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

x11 x12

x21 x22

i xi1 xi 2

k xk 1 xk 2

. . . .
x1n T1 x1

. . . .
x2 n T2 x2

. . . .
xin Ti xi

. . . .
xkn Tk xk

Total Mean

T x

One way Sum of Squares Identity

( x x ) = n ( x x ) + ( x x )
2 2 i =1 j =1 ij i =1 i i =1 j =1 ij i

Total Sum of Square = SST =

(x x)
i =1 j =1 ij

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

i =1

Error Sum of Square = SSE =

(x x )
i =1 j =1 ij i

According to one way sum of squares identity SST = SSC + SSE

Steps Of Working:
1. e.g.

Set the null hypothesis H 0 : H 0 : 1 = 2 = 3 = 4 = ......... = K Set the alternative hypothesis H A : e.g H A : at least two of the means are not equal. Level of significance
tailed or two tailed) (also decide the case, either belong to the one

2.

3. 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, N k )]

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 )

Note: (The formula for degree of freedom will remain same irrespective to the sample size)

5.

Computations: (FOR EQUAL SAMPLE SIZE)

Sum of Squares Computational Formulae SST = SSC =

i =1 k i =1

xij2
j =1 2 i

T2 N

T
n

T2 N

SSE = SST SSC

Table 2-a ANOVA (ONE-WAY CLASSISFICATION) Source of Variation Column means Error Total Sum of Squares SSC SSE SST Degrees of Freedom k-1 K(n-1) nk - 1 Mean Square Computed f

SSC k 1 SSE s22 = k (n 1) s12 =

s12 s22

Computations: (FOR UNEQUAL SAMPLE SIZE)

Sum of Squares Computational Formulae SST = SSC =

T x N
k ni 2 i =1 k j =1 ij

T
i =1

ni

T2 N

SSE = SST SSC Table 2-b ANOVA (ONE-WAY CLASSISFICATION) Source of Variation Column means Error Total Sum of Squares SSC SSE SST Degrees of Freedom k-1 N-k N-1 Mean Square Computed f

s12 =

SSC k 1

s =
2 2

SSE N k

s12 s22

6. Decision: Reject the null hypothesis H 0 : When f cal > f tab and accept alternative 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 20 26 21 24 22 21 25 25 20 22 26 29 24 31 32 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 nonsupervisory 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)