Three students named Gwyn, Gabrielle, and Stacy want to know whether or three

different big stores income lead to different mean scores. To test this, we gather the daily
income of the different stores for 14 days.

The data below are the 14days daily income (in pesos) from December 18, 2022 to December
31, 2022 of the three big stores in Mati City, Davao Oriental.
Store 1 Store 2 Store 3
JIEYAN JAMES STORE PFUREST AGRIVET AMC STORE
SUPPLY
38 560 113 970 38 980
40 900 89 338 45 694
48 360 84 432 50 670
45 670 79 860 51 990
40 586 80 900 48 505
104 500 144 845 84 565
102 948 115 804 90 795
96 162 90 840 80 262
39 864 133 354 56 589
43 650 105 326 42 392
60 249 124 808 30 594
98 500 86 562 58 105
110 569 105 326 74 159
114 296 136 354 86 593

We use the following steps to perform a one-way ANOVA by hand to determine if the mean
income is different between the three groups:

Step 1: Calculate the group means and the overall mean.

First, we will calculate the mean for all three groups along with the overall mean:

The mean income for Store 1 is

38560+ 40 900+ 48 360+…+ 98500+ 110 569+114 296
x 1= =70 343.86
14
The mean income for Store 2 is
113 970+89 338+ 84 432+… +86 562+105 326+136 354
x 2= =106 551.36
14

The mean income for Store 3 is

38 980+45 694 +50 670+…+58 105+74 159+86 593
x 3= =59 992.36
14

The overall mean income is

70 343.86+ 106551.36 +59 992.36
X= =78 962.52
3

Step 2: Calculate SSR.

Next, we will calculate the regression sum of squares (SSR) using the formula:

SSR=n ∑ ( X j −X )
2

where
n is the sample size of group j
∑ ❑is a Greek symbol that means “sum”
X j is the mean of group j
X is the overall mean

In the given data, we calculate that

SSR=n ∑ ( X j −X )
2

2 2 2
¿ 14 ( 70 343.86−78 962.52 ) + 14 ( 106 551.36−78 962.52 ) +14 (59 992.36−78 962.52 )

¿ 1 039 939 811.56+10 656 012145.72+5 038 141127.06

SSR=16 734 093 084.34

Step 3: Calculate SSE.

 Next, we will calculate the error sum of squares (SSE) using the formula:

SSE=∑ ( X ij −X j )
2

where

∑ ❑is a Greek symbol that means “sum”

X ij is the i th observation in group j

X jis the mean of group j

In the given data, we calculate SSE as follows:

Store 1:

SSE=∑ ( X ij −X j )
2

2 2 2
¿ ( 38 560−70 343.86 ) + ( 40 900−70343.86 ) + ( 48 360−70 343.86 ) + ¿

( 45 670−70 343.86 )2 + ( 40 586−70 343.86 )2 + ( 104 500−70 343.86 )2 +¿

( 102 948−70 343.86 )2+ ( 96 162−70 343.86 )2 + ( 39 864−70 343.86 )2 +¿

( 43 650−70 343.86 )2 + ( 60 249−70343.86 )2+ ( 98 500−70 343.86 )2 +¿

( 110 569−70 343.86 )2 + ( 114 296−70 343.86 )2

SSE=12 837 133 489.71
Store 2:

SSE=∑ ( X ij −X j )
2

2 2 2
¿ ( 113 970−106 551.36 ) + ( 89 338−106 551.36 ) + ( 84 432−106 551.36 ) +¿

( 79 860−106551.36 )2+ ( 80 900−106 551.36 )2+ ( 144 845−106551.36 )2+ ¿

( 115 804−106 551.36 )2+ ( 90 840−106 551.36 )2+ (133 354−106 551.36 )2+¿

( 105 326−106551.36 )2+ ( 124 808−106 551.36 )2 + ( 86 562−106 551.36 )2+¿

( 105 326−106551.36 )2+ ( 136 354−106551.36 )2

SSE=6 352 345 375.21
Store 3:

SSE=∑ ( X ij −X j )
2

2 2 2
¿ ( 38 980−59 992.36 ) + ( 45 694−59 992.36 ) + (50 670−59 992.36 ) +¿

( 51 990−59 992.36 )2+ ( 48 505−59 992.36 )2 + ( 84 565−59 992.36 )2 +¿

( 90 795−59 992.36 )2 + ( 80 262−59 992.36 )2+ (56 589−59 992.36 )2 +¿

( 42 392−59 992.36 )2+ ( 30 594−59 992.36 )2+ ( 58105−59 992.36 )2 +¿

( 74 159−59 992.36 )2 + ( 86 593−59 992.36 )2

SSE=4 989 810 513.21

Therefore,
SSE=12 837 133 489.71+6 352 345 375.21+4 989 810 513.21
SSE=24 179289 378.14

Step 4: Calculate SST.

Next, we will calculate the total sum of squares (SST) using the formula:

SST =SSR+ SSE .

Therefore, SST =16 734 093 084.34+ 24 179 289378.14=40 913 382 462.48

Step 5: Fill in the ANOVA table.

Now that we have SSR, SSE, and SST, we can fill in the ANOVA table:

Source Sum of Squares (SS) df Mean Squares (MS) F

Between-treatments 16 734 093 084.34 2 8 367 046 542.16 13.4956

Within-treatments 24 179 289 378.14 39 619 981 778.93

Total 40 913382 462.48 41

Here is how we calculated the various numbers in the table:

df treatment :k−1=3−1=2

df error :n−k =42−3=39

df total : n−1=42−1=41
 MS treatment : SST /df treatment=16734 093 084.34 /2=8 367 046 542.16

MS error : SSE /df error=24 179 289 378.14 /39=619 981 778.93

F : MS treatment / MS error =8 367 046 542.16/619 981 778.93=13.4956

Note: n=total observations∧k =number of groups .

Step 6: Interpret the results.

The F test statistic for this one-way ANOVA is 13.4956. To determine if this is a
statistically significant result, we must compare this to the F critical value found in the F
distribution table with the following values:

α (significance level)=0.05

df 1 (numerator degrees of freedom)=df treatment=2

df 2 ( denominator degrees of freedom )=df error=39

We find that the F critical value is 3.2381.

Since the F test statistic in the ANOVA table is greater than the F critical value in the F
distribution table, we have to reject the null hypothesis. This means we have sufficient
evidence to say that there is a statistically significant difference between the mean income of
the three group.