ANALYSIS OF

VARIANCE
(ANOVA)
Presentation By: Yajan Takyar
Roll Number: 2K19/BBA/153
 ANOVA
ANOVA is a statistical technique that assesses potential
differences in a scale-level dependent variable by a
nominal-level variable having 2 or more categories.
Developed by Ronald Fisher in 1918, this test extends
the t and the z test which have the problem of only
allowing the nominal level variable to have two
categories.  
 USE OF ANOVA

ONE-WAY TWO-WAY N-WAY

ANOVA ANOVA ANOVA
A one-way A two-way A researcher can
ANOVA has just ANOVA (are also also use more than
one independent called factorial two independent
variable.  ANOVA) refers to variables, and this
an ANOVA using is an n-way
two independent ANOVA (with n
variables.  being the number
of independent
variables you
have).
 PROCEDURE

The null hypothesis for an ANOVA is that there is no significant

difference among the groups. The alternative hypothesis assumes
that there is at least one significant difference among the groups. 
After cleaning the data, the researcher must test the assumptions of
ANOVA. 
They must then calculate the F-ratio and the associated probability
value (p-value). In general, if the p-value associated with the F is
smaller than .05, then the null hypothesis is rejected and the
alternative hypothesis is supported. If the null hypothesis is
rejected, one concludes that the means of all the groups are not
equal. Post-hoc tests tell the researcher which groups are different
from each other.
STATISTICAL SIGNIFICANCE

When you conduct an ANOVA, you are

attempting to determine if there is a
statistically significant difference among the
groups.
If you find that there is a difference, you
will then need to examine where the group
differences lay.
RESEARCH QUESTIONS THE
ANOVA EXAMINES

• One-way ANOVA: Are there differences in GPA

by grade level (freshmen vs. sophomores vs.
juniors)?
• Two-way ANOVA: Are there differences in GPA
by grade level (freshmen vs. sophomores vs.
juniors) and gender (male vs. female)?
 DATA LEVEL

The level of measurement of the variables and assumptions of the test play
an important role in ANOVA. In ANOVA, the dependent variable must be a
continuous (interval or ratio) level of measurement. The independent
variables in ANOVA must be categorical (nominal or ordinal) variables.
Like the t-test, ANOVA is also a parametric test and has some assumptions.
ANOVA assumes that the data is normally distributed.  
The ANOVA also assumes homogeneity of variance, which means that the
variance among the groups should be approximately equal. ANOVA also
assumes that the observations are independent of each other. Researchers
should keep in mind when planning any study to look out for extraneous or
confounding variables.  ANOVA has methods (i.e., ANCOVA) to control for
confounding variables.
 TESTING OF ASSUMPTIONS

• The population from which samples are drawn

should be normally distributed.
• Independence of cases: the sample cases should
be independent of each other.
• Homogeneity of variance: Homogeneity means
that the variance among the groups should be
approximately equal.
RELATED ANALYSES: MANOVA
AND ANCOVA
• Researchers have extended ANOVA in
MANOVA and ANCOVA. MANOVA stands for
the multivariate analysis of variance. 
• MANOVA is used when there are two or more
dependent variables.  ANCOVA is the term for
analysis of covariance.
• The ANCOVA is used when the researcher
includes one or more covariate variables in the
analysis.
THANK YOU