second row labeled within groups gives the variability due to random error (unknown reasons), and the third row gives the total variability. In this case, F-value is 434.481, and the corresponding p-value is less than 0.05. Therefore we can safely reject the null hypothesis and conclude that the average salary of the employees is not the same in all three categories.

Post Hoc Tests

Multiple Com parisons Dependent Variable: Current Salary LSD Mean Dif f erence (I-J) -$3,100.349 -$36,139.258* $3,100.349 -$33,038.909* $36,139.258* $33,038.909* 95% Conf idence Interval Low er Bound Upper Bound -$7,077.06 $876.37 -$38,552.99 -$33,725.53 -$876.37 $7,077.06 -$37,449.20 -$28,628.62 $33,725.53 $38,552.99 $28,628.62 $37,449.20

(I) Employ ment Category Clerical Custodial Manager

(J) Employment Category Custodial Manager Clerical Manager Clerical Custodial

Std. Error $2,023.760 $1,228.352 $2,023.760 $2,244.409 $1,228.352 $2,244.409

Sig. .126 .000 .126 .000 .000 .000

*. The mean dif f erenc e is s ignif icant at the .05 level.

The Post-Hoc test presents the result of the comparison between all the possible pairs. Since we have three groups, a total of six pairs will be possible in which three will be mirror images. The results are shown in three rows. The pvalue for Clerical Manager and Custodial Manager comparison is shown as 0.000, whereas it is 0.126 for Clerical Custodial comparison. This means that the average current salary of the employees between Clerical and Manager as well as Manager and Custodial are significantly different, whereas the same is not significantly different between Clerical and Custodial. Conclusion: As our null hypothesis is rejected and we conclude that all three means are not same. To identify the mean which is different from other we used LSD test and conclude that ANOVA of managers is significantly different from other two means whereas the other two means are insignificant with each other.

Two-Way ANOVA
In two-Way Analysis, we have two independent variables or known factors and we are interested in knowing their effect on the same dependent variable.

Data Source:
C:\SPSSEVAL\Carpet

Variables: Here we analyze two different categorical variables with a numerical variable by Two-Way ANOVA,
i.e. A) Preference B) Package design C) Brand (Numerical) (Categorical) (Categorical)

Hypothesis:
For Brand: For Package: H0: H A: H0': H A' : i = j i j for all i & j i = j i j for all i & j

SPSS Need:
SPSS need two types of variables for analyzing two-way ANOVA. Numerical Variable (Scale). Two categorical Variables (with more than two levels).

Method:
First of all enter the data in the data editor and the variables are labeled as Preference, brand, package design respectively. Click on Analyze which will produce a drop down menu, choose General Linear model from that and click on Univariate, a dialogue box appears, in which all the input variables appear in the left-hand side of that box. To perform two-way ANOVA, transfer the dependent variable (Preference) into the box labeled Dependent variable and factor variable (Brand & Package) into the box labeled Fixed Factor. After defining all variables, now click on OK to run the analysis. If the null hypothesis is rejected, multiple comparisons are used to assess which group mean are differ from which other, once the overall F-test shows that at least one difference exists. Many tests are listed under Post Hoc in SPSS, LSD (Least Significant Difference) and Tukey test is one of the most conservative and commonly used tests.

Pictorial Representation
Analyze General Linear Model Drag Dependent Variable & Fixed Factors Univariate Post Hoc

OK

Output:
Betw e e n-Subjects Factors Package design Brand name 1.00 2.00 3.00 1.00 2.00 3.00 Value Label A* B* C* K2R Glory Biss ell N 9 6 7 7 7 8

This table shows the value label under each category and the frequency of each value label. We have totaled 6 value labels under package design and brand name.
Tes ts of Be tw ee n-Subje cts Effe cts Dependent Variable: Pref erence Sourc e package brand Error Total Ty pe III Sum of Squares
a

df 2 2 13 22

Mean Square 268.616 18.054 15.910

F 16.883 1.135

Sig. .000 .351

537.231 36.108 206.833 3758.000

a. R Squared = .763 (Adjusted R Squared = .617)

The above table gives the test results for the analysis of two-way ANOVA. The results are given in four rows. The first row labeled package gives the variability due to the different package design of the carpets, which may affect the customer's preferences (known reason). The second row labeled brand gives the variability due to the different brand names (known reason). The third row labeled error gives the variability due to random error, which also affects the customer's preferences (unknown reasons). The fourth row gives the total variability in the customer's preferences due to both known and unknown reasons. In this case, F-value for package design is 16.883, and the corresponding p-value is less than 0.05. Therefore we can safely reject the null hypothesis for package design and conclude that the average preference for all packages is not same. Now the F-value for brand name is 1.135, and the corresponding p-value is greater than 0.05. So we can accept the null hypothesis for brand and conclude that all average brand preferences are found approximately same.

Post Hoc Tests

Package design
M u ltip le Com pariso ns Dependent V ariable: Pref erence LSD Mean Dif f erence (I-J) 11.5556* 9.2698* -11.5556* -2.2857 -9.2698* 2.2857

(I) Package design A* B* C*

(J) Pac kage design B* C* A* C* A* B*

Std. Error 2.10226 2.01015 2.10226 2.21914 2.01015 2.21914

Sig. .000 .000 .000 .322 .000 .322

95% Conf idence Interval Low er Bound Upper Bound 7.0139 16.0972 4.9272 13.6125 -16.0972 -7.0139 -7.0799 2.5085 -13.6125 -4.9272 -2.5085 7.0799

Based on observed means. *. The mean dif f erenc e is s ignif icant at the .05 level.

As our null hypothesis for package design is rejected, so multiple comparisons are used to assess that which group mean is different from the others. The above table gives the results for multiple comparisons between each value label under package design category. The Post-Hoc test presents the result of the comparison between all the possible pairs. Since we have three groups, a total of six pairs will be possible in which three will be mirror images. The results are shown in three rows. The pvalue for A* B* and A* C* comparison is shown as 0.000, whereas it is 0.322 for B* C* comparison. This means that the average preference for package design between A* and B* as well as A* and C* are significantly different, whereas the same is not significantly different between B* & C*. Conclusion: As our null hypothesis for package design is rejected and we conclude that all mean preferences for package design are not same. To identify the mean which is different from other we used LSD test and conclude that ANOVA of A* is significantly different from other two means whereas the other two means are insignificant with each other. But in the case of brand name, our null hypothesis is accepted and we conclude that all mean brand preferences are same. So there is no need for multiple comparisons in the case of brand.