HYPOTHESIS TESTING:

ANALYSIS OF VARIANCE
(ANOVA)
HYPOTHESIS TESTING PROCEDURE
 STEPS ON TESTING STATISTICAL HYPOTHESIS

1. State the Null (Ho) and Alternative (Ha)Hypotheses:

Ho: The hypothesis the researcher wants to disprove
Always written in negative form and mathematically
always include an equal sign
⮚ Ho: μ1 = μ2

Ha: The reverse or opposite of the null hypothesis

Rejection of Ho results to acceptance of Ha
 STEPS ON TESTING STATISTICAL HYPOTHESIS

2. Identify the test statistics and its distribution when Ho is true

a. significant relationship
⮚ Quantitative - Pearson correlation
⮚ Qualitative - Chi-Square or Spearman Correlation
b. Significant difference
⮚ Quantitative – t-test (2 means), (F-test for >2 means)
⮚ Qualitative - Chi-Square
c. Significant Effect of a factor or factors
⮚ Quantitative – ANOVA
⮚ Qualitative – Friedman Test (ANOVA)
STEPS ON TESTING STATISTICAL HYPOTHESIS
 STEPS ON TESTING STATISTICAL HYPOTHESIS
3. Specify the level of significance (α). This is usually set at 0.1, 0.05 or
0.01.
4. State the “Decision Rule”
⮚ Specifies the region for which the test statistics leads to the rejection of
Ho in favor of Ha
⮚ Usually computed value > the critical value, reject Ho
5. Collect data and perform computation (computed value)
6. Make a statistical decision:
⮚ computed > critical, reject Ho
⮚ computed < critical, accept Ho
7. State Conclusion:
⮚ Example: There is no significant relationship between ….
 ANALYSIS OF VARIANCE (ANOVA)
⮚ In simplest form, ANOVA is used to test the significance of the difference
between the means of a number of different populations
⮚ Use to test the effects of k treatment. e.g. different dosage of a drug,
different teaching methods, etc.)
⮚ Requires the computation of the following quantities:
✔ Sum of Squares (e.g. SSA – sum of square of factor A)
✔ Mean of Squares (e.g. MSA – mean of square of factor A
✔ Fratio or Fvalue
⮚ Also known as the F test (Fisher’s Test)
⮚ Several types: one –way ANOVA (one factor)
two-way ANOVA (two factors)
n-way ANOVA (n number of factors)
 ONE-WAY ANOVA
PARTITIONING THE TOTAL VARIATION
 ONE-WAY ANOVA

ANOVA SUMMARY TABLE

ONE-WAY ANOVA
ONE-WAY ANOVA
ONE-WAY ANOVA
ONE-WAY ANOVA
ONE-WAY ANOVA
EXAMPLE: ONE-WAY ANOVA
 EXAMPLE: ONE-WAY ANOVA

HYPOTHESIS TESTING:

1. Ho: μ1 = μ2 = μ3 (The mean head pressure is statistically equal across the three types of car)
Ha: At least one mean pressure is not statistically equal

2. Test Statistics: ANOVA (Comparison of Multiple means) or F-test

3. Level of Significance: α = 0.05 (5% level of significance)
4. If Fcomputed > Fcritical, reject Ho and accept Ha
5. Computation: (see EXCEL File)
⮚ Fcomputed = MSA/MSW Fcritical = Fvalue at α = 0.05, df1 = 2, df2 = 6

⮚ Fcomputed = 25.18 Fcritical = 5.14

6. Fcomputed > Fcritical, reject Ho

7. Conclusion: At least one mean pressure is not statistically equal.
 TWO-WAY ANOVA
PARTITIONING THE TOTAL VARIATION
 TWO-WAY ANOVA

ANOVA SUMMARY TABLE

TWO-WAY ANOVA
TWO-WAY ANOVA
TWO-WAY ANOVA
TWO-WAY ANOVA
 EXAMPLE: TWO-WAY ANOVA
SCENARIO: A Parachute Company
1. Is the fiber supplied by the 4 suppliers have equal strength?
2. Is the Looms type produced equal strength?
3. Are any differences in the strength of the parachute that can be attributed to the 4 suppliers dependent on the type of loom used?