DSC 2320
Statistical Analysis for Management
Chapter 04
Hypothesis Testing…
Department of Decision Sciences 1
Session - 08
Hypothesis Testing
(One-way ANOVA)
Learning Outcomes
At the end of the chapter, the student should be able to
Perform the One-way ANOVA test using SPSS and
interpret the results
2
Parametric & Nonparametric Tests
Parametric tests Nonparametric Tests
One sample One Sample t-test Binomial Test
Tests Chi-square goodness of fit
test
Two Sample 1. Independent Mann Whitney U test
Tests samples t-test
2. Paired sample Wilcoxon signed rank test
t-test for paired samples
1. One-way Kruskel Wallies H test
ANOVA
0
Three or More Friedman test (ordinal data)
samples
2. ANOVA with
Repeated Chi-square test of
3
Measures independence
One-way ANOVA
One-way ANOVA Procedure
This procedure compares the means between
three or more unrelated groups on the same
continuous, dependent variable.
Questions
Do managers, executive officers and machine
operators in a garment factory differ in terms of
their job satisfaction?
Do three types of teaching methods have
different effects upon the performance of
students? 4
One-way ANOVA
Hypotheses for the One-way ANOVA
Let µi be the mean value of the dependent variable
of the ith group
H0 : µ1 = µ2 = µ3 …….. = µn
Vs
H1 : At least one of µi ≠ µj
Decision Rule: Reject H0 if P value < α
5
(Where P value = Sig)
One-way ANOVA
Conditions
The dependent variable under the interest should be
either interval or ratio scale.
Independent variable should consist of three or
more categorical, independent groups.
The dependent variable should be normally
distributed within each group.
All observations must be independent of each
other.
To select the most appropriate test, the equality of
variances should be tested.
6
One-way ANOVA
SPSS Command
7
One way ANOVA…
Testing equality of variances
Ex:
To test the equality of means,
use F-test in ANOVA table, if variances are equal.
use Welch or Brown-Forsythe test (Robust Test
of Equality of Means), if variances are not equal. 8
One way ANOVA…
Example 8.1…
Post-Hoc Multiple Comparisons
Use Tukey test if group sizes are equal
Use Gabriel test if group sizes are not equal
9
One-way ANOVA
Example 8.1
Case 08
Data file: DIET.sav
Nutritionists state that the average loss weight of
dieters significantly differs according to their initial
body mass index (BMI). You are required to test the
validity of the above statement.
1. Perform a descriptive analysis to investigate the
above statement.
10
One-way ANOVA…
Example 8.1…
2. State the conditions required to perform a
suitable parametric test and test / check the
validity of those conditions.
3. Select the most appropriate (parametric / non-
parametric) test and write the hypotheses for that
test.
4. Perform the test and interpret the results. Use
5% level of significance.
5. Perform multiple comparisons if it is necessary.
11
One-way ANOVA…
Example 8.2
Data file: ANTIQUE.sav
The auctioneer states that the average price of the
antique may vary by different audience sizes.
1. Perform a descriptive analysis to investigate the
above statement.
2. State the conditions required to perform a
suitable parametric test and test / check the
validity of those conditions.
12
One-way ANOVA…
Example 8.2…
3. Select the most appropriate (parametric / non-
parametric) test and write the hypotheses for that
test.
4. Perform the test and interpret the results. Use
5% level of significance.
5. Perform multiple comparisons if it is necessary.
13
One-way ANOVA…
Example 8.3
Data file: RANMASU.sav
The manager states that the average savings
significantly differs according to the level of
education of depositors. You are required to test the
validity of the above statement.
1. Perform a descriptive analysis to investigate the
above statement.
14
One-way ANOVA…
Example 8.3…
2. State the conditions required to perform a
suitable parametric test and test / check the
validity of those conditions.
3. Select the most appropriate (parametric / non-
parametric) test and write the hypotheses for that
test.
4. Perform the test and interpret the results. Use
5% level of significance.
5. Perform multiple comparisons if it is necessary.
15
One-way ANOVA
Example 8.4
Case 12
Data file: FASHION.sav
The owner states that the average service
satisfaction may vary by age groups. You are
required to test the validity of the above statement.
1. Perform a descriptive analysis to investigate the
above statement.
16
One-way ANOVA…
Example 8.4…
2. State the conditions required to perform a
suitable parametric test and test / check the
validity of those conditions.
3. Select the most appropriate (parametric / non-
parametric) test and write the hypotheses for that
test.
4. Perform the test and interpret the results. Use
5% level of significance.
5. Perform multiple comparisons if it is necessary.
17
