HANDOUT IN ADVANCED STATISTICS

Mrs. A. L. Reginaldo

SIMPLE ANALYSIS OF VARIANCE

Analysis of variance (ANOVA) is a technique in inferential statistics designed to test whether or not
more than two samples or groups, are significantly different from each other. In simple hypothesis testing, we
used t-test and z-test, to test non-significance between a single pair of samples. While both t-test and analysis
of variance are used to test non-significance of difference, analysis of variance has an advantage over the other
because it minimizes time and effort expended when computing and testing more than two samples. The t-test
is used to test non-significance of difference between two samples taking them one pair at a time. ANOVA is a
simultaneous test taking the samples all at a single time. The t-test formula is applied as many times as there
are pairs among the samples. The ANOVA test is applied only once.
Analysis of variance was developed by R.A. Fisher. (The F-test used in ANOVA is named after him.) It
was used first for agricultural researches. Today, it is applicable to almost any field of discipline.

The steps for one-way ANOVA is as follows:

1. State the null hypothesis as:
Ho: There is no significant difference among the samples.
2. Set the desired level of significance.
3. Compute for the sum of squares as:
TSS = ΣX2 – [(ΣX)2/N]
SSb = (1/r) Σ (ΣXij)2 – [(Σx)2 / N]
SSw = TSS - SSb
4. Compute for the degrees of freedom:
dft = rk – 1
=N–1
dfb = k – 1
dfw = dft - dfb
5. Compute for the mean sum of squares
MSSb = SSb / dfb
MSSw = SSw / dfw
6. Enter the computed values in the ANOVA table:
----------------------------------------------------------------------------------------
source of variation sum of squares df MSS
----------------------------------------------------------------------------------------
between-column SSb dfb MSSb
within column SSw dfw MSSw
total TSS dft
7. Locate the tabular value of F by getting the intersection value of n 1 (df of greater MSS) and n 2 (df of
smaller MSS)
8. Calculate the value of F as:
F = MSSb / MSSw
9. Compare the computed value of F with the tabular value of F then state the conclusion arrived at.
a. If the computed value < tabular value, accept the null hypothesis
b. If the computed value > tabular value, reject the null hypothesis.

Illustrative example:
Let us take three groups of students with 6 members each, where each group is subjected to one of
three types of teaching method. The grades of the students are taken at the end of the semester and
enumerated according to grouping.

Group 1 Group 2 Group 3

Method A Method B Method C
Student 1 84 70 90
Student 2 90 75 95
Student 3 92 90 100
Student 4 96 80 98
Student 5 84 75 88
Student 6 88 75 90

Test whether the three teaching methods are significantly different from one another.
ANALYSIS OF ENUMERATION DATA
 Enumeration data are expressed in the form of frequencies which represent the number of items within
specified qualitative descriptions or categories. This type of data answers the questions “how many items
satisfy a particular description?” or “how many items belong to a category?”
Enumeration data may be classified according to the number of variables described as either one-way
or tw0-way classification. Each variable is further subdivided into more specific categories.
How are enumeration data analyzed? Analysis of enumeration data is done through the chi-square test
(Χ2). The chi-square is a versatile statistical test named after the chi-square distribution which is derived under
the assumption of normality of the population.
The steps are as follows:
1. State the null hypothesis in any of these ways:
H0: The sample distribution conforms with the hypothetical or theoretical
distribution.
OR
H0: The actual observed proportion is not significantly different from the ideal or
expected proportion.
OR
H0: One variable does not depend on the other variable. Or the two variables are
Independent from each other.
The first two types of null hypothesis are applicable to data with one-way classification.
The third type of null hypothesis is applicable to data with two-way classification.
2. Set the level of significance.
3. Determine the degree of freedom using the formula:
df = c – 1 for one-way classification
df = (r – 1)(k – 1) for two-way classification
4. Locate the tabular value of Χ 2 in the chi-distribution table by getting the value of the desired level of
significance and the computed degree of freedom intersect.
5. Calculate the Χ2 value using the formula:
Χ2 = Σ [(fo – fe)2 / fe]
with fe = np for a one-way classification and
fe = [(subtotal A)(subtotal B)] / (grand total) for a two-way
classification
however, if we have only a 2 x 2 contingency table, we use Yate’s formula:
Χ2 = Σ [(|fo – fe| - 0.5)2 / fe]
6. State the conclusion arrived at by the acceptance or rejection of the null hypothesis.
If computed value < tabular value, accept null hypothesis
If computed value > tabular value, reject null hypothesis.

Illustrative examples:
1. Based on the data below, is the observed proportion significantly different from the expected
proportion, if the ideal or expected proportion is 3% married, 50% single, 10% widowed and 10%
legally separated?

Civil status Frequency

Single 18
Married 24
Widowed 5
Legally separated 3

2. Test the hypothesis that educational attainment does not depend on socio-economic status for the
following 100 persons in a particular community:

Socio-economic stat. \ educ. Attainment finished did not

College finish college
Poor 18 10
Middle-class 28 25
Rich 14 5

ACTIVITY
1. Solve by ANOVA:
The following are the mileage obtained after several road tests were run using five different
kinds of gasoline on a car.
 Road test Gasoline A Gasoline B Gasoline C Gasoline D GasolineE
1 35 61 38 65 56
2 31 63 54 60 69
3 42 50 47 57 70
4 48 42 60 55 50
5 40 49 55 60 48
Is there significant difference among the mileage yields, at 1% level of significance?
2. Solve by chi-square:
At 1% significance level, does college academic grade depend on the high school NCAE results
for the following 200 students?
Acad. Grade \ NCAE low average high
Above 85 13 25 21
75 – 85 18 31 38
Below 75 14 20 20