Developed by Ronald Fisher, ANOVA stands for Analysis of Variance

 ANOVA test allows a

comparison of more than
two groups at the same time
to determine whether a
relationship exists between
them. The result of the
ANOVA formula, the F
statistic (also called the F-
ratio), allows for the analysis
of multiple groups of data to
determine the variability
between samples and within samples.
 Initial step in analyzing factors that affect a given data set.
 No real difference exists between the tested groups, which is called the null hypothesis,
the result of the ANOVA's F-ratio statistic will be close to 1. The distribution of all
possible values of the F statistic is the F-distribution. This is actually a group of
distribution functions, with two characteristic numbers, called the numerator degrees of
freedom and the denominator degrees of freedom.
 ANOVA is helpful for testing three or more variables. It is similar to
multiple two-sample t-tests. However, it results in fewer type I
errors and is appropriate for a range of issues. ANOVA groups
differences by comparing the means of each group and includes
spreading out the variance into diverse sources. It is employed with
subjects, test groups, between groups and within groups.
 One-way or two-way refers to the number of independent variables in your analysis of
variance test. A one-way ANOVA evaluates the impact of a sole factor on a sole response
variable. It determines whether all the samples are the same. The one-way ANOVA is
used to determine whether there are any statistically significant differences between the
means of three or more independent (unrelated) groups.
 A two-way ANOVA is an extension of the one-way ANOVA. With a one-way, you have
one independent variable affecting a dependent variable. With a two-way ANOVA, there
are two independents. For example, a two-way ANOVA allows a company to compare
worker productivity based on two independent variables, such as salary and skill set. It is
utilized to observe the interaction between the two factors and tests the effect of two
factors at the same time.
 We can use a statistical technique which can compare these three treatment samples and
depict how different these samples are from one another. Such a technique, which
compares the samples on the basis of their means, is called ANOVA.
  Analysis of variance (ANOVA) is a statistical technique that is used to check if the
means of two or more groups are significantly different from each other. ANOVA checks
the impact of one or more factors by comparing the means of different samples

Another measure to compare the samples is called a t-test. When we have only two samples, t-
test and ANOVA give the same results. However, using a t-test would not be reliable in cases
where there are more than 2 samples. If we conduct multiple t-tests for comparing more than two
samples, it will have a compounded effect on the error rate of the result.
Analysis of Variance (ANOVA) tells you if there are any statistical differences between the
means of three or more independent groups.
What is ANOVA?
Developed by Ronald Fisher, ANOVA stands for Analysis of Variance. One-Way Analysis of
Variance tells you if there are any statistical differences between the means of three or more
independent groups.

When might you use ANOVA?

You might use Analysis of Variance (ANOVA) as a marketer, when you want to test a particular
hypothesis. You would use ANOVA to help you understand how your different groups respond,
with a null hypothesis for the test that the means of the different groups are equal. If there is a
statistically significant result, then it means that the two populations are unequal (or different).

How can ANOVA help?

The one-way ANOVA can help you know whether or not there are significant differences
between the means of your independent variables (such as the first example: age, sex, income).
When you understand how each independent variable’s mean is different from the others, you
can begin to understand which of them has a connection to your dependent variable (landing
page clicks), and begin to learn what is driving that behavior.

Examples of using ANOVA

You may want to use ANOVA to help you answer questions like this:

Do age, sex, or income have an effect on whether someone clicks on a landing page?
Do location, employment status, or education have an effect on NPS score?

One-way ANOVA can help you know whether or not there are significant differences between
the groups of your independent variables (such as USA vs Canada vs Mexico when testing a
Location variable). You may want to test multiple independent variables (such as Location,
employment status or education). When you understand how the groups within the independent
variable differ (such as USA vs Canada vs Mexico, not location, employment status, or
education), you can begin to understand which of them has a connection to your dependent
variable (NPS score).

“Do all your locations have the same average NPS score?”

Although, you should note that ANOVA will only tell you that the average NPS scores across all
locations are the same or are not the same, it does not tell you which location has a significantly
higher or lower average NPS score.

What is the difference between one-way and two-way ANOVA tests?

This is defined by how many independent variables are included in the ANOVA test. One-way
means the analysis of variance has one independent variable. Two-way means the test has two
independent variables. An example of this may be the independent variable being a brand of
drink (one-way), or independent variables of brand of drink and how many calories it has or
whether it’s original or diet.

Topic: ANOVA (Analysis of Variance) or F-Test What is F-Fest?

The F-test is another parametric test used to compare means of more than 2 groups of
independent samples. It is also known as the Analysis of Variance (ANOVA).
Purpose:
To know if there are significant differences between and among columns and rows. This is also
used in looking at the interaction effect between the variables being analyzed.
Why do we use the F-test?
 We want to find out if there is a significant difference between and among the means of the two
or more independent groups.

Analysis of Variance (ANOVA) is a statistical method used to test differences between two or
more means. It may seem odd that the technique is called “Analysis of Variance” rather than
“Analysis of Means.” As you will see, the name is appropriate because inferences about means
are made by analyzing variance. ANOVA is used to test general rather than specific differences
among means.

You might be wondering why you should learn about ANOVA when the Tukey test is better.
One reason is that there are complex types of analyses that can be done with ANOVA and not
with the Tukey test. A second is that ANOVA is by far the most commonly-used technique for
comparing means, and it is important to understand ANOVA in order to understand research
reports.

An ANOVA conducted on a design in which there is only one factor is called a one-way
ANOVA. If an experiment has two factors, then the ANOVA is called a two-way ANOVA. For
example, suppose an experiment on the effects of age and gender on reading speed were
conducted using three age groups (8 years, 10 years, and 12 years) and the two genders (male
and female). The factors would be age and gender. Age would have three levels and gender
would have two levels.
experimental designs that can be analyzed by ANOVA.

F ratio- ratio of two variances

- Central part of Anova
- Compare beyond two variances, multiple population are compared(subgroup)Investigate
how two groups interact quantitatively
- Experimental research design

Why? Compare 2 population >>(T-test)

Compare the means of more than 2 populations
Compare each containing several levels or subgroups?
Compare 3 sample means to test if a difference exist somewhere among them
Each sample has corresponding means

Questions?
 Anova is the variability ratio
Variance Between (Distance from Overall mean) / within variance (Internal spread-
width or spread of each sample)

Components of total variance + Variance between + variance within

Partitioning- separating total variances into its components

Variance between > variance within = much larger than 1 , sample mostlikely do not come from
common population, reject null hyphothesis that means are equal coming from same population
Permitting comparison of multiple opulation ( unlike t test hyphothesis testing that compare only
two population)