Chapter Sixteen: Analysis of Variance and Covariance
Chapter Sixteen: Analysis of Variance and Covariance
Chapter Sixteen: Analysis of Variance and Covariance
Chapter Outline
1) Overview
2) Relationship Among Techniques
2) One-Way Analysis of Variance
3) Statistics Associated with One-Way Analysis of Variance
4) Conducting One-Way Analysis of Variance
i. Identification of Dependent & Independent
Variables
ii. Decomposition of the Total Variation
iii. Measurement of Effects
iv. Significance Testing
v. Interpretation of Results
16-3
Chapter Outline
5) Illustrative Data
6) Illustrative Applications of One-Way Analysis of Variance
7) Assumptions in Analysis of Variance
8) N-Way Analysis of Variance
9) Analysis of Covariance
10) Issues in Interpretation
i. Interactions
ii. Relative Importance of Factors
iii. Multiple Comparisons
11) Repeated Measures ANOVA
16-4
Chapter Outline
12) Nonmetric Analysis of Variance
13) Multivariate Analysis of Variance
14) Internet and Computer Applications
15) Focus on Burke
16) Summary
17) Key Terms and Concepts
16-5
One Independent
Variable One or More
Independent Variables
Categorical: Categorical
Binary Interval
Factorial and Interval
Analysis of Analysis of
t Test Variance Covariance Regression
More than
One Factor One Factor
Analysis of Variance
eta2 (2). The strength of the effects of X
(independent variable or factor) on Y (dependent
variable) is measured by eta2 ( 2). The value of 2
varies between 0 and 1.
Analysis of Variance
SSbetween. Also denoted as SSx, this is the variation
in Y related to the variation in the means of the
categories of X. This represents variation between
the categories of X, or the portion of the sum of
squares in Y related to X.
where
N
SSy = (Y i -Y 2)
i =1
c
S Sx = n (Y j -Y )2
j =1
c n
SS error= (Y ij -Y j )2
j i
Yi = individual observation
Yj = mean for category j
= mean over the whole sample, or grand mean
Y
Yij = i th observation in the j th category
Decomposition of the Total Variation:
16-14
One-way ANOVA
Table 16.1
Independent Variable X
Total
Categories Sample
Within X1 X2 X3 … Xc
Category Total
Y1 Y1 Y1 Y1 Y1 Variation
Variation
Y2 Y2 Y2 Y2 Y2 =SSy
=SSwithin
: :
: :
Yn Yn Yn Yn YN
Category
Mean Y1 Y2 Y3 Yc Y
Test Significance
= SS
2 x
/(c - 1)
S
= Mean
y square due to X
= MSx
or
= SS
2 error
/(N - c)
S
= Mean
y square due to error
= MSerror
Conducting One-way Analysis of Variance 16-17
Test Significance
Analysis of Variance
Analysis of Variance
TABLE 16.3
EFFECT OF IN-STORE PROMOTION ON SALES
Store Level of In-store Promotion
No. High Medium Low
Normalized Sales _________________
1 10 8 5
2 9 8 7
3 10 7 6
4 8 9 4
5 9 6 5
6 8 4 2
7 9 5 3
8 7 5 2
9 7 6 1
10 6 4 2
_____________________________________________________
Column Totals 83 62 37
Category means: j 83/10 62/10 37/10
= 8.3 Y = 6.2 = 3.7
Grand mean, = (83 + 62 + 37)/30 = 6.067
Y
Illustrative Applications of One-way
16-22
Analysis of Variance
To test the null hypothesis, the various sums of squares are computed as follows:
SSy = (10-6.067)2 + (9-6.067)2 + (10-6.067)2 + (8-6.067)2 + (9-6.067)2
+ (8-6.067)2 + (9-6.067)2 + (7-6.067)2 + (7-6.067)2 + (6-6.067)2
+ (8-6.067)2 + (8-6.067)2 + (7-6.067)2 + (9-6.067)2 + (6-6.067)2
(4-6.067)2 + (5-6.067)2 + (5-6.067)2 + (6-6.067)2 + (4-6.067)2
+ (5-6.067)2 + (7-6.067)2 + (6-6.067)2 + (4-6.067)2 + (5-6.067)2
+ (2-6.067)2 + (3-6.067)2 + (2-6.067)2 + (1-6.067)2 + (2-6.067)2
Analysis of Variance
It can be verified that
SSy = SSx + SSerror
as follows:
185.867 = 106.067 +79.80
The strength of the effects of X on Y are measured as follows:
2 = SSx/SSy
= 106.067/185.867
= 0.571
In other words, 57.1% of the variation in sales (Y) is accounted for by in-
store promotion (X), indicating a modest effect. The null hypothesis may
now be tested.
SS x /(c - 1) MS
F= = X
SS error/(N - c) MS error
106.067/(3-1)
F=
= 17.944
79.800/(30-3)
Illustrative Applications of One-way
16-25
Analysis of Variance
From Table 5 in the Statistical Appendix we see that
for 2 and 27 degrees of freedom, the critical value of
F is 3.35 for = 0.05. Because the calculated value
of F is greater than the critical value, we reject the
null hypothesis.
We now illustrate the analysis of variance procedure
using a computer program. The results of conducting
the same analysis by computer are presented in
Table 16.4.
One-Way ANOVA:
16-26
Cell means
(SS x 1 + SS x 2 + SS x 1x 2)/dfn
F=
SS error/dfd
SS x 1,x 2,x 1x 2/ dfn
=
SS error/dfd
MS x 1,x 2,x 1x 2
=
MS error
where
dfn = degrees of freedom for the numerator
= (c1 - 1) + (c2 - 1) + (c1 - 1) (c2 - 1)
= c1c2 - 1
dfd = degrees of freedom for the denominator
= N - c1c2
MS = mean square
16-31
SS x 1x 2/dfn
F=
SS error/dfd
MS x 1x 2
=
MS error
where
dfn = (c1 - 1) (c2 - 1)
dfd = N - c1c2
16-32
SS x 1/dfn
F=
SS error/dfd
MS x 1
=
MS error
where
dfn = c1 - 1
dfd = N - c1c2
16-33
Cell Means
Promotion Coupon Count Mean
High Yes 5 9.200
High No 5 7.400
Medium Yes 5 7.600
Medium No 5 4.800
Low Yes 5 5.400
Low No 5 2.000
TOTAL 30
Factor Level
Means
Promotion Coupon Count Mean
High 10 8.300
Medium 10 6.200
Low 10 3.700
Yes 15 7.400
No 15 4.733
Grand Mean 30 6.067
16-35
Analysis of Covariance
When examining the differences in the mean values of the
dependent variable related to the effect of the controlled
independent variables, it is often necessary to take into account
the influence of uncontrolled independent variables. For
example:
Analysis of Covariance
Table 16.5
Issues in Interpretation
Important issues involved in the interpretation of ANOVA
results include interactions, relative importance of factors,
and multiple comparisons.
Interactions
The different interactions that can arise when conducting
No Interaction Interaction
(Case 1)
Ordinal
Disordinal
(Case 2)
Noncrossover Crossover
(Case 3) (Case 4)
16-39
Patterns of Interaction
Figure 16.4
Case 1: No Interaction Case 2: Ordinal Interaction
X X
22 22
Y X Y X
21 21
X X X X X X
11 12 13 11 12 13
Case 3: Disordinal Interaction: Case 4: Disordinal Interaction:
Noncrossover Crossover
X X
22 22
Y X Y
21
X
21
X X X X X X
11 12 13 11 12 13
16-40
Issues in Interpretation
The most commonly used measure in ANOVA is omega squared, .
This measure
2 indicates what proportion of the variation in the
dependent variable is related to a particular independent variable or
factor. The relative contribution of a factor X is calculated as follows:
SS x - (dfx x MS error)
2x =
SS total
Normally, + MS error only for statistically significant effects. In
is interpreted
Table 16.5, associated with the level of in-store promotion is
2
follows:
calculated as
2
2 106.067 - (2 x 0.967)
p =
185.867 + 0.967
104.133
= 0.557
=
186.834
16-41
Issues in Interpretation
Note, in Table 16.5, that
SStotal = 106.067 + 53.333 + 3.267 + 23.2
= 185.867
2
Likewise, the associated with couponing is:
2
53.333 - (1 x 0.967)
c =
185.867 + 0.967
52.366
=
186.834
= 0.280
Multiple Comparisons
If the null hypothesis of equal means is rejected, we
can only conclude that not all of the group means are
equal. We may wish to examine differences among
specific means. This can be done by specifying
appropriate contrasts, or comparisons used to
determine which of the means are statistically
different.
A priori contrasts are determined before
conducting the analysis, based on the researcher's
theoretical framework. Generally, a priori contrasts
are used in lieu of the ANOVA F test. The contrasts
selected are orthogonal (they are independent in a
statistical sense).
Issues in Interpretation 16-43
Multiple Comparisons
A posteriori contrasts are made after the analysis.
These are generally multiple comparison tests.
They enable the researcher to construct generalized
confidence intervals that can be used to make
pairwise comparisons of all treatment means. These
tests, listed in order of decreasing power, include
least significant difference, Duncan's multiple range
test, Student-Newman-Keuls, Tukey's alternate
procedure, honestly significant difference, modified
least significant difference, and Scheffe's test. Of
these tests, least significant difference is the most
powerful, Scheffe's the most conservative.
16-44
Independent Variable X
Subject Categories
Total
No. Sample
X1 X2 X3 … Xc
Between
People 1 Y11 Y12 Y13 Y1c Y1
Variation Total
=SSbetween Variation
people
2 Y21 Y22 Y23 Y2c Y2 =SSy
SPSS Windows
One-way ANOVA can be efficiently performed using
the program COMPARE MEANS and then One-way
ANOVA. To select this procedure using SPSS for
Windows click: