GM103C DATA-ANALYTICS

8 . ANALYSIS OF VARIANCE - ANOVA

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THE FACTORIAL DESIGN: TWO-WAY ANOVA

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 Step II:
1. Mean of the Samples :
2. Grand Mean: =
3. Correction Factor:
4. SSA & SSB:
5. SS Interaction (A&B):
6. Total Sum of Squares:
7. Sum of Squares Error:
8. Mean Sum of Squares:
9. F Statistics: ;;

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TWO-WAY ANOVA

 One Way / One Factor ANOVA – Only one Factor is considered as Source of Variance.
 Two Way / Two Factor ANOVA – Two Factors are considered as Source of Variance. (Variation is caused by two
factors)

 Two Way ANOVA

 Two Way ANOVA with Interaction

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TWO-WAY ANOVA

Variation in the number of additional mobile phone subscribers is caused by different telecom companies as well as
different periods of time, say months.
The following Table gives the number of subscribers added by four major telecom players in India, in the months of
August, September, October and November 2020. The Data are given in 1000’s and are rounded off to the nearest 100
and are thus in lakhs. (At level of significance 5%)
i. If the four companies significantly differ in their performance.
ii. Is there significant difference among the months?
TATA
AirTel BSNL Reliance
Indicom
August 6 6 2 5
September 7 6 2 3
October 7 6 6 4
November 7 8 7 4 5
 TATA
AirTel BSNL Reliance
Indicom

August 6 6 2 5
September 7 6 2 3
October 7 6 6 4
November 7 8 7 4

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 Mean Sum of
Degrees of
Source of Sum of Squares F=
Freedom Fα (Ftable) Decision
Variation Squares (SS) (MSS) = MSA/MSE
(d.o.f)
SS/d.o.f

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TWO-WAY ANOVA WITH INTERACTION

 The variations also occur due to interaction effects of two factors.

MBA Specifications vs Institutes for Salary package.

Institute A Institute B Institute C

MBA Specification

Marketing 8, 10 10, 11 8, 7

Finance 9, 11 11, 12 5, 6

HRD 9, 7 9, 7 8, 5

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 Institute Institute Institute
A B C
Marketing 8, 10 10, 11 8, 7
MBA Specification

Finance 9, 11 11, 12 5, 6

HRD 9, 7 9, 7 8, 5

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 Institute A Institute B Institute C

Marketing

Finance

HRD

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 Mean Sum of
Sum of Degree of
Source of Squares F=
Squares freedom Fα (Ftable) Decision
Variance MSS= MSS/Error
(SS) (d.o.f)
SS/d.o.f

A-
Specialization

B - Institute

AB- interaction

Error

Total

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 REFERENCES

 Statistics for Managers Using Microsoft® Excel David M. Levine, David F. Stephan, Kathryn A. Szabat.

 How to select appropriate statistical tests?

https://www.youtube.com/watch?v=ZX4m6zav5To

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 HOME WORK - ANOVA

1. 11.10
2. 11.13
3. 11.25
4. 11.39
5. 11.41

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 THANK YOU
DR T SAKTHI NAGARAJ
ASSISTANT PROFESSOR, SCHOOL OF BUSINESS
AMRITA VISHWA VIDYAPEETHAM
COIMBATORE – 641112 14

CELL: 8610808385