3.10.

4 THE ANALYSIS OF VARIANCE (ANOVA)

Analysis of variance (ANOVA) is a technique that is general and widely used in

the field of statistics. In addition to the appropriate procedure for testing the equality
of means, ANOVA has wider application. ANOVA's main objective lies in evaluating
and checking theory on the treatment effect of the parameters. According to Jahan
(2017), Usually t-test cannot be used in testing the joint hypotheses and partial slope
coefficient are zero at once. However, ANOVA is defined as in the following table:

Table 3.2: Analysis of Variance (ANOVA)

Source of Sum of Degree of Mean

F
Variation Squre Freedom Square
Model
SSR MSR
(Regression ∑(ŷi - ӯ)2 p-1
p−1 MSE
)
SSE
Error ∑(yi - ӯ)2 n-p
n− p
Total ∑(yi - ӯ)2 n -1

The assumption of normal distribution for εi and for the null hypotheses,

H0 : β1 = β2 = 0

H1 : At least one βi ¿0 ; i=1,2,…,n

Then the test statistic,

MSR
F=
MSE (3.3)