Analysis of Variance

(ANOVA)
 One-Way ANOVA
One-way analysis of variance is a hypothesis-testing
technique that is used to compare means from three or
more populations. Analysis of variance is usually
abbreviated ANOVA.

In a one-way ANOVA test, the following must be true.

1. Each sample must be randomly selected from a
normal, or approximately normal, population.
2. The samples must be independent of each other.
3. Each population must have the same variance.
 One-Way ANOVA
Variance between samples
Test statistic =
Variance within samples

1. The variance between samples MSB measures the

differences related to the treatment given to each
sample and is sometimes called the mean square
between.
2. The variance within samples MSW measures the
differences related to entries within the same sample.
This variance, sometimes called the mean square
within, is usually due to sampling error.
 One-Way ANOVA
One-Way Analysis of Variance Test
If the conditions listed are satisfied, then the sampling
distribution for the test is approximated by the
F-distribution. The test statistic is
MS B
F = .
MSW
The degrees of freedom for the F-test are
d.f.N = k – 1
and
d.f.D = N – k
where k is the number of samples and N is the sum of
the sample sizes.
Test Statistic for a One-Way ANOVA

Finding the Test Statistic for a One-Way ANOVA Test

In Words In Symbols
1. Find the mean and variance of (x − x )2
x = x 2
s =
each sample. n n −1

2. Find the mean of all entries in x = x

all samples (the grand mean). N
3. Find the sum of squares SS B =  ni (x i − x )2
between the samples.
4. Find the sum of squares within SSW = (ni − 1)s i2
the samples.
Continued.
Test Statistic for a One-Way ANOVA

Finding the Test Statistic for a One-Way ANOVA Test

In Words In Symbols
5. Find the variance between SS B SS B
MS B = =
the samples. k − 1 d.f.N

6. Find the variance within the SSW SS

MSW = = W
samples N − k d.f.D

7. Find the test statistic. MS B

F =
MSW
Performing a One-Way ANOVA Test

Performing a One-Way Analysis of Variance Test

In Words In Symbols
1. Identify the claim. State the State H0 and Ha.
null and alternative hypotheses.

2. Specify the level of significance. Identify .

3. Identify the degrees of freedom. d.f.N = k – 1

d.f.D = N – k

4. Determine the critical value. Use Table 7 in

Appendix B.
Continued.
Performing a One-Way ANOVA Test

Performing a One-Way Analysis of Variance Test

In Words In Symbols
5. Determine the rejection region.
6. Calculate the test statistic. MS B
F =
MSW
7. Make a decision to reject or fail If F is in the
to reject the null hypothesis. rejection region,
reject H0.
Otherwise, fail to
8. Interpret the decision in the reject H0.
context of the original claim.
 ANOVA Summary Table
A table is a convenient way to summarize the results in a
one-way ANOVA test.

Sum of Degrees of Mean

Variation F
squares freedom squares

SS B
Between SSB d.f.N MS B = MS B  MSW
d.f.N

SSW
Within SSW d.f.D MSW =
d.f.D
Performing a One-Way ANOVA Test

Lecture Tutorial Modular Cooperative

Learning
15 17 11 10
10 12 7 12
13 18 9 8
14 13 13 7
13 15 9
12

Continued.
Performing a One-Way ANOVA Test
Example continued:
H0: μ1 = μ2 = μ3 = μ4 (There is no significant difference
among the means of the four teaching methods)
Ha: At least one mean is different from the others.
Because there are k = 4 samples/groups, d.f.N = k – 1 = 4 – 1 = 3.

The sum of the sample sizes is

N = n1 + n2 + n3 + n4 = 5 + 6 + 4 + 5 = 20.

d.f.D = N – k = 20 – 4 = 16

Using  = 0.05, d.f.N = 3, and d.f.D = 16,

the critical value is F0 = 3.24.
Continued.
Performing a One-Way ANOVA Test
Completing the Table:
Lecture Tutorial Modular Coopertive
Learning
15 17 11 10
10 12 7 12
13 18 9 8
14 13 13 7
13 15 9
12
n1= 5 n2= 6 n3= 4 n4= 5
 Performing a One-Way ANOVA Test
Example continued:
To find the test statistic, the following must be calculated.

x = x
N
SS B  ni (x i − x )2
MS B = =
d.f.N k −1

Continued.
 Performing a One-Way ANOVA Test
Example continued:
SSW (ni − 1)s i2
MSW = =
d.f.D N −k

Test Critical
statistic value
MS B
F = 6.32 > 3.24.
MSW
Reject H0.
There is enough evidence at the 5% level to conclude that the
population means for the four teaching methods are
significantly different..
Performing a One-Way ANOVA Test
Example:
The following table shows the salaries of randomly
selected individuals from four universities. At  = 0.05,
can you conclude that the mean salary is different in at
least one of the areas?

USC UC USJ-R CTU

27,800 30,000 32,000 30,000
28,000 33,900 35,800 40,000
25,500 29,750 28,000 35,000
29,150 25,000 38,900 33,000
30,295 34,055 27,245 29,805

Continued.
Performing a One-Way ANOVA Test
Example continued:
H0: μ1 = μ2 = μ3 = μ4
Ha: At least one mean is different from the others. (Claim)

Because there are k = 4 samples/groups, d.f.N = k – 1 = 4 – 1 = 3.

The sum of the sample sizes is

N = n1 + n2 + n3 + n4 = 5 + 5 + 5 + 5 = 20.

d.f.D = N – k = 20 – 4 = 16

Using  = 0.05, d.f.N = 3, and d.f.D = 16,

the critical value is F0 = 3.24.
Continued.
 Performing a One-Way ANOVA Test
Example continued:
To find the test statistic, the following must be calculated.

x =  x = 140745 + 152705 + 161945 + 167805 = 31160

N 20
SS B  ni (x i − x )2
MS B = =
d.f.N k −1
5(28149 − 31160)2 + 5(30541 − 31160)2
= +
4 −1
5(32389 − 31160)2 + 5(33561 − 31160)2
4 −1
 27874206.67
Continued.
 Performing a One-Way ANOVA Test
Example continued:
SSW (ni − 1)s i2
MSW = =
d.f.D N −k
(5 − 1)(3192128.94) + (5 − 1)(13813030.08)
 +
20 − 4
(5 − 1)(24975855.83) + (5 − 1)(17658605.02)
20 − 4
= 14909904.97 Test Critical
statistic value
MS B 27874206.67  1.870
F = = 1.870 < 3.24.
MSW 14909904.34
Fail to reject H0.
There is not enough evidence at the 5% level to conclude that
the mean salary is different in at least one of the areas.