Bbs13e Chapter11

Chapter 11
Analysis of Variance
Copyright 2015, 2012, 2009 Pearson Education, Inc. Chapter 11, Slide 1
Learning Objectives
In this chapter, you learn:
The basic concepts of experimental design
How to use one-way analysis of variance to test for differences
among the means of several groups
When and how to use a randomized block design
How to use two-way analysis of variance and interpret the
interaction effect
How to perform multiple comparisons in a one-way analysis of
variance, a randomized block design, and a two-way analysis of
variance
Chapter Overview
DCOVA
Analysis of Variance (ANOVA)
One-Way Randomized Two-Way

ANOVA Block Design ANOVA
F-test
F-test F-test
Tukey-
Kramer Tukey Multiple
Multiple Comparisons Interaction
Comparisons Effects
Levene Test
For
Homogeneity Tukey Multiple
of Variance Comparisons
General ANOVA Setting
DCOVA
Investigator controls one or more factors of interest

Each factor contains two or more levels
Levels can be numerical or categorical
Different levels produce different groups
Think of each group as a sample from a different
population
Observe effects on the dependent variable
Are the groups the same?
Experimental design: the plan used to collect the data
Completely Randomized Design
DCOVA
Experimental units (subjects) are assigned
randomly to groups
Subjects are assumed homogeneous
Only one factor or independent variable
With two or more levels
Analyzed by one-factor analysis of variance
(ANOVA)
One-Way Analysis of Variance
DCOVA
Evaluate the difference among the means of three
or more groups
Examples: Number of accidents for 1st, 2nd, and 3rd shift
Expected mileage for five brands of tires
Assumptions
Populations are normally distributed
Populations have equal variances
Samples are randomly and independently drawn
Hypotheses of One-Way ANOVA
DCOVA
H0 : 1 2 3 c
All population means are equal
i.e., no factor effect (no variation in means among
groups)
H1 : Not all of the population means are equal

At least one population mean is different
i.e., there is a factor effect
Does not mean that all population means are
different (some pairs may be the same)
One-Way ANOVA
DCOVA
H0 : 1 2 3 c
H1 : Not all j are equal
When The Null Hypothesis is True

All Means are the same:
(No Factor Effect)
1 2 3
One-Way ANOVA (continued)
DCOVA
H0 : 1 2 3 c
H1 : Not all j are equal
When The Null Hypothesis is NOT true

At least one of the means is different
(Factor Effect is present)
or
1 2 3 1 2 3
Partitioning the Variation
DCOVA
Total variation can be split into two parts:
SST = SSA + SSW
SST = Total Sum of Squares

(Total variation)
SSA = Sum of Squares Among Groups
(Among-group variation)
SSW = Sum of Squares Within Groups
(Within-group variation)
Partitioning the Variation
(continued)
DCOVA
SST = SSA + SSW
Total Variation = the aggregate variation of the individual

data values across the various factor levels (SST)
Among-Group Variation = variation among the factor

sample means (SSA)
Within-Group Variation = variation that exists among

the data values within a particular factor level (SSW)
Partition of Total Variation
DCOVA
Total Variation (SST)
Variation Due to Variation Due to Random

= Factor (SSA) + Error (SSW)
Total Sum of Squares
DCOVA
SST = SSA + SSW

c nj
SST ( Xij X) 2
j1 i 1
Where:
SST = Total sum of squares

c = number of groups or levels
nj = number of values in group j
Xij = ith observation from group j
X = grand mean (mean of all data values)
Total Variation DCOVA
(continued)
2 2 2
SST ( X 11 X ) ( X 12 X ) ( X cn X )
c
R esponse, X
G ro u p 1 G ro u p 2 G ro u p 3
Among-Group Variation
DCOVA
SST = SSA + SSW

c
SSA n j ( X j X)2
j1
Where:
SSA = Sum of squares among groups

c = number of groups
nj = sample size from group j
Xj = sample mean from group j
X = grand mean (mean of all data values)
(continued)
c
DCOVA
SSA n j ( X j X)2
j 1
SSA
Variation Due to
Differences Among Groups MSA
c 1
Mean Square Among =
SSA/degrees of freedom
i j
DCOVA
(continued)
SSA n 1 (X1 X) n 2 (X 2 X) n c (X c X)
2 2 2
R esponse, X
X3
X2 X
X1
Within-Group Variation
DCOVA
SST = SSA + SSW

c nj
SSW ( Xij X j ) 2
j 1 i 1
Where:
SSW = Sum of squares within groups

nj = sample size from group j
Xj = sample mean from group j
Xij = ith observation in group j
(continued)
nj
DCOVA
c
SSW ( Xij X j )2
j1 i 1
SSW
Summing the variation
MSW
within each group and then
adding over all groups nc
Mean Square Within =
SSW/degrees of freedom
j
DCOVA
(continued)
SSW (X11 X1 ) (X12 X 2 ) (X cn c X c )

2 2 2
R esponse, X
X3
X2
X1
Obtaining the Mean Squares
DCOVA
The Mean Squares are obtained by dividing the various
sum of squares by their associated degrees of freedom
SSA Mean Square Among

MSA (d.f. = c-1)
c 1
SSW Mean Square Within
MSW
nc (d.f. = n-c)
SST
MST Mean Square Total
n 1 (d.f. = n-1)
One-Way ANOVA Table
DCOVA
Source of Degrees of Sum Of Mean Square F

Variation Freedom Squares (Variance)
Among SSA FSTAT =

c-1 SSA MSA =
Groups c-1
MSA
Within SSW
n-c SSW MSW = MSW
Groups n-c
Total n1 SST
n = sum of the sample sizes from all groups
df = degrees of freedom
One-Way ANOVA
F Test Statistic DCOVA
H0: 1= 2 = = c
H1: At least two population means are different
Test statistic MSA
FSTAT
MSW
MSA is mean squares among groups
MSW is mean squares within groups
Degrees of freedom
df1 = c 1 (c = number of groups)
df2 = n c (n = sum of sample sizes from all populations)
Interpreting One-Way ANOVA
F Statistic DCOVA
The F statistic is the ratio of the among

estimate of variance and the within estimate
of variance
The ratio must always be positive
df1 = c -1 will typically be small
df2 = n - c will typically be large
Decision Rule:
Reject H if F
0 STAT > F,
otherwise do not reject
0
H0 Do not
reject H0
Reject H0
F
One-Way ANOVA
F Test Example DCOVA
You want to see if three Club 1 Club 2 Club 3

different golf clubs yield 254 234 200
different distances. You 263 218 222
randomly select five 241 235 197
measurements from trials on 237 227 206
an automated driving 251 216 204
machine for each club. At the
0.05 significance level, is
there a difference in mean
distance?
One-Way ANOVA Example:
Scatter Plot Distance
DCOVA
Club 1 Club 2 Club 3 270
254 234 200 260

263
241
218
235
222
197
250 X1
240
237 227 206
230
251 216 204
220

X2 X

210
x1 249.2 x 2 226.0 x 3 205.8
X3
200
x 227.0 190
1 2 3
Club
One-Way ANOVA Example
Computations DCOVA
Club 1 Club 2 Club 3 X1 = 249.2 n1 = 5

254 234 200 X2 = 226.0 n2 = 5
263 218 222
241 235 197 X3 = 205.8 n3 = 5
237 227 206 n = 15
251 216 204 X = 227.0
c=3
SSA = 5 (249.2 227)2 + 5 (226 227)2 + 5 (205.8 227)2 = 4716.4
SSW = (254 249.2)2 + (263 249.2)2 ++ (204 205.8)2 = 1119.6
MSA = 4716.4 / (3-1) = 2358.2 2358.2

FSTAT 25.275
MSW = 1119.6 / (15-3) = 93.3 93.3
One-Way ANOVA Example
Solution DCOVA
H0: 1 = 2 = 3 Test Statistic:

H1: j not all equal
MSA 2358.2
= 0.05 FSTAT 25.275
MSW 93.3
df1= 2 df2 = 12
Critical Decision:
Value:
Reject H0 at = 0.05
F = 3.89
= .05 Conclusion:
There is evidence that
0 Do not Reject H0 at least one j differs
reject H0
F0.05 = 3.89 from the rest
One-Way ANOVA
Excel Output DCOVA
SUMMARY
Groups Count Sum Average Variance
Club 1 5 1246 249.2 108.2
Club 2 5 1130 226 77.5
Club 3 5 1029 205.8 94.2
ANOVA
Source of
SS df MS F P-value F crit
Variation
Between
4716.4 2 2358.2 25.275 0.0000 3.89
Groups
Within
1119.6 12 93.3
Groups
Total 5836.0 14
One-Way ANOVA
Minitab Output DCOVA
One-way ANOVA: Distance versus Club
Source DF SS MS F P
Club 2 4716.4 2358.2 25.28 0.000
Error 12 1119.6 93.3
Total 14 5836.0
S = 9.659 R-Sq = 80.82% R-Sq(adj) = 77.62%
Individual 95% CIs For Mean Based on Pooled StDev
Level N Mean StDev -------+---------+---------+---------+--

1 5 249.20 10.40 (-----*-----)
2 5 226.00 8.80 (-----*-----)
3 5 205.80 9.71 (-----*-----)
-------+---------+---------+---------+--
208 224 240 256
Pooled StDev = 9.66
The Tukey-Kramer Procedure
DCOVA
Tells which population means are significantly

different
e.g.: 1 = 2 3
Done after rejection of equal means in ANOVA
Allows paired comparisons
Compare absolute mean differences with critical
range
1= 2 3 x
Tukey-Kramer Critical Range
DCOVA
MSW 1 1
Critical Range Q
2 n j n j'
where:
Q = Upper Tail Critical Value from Studentized
Range Distribution with c and n - c degrees
of freedom (see appendix E.7 table)
MSW = Mean Square Within
nj and nj = Sample sizes from groups j and j
The Tukey-Kramer Procedure:
Example DCOVA
1. Compute absolute mean
Club 1 Club 2 Club 3 differences:
254 234 200
263 218 222 x1 x 2 249.2 226.0 23.2
241 235 197 x1 x 3 249.2 205.8 43.4
237 227 206
251 216 204 x 2 x 3 226.0 205.8 20.2
2. Find the Q value from the table in appendix E.7 with

c = 3 and (n c) = (15 3) = 12 degrees of freedom:
Q 3.77
The Tukey-Kramer Procedure:
Example (continued)
3. Compute Critical Range: DCOVA
MSW 1 1 93.3 1 1
Critical Range Q 3.77 16.285

2 n j n j' 2 5 5
4. Compare:
5. All of the absolute mean differences
are greater than the critical range. x1 x 2 23.2
Therefore there is a significant x1 x 3 43.4
difference between each pair of
means at 5% level of significance. x 2 x 3 20.2
Thus, with 95% confidence we conclude that
the mean distance for club 1 is greater than
club 2 and 3, and club 2 is greater than club 3.
ANOVA Assumptions
DCOVA
Randomness and Independence

Select random samples from the c groups (or
randomly assign the levels)
Normality
The sample values for each group are from a normal
population
Homogeneity of Variance
All populations sampled from have the same
variance
Can be tested with Levenes Test
ANOVA Output From Excel
DCOVA
Do the restaurants differ in

average rating?
Since the p-value (0.0000) <

0.05 conclude there is a
difference in avg. rating.
Do the raters differ in average

rating?

difference in the avg. rating of
raters. This indicates the
blocking has reduced error.
ANOVA Output From Minitab
DCOVA
Do the restaurants differ in

average rating?

difference in avg. rating.
Do the raters differ in average

rating?

difference in the avg. rating of
raters. This indicates the
blocking has reduced error.
The Tukey Procedure
DCOVA
The Tukey Procedure is used for a randomized
block design for multiple comparisons.
Done after rejection of equal means in ANOVA
The critical range for the multiple comparisons
procedure for randomized block designs is:
MSE
Critical Range Q
r
where:
Q = Upper Tail Critical Value from Studentized
Range Distribution with c and (r-1)(c-1)
degrees of freedom (see appendix E.7 table)
The Tukey-Kramer Procedure: Example
DCOVA
1. Compute absolute mean differences: 2. Compute the critical range
x .1 x .2 77.50 - 66.67 10.83 MSE 14.986

x .1 x .3 77.50 - 91.00 13.50 r 6, c 4, so (c 1)( r 1) 15
Q 4.08
x .1 x .4 77.50 - 79.33 1.83
14.986
x .2 x .3 66.67 - 91.00 24.33 CriticalRange 4.08 6.448
6
x .2 x .4 66.67 - 79.33 12.66
x .3 x .4 91.00 - 79.33 11.67
3. All pairwise comparisons except |X.1 X.4| are significant
Factorial Design:
Two-Way ANOVA DCOVA
Examines the effect of

Two factors of interest on the dependent
variable

e.g., Percent carbonation and line speed on soft drink
bottling process
Interaction between the different levels of these
two factors

e.g., Does the effect of one particular carbonation
level depend on which level the line speed is set?
Two-Way ANOVA
(continued)
DCOVA
Assumptions
Populations are normally distributed

Populations have equal variances
Independent random samples are
drawn
Two-Way ANOVA
Sources of Variation DCOVA
Two Factors of interest: A and B

r = number of levels of factor A
c = number of levels of factor B
n = number of replications for each cell
n = total number of observations in all cells
n = (r)(c)(n)
Xijk = value of the kth observation of level i of
factor A and level j of factor B
Two-Way ANOVA DCOVA
Sources of Variation (continued)
SST = SSA + SSB + SSAB + SSE Degrees of

Freedom:
SSA r1
Factor A Variation
SST SSB c1
Factor B Variation
Total Variation
SSAB
Variation due to interaction (r 1)(c 1)
between A and B
n-1
SSE rc(n 1)
Random variation (Error)
Two-Way ANOVA Equations
DCOVA
Total Variation: r c n
SST ( Xijk X) 2
i1 j1 k 1
Factor A Variation: r
SSA cn ( Xi.. X)
2
i 1
Factor B Variation: c
SSB rn ( X. j. X)2
j1
(continued)
DCOVA
Interaction Variation:
r c
SSAB n ( Xij. Xi.. X.j. X)2
i 1 j 1
Sum of Squares Error:

r c n
SSE ( Xijk Xij. ) 2
i 1 j1 k 1
(continued)
r c n
where: X
i1 j 1 k 1
ijk DCOVA
X Grand Mean
c n
rcn
X
j1 k 1
ijk
Xi.. Mean of ith level of factor A (i 1, 2, ..., r)

cn
r n
X ijk
X. j. i1 k 1
Mean of jth level of factor B (j 1, 2, ..., c)
rn
Xijk
n
Xij.
r = number of levels of factor A
Mean of cell ij
k 1 n
c = number of levels of factor B
n = number of replications in each
cell
Mean Square Calculations
DCOVA
SSA
MSA Mean square factor A
r 1
SSB
MSB Mean square factor B
c 1
SSAB
MSAB Mean square interaction
(r 1)(c 1)
SSE
MSE Mean square error
rc(n'1)
Interpreting Results From A DCOVA
Two Way ANOVA
First determine if the interaction is statistically
significant
If the interaction is significant then further

analysis will focus on the interaction
If the interaction is insignificant then focus on

the main effects
Two-Way ANOVA:
The F Test Statistics DCOVA
F Test for Factor A Effect

H0: 1..= 2.. = 3..= = r..
MSA Reject H0 if
H1: Not all i.. are equal FSTAT
MSE FSTAT > F
F Test for Factor B Effect

H0: .1. = .2. = .3.= = .c.
MSB Reject H0 if
H1: Not all .j. are equal FSTAT
MSE FSTAT > F
F Test for Interaction Effect

H0: the interaction of A and B is
equal to zero MSAB
FSTAT Reject H0 if
H1: interaction of A and B is not MSE
zero FSTAT > F
Two-Way ANOVA
Summary Table DCOVA
Source of Sum of Degrees of Mean

F
Variation Squares Freedom Squares
MSA MSA
Factor A SSA r1
= SSA /(r 1) MSE
MSB MSB
Factor B SSB c1
= SSB /(c 1) MSE
AB MSAB MSAB
SSAB (r 1)(c 1)
(Interaction) = SSAB / (r 1)(c 1) MSE
MSE =
Error SSE rc(n 1)
SSE/rc(n 1)
Total SST n1
Features of Two-Way ANOVA
F Test DCOVA
Degrees of freedom always add up
n-1 = rc(n-1) + (r-1) + (c-1) + (r-1)(c-1)
Total = error + factor A + factor B + interaction
The denominators of the F Test are always the
same but the numerators are different
The sums of squares always add up
SST = SSE + SSA + SSB + SSAB
Total = error + factor A + factor B + interaction
Do In-Store Location and the Permissibility
of Mobile Payments Impact Sales DCOVA
Sales By Location and Permissibility Of Mobile Payments
Mobile
Payments In-Aisle Front Kiosk Expert
No 30.06 32.22 30.78 30.33
No 29.96 31.47 30.91 30.29
No 30.19 32.13 30.79 30.25
No 29.96 31.86 30.95 30.25
No 29.74 32.29 31.13 30.55
Yes 30.66 32.81 31.34 31.03
Yes 29.99 32.65 31.80 31.77
Yes 30.73 32.81 32.00 30.97
Yes 30.72 32.42 31.07 31.43
Yes 30.73 33.12 31.69 30.72
Excel Two-Way Anova Results
DCOVA
1. The interaction is not

significant since its p-
value is < 0.05.
2. Both Main Effects (In-

Store Location and
Mobile Payment
Possibility) are
significant.
Minitab Two-Way Anova Results
DCOVA
1. The interaction is not

significant since its p-
value is < 0.05.
2. Both Main Effects (In-

Store Location and
Mobile Payment
Possibility) are
significant.
The Tukey-Kramer Procedure
DCOVA
The Tukey-Kramer Procedure can also be used for a
two way ANOVA when there is no significant interaction.
Done after one of both of the factor effects is significant
The critical range for each factor for multiple
comparisons procedure for a two way ANOVA is:
MSE MSE
Critical Range For Factor A Q Critical Range For Factor B Q
cn rn
where: where:
Q = Upper Tail Critical Value from Q = Upper Tail Critical Value from
Studentized Range Distribution Studentized Range Distribution with c and
with r and rc(n-1) degrees of freedom (see rc(n-1) degrees of freedom (see appendix
appendix E.7 table) E.7 table)
The Tukey-Kramer Procedure: Example
DCOVA
1. Compute absolute mean differences: 2. Compute the critical range
x .1. x .2. 30.274 - 32.378 2.104 MSE 0.0821

x .1. x .3. 30.274 - 31.246 0.972 r 2, c 4, so rc( n 1) 32
Q 3.84
x .1. x .4. 30.274 - 30.759 0.485
0.0821
x .2. x .3. 32.378 - 31.246 1.132 CriticalRange 3.84 0.3482
10
x .2. x .4. 32.378 - 30.759 1.619
x .3. x .4. 31.246 - 30.759 0.487
3. All pairwise comparisons exceed the critical range and are significant. This indicates mean
sales are different for the four in-store locations.
Visualizing Interactions: The DCOVA
Cell Means Plot
An Insignificant Interaction Will Yield Cell Means Plots
With Approximately Parallel Line Segments
Interactions Will Yield Plots With
Some Non-parallel Line Segments
DCOVA
Interaction is present: some
No interaction: line line segments not parallel
segments are parallel
Factor B Level 1
Mean Response
Mean Response
Factor B Level 1
Factor B Level 3
Factor B Level 2
Factor B Level 2
Factor B Level 3
Factor A Levels Factor A Levels
Interpreting An Interaction Effect
DCOVA
A statistically significant interaction indicates that
the effect one factor has on the dependent
variable depends on what the level of another
factor is.
In a cell means plot this will show up as some non-

parallel line segments.
The following example has a significant

interaction.
Do ACT Prep Course Type and Course
Length Impact Average ACT Scores? DCOVA
ACT Scores for Different Types and Lengths of Courses
LENGTH OF COURSE
TYPE OF COURSE Condensed Regular
Traditional 26 18 34 28
Online 27 21 24 21
Online 29 32 16 19
Online 30 20 22 19
Online 24 28 20 24
Online 30 29 23 25
Plotting Cell Means Shows A
DCOVA
Strong Interaction
Nonparallel lines indicate
the effect of condensing
the course depends on
whether the course is
taught in the traditional
classroom or by online
distance learning
The online course yields

higher scores when
condensed while the
traditional course yields
higher scores when not
condensed (regular).
Excel Analysis Of ACT Prep
DCOVA
Course Data
The interaction between course
length & type is significant
because its p-value is 0.0000.
While the p-values associated

with both course length &
course type are not significant,
because the interaction is
significant you cannot directly
conclude they have no effect.
Minitab Analysis Of ACT Prep
DCOVA
Course Data The interaction between course
length & type is significant
because its p-value is 0.0000.
While the p-values associated

with both course length &
course type are not significant,
because the interaction is
significant you cannot directly
conclude they have no effect.
With The Significant Interaction
Collapse The Data Into Four Groups
DCOVA
After collapsing into four groups do a one way
ANOVA
The four groups are

1. Traditional course condensed
2. Traditional course regular length
3. Online course condensed
4. Online course regular length
Excel Analysis Of Collapsed Data
DCOVA
1. Traditional regular > Traditional condensed

2. Online condensed > Traditional condensed
Group is a significant effect. 3. Traditional regular > Online regular
4. Online condensed > Online regular
p-value of 0.0003 < 0.05
If the course is take online should use the
condensed version and if the course is taken
by traditional method should use the regular.
Minitab Analysis Of Collapsed Data
Shows Same Conclusions
DCOVA
Chapter Summary
In this chapter we discussed:
The basic concepts of experimental design
How to use one-way analysis of variance to test for differences
among the means of several groups
When and how to use a randomized block design
How to use two-way analysis of variance and interpret the
interaction effect
How to perform multiple comparisons in a one-way analysis of
variance, a randomized block design, and a two-way analysis of
variance
On Line Topic For Chapter 11
Fixed effects, random effects, and mixed effects model

Bbs13e Chapter11

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bbs13e Chapter11

Uploaded by

Copyright:

Available Formats

Chapter 11

One-Way Randomized Two-Way

Investigator controls one or more factors of interest

Levels can be numerical or categorical

Different levels produce different groups

Think of each group as a sample from a different

Experimental design: the plan used to collect the data

Populations have equal variances

Samples are randomly and independently drawn

H1 : Not all of the population means are equal

When The Null Hypothesis is True

When The Null Hypothesis is NOT true

SST = SSA + SSW

SST = Total Sum of Squares

Total Variation = the aggregate variation of the individual

Among-Group Variation = variation among the factor

Within-Group Variation = variation that exists among

Variation Due to Variation Due to Random

SST = SSA + SSW

SST = Total sum of squares

SST = SSA + SSW

SSA = Sum of squares among groups

SST = SSA + SSW

SSW = Sum of squares within groups

SSW (X11 X1 ) (X12 X 2 ) (X cn c X c )

SSA Mean Square Among

Source of Degrees of Sum Of Mean Square F

Among SSA FSTAT =

The F statistic is the ratio of the among

You want to see if three Club 1 Club 2 Club 3

Club 1 Club 2 Club 3 X1 = 249.2 n1 = 5

MSA = 4716.4 / (3-1) = 2358.2 2358.2

H0: 1 = 2 = 3 Test Statistic:

S = 9.659 R-Sq = 80.82% R-Sq(adj) = 77.62%

Individual 95% CIs For Mean Based on Pooled StDev

Level N Mean StDev -------+---------+---------+---------+--

Tells which population means are significantly

2. Find the Q value from the table in appendix E.7 with

Randomness and Independence

Do the restaurants differ in

Since the p-value (0.0000) <

Do the raters differ in average

Since the p-value (0.0205) <

Do the restaurants differ in

Since the p-value (0.0000) <

Do the raters differ in average

Since the p-value (0.0205) <

x .1 x .2 77.50 - 66.67 10.83 MSE 14.986

3. All pairwise comparisons except |X.1 X.4| are significant

Examines the effect of

Populations are normally distributed

Two Factors of interest: A and B

SST = SSA + SSB + SSAB + SSE Degrees of

Sum of Squares Error:

Xi.. Mean of ith level of factor A (i 1, 2, ..., r)

If the interaction is significant then further

If the interaction is insignificant then focus on

F Test for Factor A Effect

F Test for Factor B Effect

F Test for Interaction Effect

Source of Sum of Degrees of Mean

1. The interaction is not

2. Both Main Effects (In-