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Business Statistics: A Decision-Making Approach: Analysis of Variance
Business Statistics: A Decision-Making Approach: Analysis of Variance
A Decision-Making Approach
7th Edition
Topic #5
Analysis of Variance
Randomized
Complete
Block ANOVA
F-test
Fisher’s Least
Significant
Difference test
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 12-2
General ANOVA Setting
b
SSBL = k( x j − x )2
j=1
Where:
k = number of levels for this factor
b = number of blocks
xj = sample mean from the jth block
x = grand mean (mean of all data values)
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 12-6
Partitioning the Variation
◼ Total variation can now be split into three parts:
SSBL
MSBL = Mean square blocking =
b −1
SSB
MSB = Mean square between =
k −1
SSW
MSW = Mean square within =
(k − 1)(b − 1)
Total SST nT - 1
k = number of populations nT = sum of the sample sizes from all populations
b = number of blocks df = degrees of freedom
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 12-9
Blocking Test
H0 : μb1 = μb2 = μb3 = ...
HA : Not all block means are equal
Reject H0 if F > F
Reject H0 if F > F
1= 2 3 x
Business Statistics: A Decision-Making Approach, 7e © 2008 Prentice-Hall, Inc. Chap 12-12
Fisher’s Least Significant
Difference (LSD) Test
2
LSD = t /2 MSW
b
where:
t/2 = Upper-tailed value from Student’s t-distribution
for /2 and (k - 1)(b - 1) degrees of freedom
MSW = Mean square within from ANOVA table
b = number of blocks
k = number of levels of the main factor
2
LSD = t /2 MSW
b
Compare:
Is x i − x j LSD ? x1 − x 2