Experiments are performed by investigators in

virtually all fields of inquiry usually to discover

about a particular process or system.

An Experiment is a test and or series of tests

DOE is a formal mathematical method for systematically

planning and conducting scientific studies that change
experimental variables together in order to determine their
effect of a given response.
 Applications of Experimental Design
Marketing

Product Development

Market Segmentation

Sales Promotion Program

Product Launching

Design of Distribution Channel

Pricing

Design of Advertisement

Buying Behaviour
 Applications of Experimental Design
Production

Quality Control

Work Design

Plant Location

Inventory Control

Aggregate Planning

Project Management

Materials Requirement Planning
 Applications of Experimental Design
Finance

Capital Budgeting

Portfolio Management

Inflation / Deflation

Economic Growth Analysis
Personnel

Manpower Planning

Performance Appraisal System

Training Methods

Inflation / Deflation
Research Questions examples
A stock market analyst wants to study the impact of the type of company on the
quarterly Averages of the earnings per share (EPS) .

Four technology alternatives are available to manufacture a product. The R & D

manager of a company want to study whether there is some impact of
technology on the hourly output (in units ) of the product.

The sales manager of a leading textile show room at kolkata wishes to study
the opinion of its customers on the service quality in a 0-10 scale . In this
experiment two factors were considered -

1. The nature of profession

2. The monthly income level of the customers
Research Question
A stock market analyst wants to study the impact of the type of company on
the quarterly Averages of the earnings per share (EPS) .
DATA Collected
He collected four quarterly averages of EPS data for four different companies during the last
financial year as summarized below
Research Hypothesis
H0 = There is no significance difference between companies in terms of quarterly
averages of EPS
H1 = There is significance difference between companies for atleast a pair of
companies in terms of quarterly averages of EPS

ANOVA One Way / Two Way Tool for Analysis

Treatements / Levels of Company
Factor Company
Company
C1 C2 C3 C4
Replication Q1 12 16 25 13
Factor - Quarter Q2 8 18 15 8
Q3 16 10 22 20
Q4 19 11 9 5
Research Question
The sales manager of a leading textile show room at kolkata wishes to study
the opinion of its customers on the service quality in a 0-10 scale . In this
experiment two factors were considered (a) The nature of profession (b) The
monthly income level of the customers

Research Hypothesis Factor Interaction 2-way ANOVA

H0 = There is no significance difference between Income level in terms of service quality
H1 = There is significance difference between Income level in terms of service quality
H0 = There is no significance difference between in terms of service quality
H1 = There is significance difference between professions in terms of service quality
H0 = There is no significance difference different pairs of interaction terms of Income Level
and profession in terms of service quality
H0 = There is significance difference different pairs of interaction terms of Income Level and
profession in terms of service quality

Nature of the Profession (P)

Engineer Doctor Lawyer Others
Income < Rs 12 16 25 13
Level 10,000
(I) 8 18 15 8
>= Rs 16 10 22 20
10,000
19 11 9 5
 BASIC STEPS IN DOE

Four elements associated with DOE:

1. The design of the experiment,

2. The collection of the data,

3. The statistical analysis of the data, and

4.The conclusions reached and

recommendations made as a result of the
experiment.
 TERMINOLOGY

Replication repetition of a basic

experiment without changing any factor
settings.

It allows the experimenter to estimate the

experimental error (noise) in the system.

It allows the experimenter to obtain more

statistical power (ability to identify small /
Interaction effects)
 TERMINOLOGY

Factors experimental factors or

independent variables (continuous or
discrete) an investigator manipulates to
capture any changes in the output of the
process.

uncontrollable factors

and controllable factors
 TERMINOLOGY

Responses dependent variable measured

to describe the output of the process.

Treatment Combinations (Experimental

unit / run) experimental trial where all
factors are set at a specified level.
 TERMINOLOGY

Fixed Effects Model - If the treatment

levels are specifically chosen by the
experimenter, then conclusions reached
will only apply to those levels.

Random Effects Model If the treatment

levels are randomly chosen from a
population of many possible treatment
levels, then conclusions reached can be
extended to all treatment levels in the
population.
 Design Of Experiments
Definitions:
Effect:
The change in a response variable produced by a
change in the factor level.
Degree of Freedom:
The number of levels of a factor minus 1.
Interaction:
Two or more factors that, together, produce a result
different that what the result of their separate effects
would be.
 Design Of Experiments
Definitions:
Noise factor:
An uncontrollable (but measurable) source of variation in
the functional characteristics of a product or process.
Response variable:
The variable(s) used to describe the reaction of a
process to variations in control variables (factors).
The Quality characteristic under study.
 Design Of Experiments
Characteristics of a Good Experiment Design
The experiment should provide unbiased estimates of
process variable and treatment effects (factors at different
levels).
The experiment should provide the precision necessary to
enable the experimenter to detect important differences.
The experiment should plan for the analysis of the results.
 Design Of Experiments
Characteristics of a Good Experiment Design
The experiment should generate results that are free from
ambiguity of interpretation.
The experiment should point the experimenter in the
direction of improvement.
The experiment should be as simple as possible.
Easy to set up and carry out
Simple to analyze and interpret
Simple to communicate or explain to others
 ONE WAY ANALYSIS OF VARIANCE

Used to test hypothesis that the means of

several distribtions are equal.

Example: Production line has 7 fill needles

and you wish to assess whether or not the
average fill is the same for all 7 needles.

Experiment: sample 20 fills from each of the

9 needles and test at 5% level of sign.

Ho: =
 RESULTS: ANALYSIS OF VARIANCE
TABLE
Analysis of Variance
-----------------------------------------------------------------------------
Source Sum of Squares Df Mean Square F-Ratio P-Value
-----------------------------------------------------------------------------
Between groups 1.10019 6 0.183364 18.66 0.0000
Within groups 1.30717 133 0.00982837
-----------------------------------------------------------------------------
Total (Corr.) 2.40736 139
 SINCE NEEDLE MEANS ARE NOT ALL
EQUAL, WHICH ONES ARE DIFFERENT?

Multiple Range Tests for 7 Needles
Method: 95.0 percent LSD
Col_2 Count Mean Homogeneous Groups
--------------------------------------------------------------------------------
N7 20 11.786 X
N2 20 11.9811 X
N1 20 11.9827 X
N6 20 11.9873 X
N3 20 11.9951 X
N5 20 11.9953 X
N4 20 12.11 X
 TERMINOLOGY

Randomization a statistical tool used to

minimize potential uncontrollable biases in the
experiment by randomly assigning material,
people, order that experimental trials are
conducted, or any other factor not under the
control of the experimenter.

Results in averaging out the effects of the

extraneous factors that may be present in order
to minimize the risk of these factors affecting the
experimental results.
 TERMINOLOGY

Blocking technique used to increase the

precision of an experiment by breaking the
experiment into homogeneous segments
(blocks) in order to control any potential
block to block variability (multiple lots of raw
material, several shifts, several machines,
several inspectors). Any effects on the
experimental results as a result of the
blocking factor will be identified and
minimized.
 Experimental Design Techniques

Single Factor ANOVA

Completely Randomized Design.

Randomized Complete Block Design

Latin Square Design

Complete Factorial Design'

Confounded Design

Fractional Factorial Design

Split Plot Design

Regression Approach

Multivariate Analysis of Variance(MANOVA)

 Strategy of Experimentation

One-Factor-At-A-Time

Factorial Experiment
 One-Factor-At-A-Time

This method consists of selecting a baseline set of

levels, for each factor, then successively varying each
factor over its range with the other factors held constant
at the baseline level,

After all tests are performed a series of graphs are

constructed showing how response variable is affected
by varying each factor with all other factors held
constant.

Major disadvantage is it fails to consider any

possible interaction between the factors.

In real world interaction between the factors are

common.
Sales Man
Source degree of freedom SS Mean SS F-ratio
Treatement 1 450 450 4.5
Error 6 600 100
Total N-1 = 7 1050 F(1,6)=5.9874

There is no difference in sale value regarding Salesman

Sales Region

Source degree of freedom SS Mean SS F-ratio

Treatement 1 525 525 6

Error 6 525 87.5

Total N-1 = 7 1050 F(1,6)=5.9874

There is significant difference in sale value regarding Sales region


randomize the order of experimental runs to satisfy the
statistical requirement of independence of observations.
ONE WAY ANALYSIS OF VARIANCE

Used to test hypothesis that the means of

several populations are equal.

Example: Production line has 7 fill needles

and you wish to assess whether or not the
average fill is the same for all 7 needles.

Experiment: sample 20 fills from each of

the 9 needles and test at 5% level of sign.

Ho: =
 Analysis of Variance
Hypothesis is an assumption about a population.

Two types of Hypothesis

Null Hypothesis (H0) Preferred assumption about a
population
Alternate Hypothesis (H1) - Opposite of the NULL
hypothesis

Example
H0 = There is no significance difference between companies in terms of quarterly
averages of EPS
H1 = There is significance difference between companies for at least a pair of
companies in terms of quarterly averages of EPS
 RESULTS: ANALYSIS OF
VARIANCE TABLE

Analysis of Variance
-----------------------------------------------------------------------------
Source Sum of Squares Df Mean Square F-Ratio P-Value
-----------------------------------------------------------------------------
Between groups 1.10019 6 0.183364 18.66 0.0000
Within groups 1.30717 133 0.00982837
-----------------------------------------------------------------------------
Total (Corr.) 2.40736 139
 SINCE NEEDLE MEANS ARE NOT ALL
EQUAL, WHICH ONES ARE
DIFFERENT?

Multiple Range Tests for 7 Needles
Method: 95.0 percent LSD
Col_2 Count Mean Homogeneous Groups
--------------------------------------------------------------------------------
N7 20 11.786 X
N2 20 11.9811 X
N1 20 11.9827 X
N6 20 11.9873 X
N3 20 11.9951 X
N5 20 11.9953 X
N4 20 12.11 X
 Significance level ()
The signification level is the probability with which the null hypothesis ( H 0) is
true.
Test of Hypothesis three types

Test of Hypothesis concerning mean(s)

Test of Hypothesis concerning variances

Test of hypothesis concerning proportions.

Test of Hypothesis Using F-

ratio
Fratio=
MSSTreatements
MSSError

ifFratio<F Critical

a = no. of treatments RejectH 0 ,AcceptH 1

N= total no of data elements
else

RejectH 1 ,AcceptH 0

Source of Variation Degree of Sum of Squares Mean Sum of Squares F

Freedom
Between Treatments a-1 SS Treatments SS Treatments / (a-1) Mss Treatement
Within Treatments N-1-(a-1) SS Error SS Treatments / (a(n-1)) / Mss Error
Total N-1 SS Total
 Company
C1 C2
Q1 12 16
Q2 8 18
Q3 16 10
Q4 19 11

n a aisthenumberoftreatments
SS total = Y 2ijY .2. / N nisthenumberofreplicationsundereachtreatment
i=1 j=1 Y ij
a Y .. isthesummationof valuesofi,j
all
SS treatment = Y .2j / nY .2. / N Y ij
j= 1 Y . j isthesummationof valuesofiforagivenj
all
SS error =SS total SS treatment Nisthetotalnumberofobservations theexperiments
 CRD

Completely randomized design can be defined as

studying effects of a primary factor with other factors not
taken into consideration in the design of experiments.

Completely randomized design falls within the category

of true random number generation. It is the simplest
form of design.

In completely randomized design, subjects are assigned

to various groups at random without the involvement of
any judgments.

Completely randomized designs are analyzed by one

way ANOVA.
 Disadvantage of CRD

Unrestricted randomization means that units that

receive one treatment may be inherently different

from units that receive other treatments.
Any variation in units shows up in the

experimental error sum of squares. Unless the

units are very similar, a CRD will have larger
experimental error than other designs.

Alpha Engineering Ltd is facing the problem of quality in terms of
surface finish of components which are machined using 4 different
machines(P,Q,R and S).

The company has selected 4 operators from 4 different grades of the

employees who will machine the components on the machines. The
operators are A1, A2,A3 and A4 from A, B1,B2,B3 and B4 from B ,
C1,C2,C3 and C4 from C, and D1,D2,D3 and D4 from D for allotment to
different machines during different weeks (W1,W2,W3 and W4) of the
month of experimentation.

The sixteen operators are randomly assigned to different combinations

of machine and week as shown in table next slide :
Experimental Combinations of CRD
Machines
P Q R S Four grades - (A ,B ,C, D) of Operators.

W1 A C B C A= A1, A2, A3, A4 B= B1, B2, B3, B4

Week W2 B A C D D= D1, D2, D3, D4 C= C1, C2, C3, C4
W3 D B C B
W4 A D A D

Machines
P Q R S
W1 A1 (23) C1 (35) B4 (20) C3(25)
Week W2 B2 (20) A2 (34) C2 (29) D1(28)
W3 D2 (40) B3 (30) C4 (45) B1(30)
W4 A4 (34) D4 (34) A3 (45) D3(40) Grade of Operators
A B C D
A1 (23) B1(30) C1 (35) D1(28)
A2 (34) B2 (20) C2 (29) D2 (40)
A3 (45) B3 (30) C3(25) D3(40)
A4 (34) B4 (20) C4 (45) D4 (34)
 Randomized complete block design (RCBD)

It is perhaps the most commonly encountered design that can be

analyzed as a two-way AOV.

In this design, a set of experimental units is grouped (blocked) in a

way that minimizes the variability among the units within groups
(blocks).

The objective is to keep the experimental error within each block as

well as possible. Each block contains a complete set of treatments,
therefore differences among blocks are not due to treatments, and
this variability can be estimated as a separate source of variation.

The greater the variability among blocks the more efficient the
design becomes.

The CRD has more degrees of freedom for error and a smaller F
value is required for significant difference among treatments.
 Completely Randomized Block Design
Four grades - (A ,B ,C, D) of Operators.
Week is a blocking factor. A= A1, A2, A3, A4 B= B1, B2, B3, B4

Machines D= D1, D2, D3, D4 C= C1, C2, C3, C4

P Q R S CRD Grade of Operators

A1 (23) C1 (35) B4 (20) C3(25) A B C D
B2 (20) A2 (34) C2 (29) D1(28) A1 (23) B1(30) C1 (35) D1(28)
D2 (40) B3 (30) C4 (45) B1(30) A2 (34) B2 (20) C2 (29) D2 (40)
A4 (34) D4 (34) A3 (45) D3(40) A3 (45) B3 (30) C3(25) D3(40)

No Operator of grade D No Operator of grade C,B A4 (34) B4 (20) C4 (45) D4 (34)

Machines CRBD Grade of Operators

Week P Q R S Week A B C D

W1 A1(23) B1(30) C3(25) D1(28) W1 23 30 25 28

W2 B2(20) C2(29) A2(34) D4(34) W2 34 20 29 34
W3 A3(45) D3(40) B3(30) C4(45) W3 45 30 45 40
W4 C1(35) B4(20) D2(40) A4(34) W4 34 20 35 40
 Machines CRD Grade of Operators
Week P Q R S A B C D
A1 (23) B1(30) C1 (35) D1(28)
W1 A1(23) B1(30) C3(25) D1(28) A2 (34) B2 (20) C2 (29) D2 (40)
W2 B2(20) C2(29) A2(34) D4(34) A3 (45) B3 (30) C3(25) D3(40)
W3 A3(45) D3(40) B3(30) C4(45) A4 (34) B4 (20) C4 (45) D4 (34)
W4 C1(35) B4(20) D2(40) A4(34) CRBD Grade of Operators
Week A B C D
No D No A No B
W1 A1(23) B1(30) C3(25) D1(28)
Latin Square Design W2 A2(34) B2(20) C2(29) D4(34)
improvement over CRBD W3 A3(45) B3(30) C4(45) D2(40)
W4 A4(34) B4(20) C1(35) D3(40)
Latin square designs allow for LSD Machines
two blocking factors. In other Week P Q R S
words, these designs are used
to simultaneously control (or W1 A1(23) B1(30) C4(45) D1(28)
eliminate) two sources of W2 B2(20) C2(29) D4(34) A2(34)
nuisance variability. W3 C3(25) D3(40) A3(45) B3(30)
W4 D2(40) A4(34) B4(20) C1(35)
CRD Grade of Operators Blocking Factor NIL
A B C D
Factor Grade of Operators
A1 (23) B1(30) C1 (35) D1(28)
Interaction between Factors NIL
A2 (34) B2 (20) C2 (29) D2 (40)
A3 (45) B3 (30) C3(25) D3(40)
A4 (34) B4 (20) C4 (45) D4 (34)
CRBD Grade of Operators
Week A B C D
Blocking Factor Week
W1 A1(23) B1(30) C3(25) D1(28) Factor Week, Grade of Operators
W2 A2(34) B2(20) C2(29) D4(34) Interaction between Factors NIL
W3 A3(45) B3(30) C4(45) D2(40)
W4 A4(34) B4(20) C1(35) D3(40)
LSD Machines
Week A B C D
Blocking Factor Week, Grade of Operators
W1 A1(23) B1(30) C4(45) D1(28)
Factor Week, Grade of Operators
W2 A2(34) B2(20) C2(29) D4(34) Interaction between Factors NIL
W3 A3(45) B3(30) C3(25) D3(40)
W4 A4(34) B4(20) C1(35) D2(40)
 The model of the CRD
Y ij =+T j +eij
is the overall mean
Y ij is the ith observation under the jth treatment of the factor
T j is the effect of the jth treatment of the factor
e ij is the random error associated with the ith observation
under the jth treatment of the factor

Null Hypothesis,H 0 :T 1 =T 2 =T 3 =T 4
H 1 :Treatement means are not equal for atleast one pair of treatments

SSTotal =SS Treatment +SS error

n a
a is the number of treatments
SS total = Y 2
Y 2
../ N
i=1 j=1
ij
n is the number of replications under each treatment
a Y .. is the summationofY ij for all values of i,j
SS treatment = Y .2j / nY .2. / N
j= 1 Y . j is the summation of Y ij for all values of i for a given j
SS error =SS total SS treatment N is the total number of observationsthe experiments
 The model of the CRBD
Y ij =+B i +T j +eij
is the over all mean
Y ij is the ith observation under the jth treatment of the factor
B i is the effect of the ith block
T j is the effect of the jth treatment of the factor
e ij is the random error associated with the ith observation
under the jth treatment of the factor

Null Hypothesis,w .r . t . Treatment H 0 : T 1 =T 2 =T 3 =T 4

H 1 : Treatement means are not equal for at least one pair of treatments
Null Hypothesis,w .r . t . BlockH 0 : B1 =B 2 =B 3 =B 4
H 1 : Block means are not equal for at least one pair of Blocks

SS Total =SS Block +SSTreatment +SSerror

n a 2
Y a is the number of treatments
SS Total = Y 2ij ..
i= 1 j= 1 N b is the number of blocks
a 2 2
Y . j Y .. Y .. is the summation of Y ij for all values of i,j
SS Treatment =
j= 1 n N
b
Y 2i . Y 2. .
Y . j is the summation of Y ij for all values of i for a given j
SS Block = Y i. is the summation of Y ij for all values of jfor a giveni
j= 1 a N
SS error =SS Total SSTreatment SS BlockN is the total number of observationsthe experiments
 The model of the LSD
Y ijk =+B i
+T j +M k +e ijk
istheoverallmean
Y ijk istheobservationinntheithrowanndkthcolumnforthejthtreatmentofthefactor
Bi istheeffectoftheithrow
T j istheeffectofthejthtreatmentofthefactor
M k istheeffectofthekthcolumnannd
e ijk istherandomerrorassociatedwiththeithobservation
withtheithrowanndthekthcolumnforthejthtreatmentofthefactor

NullHypothesis,w . r . t . Treatment,AlternateHypothesisH 1 regardingTreatment

NullHypothesis,w . r . t . rows,AlternateHypothesisH 1 regardingrows
NullHypothesis,w . r . t . columns,AlternateHypothesisH 1 regardingcolumns

b c
SS Total= Y 2ik . . .
Y 2
aisthenumberoftreatments
i=1 k=1 N bisthenumberofblocks ( row )
a
Y 2. j. Y 2. ..
SS Treatment = cisthenumberofblocks ( col )
b N
j=1
Y ... isthesummationofY ijk forallvaluesofi,j,k
b
Y 2i. . Y 2.. .
SS Block ( row ) = Y . j. isthesummationofY ijk forallvaluesofianndkforagivenj
i=1 c N
Y 2. . k Y 2.. .
c
Y i.. isthesummationofY ijk forallvaluesofianndjforagivenk
SS Block ( column )=
k=1 b N Nisthetotalnumberofobservationstheexperiments
SS error =SS Total SSTreatment SS Block ( row ) SS Block (column )
 2
LSD Machines 2 2 2 2 2 2 2 2 512
SS Total=( 23 +30 +45 +28 +........+40 +34 +20 +35 ) =938
Week P Q R S Y i. . 16
1262+1172 +1402 +1292 512 2
W1 A1(23) B1(30) C4(45) D1(28) 126 SSBlock ( week )= =67.5
W2 B2(20) C2(29) D4(34) A2(34) 117
4 16
W3 C3(25) D3(40) A3(45) B3(30) 140 1082 +1332 +1442+1272 5122
SSBlock ( machines)= =170.5
W4 D2(40) A4(34) B4(20) C1(35) 129 4 16
Y ..k
108 133 144 127 512
LSD Grades
Week A B C D
1362 +100 2+134 2+142 2 5122
SS Treatment ( Grade )= =270
W1 A1(23) B1(30) C4(45) D1(28) 4 16
W2 A2(34) B2(20) C2(29) D4(34)
W3 A3(45) B3(30) C3(25) D3(40)
W4 A4(34) B4(20) C1(35) D2(40)
Y . j. 136 100 134 142

SS error = 938 67 . 5 170 . 5270 =430

 Result for LSD
Source of Degree of Sum of Squares Mean Sum of F-Ratio
Variation freedom Squares
Between Grades 3 270.0 =270.0 / 3 = 90 1.256<4.76

Between Weeks 3 67.5 67.5 / 3 = 22.50 0.314<4.76

Between 3 170.5 170.5 / 3 = 56.83 0.793<4.76

Machines
Error 15-3-3-3 = 6 430 430 / 6 = 71.67
Total 15 938
 Complete Randomized Design
A stock market analyst wants to study the impact of the type of
company on quarterly averages of EPS data of four different
companies during the last financial year from 'Capital Market' which
is summarized below:

C1 C2 C3 C4
12 16 25 13
8 18 15 8
16 10 22 20
19 11 9 5

There is no significance difference between

companies in terms of quarterly averages of EPS
data
 SS Total= (12)^2+ (16)^2......(5)^2 - (227)^2 / 16 = 478.4375

SS Treatment= { [(55)^2 +(55)^2+(71)^2+(46)^2 ] / 4} - {(227)^2 / 16}= 81.1875

SS Error = SS Total - SS Treatment = 478.4375 81.1875 = 397.25

C1 C2 C3 C4
12 16 25 13
8 18 15 8
16 10 22 20
19 11 9 5
55 55 71 46
Source of Degree of Sum of Mean Sum F Calculated
Variation Freedom Squares of Squares

Between 4-1 (a-1) 81.1875 81.1875 / 3 = 27.063 / 33.104

Companies = 27.063 = 0.23

< 3.49

Error 15-3=12 397.25 397.25 / 12

= 33.104

Total 16-1=15 478.4375

 FACTORIAL (2k) DESIGNS

Experiments involving several factors ( k =

# of factors) where it is necessary to study
the joint effect of these factors on a specific
response.

Each of the factors are set at two levels (a

low level and a high level) which may be
qualitative, or quantitative.
 FACTORIAL (2k) DESIGNS

Factors are assumed to be fixed (fixed effects model)

Designs are completely randomized (experimental trials

are run in a random order, etc.)

The usual normality assumptions are satisfied.

 FACTORIAL (2k) DESIGNS

Particularly useful in the early stages of

experimental work when you are likely to
have many factors being investigated and
you want to minimize the number of
treatment combinations (sample size) but,
at the same time, study all k factors in a
complete factorial arrangement (the
experiment collects data at all possible
combinations of factor levels).
 FACTORIAL (2k) DESIGNS

As k gets large, the sample size will

increase exponentially. If experiment is
replicated, the # runs again increases.
k # of runs
2 4
3 8
4 16
5 32
6 64
7 128
8 256
9 512
10 1024
 bc abc
Hb b ab
Hb b ab

B
B

1 a Hc c ac
Lb
Lb Lc 1 a

La A Ha La A Ha

Average effect of A =[ [(a-1) /2] + [(ab-b)/2] ] / 2

Average effect of B =[ [(b-1) /2] + [(ab-a)/2] ] / 2

Average effect of A =[ {(a-1) /2} + {(ac-c)/2} + {(abc-bc) / 2}+ {(ab-b) / 2} ] / 2

Average effect of B =[ {(b-1) /2} + {(ab-a)/2} + {(abc-ac) / 2}+ {(bc-c) / 2} ] / 2

Average effect of C =[ {(c-1) /2} + {(ac-a)/2} + {(abc-ab) / 2}+ {(bc-b) / 2} ] / 2

 Data arranged in Yate's order
A B C AB AC BC ABC Y
A B AB Y
1 - - - + + + -
1 - - +
a + - - - - + +
a + - -
b - + - b - + - - + - +
ab + + +
ab + + - + - - -

c - - + + - - +

ac + - + - + - -

bc - + + - - + -

abc + + + + + + +
A Stock market Analyst wants to study the impact of the type of company and time period on
the quarterly averages of the earnings per share (EPS). So he collected four quarterly
averages of EPS data of two different companies during the last two financial years from
Capital Market which are summarized in table below :

Type Year (B) A B AB R1 R2 Y

of
Comp 1(-) 2(+)
any
(A) 12 16
1(-) 1 - - + 12 18 12+18
18 15
= 30
16 10
2(+)
19 11
a + - - 16 19 35
b - + - 16 15 31
Cont A = (35+21)-(30+31) = -5
Cont B = (31+21)-(30+35) = -13 ab + + + 10 11 21
Cont AB = (30+21)-(31+35) = -15

SS-A = [Cont A] 2 / [ 2factors x replicates ] = 3.125

SS-B = [Cont B] 2 / [ 2factors x replicates ] = 21.125
SS-AB = [Cont AB] 2 / [ 2factors x replicates ] = 28.125
 A B AB R1 R2 Y
SS-Total = (122 + 182+...+102+112) (1172 / 8)
= 75.875

1 - - + 12 18 12+18
= 30

a + - - 16 19 35
b - + - 16 15 31
ab + + + 10 11 21
Source DF SS MSS F-ratio F-Crit
Company 2-1 3.125 3.125 / 1 3.125 / 5.875 7.71
=0.531915
Year 2-1 21.125 21.125 / 1 21.125 / 5.875 7.71
=3.617
Company x 1*1 28.125 28.125 / 1 28.125 / 5.875 7.71
Year =4.7872
Error 7-1-1-1 = 4 = 23.5 =23.5 / 4 = 5.875
Total N-1 = 8-1 75.875
 ANOVA for 2^k factorial design using Yate's Alogorithm

A B AB R1 R2 Y C1 C2 Contrast SS

1 - - + 12 18 30 30+35 65+52
=65 =117
a + - - 16 19 35 31+21 5-10 A (-5)2 / 8
=52 =-5 =3.125
b - + - 16 15 31 35-30 52-65 B (-13)2 / 8
=21.125
=5 =-13

ab + + + 10 11 21 21-31 -10-5 AB (-15)2 / 8

=28.125
=-10 =-15
The surface finish of product produced in a machine shop is
suspected to be affected by a factor Operator and another factor
Shift. The data of this experiment with two replications in different
treatment combinations are summarized below. Perform Anova
using General Linear Model and 2n Factorial Design and Yate's
Design and check the significance of the components of the
related model when is 0.05.

Operator Shift (B)

(A) 1 2
1 65 20
70 40
2 30 50
35 40
A company is keen in assessing the contribution of its employees
in a 0-10 scale in terms of value addition to its business operations.
In this connection the UG qualification, sex and work experience
of the employees are considered to be the factors. The
corresponding ratings of the employees are shown below :

Work UG degree (B)

Experience
(A) Engineering Others
Sex (C) Sex (C)
Male Female Male Female
<3 8 2 4 2
7 6 8 4
>=3 9 4 7 5
9 9 8 6

Ans F- values below , F-crit = 5.32

WE = 4, UG-Degree = 1.563 , WE x UG-Degree = 0, Sex= 7.563 , WE x Sex = 0.250

UG-Degree x Sex = 0.063 , WE x UG-Degree x Sex =0
 FACTORIAL (2k) DESIGNS (k = 2):
GRAPHICAL OUTPUT

Neither factor A nor Factor B have an effect

on the response variable.
 FACTORIAL (2k) DESIGNS (k = 2):
GRAPHICAL OUTPUT

Factor A has an effect on the response

variable, but Factor B does not.
 FACTORIAL (2k) DESIGNS (k = 2):
GRAPHICAL OUTPUT

Factor A and Factor B have an effect on the

response variable.
 FACTORIAL (2k) DESIGNS (k = 2):
GRAPHICAL OUTPUT

Factor B has an effect on the response variable, but only if

factor A is set at the High level. This is called
interaction and it basically means that the effect one
factor has on a response is dependent on the level you set
other factors at. Interactions can be major problems in a
DOE if you fail to account for the interaction when
designing your experiment.