One-way ANOVA

MSC, MSE, and MST are the mean squares of column, error, and total respectively.

Mean square is an average and is computed by dividing the sum of squares

by the degrees of freedom.

Example:
Practice problems:

1. That the starting salaries of new accounting graduates would differ according to geographic
regions of the United States seems logical. A random selection of accounting firms is taken from
three geographic regions, and each is asked to state the starting salary for a new accounting
graduate who is going to work in auditing. The data obtained follow. Use a one-way ANOVA to
analyze these data. Note that the data can be restated to make the computations more reasonable
(example: $42,500 = 4.25). Use a 1% level of significance. Discuss the business implications of your
findings.

South Northeast West

$40,500 $51,000 $45,500

41,500 49,500 43,500

40,000 49,000 45,000

41,000 48,000 46,500

41,500 49,500 46,000

2. A milk company has four machines that fill gallon jugs with milk. The quality control manager is
interested in determining whether the average fill for these machines is the same. The following
data represent random samples of fill measures (in quarts) for 19 jugs of milk filled by the different
machines. Use = .01 to test the hypotheses. Discuss the business implications of your findings.
Machine 1 Machine 2 Machine 3 Machine 4

4.05 3.99 3.97 4.00

4.01 4.02 3.98 4.02

4.02 4.01 3.97 3.99

4.04 3.99 3.95 4.01

4.00 4.00

4.00

Two-way ANOVA

F values for Two-way ANOVA