ANOVA

Definition Analysis of Variance

A statistical tool that uses the variance to assess mean differences. The technique
partitions the total variance into components:

Between treatments levels (factors or X)

Within Treatment (Error)

The ratio of the variance components is then compared to determine if a shift in the
mean was due to the treatment (factor) or if it occurred by chance. ANOVA is used to
compare two or more means.

The F statistic is used to assess statistical significance.

Introduction to ANOVA
It is required to evaluate the tensile strength of adding an alloy to steel. The current
percentage of alloy used in the factory ranges from 5 to 25 percent so it was decided to test
the alloys at five different levels. The data-is provided below.
Tensile strength
5%

10%

15%

20%

25%

180

310

260

400

300

220

230

360

500

340

260

260

220

420

360

260

260

320

400

280

240

220

340

480

375

It appears the means are different, but how can you be sure? If you wanted to test the
means using a statistical hypothesis test, how could this be accomplished?

The percentages could be compared two at a time using a standard hypothesis test for
means. This would involve 10 consecutive tests

5 vs 10%

5vs 15%

etc.

Assuming 95 percent confidence for each test, the probability in accepting all 10 tests
would be approximately 60 percent: P(x) = (0.95)10.

The appropriate way to test the alloy percentage at multiple levels and still be 95
percent confident, is through analysis of variance or ANOVA.

ANOVA Assumptions
Analysis of Variance Assumptions (model adequacy):

Observations are adequately described by the model.

Errors are normally and independently distributed.

Homogeneity of variance among factor levels

In one-way ANOVA, model adequacy can be checked by either of the following:

Check the data for normality at each level and for homogeneity of variance across all
levels.

Examine the residuals. A residual is the difference in what the model predicts and the
true observation.
ei = Yiobserved Yi expected

If the model is adequate, the residual plots will be structureless.

Steps in Performing ANOVA.

Step 1: State the practical problem.
Step 2: State the statistical problem.

Select the appropriate statistical test.

Establish a Hypothesis, Alpha and Beta risk.

H0 : 1 = 2 = 3 = 4 = 5
Ha : atleast one mean is different
If F0 >Fcritical or Pvalue < 0.05, reject the null hypothesis and conclude that the means are
different.
Step 3: Select a candidate X or factor to include in the study. Potential X's should come from
the process map, YX diagram, FMEA or other graphical techniques discussed in the
analyze phase.
Step 4: Choose the factor levels.
When picking the factors levels, the current range in which the factor is currently controlled
will dictate the factor level. If temperature is controlled between 10 to 20 degrees, then the

levels will be in that range. (Once in the improvement phase, factor levels will be
predetermined and will be typically outside the range.)
Step 5: Choose the experimental design and calculate the sample size.
Step 6: Collect the data.
Step 7: Analyze the results.

Plot the data

Determine variable significance

Check for model adequacy.

Step 8: State practical conclusions.