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LIND

MASON

MARCHAL

Analysis of Variance

GOALS

When you have completed this chapter, you will be able to:

ONE : Discuss the general idea of analysis of variance.

TWO : List the characteristics of the F distribution.

THREE : Conduct a test of hypothesis to determine

whether two sample variances are equal.

FOUR : Organize data into a one-way ANOVA table.

FIVE : Conduct a test of hypothesis among three or more

treatment means.

SIX : Develop confidence intervals for the difference

between treatment means.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Characteristics of 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 freedom.

(Note: That the shape of the curve changes

as the degree of freedom change.)

The F distribution is continuous.

F cannot be negative.

The F distribution is positively skewed.

As F the curve approaches the x-axis.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Test for Equal

Variances

For the two tail test, the test statistic is

given by:

are the sample variances for the two

samples. The null hypothesis is rejected if the

computed test statistic is greater than the critical

(table) value with confidence level and

numerator and denominator degrees of freedom.

2

2

2

1

s

s

F =

S and S

1

2

2

2

o / 2

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

ANOVA: THE GENERAL IDEA

The second use of the F distribution

involves the ANOVA technique.

- ANOVA uses sample information to

determine whether or not three or more

treatments produce different results.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

ASSUMPTIONS UNDERLYING THE ANOVA TEST

Before we actually conduct a test using the

ANOVA technique, the assumption underlying the test

will be examined. If any of the following assumptions

cannot be met.

Another analysis of variance technique

1. The three or more population of interest are

normally distributed.

2. The distribution have equal standard deviations.

3. The sample we select from each of the population

are random and independent that is, they are not

related.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Analysis of Variance Procedure

The Null Hypothesis: the population means are

the same.

The Alternative Hypothesis: at least one of the

means is different.

The Test Statistic:

Decision rule:

For a given significance level o , reject the null

hypothesis if F (computed) is greater than F (table) with

numerator and denominator degrees of freedom.

leVariance WithinSamp

e pleVarianc BetweenSam

F =

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

EXAMPLE 1

Supposed the manager of RMP branch of

Appliance Center Inc. resigned, and 3

salespeople at the branch are being

considered for the position. All 3 have the

same length of service, education, and so on.

In order to make a decision, it was suggested

that each of their monthly sales records be

examined.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

MONTHLY SALES (P0000)

Ms. MAPES Ms. SONNAR Mr. MAFEE

15 15 19

10 10 12

9 12 16

5 11 16

16 12 17

Treatment

Means

11 12 16

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Step 1: THE NULL HYPOTHESIS AND THE

ALTERNATIVE HYPOTHESIS: Ho states that there is

no significant difference among the mean sales

of the three sales people; that is 1=2= 3. H1

states that at least one mean is different

Ho : 1= 2= 3

H1 : The treatment means are not the same.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Step 2: THE LEVEL OF SIGNIFICANCE

The 0.05 level was selected..

Step 3 : THE TEST STATISTICS

Note: The numerator has k -1 degrees of freedom and

the denominator N k degrees of freedom where k is

the number of treatments and N is the total number of

observations.

leVariance WithinSamp

e pleVarianc BetweenSam

F =

Step 4: THE DECISION RULE

Step 5: COMPUTE F, AND ARRIVE AT A DECISION

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

General Format for ANOVA Table

Source of

Variation

Sum of

Squares (1)

Degrees of

Freedom(2)

Mean Square

(1)/(2)

Between

Treatments

SST K 1

Within

Treatments

SSE N - K

Total SS total

MSTR

k

SST

=

1

MSE

k N

SSE

=

MSE

MSTR

k N

SSE

k

SST

F =

=

1

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Where:

MSTR mean square between treatments

MSE mean square due to error. It is also referred to as the

mean square treatment.

SST sum of squares treatment.

Where: Tc^2 directs one to square each column.

nc the number of observations for each

respective treatment.

EX the sum of all observations

k the number of treatment

N total number of observation

( )

N

x

n

T

SST

c

c

2

2

=

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

( )

(

=

c

c

n

T

x SSE

2

2

( )

( )

N

x

x SStotal

2

2

=

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Ms. MAPES Ms. SONNAR

Mr. MAFEE

X1 X1^2 X2 X2^2 X3 X3^2

15 225 15 225 19 361

10 100 10 100 12 144

9 81 12 144 16 256

5 25 11 121 16 256

16 256 12 144 17 289

Column Total, Tc 55 60 80 195

Sample Size , nc 5 5 5 15

Sum of squares, x^2 687 734 1306 2727

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

( )

N

x

n

T

SST

c

c

2

2

=

( )

70

15

195

5

80

5

60

5

55

2

2 2 2

=

(

+ + = SST

( )

(

=

c

c

n

T

x SSE

2

2

(

+ + + + + =

5

80

5

60

5

55

17 .... 10 15

2 2 2

2 2 2

SSE

122 = SSE

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

( )

( )

N

x

x SStotal

2

2

=

( )

192

15

195

727 , 2

2

= = SStotal

Source of

Variation

Sum of

Squares (1)

Degrees of Freedom(2) Mean

Square

(1)/(2)

Between

Treatments

70 K 1 = 3 1 = 2 35

Within

Treatments

122 N K = 15 3 = 12 10.17

SSTotal

192

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

17 . 10

35

1

= =

=

MSE

MSTR

k N

SSE

k

SST

F

44 . 3 = F

The decision rule states that if the computed value is to

the critical value of 3.89., the null hypothesis is not

rejected. If the F value is > 3.89, Ho is rejected and H1

accepted. However, since 3.44 < 3.89. the null

hypothesis is accepted at the 0.05 level. From a

practical standpoint, the levels of sales of the three

salespeople being considered for store manager are the

same. No decision with respect to the position can be

made o the basis of monthly sales.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Example 2

The following represent the test scores of three groups

of students

Group A Group B Group C

12 18 6

18 17 4

16 16 14

8 18 4

6 12 6

12 17 12

10 10 14

1. Do the means of the three groups differ significantly?

Use 0.05 level.

2. If so, apply the scheffe test to find out where the

difference are.

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 2000

LIND

MASON

MARCHAL

Test after the F test

In our problems there are three means, thus three

means comparison may be made.

A vs B ; A vs C ; B vs C

Where : Sw^2 Mean Square Within Treatments

At 0.05 level of F for within groups 2, 18 degrees of

freedom, is 3.55. this value is multiplied by ( k 1),

where k is the number of groups or treatment.

( )

( )

2 1 2 1

2

2

2

1

/ N N N N Sw

x x

F

+

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