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examining the variances in the samples used.

More specifically, the procedure can be used to determine if a particular treatment when

applied to a population will have a significant impact on its mean.

Consider, as an example, the desire to measure the relative effects of three different

training programs on employee output. These different types of training may be (1) self-

taught, (2) computer instructed, or (3) taught by a supervisor.

In ANOVA study, the experimental units are the objects receiving the treatment, in our

training example; the employees constitute the experimental units. The factor is force or

variable whose impact on these experimental units we wish to measure. In this case,

training is the factor of interest. Finally, the three types of training constitute the

treatments, or factor levels, of the factor training.

The most common application of ANOVA is the completely randomized design. The

experimental units are assigned randomly to various treatments. Each unit randomly

chosen for the study has an equal chance of being assigned to any treatment.

since there is only one independent variable.

already discussed; it involves two independent variables. The independent variables are

also called factors.

Using the two-way analysis of variance, the researcher is able to test the effects of two

independent variables or factors on one dependent variable.

Variables or factors are changed between two levels (i.e., two different treatments).

The benefit of considering other factors is that we can reduce the error variance.

That is, if we can reduce the denominator of the F statistic (reducing the error variance,

the SSE term) the value of F will be larger, causing us to reject the hypothesis of equal

treatment means.

A second treatment variable than when included in the ANOVA analysis will have the

effect of reducing the SSE term, is referred to as a blocking variable.

1

Two-Way ANOVA Statement of Hypothesis

For a test of the difference among treatments, the following hypotheses should be used:

H0: 1 2 a, where a is the number of groups

H1: At least one treatment mean is different from the others.

For a test of the difference among blocks, the following hypotheses should be used:

H0: 1 2 b, where b is the number of groups

H1: At least one block mean is different from the others.

The treatments sum of the squares, denoted SSA, is found using the following formula:

x x

2 2

a

b xi x

2

i ij

SSA = i 1 or SSA = b ab

The blocks sum of the squares, denoted SSB, is found using the following formula:

x x

b 2 2

a x j x

2

j ij

SSB = j 1

or SSB = a ab

The total sum of the squares, denoted SST, is found using the following formula:

xij

2

a b

x x x

2

ij

2

ij

SST = i 1 j 1

or SST = ab

The error sum of the squares, denoted SSE, is found using the following formula:

a b

xij xi x j x

2

i 1 j 1

SSE = = SST SSA - SSB

2

Analysis of Variance Summary Table

Squares Squares

Treatments SSA a1 MSA MSA

F

MSE

Blocks SSB b1 MSB MSB

F

MSE

Error SSE (a 1)(b1) MSE

Total SST n1

1. The population from which the samples were obtained must be normally or

approximately normally distributed.

2. The samples must be independent.

3. The variances of the population from which the samples were selected must be equal.

4. The groups must be equal in sample size.

Example 2

Rudduck Shampoo sells three shampoos, one each for dry, normal and oily hair. Sales, in

millions of dollars, for the past five months are given in the following table. Using the

0.05 significance level, test whether the mean sales differ for the three types of shampoo

or by month.

Sales ($ million)

Month Dry Normal Oily

June 7 9 12

July 11 12 14

August 13 11 8

Sept 8 9 7

Out 9 10 13

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