Submitted in Partial fulfillment of requirement for

The Award of the Degree of Bachelor of Commerce (Hons.)

From Maharshi Dayanand University Rohtak
Session - 2016-2017

Submitted To: Submitted By:

Controller of Examination Name…………
MDU Rohtak Roll No ………….
Class: …………..

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TABLE OF CONTENTS

STATISTICS MEANING AND DATA ENTERY IN MS EXCEL…........3-13

SAVING A FILE IN MS EXCEL……………………….. 14-16

DESCRIPTIVE STATISTICS IN MS EXCEL……….. 17-27

MEGASTAT………………………………………………. 28-29

HYPOTHESIS TESTING IN MS EXCEL…………….. 30-34

ANOVA…………………………………………………… 35-41

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 STATISTICS:
Statistics is a branch of mathematics that transforms numbers into useful information for the
decision maker. Statistics does this by providing a set of methods for analyzing the numbers.

According to Croxton and Cowden:

“ Statistics may be defined as the science of collection, presentation, analysis and interpretation
of numerical data from the logical analysis.”

 STATISTICS IN THE BUSINESS

Statistics has four important applications in the business:
o To summarize business data
o To draw conclusion from the data
o To make reliable forecast about the business activities
o To improve business processes.

 BASIS TERMINOLOGY
The basis terms used in statistics are:
o Variable: It is a characteristic of an item or individual. It is something that
changes or varies.
For ex: In a business, we observe sales, expenses and net profits to have different
values from year to year. These different values are the “DATA” to be analyzed.
o Population: It consists of all the items or individuals about which you would
like to draw conclusion.
o Parameter: It is a numerical measure that describes a characteristic of a
population.
o Sample: It is the portion of a population selected for analysis.
o Statistic: It is a single value obtained to describe the relevant characteristics
about a sample.

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 BRANCHES OF STATISTICS

DESCRIPTIVE INFERENTIAL
STASTISTICS STATISTICS

 DESCRIPTIVE STATISTICS: It focuses on collecting, summarizing,

presenting and analyzing a set of data.
 INFERENTIAL STATISTICS: It uses data that have been collected from a
sample to draw conclusions.

DATA COLLECTION:
The process of collecting data is known as data collection.

According to Esomer Market research:

The gathering of information (figures , words and responses) that describes some
situations from conclusions can be drawn.”

EXPERIMENT

All statistical experiments have three things in common:

 The experiment can have more than one possible outcome.

 Each possible outcome can be specified in advance.
 The outcome of the experiment depends on chance.

A coin toss has all the attributes of a statistical experiment. There is more than one possible
outcome. We can specify each possible outcome in advance - heads or tails. And there is an
element of chance. We cannot know the outcome until we actually flip the coin.

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An experiment involves the creation of an artificial situation in order that the researcher can
manipulate one or more variables while controlling all other variables and measuring the
resultant effects.

TYPES OF EXPERIMENT

FIELD LAB
EXPERIMENT
EXPERIMEN
T

1. FIELD EXPERIMENT: Field Experiments take place in real-life settings such as

a classroom, the work place or even the high street. Field experiments are much more
common in sociology than laboratory experiments. In fact sociologists hardly ever use
lab experiments because the artificial environment of the laboratory is so far removed
from real life that most sociologists believe that the results gained from such experiments
tell us very little about how respondents would actually act in real life.

2. LAB EXPERIMENT: A laboratory experiment is an experiment conducted

under highly controlled conditions. The variable which is being manipulated by the
researcher is called the independent variable and the dependent variable is the change in
behaviour measured by the researcher.
PRINCIPLES OF EXPERIMENT STUDIES

1. PRINCIPLE OF RANDOMIZATION:
This principle indicates that we should design or plan the experiment in such a way that
the variations caused by extraneous factors can all be combined under the general
heading of “chance.” For instance, if we grow one variety of rice, say, in the first half of
the parts of a field and the other variety is grown in the other half, then it is just possible
that the soil fertility may be different in the first half in comparison to the other half. If

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this is so, our results would not be realistic. In such a situation, we may assign the variety
of rice to be grown in different parts of the field on the basis of some random sampling
technique i.e., we may apply randomization principle and protect ourselves against the
effects of the extraneous factors (soil fertility differences in the given case). As such,
through the application of the principle of randomization, we can have a better estimate
of the experimental error.

2. PRINCIPLE OF LOCAL CONTROL:

The Principle of Local Control is another important principle of experimental designs.

Under it the extraneous factor, the known source of variability, is made to vary
deliberately over as wide a range as necessary and this needs to be done in such a way
that the variability it causes can be measured and hence eliminated from the experimental
error. This means that we should plan the experiment in a manner that we can perform a
two-way analysis of variance, in which the total variability of the data is divided into
three components attributed to treatments (varieties of rice in our case), the extraneous
factor (soil fertility in our case) and experimental error. In other words, according to the
principle of local control, we first divide the field into several homogeneous parts, known
as blocks, and then each such block is divided into parts equal to the number of
treatments. Then the treatments are randomly assigned to these parts of a block. Dividing
the field into several homogenous parts is known as ‘blocking’. In general, blocks are the
levels at which we hold an extraneous factor fixed, so that we can measure its
contribution to the total variability of the data by means of a two-way analysis of
variance. In brief, through the principle of local control we can eliminate the variability
due to extraneous factor(s) from the experimental error.

3. PRINCIPLE OF REPLICATION:
According to the Principle of Replication, the experiment should be repeated more than
once. Thus, each treatment is applied in many experimental units instead of one. By
doing so the statistical accuracy of the experiments is increased. For example, suppose
we are to examine the effect of two varieties of rice. For this purpose we may divide the
field into two parts and grow one variety in one part and the other variety in the other
part. We can then compare the yield of the two parts and draw conclusion on that basis.
But if we are to apply the principle of replication to this experiment, then we first divide
the field into several parts, grow one variety in half of these parts and the other variety in
the remaining parts. We can then collect the data of yield of the two varieties and draw
conclusion by comparing the same. The result so obtained will be more reliable in
comparison to the conclusion we draw without applying the principle of replication. The
entire experiment can even be repeated several times for better results. Conceptually
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 replication does not present any difficulty, but computationally it does. For example, if an
experiment requiring a two-way analysis of variance is replicated, it will then require a
three-way analysis of variance since replication itself may be a source of variation in the
data. However, it should be remembered that replication is introduced in order to increase
the precision of a study; that is to say, to increase the accuracy with which the main
effects and interactions can be estimated.

A. CONDUCTING AN EXPERIMENT
1. Selection of relevant variables: While conducting an experiment, a researcher
needs to select those variables that best operationalise the concepts.

2. Specification of Treatment levels: In an experiment, a researcher can manipulate

the independent variables (treatments).

For ex: If we want to study the impact of salary on the performance of the employees
in an organization , the salary may be divided in to three categories like high , middle
and low level, so that three levels of independent variables can be there for measurement.

3. Controlling the experiment environment: For a well executed experiment, it is

essential to have control on the extraneous factors that may affect the dependent
variables.
4. Selection of appropriate experimental designs: While conducting an
experiment, a researcher must apply his knowledge and rationale to select the appropriate
experimental design which suits best to the objective of the experiment.
5. Selection of sample: A researcher should take care while selecting the
sample for the experiment.
6. Pilot testing: It is done before final testing. The main motive behind pilot testing is to
reveal error in designs and improper control of extraneous conditions prevailing in
experiment environment.
7. Analysis of Data: After pilot testing, data are analysed to draw the results.

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 B. CLASSIFICATION OF EXPERIMENTAL DESIGNS

Experimental
designs

TRUE- STATISTICAL
PRE- QUASI-
EXPERIMENTAL DESIGNS
EXPERIMENTAL EXPERIMENTAL
DESIGNS
DESIGNS DESIGNS

1. PRE- EXPERIMENTAL DESIGNS: Pre-experimental designs are so named

because they follow basic experimental steps but fail to include a control group. In other
words, a single group is often studied but no comparison between an equivalent non-
treatment group is made.

Types of Pre-Experimental Design

 One-shot case study design
 One-group pretest-posttest design
 Static-group comparison

a) One-shot case study design:

A single group is studied at a single point in time after some treatment that is presumed to have
caused change. The carefully studied single instance is compared to general expectations of what
the case would have looked like had the treatment not occurred and to other events casually
observed. No control or comparison group is employed.

b) One-group pretest-posttest design:

A single case is observed at two time points, one before the treatment and one after the
treatment. Changes in the outcome of interest are presumed to be the result of the intervention or
treatment. No control or comparison group is employed.

c) Static-group comparison:
A group that has experienced some treatment is compared with one that has not. Observed
differences between the two groups are assumed to be a result of the treatment.
2. QUASI-EXPERIMENTAL DESIGNS:

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A quasi-experiment is simply defined as not a true experiment. Since the main component of a
true experiment is randomly assigned groups, this means a quasi-experiment does not have
randomly assigned groups. Why are randomly assigned groups so important since they are the
only difference between quasi-experimental and true experimental?
When performing an experiment, a researcher is attempting to demonstrate that variable A
influences or causes variable B to do something. They want to demonstrate cause and effect.
Random assignment helps ensure that there is no pre-existing condition that will influence the
variables and mess up the results.

There are two forms of quasi- experimental designs:

1. Time -series Design: These design may be presented symbolically as:
O1 O2 O3 X O5 O6 O7 O8

This design involves a series of periodic measurement on the dependent variable for a
group of a test unit.

2. Multiple Time Series Design: These design may be presented symbolically as:

Experimental O1 O2 O3 O4 X O5 O6 O7
Group O8
Control Group O’1 O’2 O’3 O’5 O’6 O’7 O’8
O’4

In the example of sales training programme, multiple time-series design can be presented
as follows:

Group1(salesman) O1 O2 O3 O4 X(Training) O5 O6 O7
O8(Sales after
Training)
Group2(salesman) O’1 O’2 O’3 O’4 No Training O’5 O’6 O’7 O’8
(Sales without
training)

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 3. TRUE EXPERIMENTAL DESIGN: A true experiment has one main
component - randomly assigned groups. This translates to every participant having an
equal chance of being in the experimental group, where they are subject to a
manipulation, or the control group, where they are not manipulated.

4. STATISTICAL DESIGN: Experimental design is a way to carefully plan

experiments in advance so that your results are both objective and valid. Ideally, your
experimental design should:
 Describe how participants are allocated to experimental groups. A common method is
completely randomized design, where participants are assigned to groups at random. A
second method is randomized block design, where participants are divided into
homogeneous blocks (for example, age groups) before being randomly assigned to groups.
 Minimize or eliminate confounding variables, which can offer alternative explanations for
the experimental results.
 Allow you to make inferences about the relationship between independent
variables and dependent variables.
 Reduce variability, to make it easier for you to find differences in treatment outcomes.

1. COMPLETELY RANDOMISED DESIGNS:

A completely randomized design (CRD) is an experiment where the treatments
are assigned at random. Every experimental unit has the same odds of receiving a
particular treatment. This design is usually only used in lab experiments, where
environmental factors are relatively easy to control for; it is rarely used out in the field,
where environmental factors are usually impossible to control. When a CRD has two
treatments, it is equivalent to a t-test

2. FACTORIAL DESIGN:A factorial experimental design is used to investigate

the effect of two or more independent variables on one dependent variable.

3. LATIN SQUARE DESIGN: This design is used when we want to separate out
the effect of two extraneous variables.

4. RANDOMISED BLOCK DESIGN: This design takes two consideration the

effect of extraneous variables on the dependent variable.

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 SURVEY

A survey is an investigation about the characteristics of a given population bymeans of

collecting data from a sample of that population and estimating their characteristics
through the systematic use of statistical methodology.

ADVANTAGES OF SURVEY
 Can be developed in less time (compared to other data-collection methods)
 Cost-effective, but cost depends on survey mode
 Can be administered remotely via online, mobile devices, mail, email, kiosk, or
telephone.
 Relatively easy to administer
 Conducted remotely can reduce or prevent geographical dependence
 Capable of collecting data from a large number of respondents
 Numerous questions can be asked about a subject, giving extensive flexibility in data
analysis
 With survey software, advanced statistical techniques can be utilized to analyze survey
data to determine validity, reliability, and statistical significance, including the ability to
analyze multiple variables
 A broad range of data can be collected (e.g., attitudes, opinions, beliefs, values, behavior,
factual).
 Standardized surveys are relatively free from several types of errors

DISADVANTAGES OF SURVEY
 Respondents may not feel encouraged to provide accurate, honest answers
 Respondents may not feel comfortable providing answers that present themselves in a
unfavorable manner.
 Respondents may not be fully aware of their reasons for any given answer because of
lack of memory on the subject, or even boredom.
 Surveys with closed-ended questions may have a lower validity rate than other question
types.
 Data errors due to question non-responses may exist. The number of respondents who
choose to respond to a survey question may be different from those who chose not to
respond, thus creating bias.
 Survey question answer options could lead to unclear data because certain answer options
may be interpreted differently by respondents. For example, the answer option
“somewhat agree” may represent different things to different subjects, and have its own
meaning to each individual respondent. ‘Yes’ or ‘no’ answer options can also be
problematic. Respondents may answer “no” if the option “only once” is not available.
 Customized surveys can run the risk of containing certain types of errors

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 DATA ENTRY IN MS-EXCEL

DATA:
Information in raw or unorganized form (such as alphabets, numbers, or symbols) that
refer to , or represent, condition, ideas , or objects is called data. Data is limitless and can
be present everywhere in the universe

TYPES OF DATA

Primary Data Secondary Data

1. PRIMARY DATA: Primary data means original data that has been collected
specially for the purpose in mind. It means someone collected the data from the original
source first hand Data collected this way is called primary data.

Advantages of primary data:

o The investigator collects data specific to the problem under study.
o There is no doubt about the quality of the data collected (for the investigator).
o If required, it may be possible to obtain additional data during the study period

2. SECONDARY DATA: Secondary data is the data that have been already collected by
and readily available from other sources. Such data are cheaper and more quickly
obtainable than the primary data and also may be available when primary data can not be
obtained at all.

ADVANTAGES OF SECONDARY MARKET

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3. 1) Time and Cost effective: Usually time and cost required to collect secondary data is
less than efforts required to collect primary data. Data is available freely or at far lesser
cost through secondary sources.
4.
2) Extensiveness of data: Data collected by governments and other institutes is usually
very extensive and covers a large spectrum of issues. An organization can filter that data
and consider only parts which they are targeting.

A. DATA ENTRY: Direct input of data in the appropriate data fields of a database,
through the use of a human data-input device such as a keyboard, mouse, stylus,
or touch screen, or through speech recognition software. See also data capture and
data logging.

Here we take example to understand how entry will be done in Microsoft Excel.
Suppose we want to enter data of salary of 10 employees.

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 In above worksheet in column 1st we show the identify number of 10 employees. The 2nd column
contains the data coding entered for the gender (2 for male). The 3rd column contains the salary
of employees.

SAVING A FILE IN MS-EXCEL

By default, the Microsoft Office programs save a file in a default working folder. To save the
copy in a different location, click a different folder in the folder list.

1. Open the workbook that you want to save as an Excel 2007 workbook.

For ex: we want to save the employees salary file

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2. Click the Microsoft Office Button , and then click Save As.

3. In the File name box, accept the suggested name or type a new name for the workbook.

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4. In the Save as type list, do one of the following: ...

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5. Click Save.

DESCRIPTIVE STATISTICS

Meaning:
Descriptive statistics are used to describe the basic features of the data in a study. They provide
simple summaries about the sample and the measures. Together with simple graphics analysis,
they form the basis of virtually every quantitative analysis of data.

Descriptive statistics are broken down into measures of central tendency and measures
of variability, or spread. Measures of central tendency include the mean, median and mode,
while measures of variability include the standard deviation or variance, the minimum and
maximum variables, and the kurtosis and skewness.

4.1 Measures of central tendency

“A measure of central tendency is a typical value around which other figure

congregate.”

According to Simpson and Kafka:-

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 There are three measures of central tendency.

 Arithmetic Mean
 Median
 Mode

I. Arithmetic mean: The average of a set of numerical values, as calculated by adding

them together and dividing by the number of terms in the set. Arithmetic mean is
commonly known as average.
FORMULA: ƸX/N=͞X͞͞͞͞

II. Median: The median is also the number that is halfway into the set. To find the median,
the data should first be arranged in order from least to greatest. To remember the
definition of a median, just think of the median of a road, which is the middlemost part
of the road.
Median represent by ‘M’.
If total items in the series is odd then use;
M= (N+1/2)th item .

III. Mode: The mode is the value that appears most often in a set of data. The mode of
a discrete probability distribution is the value x at which its probability mass
function takes its maximum value. In other words, it is the value that is most likely to be
sampled. The mode of a continuous probability distribution is the value x at which
its probability density function has its maximum value, so the mode is at the peak.

Calculating Mean, Median, Mode in Ms –excel in fig

1. Firstly type the data in excel sheet.

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After left the some rows type MEAN, MEIAN, MODE

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 2. After type the formulas of mean, median and mode.

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 3. After it click on ‘ENTER’.

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4.2 MEASURES OF DISPERSION
Simplest meaning that can be attached to the word ‘dispersion’ is a lack of uniformity in the
sizes or quantities of the items of a group or series. According to Reiglemen, “Dispersion is the
extent to which the magnitudes or quantities of the items differ, the degree of diversity.” The
word dispersion may also be used to indicate the spread of the data.
In all these definitions, we can find the basic property of dispersion as a value that indicates the
extent to which all other values are dispersed about the central value in a particular distribution.

(a) Range:
It is the simplest method of studying dispersion. Range is the difference between
the smallest value and the largest value of a series. While computing range, we do
not take into account frequencies of different groups.
Formula: Absolute Range = L – S
Coefficient of Range =
where, L represents largest value in a distribution
S represents smallest value in a distribution
(b) Quartile Deviations (Q.D.)
The concept of ‘Quartile Deviation does take into account only the values of the
‘Upper quartile (Q3) and the ‘Lower quartile’ (Q1). Quartile Deviation is also
called ‘inter-quartile range’. It is a better method when we are interested in
knowing the range within which certain proportion of the items fall.
‘Quartile Deviation’ can be obtained as :
(i) Inter-quartile range = Q3 – Q1

(c) Average Deviation

Average deviation is defined as a value which is obtained by taking the average of
the deviations of various items from a measure of central tendency Mean or
Median or Mode, ignoring negative signs. Generally, the measure of central
tendency from which the deviations arc taken, is specified in the problem. If
nothing is mentioned regarding the measure of central tendency specified than
deviations are
taken from median because the sum of the deviations (after ignoring negative
signs) is minimum.

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 (d) Standard deviation:
In statistics, the standard deviation (SD, also represented by the Greek letter
sigma σ or the Latin letter s) is a measure that is used to quantify the amount of
variation or dispersion of a set of data values.[1] A low standard deviation
indicates that the data points tend to be close to the mean (also called the expected
value) of the set, while a high standard deviation indicates that the data points are
spread out over a wider range of values.

Formula: √∑d2/n

(e) Coefficient of variance:

In probability theory and statistics, the coefficient of variation (CV), also known
as relative standard deviation (RSD), is a standardized measure of dispersion of
a probability distribution or frequency distribution
Formula:

(f) SKEWNESS:
It is a term in statistics used to describes asymmetry from the normal
distribution in a set of statistical data. SKEWNESS can come in the form of
negative SKEWNESS or positive SKEWNESS, depending on whether data points
are skewed to the left and negative, or to the right and positive of the data
average. A dataset that shows this characteristic differs from a normal bell curve.

(g) KURTOSIS: It is a statistical measure that's used to describe the distribution,

or skewness, of observed data around the mean, sometimes referred to as the
volatility of volatility. Kurtosis is used generally in the statistical field to describes
trends in charts. Kurtosis can be present in a chart with fat tails and a low, even
distribution, as well as be present in a chart with skinny tails and a distribution
concentrated toward the mean

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 DESCRIPTIVE STATISTICS USING MS-EXCEL
1. TYPE THE DATA INTO EXCEL, in a single column.

FOR EX: we have twelve items in our data set; type into cells A2 through A13.

2. CLICK THE “DATA” TAB and then click “DATA ANALYSIS”.

3. Select “Descriptive Statistics” and on OK in the pop-up DATA ANALYSIS window.

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 A window named Descriptive Statistics will open.

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4. Type an input range into the “Input Range” text box.
For ex: “A1:A13” into the box or we can select range .

5. Check the box “Labels in first row , as we have titled the column in row 1
otherwise leave the box unchecked.

6. Type a cell location into the “Output Range” box. For ex, type “A17” ,
Make sure that two adjacent columns do not have data in them.

7. Click the “Summary Statistics” check box and then click “OK” to
display descriptive statistics.

A list of descriptive statistics will return in the column which we have

selected as the Output Range.

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 MEGASTAT
MegaStat for Excel is a full-featured Excel add-in that performs statistical analyses with an Excel
workbook. It performs basic functions, such as descriptive statistics, frequency distributions, and
probability calculations as well as hypothesis testing, ANOVA, regression, and more.

PROCESS OF INSTALLING MEGASTAT IN MS EXCEL

1. Start Excel

2. Click: File → Options 3. Click Add-Ins on the left menu list. You will now see a list of Excel
Add-Ins. MegaStat should be in the Inactive Application Add-ins list as shown here:

4. Click Go... for Manage Excel Add-Ins near the bottom of the screen and the Add-ins window
will appear.

5. Click the check box next to MegaStat in the Add-Ins list unless it is already checked. Click
OK when MegaStat is checked. If more than one MegaStat is listed you probably did not
uninstall an earlier version. Check only the latest version and after completing the next step go to
Control Panel and uninstall the previous version.

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6. Click the Add-Ins ribbon. MegaStat will be on the ribbon and ready to use as shown
below. Your computer may also show other installed add-ins. Your particular setup may
look slightly different because of different colors and schemes. MegaStat should be on
the Add-Ins ribbon whenever you open Excel and should remain on the Add-ins ribbon
until you remove it.

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 HYPOTHESIS TESTING IN MS EXCEL

1. T-TEST IN MS- EXCEL

T-TEST: A T-TEST is an analysis of two populations means through the use of statistical
examination; at-test with two samples is commonly used with small sample size , testing the
difference between the samples when the variance of two normal distribution are not known.

To test the significance of the difference between two mean in two situation in case of pair
data ,the appropriate test statistics ‘t’ to be used:

d
T= .√ n
s

Where: d =mean of the difference, i.e.,

∑ d,
n

N=size of the sample

S=Standard deviation of the difference d

Procedure:

1. Set up the hypothesis.

2. Calculate the value of t using EXCEL following commands:

Go To: Add – ins MegaStat Hypothesis Tests Paired Observations

3. Degree of freedom (v) = n-1.

4. Calculate Table value of t for n-1 degree of freedom at a specific level of significance
using TINV function.

5. Decision: If the computed value is more than the table value, the differences is said to be
significance otherwise insignificant.

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T TEST IN MS EXCEL

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Decision: the calculated value of t=0.82 is less than the table value 4.60409. Therefore the null
hypothesis is accepted and it is concluded that there is no change in IQ after training programme.

2. Z-TEST IN MS EXCEL
A z-test is a statistical test used to determine whether two population means are different when
the variances are known and the sample size is large. The test statistic is assumed to have a
normal distribution, and nuisance parameters such as standard deviation should be known for an
accurate z-test to be performed.

Z- TEST USING MS EXCEL:

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34
 ANOVA
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.

TECHNIQUES OF ANOVA

 ONE – WAY ANOVA: The one-way analysis of variance (ANOVA) is

used to determine whether there are any statistically significant differences
between the means of three or more independent (unrelated) groups.

Specifically, it tests the null hypothesis:

where µ = group mean and k = number of groups. If, however, the one-way ANOVA returns a
statistically significant result, we accept the alternative hypothesis (HA), which is that there are
at least two group means that are statistically significantly different from each other.

ONE WAY ANOVA USING MS EXCEL:

1. Open a worksheet and enter the data as shown below;

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2. Under the DATA TAB click on DATA ANALYSIS. A window named DATA
ANALYSIS will open.

3. Select ANOVA: SINGLE FACTOR and then click on OK.

4. A window named ANOVA; SINGLE FACTOR will open.

5. In INPUT RANGE box, select the range.
6. In GROUPED BY OPTION , click on radio button, because our data are in columns.
7. Check the box, labels in first row.
8. In ALPHA box type 0.05.
9. Click on OUTPUT RANGE, radio button. Select any cell in box where we want to
result.
10. Click on OK.

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37
 TWO WAY ANOVA: In statistics, the two-way analysis of variance (ANOVA) is an
extension of the one-way ANOVA that examines the influence of two
different categorical independent variables on one continuous dependent variable. The
two-way ANOVA not only aims at assessing the main effect of each independent
variable but also if there is any interaction between them.

TWO WAY ANOVA USING MS EXCEL;

1. Open a worksheet and type the data.

2. Under DATA TAB click on DATA ANALYSIS. A window named DATA

ANALYSIS WILL OPEN.

3. Select ANOVA: TWO FACTOR WITHOUT REPLICATION and then click

on OK.

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 4. A window named ANOVA:TWO FACTOR WITHOUT REPLICATION will
open.
5. In INPUT RANGE box, select range.
6. Check the Labels box.
7. In ALPHA box type level of significance.
8. In OUTPUT OPTION , click on OUTPUT RANGE radio button and select
any cell where you wants to results.
9. CLICK on OK.

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40
INTERPRETATION:

 FOR ZONES:

The calculated value of F = 1.5

Table /critical value of F=5.14325285

Since, the calculated value of F is less than the table value of F , THE NULL HYPOTHESIS is
accepted and it can be concluded that all the Zones are similar so far as sales is concerned.

 FOR SALESMAN:
The calculated value of F = 0.75
Table / critical value of F =4.757062663

Since, the calculated value of F is less than the table value of F , THE NULL HYPOTHESIS is
accepted and it can be concluded that there is no difference in the sales of four salesman.

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