Inferential Statistics

Chapter 12
Analysis of Variance

By: Dr. Abdul Sattar Al-Azzawi

Ch 12 : Learning Objectives

LO12-1 Apply the F distribution to test a hypothesis that two population variances are equal.
LO12-2 Use ANOVA to test a hypothesis that two or more-population means are equal.
LO12-3 Use confidence intervals to test and interpret differences between pairs of population
means. Organize data into a one-way ANOVA table.

9-2
Ch 12 : Characteristics of the F Distribution

• There is a family of F distributions. Each time the degrees of freedom in either the
numerator or the denominator change, a new distribution is created
• The F distribution is continuous
• The F statistic cannot be negative
• The F distribution is positively skewed
• The F distribution is asymptotic

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 Comparing Means of Two or More Populations

• The F distribution is also used for testing whether two or more sample means came
from the same or equal populations.

• Assumptions:
• The sampled populations follow the normal distribution.
• The populations have equal standard deviations.
• The samples are randomly selected and are independent.
 Comparing Means of Two or More Populations

• The Null Hypothesis is that the population means are the same. The Alternative
Hypothesis is that at least one of the means is different.

• The Test Statistic is the F distribution.

• The Decision rule is to reject the null hypothesis if F (computed) is greater than F
(table) with numerator and denominator degrees of freedom.

• Hypothesis Setup and Decision Rule:

H0: µ1 = µ2 =…= µk
H1: The means are not all equal
Reject H0 if F > Fa,k-1,n-k
Analysis of Variance – F statistic

• If there are k populations being sampled, the numerator degrees of freedom is k – 1.

• If there are a total of n observations the denominator degrees of freedom is n – k.
• The test statistic is computed by:

SST (k - 1)
F=
SSE (n - k )
Comparing Means of Two or More Populations – Example

Recently a group of four major carriers

joined in hiring Brunner Marketing
Research, Inc., to survey recent
passengers regarding their level of
satisfaction with a recent flight. The
survey included questions on
ticketing, boarding, in-flight service,
baggage handling, pilot
communication, and so forth.
Twenty-five questions offered a range
of possible answers: excellent, good,
fair, or poor. A response of excellent
was given a score of 4, good a 3, fair
a 2, and poor a 1. These responses Is there a difference in the mean
were then totaled, so the total score satisfaction level among the four
was an indication of the satisfaction airlines?
with the flight. Brunner Marketing Use the .01 significance level.
Research, Inc., randomly selected
and surveyed passengers from the
four airlines.
Comparing Means of Two or More Populations – Example

Step 1: State the null and alternate hypotheses.

H 0: µ E = µ A = µ T = µ O
H1: The means are not all equal
Reject H0 if F > Fa,k-1,n-k

Step 2: State the level of significance.

The .01 significance level is stated in the problem.

Step 3: Find the appropriate test statistic.

Because we are comparing means of more than two groups, use the F statistic
Comparing Means of Two or More Populations – Example

Step 4: State the decision rule.

Reject H0 if F > Fa,k-1,n-k
F > F01,4-1,22-4
F > F01,3,18
F > 5.801
Comparing Means of Two or More Populations – Example

Step 5: Compute the value of F and make a decision

Comparing Means of Two or More Populations – Example
Computing SS Total and SSE
Computing SST

The computed value of F is 8.99, which is greater than the critical value of 5.09, so the null
hypothesis is rejected.
Conclusion: The population means are not all equal. The mean scores are not the same for the
four airlines; at this point we can only conclude there is a difference in the treatment means. We
cannot determine which treatment groups differ or how many treatment groups differ.
 One-Way ANOVA Table

Source of SS df MS F ratio
Variation
Treatments SST MST
SST k-1 MST = F=
k-1 MSE
Error SSE
SSE N-k MSE =
N-k
Total SST total N-1

k = number of populations
N = sum of the sample sizes from all populations
df = degrees of freedom
Interpreting One-Factor ANOVA F Statistic

• The F statistic is the ratio of the treatments estimate of variance

and the Error estimate of variance
• The ratio must always be positive
• df1 = k -1 will typically be small
• df2 = N - k will typically be large

The ratio should be close to 1 if

H0: μ1= μ2 = … = μk is true

The ratio will be larger than 1 if

H0: μ1= μ2 = … = μk is false
One-Factor ANOVAF Test - Example

You want to see if three Club 1 Club 2 Club 3

different golf clubs yield 254 234 200
different distances. You 263 218 222
randomly select five 241 235 197
measurements from trials on an 237 227 206
automated driving machine for 251 216 204
each club. At the .05
significance level, is there a
difference in mean distance?
One-Factor ANOVA Example: Scatter Diagram

Distance
Club 1 Club 2 Club 3 270
254 234 200 260 •
••
263
241
218
235
222
197
250 X1
240 •
237 227 206 • ••
230
251 216 204
220
•
•• X2 • X
210
••
x1 = 249.2 x 2 = 226.0 x 3 = 205.8 200 •• X3
x = 227.0 190

1 2 3
Club
 One-Factor ANOVA Example
Computations
Club 1 Club 2 Club 3 x1 = 249.2 n1 = 5
254 234 200 x2 = 226.0 n2 = 5
263 218 222 x3 = 205.8 n3 = 5
241 235 197
N = 15
237 227 206 x = 227.0
251 216 204 k=3

SST = 5 [ (249.2 – 227)2 + (226 – 227)2 + (205.8 – 227)2 ] = 4716.4

SSE = (254 – 249.2)2 + (263 – 249.2)2 +…+ (204 – 205.8)2 = 1119.6

MST = 4716.4 / (3-1) = 2358.2 2358.2

F= = 25.275
MSE = 1119.6 / (15-3) = 93.3 93.3
One-Factor ANOVA Example Solution

H0: μ1 = μ2 = μ3 Test Statistic:

HA: μi not all equal
MST 2358.2
a = .05 F= = = 25.275
df1= 2 df2 = 12 MSE 93.3

Critical Decision:
Value:
Reject H0 at a = 0.05
Fa = 3.885
a = .05 Conclusion:
There is evidence that at
0 Do not Reject H0 least one μi differs from
F = 25.275
reject H0
F.05 = 3.885 the rest
Questions ?

End of Chapter 12