Assignment – ANOVA Test

Course Name: Human Resource Management

Course Code: ECO 204
Section: 03

Submitted To:
Abeer Khandker
Senior Lecturer
Department of Economics

Submitted By:
Mohd. Imtiaz Karim
ID: 2016-2-10-219

Date of Submission: 22-08-2019

1.0 Introduction
Analysis of Variance (ANOVA) is a hypothesis-testing technique used to test the equality of two
or more population means by examining the variances of samples that are taken. ANOVA allows
one to determine whether the differences between the samples are simply due to random error
(sampling errors) or whether there are systematic treatment effects that cause the mean in one
group to differ from the mean in another.

ANOVA is based on comparing the variance (or variation) between the data samples to variation
within each particular sample. If the between variation is much larger than the within variation,
the means of different samples will not be equal. If the between and within variations are
approximately the same size, then there will be no significant difference between sample means.

Assumptions of ANOVA:
(i) All populations involved follow a normal distribution.
(ii) All populations have the same variance (or standard deviation).
(iii) The samples are randomly selected and independent of one another.

Since ANOVA assumes the populations involved follow a normal distribution, ANOVA falls
into a category of hypothesis tests known as parametric tests. If the populations involved did not
follow a normal distribution, an ANOVA test could not be used to examine the equality of the
sample means. Instead, one would have to use a non-parametric test (or distribution-free test),
which is a more general form of hypothesis testing that does not rely on distributional
assumptions.
2.0 Methodologies
This chapter includes the research methodology of the ANOVA test. In more details, the
methods of data collection, the selection of the sample, the research process, the type of data
analysis, the ethical considerations and the research limitations of the project.

2.1 Data Collection

For the purposes of this research, in-depth interviews were used. In-depth interviews are personal
and unstructured interviews, whose aim is to research the subject. The main advantage of
personal interviews is that they involve personal and direct contact between interviewers and
interviewees, as well as eliminate non-response rates.

2.2 Data Type

Here we are trying to find out Toyota automobiles safety in Bangladesh context in their different
series of cars. They have 3 sizes of cars. Compact, mid-size, and full-size cars.

2.3 Population
Approximately there are more than 1 lakh different types of Toyota car running in our country.
This information collected from Toyota Bangladesh. They also assured that in the near future
70% of private cars of BD will be from them. They are very happy to run the business in
Bangladesh.

2.4 Sample size

identify participant’s emotions, feelings, and opinions regarding a particular
As there are 3 types of car, for that I have surveyed 9 customers for 3 different sizes of cars.
These number of the survey can seem little but I asked the question of its real user those who
ride Toyota every day in their life. The data collection method was the primary survey as
mentioned earlier.

2.5 Variability
Here the Safety is dependent variable whereas types of cars are an independent variable in this
case.

2.6 Tool used

Here process used is the ANOVA model. This is a very common and useful tool for data
analysis.
the Toyota Bangladesh wants to examine the safety of compact cars, midsize cars, and full-size
cars. It collects a sample of three for each of the treatments (cars types). Using the hypothetical
data provided below, test whether the mean pressure applied to the driver’s head during a crash
test is equal for each type of car. Use α = 5%.

Table:
Compact Mid-size Full-size
cars cars cars
643 469 484
655 427 456
702 525 402

Anova: Single
Factor

SUMMARY
Groups Count Sum Average Variance
Compact cars 3 2000 666.6667 972.3333
Mid-size cars 3 1421 473.6667 2417.3333
Full-size cars 3 1342 447.3333 1737.3333

ANOVA
Source of Variation SS df MS F P-value F crit
86049.555
Between Groups 6 2 43024.78 25.1754 0.0012 5.1433
Within Groups 10254 6 1709

96303.555
Total 6 8        

Decision Rule
Reject the null hypothesis if: F (observed value) > F CV (critical value). In our analysis 25.17
> 5.14, so we reject the null hypothesis.
3.0 Interpretation
Since we rejected the null hypothesis, we are 95% confident (1- α ) that the mean head pressure
is not statistically equal for compact, midsize, and full-size cars. However, since only one mean
must be different to reject the null, we do not yet know which mean(s) is/are different. In short,
an ANOVA test will test us that at least one mean is different, but an additional test must be
conducted to determine which mean(s) is/are different.