ANALYSIS OF VARIANCE(ANOVA)

ANALYSIS OF VARIANCE(ANOVA)
The analysis of variation is a powerful tool for tests of
significance. If we want to test the significance difference
between two sample means that we use t-test but if we have to
test the significance difference among three or more sample
means then we required a repetition of t-test. This is time
consuming. This can be done by another technique known as
"Analysis of variance" .The term "Analysis of variance" was
developed by Prof. R. A. Fisher.
Definition: According to Prof. R. A. Fisher, Analysis of Variance
(ANOVA) is the "separation of variation ascribable to one group
of causes from the variation ascribable to other group.“
So in this technique we split up the total variance into two parts:
(i)Variance between samples,
(ii) Variance within samples,.
Analysis of variance based on F-statistic which can be
defined as the ratio of variance between samples and
variance within sample and this ratio always greater
than unity.
F= variance between samples
variance within samples.
If this ratio is less than unity then interchange these
variance. So we take numerator value always greater
than denominator value.
Assumptions: The following assumptions are made for
validity of the F-test in ANOVA
(i) The sample observations are independent
(ii) The population from which the observation are taken
is normal.
(iii) Various effects are additive in nature.
Computation of Analysis of Variance:
The null hypothesis taken while applying analysis of variance
technique is that the means of different samples do not differ
significantly. The procedure followed in the analysis of variance
would be explained separately for
(1) One-way classification, and
(2) Two-way classification
One-way classification:
In one way classification, the data are classified according to only
one criterion. Suppose we have k independent random samples of
n1,n2,n3……nk observations from k populations. The population
means are denoted by μ1, μ2, μ3………μk.
The one –way analysis of variance is designed to test the null
hypothesis:
H0 = μ1 = μ2, = μ3 =……… = μk.
The steps involved in carrying out the analysis are:
(1) Calculate the variance between the samples
(2) Calculate the variance within the samples
(3) Calculate the F-ratio
F = variance between samples
variance within samples.
(4) Compare the calculate value of F
Compare the calculated of F with the table of F for given degrees
of freedom at a certain critical level ( generally we take 5% level
of significance). If the calculated value of F is greater than the
table value of F, it indicates that the difference in sample means
is significant. On the other hand, if calculated value of F is less
than the table value , the difference is not significant an d hence
could have arisen due to fluctuation of random sampling.
Two-way classification:
In a one way analysis of variance explained earlier, the treatment
constitute different levels of a single factor which is controlled in
one experiment. However, many situations in which the response
variable the response variable of interest may be affected by more
than one factor. For example, petrol mileage may be affected by the
the way it is driven, road conditions and other factors in addition to
the brand of petrol used. When it is believed that two independent
factors might have an effect on the response variable of interest, it
is possible to design the test so that an analysis of variance can be
used to test for the effects of the two factors simultaneously. Such a
test is called two –way analysis of variance.