Chapter 12 ANOVA For Homework

ANOVA (Analysis of Variance)
- Allows researcher to compare two or more populations of interval or ratio data.

- Determines whether differences exist between population means.
- One-way analysis of variance (randomized block design), and
- two-way analysis of variance (two factor analysis of variance)
- It is a statistical procedure that test to determine whether differences exist between two or
more population means.
- Analysis of variance tests whether there is enough statistical evidence to show that the null
hypothesis is false.
- If the null hypothesis is true, the population means would be equal or we should expect that
the sample means are close to one another.
Assumptions of one-way ANOVA

- The samples are randomly selected and independently assigned to groups
- Population should have approximately equal standard deviation
- Population distribution are normal
Assumptions of two-way ANOVA

- The samples are randomly selected with repeated measures in factor B.
- Populations should have approximately equal standard deviation
- Population distributions are normal
- Population covariances are equal
Procedure for Analysis of Variance:

1. Set up the Hypothesis
2. Set the level of significance
3. Calculate the means of each group, grand mean, sum of squares, and mean squares
Calculate the value of F-test
4. Calculate the degree of freedoms and determine the critical value of F
5. Statistical decision for hypothesis testing
6. State the conclusion
A. Total Sum of Squares (SST)

- the statistic that measures the total variations of all the data
B. Sum of Squares Between groups (SSB)

- The statistic that measures the variation attributed to the differences between the
treatment means (or between-treatment variations)
C. Sum of Squares Within Groups (SSW)

- Measure the variation with sample (or within-treatment variations/error)
D. Mean Squares Between Groups (MSB)
- is computed by dividing SSB by the number of groups minus 1
E. Mean Squares within Groups (MSW)

- Is determined by dividing SSW by the number of sample size (labeled n) minus the number
of groups.
F. Test Statistic
- The test statistics is defined as the ratio of the two mean squares
estimated population variance based
F = on variance among the sample means or F = MSB
estimated population variance based MSW
on variation within samples
where: MSB = mean square between groups,

MSW = mean square within groups.
F = Fcomputed (or F ratio).
The degree of freedom from F Test are dfb = c-1 and dfw = n – c.
The sample sizes need not be equal in all groups
The F test to compare means is always right-tailed.
Example 1: Performing these calculations for the foreign freighter example yields the following.
Determine the computed Fvalue. Compare the Fvalue with the critical table Fvalue and decide whether to
reject the null hypothesis using the α = .05.
NUMBER OF FOREIGN FREIGTHERS PER DAY

No. 1 (Long 2(Houston) 3(new 4(New
Beach) York) Orleans)
1 5 2 8 3
2 7 3 4 5
3 4 5 6 3
4 2 4 7 4
5 6 9 2
6 8
Total 18 20 42 17
Mean 4.5 4 7 3.4
Solution:
1. State the Hypothesis

Ho: µ1 = µ2 = µ3 = µ4
H1: µ1 ≠ µ2 ≠ µ3 ≠ µ4
2. Determine the level of significance
α = .05
3. Determine the degrees of freedom and the critical value of F
Dfb= k-1 = 4-1 = 3
Dfw= N-k = 20-4 = 16
DfT = N-1 = 20-1 = 19
Fcritical = 3.24
4. Compute for the F-test.
Mean 1 = 4.5
Mean 2 = 4
Mean 3 = 7
Mean 4 = 3.4
Grand Mean = 4.85
Compute for the SSB, SSW SST

SSB = 42.35
SSW = 44.20
SST = 86.55
MSB = 14.12
MSW = 2.76
Fcomputed = 5.12
Anova Table
Source of Variation Df SS MS F
Between 3 42.35 14.12 5.12
Error 16 44.20 2.76
Total 19 86.55
5. Decision Rule:
Since the computed F-value of 5.12 is greater than critical F-values at .05 level of significance,
reject the null hypothesis and accept the alternative hypothesis.
6. Since the null hypothesis is rejected, we conclude that there is enough evidence that the three
freights are equal.
Requirement #1)
Answer the following problem:
Example #2: An apple juice manufacturer has developed a new product-a liquid concentrate that,
when mixed with water, produces 1 liter of apple juice. The product has several attractive features. First,
it is more convenient than canned juice, which is the way apple juice is currently sold. Second, because
the apple juice that is sold in cans is made from concentrate, the quality of the new product is at least as
high as that of canned apple juice. Third, the cost of the new product is slightly lower than that of
canned apple juice. The marketing manager must decide how to market the new product. She can
create advertising that emphasizes convenience, quality, or price. To facilitate a decision, she conducts
an experiment in three different small cities. In one city, she launches the product with advertising
stressing the convenience of the concentrate (e.g., easy to carry from store to home and takes up less
room n the freezer). In the second city, the advertisements emphasize the quality of the product
(“average” shoppers are depicted discussing how good the apple juice tastes). Advertising that highlights
the relatively low cost of the liquid concentrate are used in the third city. The number of packages sold
weekly is recorded for the 20 weeks following the beginning of the campaign. These data are listed in
the accompanying table. The marketing manager wants to know whether differences in sales exist
between the three advertising strategies. (We assume that except for the type of advertising, the three
cities are identical.)
City 1 City 2 City 3

(Convenience) (Quality) (Price)
529 804 672
658 630 531
793 774 443
514 717 596
663 679 602
719 604 502
711 620 659
606 697 689
461 706 675
529 615 512
498 492 691
663 719 733
604 787 698
495 699 776
486 572 561
557 523 572
353 584 469
557 634 581
542 580 679
614 624 532
Requirements #2:
Prepare five (5) problems with solution on the following topics, please indicate your sources. No
duplication allowed.
1. Normal Distribution (Area of Normal Curve and Z-Value)
2. Hypothesis Testing (z-test / t-test)
3. Correlation and Regression
4. Chi-Squre Test
5. Analysis of Variance

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ANOVA (Analysis of Variance)

- Allows researcher to compare two or more populations of interval or ratio data.

Assumptions of one-way ANOVA

Assumptions of two-way ANOVA

Procedure for Analysis of Variance:

A. Total Sum of Squares (SST)

B. Sum of Squares Between groups (SSB)

C. Sum of Squares Within Groups (SSW)

E. Mean Squares within Groups (MSW)

where: MSB = mean square between groups,

NUMBER OF FOREIGN FREIGTHERS PER DAY

1. State the Hypothesis

4. Compute for the F-test.

Compute for the SSB, SSW SST

Answer the following problem:

City 1 City 2 City 3

1. Normal Distribution (Area of Normal Curve and Z-Value)

2. Hypothesis Testing (z-test / t-test)

3. Correlation and Regression

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