What is ANOVA?

A statistical method for testing whether two or more dependent variable means are equal (i.e., the probability that any differences in means across several groups are due solely to sampling error). Variables in ANOVA (Analysis of Variance):  Dependent variable is metric.  Independent variable(s) is nominal with two or more levels – also called treatment, manipulation, or factor. One-way ANOVA: only one independent variable with two or more levels. Two-way ANOVA: two independent variables each with two or more levels. With ANOVA, a single metric dependent variable is tested as the outcome of a treatment or manipulation. With MANOVA (Multiple Analysis of Variance), two or more metric dependent variables are tested as the outcome of a treatment(s).

How Do We State The Null and Alternative Hypotheses?

H0: The means for all groups are the same (equal). Ha: The means are different for at least one pair of groups. H0: 1 = 2 = ………. = k Ha: 1  2  ……….  k

. Many multiple comparison tests are available in SPSS.How do you determine which means are significantly different? The F-statistic assesses whether you can conclude that statistical differences are present somewhere between the group means. But to identify where the differences are you must use follow-up tests called “multiple comparison tests”.

What multiple comparison tests are available in SPSS? Scheffe recommended Games-Howell recommended .

The variances for the different populations from which the samples are drawn are equal – possibly a problem if they are not equal or at least comparable. Whether the sample sizes for the groups are very different (ratio of 1. In general ANOVA is a fairly robust procedure. . Dependent variable is normally distributed for each of the samples – with larger sample sizes ( > 20/group) not a serious problem should this be violated somewhat.5 or higher may be a problem).What assumptions need to be examined?      Samples are independent.

Application: One-way ANOVA .

Description of Customer Survey Variables Variable Description Restaurant Perceptions X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11 X12 X13 X14 X15 X16 X17 X18 X19 X20 X21 X22 X23 X24 X25 X26 X27 X28 Excellent Food Quality Attractive Interior Generous Portions Excellent Food Taste Good Value for the Money Friendly Employees Appears Clean & Neat Fun Place to Go Wide Variety of menu Items Reasonable Prices Courteous Employees Competent Employees Food Quality Atmosphere Prices Employees Satisfaction Likely to Return in Future Recommend to Friend Frequency of Patronage Length of Time a Customer Gender Age Income Competitor Which AD Viewed (#1. 2 or 3) AD Rating Respondents that Viewed Ads Variable Type Metric Metric Metric Metric Metric Metric Metric Metric Metric Metric Metric Metric Nonmetric Nonmetric Nonmetric Nonmetric Metric Metric Metric Nonmetric Nonmetric Nonmetric Nonmetric Nonmetric Nonmetric Nonmetric Metric Nonmetric Selection Factor Rankings Relationship Variables Classification Variables .

2 or 3):    ‘1’ – AD #1 ‘2’ – AD #2 ‘3’ – AD #3  Research question is:  Are there differences in the mean ratings of the ADS based on which AD was viewed? .g..The Samouel’s Research Problem  Dependent variable is: X27 – AD Rating  Independent variable is X26 – Which AD Viewed (e. # 1.

Now go to the Options box and click on Descriptive statistics and Homogeneity Tests (Levene test of equal variances) and then Continue. 2 or 3). If the mean ratings of the ads are statistically different he would like to select the highest rated ad and run an advertising campaign for his restaurant. To identify the respondents who viewed the ads we go to the Data pull down menu and click on ―Select Cases‖. Finally click on Continue and then OK. Now click on the equal sign (=) below and then one (1) to select only the respondents who viewed the ADS (a zero = did not agree to view ads). Now look to the lower left side of the screen and click on Scheffe test and Games-Howell and then Continue.‖ Click on the Post Hoc box and highlight X26 in the Factor(s) box and then click on the Arrow box to move this variable to the box for Post Hoc Tests. The metric dependent variable for these hypotheses is X27 — AD Rating and the nonmetric independent variable is X26 — AD Viewed (# 1.‖ then on If. then on ―If condition satisfied. Not all of the 200 customer respondents agreed to look at and evaluate the ads. Finally.USING SPSS TO DO A ONE-WAY ANOVA Phil Samouel asked the researcher to test the effectiveness of three different ads. Click on X 26 — Which AD Viewed to highlight it and then on the arrow box to move it to the box labelled ―Fixed Factors. Click on X 27 — AD Rating to highlight it and then on the arrow box to move it into the Dependent Variable box. Next highlight variable X28 and click on the Arrow box to move it to the box. and then click on the Plots box and highlight X26 and move it to the Horizontal Axis box and then under Plots below click Add. click on Continue and then OK to execute the program. . The click-through sequence to run the one-way ANOVA is: ANALYZE  GENERAL LINEAR MODEL  UNIVARIATE.

.Initial Considerations – Descriptives & Levene’s Test of Equal Variances There is not a significant difference in the variances of the three groups.

.The Restaurant Problem: Tests of Between Subjects Effects There are significant differences between ratings for the ads. but we are not sure where the difference are based on this test.

AD Evaluations: Post Hoc Tests There are significant differences between ratings for all three ads. .

Ad #1 = 39. Ad #3 = 51.The Restaurant Problem – Profile Plot Mean Ratings of Ads: 1.03 3. Ad #2 = 68.79 2.50 .

Two-way ANOVA .

.  Variation that remains unexplained (error).  Total variation is examined for:  Variation due to each of the independent variables (main effects).What Is Two-way ANOVA?  Examines the effect (if any) of two or more nonmetric independent variables on a single metric dependent variable.  Variation due to the interaction of the independent variables – that is their possible combined effect on the dependent variable beyond the separate influence of each (interaction effect).

The effect of independent variable #2 on the dependent variable (main effect). The combined (joint) effect of independent variables #1 and #2 on the dependent variable (interaction effect). 2. The effect of independent variable #1 on the dependent variable (main effect). 3. .What are the hypotheses in a two-way ANOVA?  Three hypotheses are tested simultaneously: 1.

i. is the difference in the mean ratings of the ads (response variable) the same when we compare males and females? Blocking Variable = a grouping variable the researcher doesn’t manipulate or control in any way. ..e. Interaction Effect = the combined impact of multiple independent variables on a response variable.ANOVA Terms Main Effect = the impact any single experimental variable has on a response (dependent) variable. such as gender.

The metric dependent variable for these hypotheses is X27 — AD Rating and the nonmetric independent variables are X26 — AD Viewed (# 1. . (3) No differences in ad ratings based on the combined effects of which ad viewed and gender. He also would like to know how various demographic characteristics are related to ad ratings. If the ratings of the ads are statistically different he would like to use that information to attract more customers. which is referred to as a blocking variable.Samouel’s Restaurant: The Problem And The Design Phil Samouel asked the researcher to test three different ads for their effectiveness. (2) No differences in ad ratings based on gender. The null hypotheses are: (1) No differences in ad ratings based on which ad was viewed. we use gender. In this case. 2 or 3) and X22 — Gender.

Next. Finally. Highlight the dependent variable X27 — AD Rating by clicking on it and move it to the Dependent variable box.‖ Now click on the Post Hoc box and highlight X26 in the Factor(s) box and then click on the Arrow box to move this variable to the box for Post Hoc Tests.Using SPSS To Execute Two-way ANOVA Recall that not all of the 200 customer respondents agreed to look at and evaluate the ads. and move them to the box labelled ―Fixed Factors. We do not move X22 because it has only two groups and not three. and then click on the Plots box and highlight X26 and move it to the Horizontal Axis box and then click the Add button above the Plots box below. . Now go to the Options box and click on Descriptive statistics and then Continue.‖ then on If. Next highlight variable X28 and click on the Arrow box to move it to the box. Look to the lower left side of the screen and click on Scheffe test and then Continue. then ―If condition satisfied. The click through sequence is: ANALYZE  GENERAL LINEAR MODEL  UNIVARIATE. To identify the respondents who viewed the ads we go to the Data pull down menu and click on ―Select Cases‖. Now click on the equal sign (=) below and then one (1) to select only the respondents who viewed the ADS (a zero = did not agree to view ads). highlight X26 — AD Viewed and X22 — Gender. Finally click on Continue and then OK. click on Continue and then OK to execute the program.

SPSS Output For The Two-way ANOVA – Initial Data Sample sizes for each of the groups. Mean ratings of ads by which ad viewed and gender. .

If the interaction effect is not significant. . then the type of interaction must be determined. The significant interaction and nonsignificant main effect for X22 raises a red flag.SPSS Output For Two-way ANOVA • AD Rating main effect significant (X26). If the interaction effect is significant. • Gender main effect not significant (X22). • Interaction effect significant (X26 * X22). the main effects of the treatments are independent and can be interpreted directly.

Post Hoc Tests For Two-way ANOVA All comparisons significantly different. .

#3 somewhat higher at 51. with ad #1 rated lowest at 39.50.Two-way ANOVA – Profile Plot AD Viewed The three ads are rated differently.03. .79. and #2 the highest at 68.

. with female ratings overall slightly more favorable (55.Two-way ANOVA – Profile Plot . 54. But remember overall there was not a statistically significant difference.56).Gender There is a difference in ratings by gender across all three ads.55 vs.

but not for ad #2. .AD Rating By “Which AD Viewed” and “Gender” There is a significant difference between AD Ratings by males and females for ads #1 and #3.

AD Rating By “Viewed #1” and “Gender” .

8. .5 and for females is 67.AD Rating By “Viewed AD #2” and “Gender” Note: do not be fooled by the slope of the line – the mean rating for males is 68.

AD Rating By “Viewed AD #3” and “Gender” .

What are “multiple comparison tests” and why are they used? 4.ANOVA Learning Checkpoint 1. What is the difference between a main effect and an interaction effect? . What is the difference between one-way and two-way ANOVA? 3. When should ANOVA be used? 2.

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