ANOVA analysis

Now we have to analyse if there is any pattern between the monthly spending of
consumers on alcoholic beverages and the influence surrogate advertisement of
McDowells have on the consumers. The undermentioned table has been
tabulated based on the responses we get.

Monthly spending on the alcoholic beverages

>2500 2500-1000 0-500 Grand Total
If yes, how 1 0 4 2 3 6 15
much 2 2 2 4 4 4 16
influence
3 3 6 3 3 15 30
the
advertisem 4 0 8 4 4 8 24
ent has on 5 5 0 0 0 5 10
your
purchasing Grand 1 1
decision Total 10 20 3 4 38 95
Ho = there is no significant between the monthly spending and the impact of
surrogate advertisement

ANOVA
Source of
Variation SS df MS F P-value F crit
Between 103.466 20.69333 2.970334 0.031670 2.620654
Groups 67 5 333 928 191 148
6.966666
Within Groups 167.2 24 667

270.666
Total 67 29

f(obs) = 2.62065 f(critical) = 2.62 [df(among) = 5 and df(within) = 24 and 5%

significant level]

Here, f(obs) > f(critical) reject the null hypothesis Ho. Hence, it has been
observed that the monthly spending and the impact of surrogate has positive
relationship. So, monthly spending have significance with the impact of surrogate
advertisement.