Statistics for Managers Using

Microsoft Excel
7th Edition

Chapter 11

Analysis of Variance

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-1
 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
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 and a two-way analysis of variance

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-2
 Chapter Overview
DCOVA
Analysis of Variance (ANOVA)

Randomized
One-Way Block Design Two-Way
ANOVA (On Line Topic) ANOVA
F-test
Tukey Multiple Interaction
Tukey- Comparisons Effects
Kramer
Multiple Tukey Multiple
Comparisons Comparisons
Levene Test
For
Homogeneity
of Variance
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-3
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-4
 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)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-5
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-6
 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)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-7
 One-Way ANOVA
DCOVA
H0 : 1 2 3 c
H1 : Not all j are equal
The Null Hypothesis is True
All Means are the same:
(No Factor Effect)

1 2 3
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-8
 One-Way ANOVA DCOVA
(continued)
H0 : 1 2 3 c
H1 : Not all j are equal

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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-9
 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)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-10
 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)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-11
 Partition of Total Variation
DCOVA
Total Variation (SST)

Variation Due to Variation Due to Random

= Factor (SSA) + Error (SSW)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-12
 Total Sum of Squares
DCOVA

SST = SSA + SSW

c nj

SST ( Xij X) 2

j1 i1
Where:

SST = Total sum of squares

c = number of groups or levels
nj = number of observations in group j
Xij = ith observation from group j
X = grand mean (mean of all data values)
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-13
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-14
 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)
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-15
 Among-Group Variation
(continued)
c
DCOVA
SSA n j ( X j X)2
j1

SSA
Variation Due to
Differences Among Groups MSA
c 1
Mean Square Among =
SSA/degrees of freedom

mi mj

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-16
 Among-Group Variation
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

G ro u p 1 G ro u p 2 G ro u p 3

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-17
 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

c = number of groups
nj = sample size from group j
Xj = sample mean from group j
Xij = ith observation in group j
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-18
 Within-Group Variation
(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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-19
 Within-Group Variation
DCOVA
(continued)

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

2 2 2

R esponse, X

X3
X2
X1

G ro u p 1 G ro u p 2 G ro u p 3
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-20
 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)
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-21
 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

c = number of groups
n = sum of the sample sizes from all groups
df = degrees of freedom
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-22
 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)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-23
 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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-24
 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?

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-25
 One-Way ANOVA Example:
Scatter Plot DCOVA
Distance
270
Club 1 Club 2 Club 3
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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Club Chap 11-26
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-27
 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 H 0
at least one j differs
reject H0
FSTAT = 25.275 from the rest
F = 3.89
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-28
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-29
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-30
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-31
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-32
 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 x1 x 2 23.2
are greater than critical range.
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 can conclude
that the mean distance for club 1 is greater
than club 2 and 3, and club 2 is greater than
club 3.
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-33
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-34
 ANOVA Assumptions
Levenes Test
DCOVA

Tests the assumption that the variances of each

population are equal.
First, define the null and alternative hypotheses:
H0: 21 = 22 = =2c
H1: Not all 2j are equal
Second, compute the absolute value of the difference
between each value and the median of each group.
Third, perform a one-way ANOVA on these absolute
differences.

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-35
 Levene Homogeneity Of Variance
Test Example
DCOVA

H0: 21 = 22 = 23
H1: Not all 2j are equal

Calculate Medians Calculate Absolute Differences

Club 1 Club 2 Club 3 Club 1 Club 2 Club 3

237 216 197 14 11 7
241 218 200 10 9 4
251 227 204 Median 0 0 0
254 234 206 3 7 2
263 235 222 12 8 18

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-36
 Levene Homogeneity Of Variance
Test Example (continued)
Anova: Single Factor DCOVA
SUMMARY
Groups Count Sum Average Variance
Since the
Club 1 5 39 7.8 36.2 p-value is
Club 2 5 35 7 17.5 greater
Club 3 5 31 6.2 50.2 than 0.05
there is
P- insufficient
Source of Variation SS df MS F value F crit
evidence
Between Groups 6.4 2 3.2 0.092 0.912 3.885
of a
Within Groups 415.6 12 34.6 difference
in the
Total 422 14 variances

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-37
 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?

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-38
 Two-Way ANOVA
(continued)
DCOVA
Assumptions

Populations are normally distributed

Populations have equal variances
Independent random samples are
drawn

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-39
 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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-40
 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)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-41
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-42
 Two-Way ANOVA Equations
(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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-43
 Two-Way ANOVA Equations
(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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-44
 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)
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-45
 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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-46
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-47
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-48
 Examples:
Interaction vs. No Interaction
DCOVA
Interaction is present:
No interaction: line some line segments
segments are parallel not 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-49
 Do ACT Prep Course Type & 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

Traditional 27 24 24 21

Traditional 25 19 35 23

Traditional 21 20 31 29

Traditional 21 18 28 26

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
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-50
 Plotting Cell Means Shows A
Strong Interaction DCOVA

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).

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-51
 Excel Analysis Of ACT Prep
Course Data DCOVA

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.

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-52
 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

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-53
 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.
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-54
 The Randomized Block Design
Is Often Useful

The randomized block design is an on-line topic

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-55
 Chapter Summary
In this chapter we discussed
The one-way analysis of variance
The logic of ANOVA
ANOVA assumptions
F test for difference in c means
The Tukey-Kramer procedure for multiple comparisons
The Levene test for homogeneity of variance
The two-way analysis of variance
Examined effects of multiple factors
Examined interaction between factors

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. Chap 11-56
 Statistics for Managers Using
Microsoft Excel
7th Edition

Online Topic

The Randomized Block Design

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 1
 Learning Objective

To learn the basic structure and use of a randomized block design

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 2
 The Randomized Block Design
DCOVA

Like One-Way ANOVA, we test for equal

population means (for different factor levels, for
example)...

...but we want to control for possible variation

from a second factor (with two or more levels)

Levels of the secondary factor are called blocks

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 3
 Partitioning the Variation
DCOVA

Total variation can now be split into three parts:

SST = SSA + SSBL + SSE

SST = Total variation

SSA = Among-Group variation
SSBL = Among-Block variation
SSE = Random variation

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 4
 Sum of Squares for Blocks
DCOVA

SST = SSA + SSBL + SSE

r
SSBL c ( Xi. X) 2

i1
Where:

c = number of groups
r = number of blocks
Xi. = mean of all values in block i
X = grand mean (mean of all data values)
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 5
 Partitioning the Variation
DCOVA
Total variation can now be split into three parts:

SST = SSA + SSBL + SSE

SST and SSA are SSE = SST (SSA + SSBL)

computed as they were
in One-Way ANOVA

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 6
 Mean Squares
DCOVA

SSBL
MSBL Mean square blocking
r 1

SSA
MSA Mean square among groups
c 1

SSE
MSE Mean square error
(r 1)(c 1)

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 7
 Randomized Block ANOVA Table
DCOVA
Source of SS df MS F
Variation
Among MSBL
Blocks SSBL r-1 MSBL
MSE
Among MSA
SSA c-1 MSA
Groups
MSE
Error SSE (r1)(c-1) MSE

Total SST rc - 1
c = number of populations rc = total number of observations
r = number of blocks df = degrees of freedom
Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 8
 Testing For Factor Effect
DCOVA
H 0 : .1 .2 .3 . c
H1 : Not all population means are equal

MSA
FSTAT =
MSE Main Factor test: df1 = c 1
df2 = (r 1)(c 1)

Reject H0 if FSTAT > F

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 9
 Test For Block Effect
DCOVA

H 0 : 1. 2. 3. ... r.
H1 : Not all block means are equal

MSBL
FSTAT =
MSE Blocking test: df1 = r 1
df2 = (r 1)(c 1)

Reject H0 if FSTAT > F

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 10
 Topic Summary

In this topic we discussed

The basic structure and use of a randomized block

design

Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc. RBD - 11
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Statistics for Managers Using Microsoft Excel7e Copyright 2014 Pearson Education, Inc.