Analysis of Variance (ANOVA)

One Way Classification

Random samples of size n are selected from each of k populations. It will be assumed
that the k populations are independent and normally distributed with means
1   2   3   4  .........   K and common variance  2 . We wish to derive
appropriate methods for testing the hypothesis:
H 0 : 1   2   3   4  .........   K
H A : at least two of the means are not equal.
Table 1
K random samples
Population
1 2 ……… i ……… k
x11 x 21 ……… xi1 ……… xk 1
x12 x 22 ……… xi 2 ……… xk 2
. . . .
. . . .
. . . .
. . . .

x1n x2 n ……… xin ……… x kn

Total T1 T2 ……… Ti ……… Tk T

Mean x1 x2 ……… xi ……… xk x

One way Sum of Squares Identity

k n k k n

  ( xij  x ) 2  n ( xi  x ) 2    ( xij  xi ) 2
i 1 j 1 i 1 i 1 j 1

k n

  (x  x)
2
Total Sum of Square = SST = ij
i 1 j 1
k

Sum of Squares for column mean = SSC = n  ( xi  x )

2

i 1
k n

Error Sum of Square = SSE =   ( xij  xi ) 2

i 1 j 1

According to one way sum of squares identity

SST = SSC + SSE
Steps Of Working:

1. Set the null hypothesis H 0 :

e.g. H 0 : 1   2   3   4  .........   K

2. Set the alternative hypothesis HA :

e.g H A : at least two of the means are not equal.

3. Level of significance  (also decide the case, either belong to the one
tailed or two tailed)
4. Check the table
a. FOR EQUAL SAMPLE SIZE
(As it is the case of comparison of progress there for we use the table of F
distribution.) f [k  1, k (n  1)]
b. FOR UNEQUAL SAMPLE SIZE
The degree freedom and its calculation is different when the sample size
are not equal .
f  (k  1, N  k )
5. Computations: (FOR EQUAL SAMPLE SIZE)

Sum of Squares Computational Formulae

kT2 n

SST =   xij  2

i 1 j 1 nk
k

T T 2
2
SSC =  i 1
i

n nk
SSE = SST – SSC

Table 2-a
ANOVA (ONE-WAY CLASSISFICATION)

Source of Sum of Degrees of Mean Computed

Variation Squares Freedom Square f
SSC
Column means SSC k-1 s12  s12
k 1
SSE s22
Error SSE K(n-1) s22 
k (n  1)
Total SST nk - 1

Computations: (FOR UNEQUAL SAMPLE SIZE)

Sum of Squares Computational Formulae

k T ni
2

SST =   x  2

N
ij
i 1 j 1

T T
2
2


i
SSC = i 1

n
i
Nk
SSE = SST – SSC

Table 2-b
ANOVA (ONE-WAY CLASSISFICATION)

Source of Sum of Degrees of Mean Computed

Variation Squares Freedom Square f
SSC
Column means SSC k-1 s12  s12
k 1
SSE s22
Error SSE N-k s 
2

N k
2

Total SST N-1

6. Decision:
Reject the null hypothesis H 0 : When f  f and accept alternative
cal tab

hypothesis.

Practice Questions:

From Walpole:
Example # 1, Page # 392
Exercise On Page # 400, Q # 2 and Q # 3
Example # 2, Page # 394
Exercise On Page # 400, Q # 4 and Q # 5

Q7. Four brands of flashlight batteries are to be compared by testing each brand on
five flashlights. Twenty flashlights are randomly selected and divided randomly into four
groups of five flashlights each. Then each group of flashlights uses a different brand of
battery. The lifetimes of the batteries to the nearest hour are as follows.
Brand A Brand B Brand C Brand D
42 28 24 20
30 36 36 32
39 31 28 38
28 32 28 28
29 27 33 25
At the 5% significance level, does there appear to be a difference in mean lifetime among
the four brands of batteries?

Q8. A chain of convenience stores wanted to test three different advertising policies:
Policy # 1: No advertising
Policy # 2: Advertising in neighborhoods with circulars
Policy # 3: Use circulars and advertise in newspapers.
Eighteen stores were randomly selected and divided randomly into three groups of six
stores. Each group of six stores. Each group used one of the three policies. Following the
implementation of the policies, sales figures were obtained for each of the stores during a
1-month period. The figures are displayed, in thousands of dollars, in the following table.

Policy # 1 Policy # 2 Policy # 3

22 21 29
20 25 24
26 25 31
21 20 32
24 22 26
22 26 27
Do the data provide evidence of a difference in mean monthly sales, among the three
policies? Perform the required hypothesis test at the 1% significance level.
Q9. The Bureau of Labor Statistics publishes data on weekly earnings of non-
supervisory workers in Employment and Earnings. The following data in dollars, were
obtained from random samples of (full and part-time) workers in five service-producing
industries.
Transport Wholesale trade Retail trade Finance, Services
Insurance, Real
Estate
467 402 208 424 364
507 347 136 378 376
468 327 118 460 383
512 396 246 346 299
559 380 133 336
490 227 273
Do the data provide sufficient evidence to conclude that a difference exists in mean
weekly earnings among non-supervisory workers in the five industries? Perform the
required hypothesis test using the level of significance is 0.05.

Analysis of Variance (ANOVA)