Prepared by: Ms. Haidee M.

Valin
 Simple analysis of Variance
 An extension of t-test
 Used to test the non-significant
difference of the mean.
 A statistical procedure for testing the
hypothesized equality of two more
population means.
1. The treatment response distribution
or each of the k-population is
normal.
2. The variance of the k normal
distribution must be identical.
𝜎12 = 𝜎22=𝜎32=…… = 𝜎𝑘2
3. Each sample is a random sample.
4. The k random samples are selected
independently of one another.
To test the null hypothesis that more than two
means:

H0 : 𝜇1 =𝜇2=𝜇3=…… =𝜇𝑛
 Constructed to facilitate an easy
analysis
 Contains the source of variation such as:
1. treatment or between columns and error
or within column
2. their sum squares
3. corresponding degree freedom
4. means square
5. F-value
 ANOVA Table
Source of Sum of Degrees of Mean F- Value
Variance Squares Freedom Square
Treatment SST c-1 MST =SST F = MST
(Between) c-1 MSE
Error SSE N-c MSE = SSE
(within) N-c

Total SSTO N-1

SST sum of square treatment N total number of

SSE sum of square error observations
SSTO sum of square total MST mean square treatmen
c the number of groups MSE mean square error
compare with F F statistics
Sum Square Treatment (SST)

SST = 𝑛𝑖 (xi – x)2

Where: x the mean of the ith sample
i
xi the grand mean

x1 = 𝑛𝑖 xi
𝑛𝑖

Between sample variance Sb 2 = SST

C-1
SSE Error of Sum Square

SSE = (𝑛𝑖 -1)𝑆𝑖 2

i=1

Where 𝑺𝒊2 is the variance of the ith sample.

Within – Sample Variance

Sw2 = SSE
( 𝑛𝑖 ) - c
 Three new marketing strategies have been
implemented at company LaDivina. The
president ants to find out the effectiveness of
the marketing strategies through analyzing the
sales. Test whether the means of the sales of
the product as a result of the implementation
of the new marketing strategies are equal. Use
the level significance at 0.05.
Strategy1 Strategy2 Strategy3
34 57 27
55 71 34
82 86 72
 Strategy1 Strategy2 Strategy3
34 57 27
55 71 34
82 86 72

Solution:

Step 1:
Ho: The mean sales using the three marketing
strategies are equal. ( Ho: x1 = x2 = x3 )
Ha: The mean sales using the three marketing
strategies are not equal. ( Ha: x1 = x2 = x3 )
Step 2: 𝛼 = 0.05
Step 3: Computation

Strategy1 Strategy2 Strategy3

34 (1,156) 57 (3,249) 27 (729)
55 (3,025) 71 (5,041) 34 (1,156)
82 (6,724) 86 (7,396) 72 (5,184)

342 = 1,156
 Step 2: 𝛼 = 0.05
Step 3: Computation
Strategy1 Strategy2 Strategy3
34 (1,156) 57 (3,249) 27 (729)
55 (3,025) 71 (5,041) 34 (1,156)
82 (6,724) 86 (7,396) 72 (5,184)

𝒙𝒊 = 171 (34+55+82)

𝒙𝒊 2= 10,905 (1156+3025+6724)
𝒙𝟏 = 171/3
= 57
 Step 2: 𝛼 = 0.05
Step 3: Computation
Strategy1 Strategy2 Strategy3
34 (1,156) 57 (3,249) 27 (729)
55 (3,025) 71 (5,041) 34 (1,156)
82 (6,724) 86 (7,396) 72 (5,184)

𝒙𝒊 = 171 𝒙𝒊 = 214 𝒙𝒊 = 133

𝒙𝒊 2= 10,905 𝒙𝒊 2= 15,686 𝒙𝒊 2= 7,069
𝒙𝟏 171/3 𝒙𝟐 214/3 𝒙𝟑 = 133/3
= 44.3
= =
= 57 = 71.3
 𝒙𝒊 = 171 𝒙𝒊 = 214 𝒙𝒊 = 133
𝒙𝒊 2= 10,905 𝒙𝒊2= 15,686 𝒙𝒊 2= 7,069
𝒙𝟏 = 171/3 𝒙𝟐 = 214/3 𝒙𝟑 = 133/3
= 57 = 71.3 = 44.3
𝒔𝟏𝟐 = 𝑛𝑖 x12- ( 𝒙𝒊)2
𝑛𝑖 ( 𝑛 𝑖 - 1 )
𝒔𝟐 =210.3
𝟐
= 3(10,905) –(171)2
3(3-1) 𝒔𝟑 =586.3
𝟐
𝒔𝟏𝟐 =579
𝒙𝟏 = 171/3 𝒙𝟐 214/3 𝒙𝟑 =
133/3
= 44.3
=
= 57 = 71.3
𝒔𝟏𝟐 =𝟓𝟕𝟗 𝒔𝟐 𝟐 =210.3 𝒔𝟑𝟐 =586.3
.

= 3(57) + 3(71.3) + 3(44.3)

3+3+3
= 57.5
SST = 𝑛𝑖 (xi – x )2
= 3(57-57.5) 2+ 3(71.3-57.5) 2+ 3(44.3-57.5) 2
SST = 1,094.75

or MST
= 1,094.75/ 3-1
Sb2(MST)= 547.375
SSE = (𝑛𝑖-1)𝑆𝑖 2
= (3-1)(579) + (3-1)(210.3) + (3-1)(586.3)
i=1

SSE = 2,751.2
MSE=
= 2,751.2/ (3+3+3)-3
Sw2(MSE)= = 458.53

S 2/S 2
F= b w
= 547.375/458.53
F= 1.19
 ANOVA Table
Source of Sum of Degrees of Mean F- Value
Variance Squares Freedom Square
Treatment 1,094.75 2 547.375
Error 2,751.20 6 458.53 1.19

Total 3,845.95
SST sum of square treatment
SSE sum of square error
SSTO sum of square total
c the number of groups
compare with
8
N total number of
observations
MST mean square treatment
MSE mean square error
F F statistics
Step 4:

dfnum = c-1 dfden = 𝑛𝑖 -c

= 3-1 = 9-3
dfnum =2 dfden =6

The critical value of F = 5.14

 Reject

0 1.19 5.14

The Calculated F < Critical Value

• The null hypothesis is accepted
• There is no significant difference in the mean
sales of the three marketing strategies.
 ANOVA Table
Source of Sum of Degrees of Mean F- Value
Variance Squares Freedom Square
Treatment SST c-1 MST =SST F = MST
(Between) c-1 MSE
Error SSE N-c MSE = SSE
(within) N-c

Total SSTO N-1

SST sum of square treatment N total number of

SSE sum of square error observations
SSTO sum of square total MST mean square treatmen
c the number of groups MSE mean square error
compare with F F statistics
Example:
The data in the following table represent final
grades given by three professors in Math course. Is
the difference in sample means the same? Use 5%
level of significance.
Professor 1 Professor 2 Professor 3
63 67 97
45 45 97
73 76 87
77 80 87
72 70 84
70 74
74
64
1. Ho: 𝜇1 = 𝜇 2 = 𝜇 3
Ha: 𝜇 1 = 𝜇 2 = 𝜇 3
2. 𝛼 = 0.05
Professor 1 Professor 2 Professor 3
3. 63 (3,969) 67 (4,489) 97 (9,409)
45 (2,025) 45 (2,025) 97 (9,409)
73 (5,329) 76 (5,776) 87 (7,569)
77 (5,929) 80 (6,400) 87 (7,569)
72 (5,184) 70 (4,900) 84 (7,569)
70 (4,900) 74 (7,056)
74 (7,056)
64 (4,096)
3. Professor 1 Professor 2 Professor 3
63 (3,969) 67 (4,489) 97 (9,409)
45 (2,025) 45 (2,025) 97 (9,409)
73 (5,329) 76 (5,776) 87 (7,569)
77 (5,929) 80 (6,400) 87 (7,569)
72 (5,184) 70 (4,900) 84 (7,056)
70 (4,900) 74 (5,476)
74 (5,476)
64 (4,096)

𝒙𝒊 = 330 (63+45+73+77+72)

𝒙𝒊2= 22,436 (3,969+2,025+5,329+5,929+5,184)

𝒙𝟏 =330/5
= 66
 3. Professor 1 Professor 2 Professor 3
63 (3,696) 67 (4,489) 97 (9,409)
45 (2,025) 45 (2,025) 97 (9,409)
73 (5,329) 76 (5,776) 87 (7,569)
77 (5,929) 80 (6,400) 87 (7,569)
72 (5,184) 70 (4,900) 84 (7,569)
70 (4,900) 74 (7,056)
74 (7,056)
64 (4,096)

𝒙𝒊 = 330 𝒙𝒊 = 408 𝒙𝒊 = 664

𝒙𝒊2= 22,436 𝒙𝒊2= 28,490 𝒙𝒊2= 56,060
𝒙𝟏 =66 𝒙𝟐 =68 𝒙𝟑 =83
 3.
Professor 1 Professor 2 Professor 3

63 (3,696) 67 (4,489) 97 (9,409)

45 (2,025) 45 (2,025) 97 (9,409)
73 (5,329) 76 (5,776) 87 (7,569)
77 (5,929) 80 (6,400) 87 (7,569)
72 (5,184) 70 (4,900) 84 (7,569)
70 (4,900) 74 (7,056)
74 (7,056)
64 (4,096)

𝒙𝒊 = 330
𝒙𝒊2= 22,436
𝒔𝟏𝟐 = 𝑛𝑖 x12- ( 𝒙𝒊)2
𝒙𝟏 =66 𝑛 𝑖 ( 𝑛𝑖 - 1 )
= 5(22,436) –(330)2
5(5-1)
𝒔𝟏𝟐 =164
 3.
Professor 1 Professor 2 Professor 3

63 (3,696) 67 (4,489) 97 (9,409)

45 (2,025) 45 (2,025) 97 (9,409)
73 (5,329) 76 (5,776) 87 (7,569)
77 (5,929) 80 (6,400) 87 (7,569)
72 (5,184) 70 (4,900) 84 (7,569)
70 (4,900) 74 (7,056)
74 (7,056)
64 (4,096)

𝒙𝒊 = 330 𝒙𝒊 = 408 𝒙𝒊 = 664

𝒙𝒊2= 22,436 𝒙𝒊2= 28,490 𝒙𝒊2= 56,060
𝒙𝟏 =66 𝒙𝟏 =68 𝒙𝟏 =83
𝒔𝟏𝟐 = 𝑛𝑖 x12- ( 𝒙𝒊)2 𝒔𝟐𝟐 = 𝑛𝑖 x12- ( 𝒙𝒊)2 𝒔𝟑𝟐 = 𝑛𝑖 x12- ( 𝒙𝒊)2
𝑛𝑖 ( 𝑛𝑖 -1) 𝑛𝑖 ( 𝑛𝑖 -1) 𝑛𝑖 ( 𝑛𝑖 -1)
= 5(22,436) –(330)2 = 6(28,490) –(408)2 = 8(56,060) –(664)2
5(5-1) 6(6-1) 8(8-1)
𝒔𝟏𝟐 =164 𝒔𝟐𝟐 =149.2 𝒔𝟑𝟐 =135.43
3.
𝒙𝟏 =66 𝒙𝟐 =68 𝒙𝟑 =83

𝒙𝟏 =66
=5(66) + 6(68) + 8(83)
5+6+8
𝒙𝒊 =73.79
3.
𝒙𝟏 =66 𝒙𝟐 =68 𝒙𝟑 =83
𝒙𝒊 =73.79

SST = 𝑛𝑖 (xi – x )2
= 5(66-73.79) 2+ 6(68-73.79) 2+8(83-73.79) 2
SST = 1,183.15

Sb2 (MST) =SST =1183.15

c-1 3-1

𝑺𝒃𝟐(MST)=591.575
 𝒔𝟏𝟐 =164 𝒔𝟐𝟐 =149.2 𝒔𝟑𝟐 =135.43

SSE = (𝑛𝑖-1)𝑆𝑖 2
= (5-1)(164)+ (6-1)(149.2)+ (8-1)(135.43)
i=1

SSE = 2,350.01

= 2,350.01/ (5+6+8)-3
Sw2(MSE)= 146.8756
𝑺𝒃𝟐(MST)/=591.575

Sw2(MSE)/= 146.8756

S /S
F= b (MST) w (MSE)
2 2

= 591.575/146.8756
F = 4.0277
 ANOVA Table
Source of Sum of Degrees of Mean F- Value
Variance Squares Freedom Square
Treatment SST c-1 MST =SST F = MST
(Between) c-1 MSE
Error SSE N-c MSE = SSE
(within) N-c

Total SSTO N-1

SST sum of square treatment N total number of

SSE sum of square error observations
SSTO sum of square total MST mean square treatmen
c the number of groups MSE mean square error
compare with F F statistics
 ANOVA Table
Source of Variance Sum of Squares Degrees of Freedom Mean Square F- Value

Treatment SST c-1 MST =SST F = MST

(Between) c-1 MSE
Error (within) SSE N-c MSE = SSE
N-c
Total
SSTO N-1

SST sum of square treatment N total number of

SSE sum of square error observations
SSTO sum of square total MST mean square treatment
c the number of groups MSE mean square error
compare with F F statistics

Source of Sum of Degrees of Mean F- Value

Variance Squares Freedom Square
Treatment 1,183.15 2 591.575
Error 2,353.01 16 147.06 4.02

Total 3,536.16 18
Step 4:
dfnum = c-1 dfden = 𝑁-c
= 3-1 = (5+6+8)-3
dfden = 16
dfnum =2

The critical value of F = 3.63

 Calculated F = 4.0277
Critical value of F = 3.63

Reject

0 3.63 4.02

The Calculated F >Critical Value

• The null hypothesis is rejected
• There is a significant difference in the sample
means.
Good luck!!!