CHAPTER 3

Analysis of Variance
(ANOVA)
PART 2 =TWO- WAY ANOVA
WITHOUT REPLICATION
 Two-Way ANOVA without Replication
(Randomized Block Design)
• Known as Randomized Block Design (RBD)
• For RBD there is one factor or variable that is of primary
interest. However, there are also several other nuisance
factor.
• Nuisance factors are those that may affect the measured
result, but not of primary interest.
• For example, in applying a treatment, nuisance factors
might be the specific operator who prepared the treatment,
the time of day the experiment was run and the room
temperature.
• So, to control this, the important technique known as
blocking.
Randomized Block Design, cont.
i  1, 2,..., n
Effects model for RBD: xij     j   i   ij 
 j  1, 2,..., t
where,
 : overall mean effect
 j : the effect of treatment j
i : the effect of block i
 ij : random error
• Two Sets of Hypothesis:
Treatment Effect:
H0: 1 =  2 = ... =  t =0
H1:  j  0 at least one j
Block Effect:
H0:  i = 0 for each value of i through n
H1:  i ≠ 0 at least one i
 Randomized Block Design, cont.
• Format for data: Data appear in a table, where location in a
specific row and a specific column is important.

• Calculations:
– Sum of squares total (SST) = sum of squared
differences between each individual data value
(regardless of group membership) minus the grand
mean, x , across all data... total variation in the data (not
variance).
t n 2

SST    xij  x   SSTR + SSBL + SSE

j 1 i 1
 Randomized Block Design, cont.
• Calculations, cont.:
– Sum of squares treatment (SSTR) = sum of squared differences
between each treatment group mean and the grand mean,
balanced by sample size... between-treatment-groups variation
(not variance). t 2

SSTR  n  x. j  x 
j 1

– Sum of squares block (SSBL) = sum of squared differences

between each block group mean and the grand mean, balanced by
sample size... between-block-groups variation (not variance).
n 2

SSBL  t   xi.  x 
i 1

– Sum of squares error (SSE):

SSE = SST – SSTR – SSBL
 Randomized Block Design, cont.
• Calculations, cont.:
– Mean square treatment (MSTR) = SSTR/(t – 1),
where t is the number of treatment groups.
– Mean square block (MSBL) = SSBL/(n – 1),
where n is the number of block groups. Controls the size
of SSE by removing variation that is explained by the
blocking categories.
– Mean square error (MSE):

SSE
MSE 
(t  1)(n  1)
 Randomized Block Design, cont.
• Calculations, cont.:
Test Statistics, F-Ratios: ( F test)
– F-Ratio, Treatment = MSTR/MSE,
This F-ratio is the test statistic for the hypothesis that the
treatment group means are equal.
- F-Ratio, Block = MSBL/MSE,
This F-ratio is the test statistic for the hypothesis that the
block group means are equal.
 Randomized Block Design, cont.
ANOVA Table
Source of Sum of Degrees Mean F p-Value
Variation Squares of Square
Freedom
Treatments SSTR t-1 SSTR MSTR
MSTR 
t 1 MSE
Blocks SSBL n-1 SSBL MSBL
MSBL 
n 1 MSE
Error SSE (t-1)(n-1) SSE
MSE 
t  1 n  1
Total SST tn-1
 Randomized Block Design, cont.
 F value
- Treatment effect - F , t -1,(t-1)(n-1)
v1= t -1; v2= (t-1)(n-1) = table (ms 30)
- Block effect - F , n -1,(t-1)(n-1)
v1= n -1; v2= (t-1)(n-1)= table (ms 30)
 If F-Ratio (F test) > F or p-value <  , reject H0 at the 
level
 Conclusion
*To reject the null hypothesis means that at least one
treatment group had a different effect than the rest.
*To reject the null hypothesis means that at least one block
group had a different effect on the dependent variable than the
rest.
 Randomized Block Design, cont.

EXAMPLE : Crescent Oil Co.

Crescent Oil has developed three new blends of

gasoline and must decide which blend or blends to
produce and distribute. A study of the miles per
gallon ratings of the three blends is being conducted
to determine if the mean ratings are the same for
the three blends.
 Randomized Block Design, cont.
Example: Crescent Oil Co.
Five automobiles have been tested using each of
the three gasoline blends and the miles per gallon
ratings are shown on the next slide.

Factor . . . Gasoline blend

Treatments . . . Blend X, Blend Y, Blend Z
Blocks . . . Automobiles
Response variable . . . Miles per gallon
 Randomized Block Design, cont.

Type of Gasoline (Treatment)

Automobile Block
(Block) Blend X Blend Y Blend Z Means

1 31 30 30 30.333
2 30 29 29 29.333
3 29 29 28 28.667
4 33 31 29 31.000
5 26 25 26 25.667
Treatment
Means 29.8 28.8 28.4 x  29
 SOLUTION
 1. Hypothesis:
H0: 1 =  2 =  3=0
H1:  j  0 at least one j
 1 = Blend X
  = Blend Y
2
  = Blend Z
3
 Randomized Block Design, cont.
2. Test Statistics ( F test)
 Mean Square Due to Treatments:
The overall sample mean is 29. Thus,
i. SSTR = 5[(29.8 - 29)2 + (28.8 - 29)2 + (28.4 - 29)2] = 5.2
MSTR = 5.2/(3 - 1) = 2.6
 Mean Square Due to Blocks:
ii. SSBL = 3[(30.333 - 29)2 + . . . + (25.667 - 29)2] = 51.33
MSBL = 51.33/(5 - 1) = 12.8

 Mean Square Due to Error:

iii. SST = (31-29)2+ ………………+ ( 26 -29)2 = 62.00
iv. SSE = SST – SSTR – SSBL = 62 - 5.2 - 51.33 = 5.47

MSE = 5.47/[(3 - 1)(5 - 1)] = 0 .68

 Randomized Block Design, cont.
 v. ANOVA Table

Source of Sum of Degrees of Mean

Variation Squares Freedom Square F p-Value

Treatments 5.20 2 2.60 3.82 0.07

Blocks 51.33 4 12.80 ***
Error 5.47 8 0.68

Total 62.00 14
 Randomized Block Design, cont.
2. F (alfa) value – critical value
Treatment :
For  = 0.05, F0.05,2,8 = 4.46
(2 d.f. numerator and 8 d.f. denominator)
3. Rejection Region ( Draw picture)
Critical Value Approach:
Do not Reject H0
Since F Test > F alfa ; 3.82 < 4.46
p-Value Approach:
Do not Reject H0
Since p-value (0.07) > 0.05
 Randomized Block Design, cont.
5. Conclusion:

1. The p-value is greater than .05 (Excel provides a p-

value of 0.07). or since F Test > F alfa ; 3.82 < 4.46.
Therefore, we cannot reject H0.
2. There is sufficient evidence to conclude that
the mean ratings are the same for the three blends.
EXERCISE TEXT BOOK
PAGE 148 (Example 9.5)
149 ( 1 & 2)

5 IMPORTANT STEP:
1.HYPOTHESIS TESTING
2.TEST STATISTIC – F TEST
3.F (alfa) – VALUE (CRITICAL
VALUE)
4.REJECTION REGION
5.CONCLUSION