QAM II

ANOVA
Professor Sinha

f (1, 1) +f(2, 2)+ f(3, 3) Ho: 1 = 2= 3 H1: any two measures not same
(If variation between treatments is very large than variation within treatment then reject Null Hypothesis)

Problem with t test y y Dealing with nC2 Probability of Type 1 error increases = 1 (.95) (.95) (.95) Probability of rejection correct null hypothesis will increase The management director of large industrial firm wants to determine whether three different training programs have different affects on employees productivity level. Fourteen employees are randomly selected and signed to one of the three programs. On completion of training each employee appeared in a test to determine his/her proficiency. Four were placed in First training program and 5 in rest of the programs.
Fixed affect Model <Profile>

Program I 85 72 83 80 T1. Mean Variance 320 80 32.67 T2.

Program II 80 84 81 78 82 405 81 5

T3.

Program III 82 80 85 90 88 425 T. 85 17

1150 19.4

82.14

Total Variation SST SSTR

= = = =

Treatment variation +Error variation SSTR + SSE (Xi-X-bar) 2 ni.(xj-xbarbar)2

Assumption y y Observations are from normal population Al l populations have same sample variance

Principal of ANOVA If the variation between samples is greater than variation within samples, it means strong variation effect is present. ANOVA is ratio of . If different treatments are having different effects the variation between samples will rise causing the ratio to increase

Fratio = variation between treatments / Variation within treatments Se

LSD value will be different for each pair, if sample have equal no of observation, than use Robert Shade, is Vice President Citi Bank at Atlanta, recent promotional efforts to attract new depositors include certain games and prizes at the banks four branch locations. Shade is convinced that different types of promotional prices will appeal to different income groups. People at one income level might prefer gifts, while other might be interested in holiday trips. Shade decides to use size of deposits as the proxy major of income. He wants to determine whether there is difference in the mean level of deposits between the four branches. If a difference is found Shade will offer a variety of promotional prices Seven deposits are randomly selected from each branch and are displayed here rounded to nearest $100 SSTR = SSBR Variation due to block level (experience level of operators) SSE Variation due to random error within the samples

Current negotiations between focus on workers output of methods of payment A large firm has five plants in each one workers are paid by commission , straight salary or a bonus plan 3 workers are randomly selected out of 5 plants with each paid by one method there daily output method in unit is showed in the following tables. It is thought necessary block on plants correcting for any difference that might exist in mean plant output . Based on these data which payment plan would you suggest to management if objective was to maximize the output.