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One-Way ANOVA

The document explains the Completely Randomized Design and One-Way ANOVA, which is used to analyze data from experiments with one independent variable and multiple treatment levels. It outlines the hypotheses tested in a one-way ANOVA and the assumptions required for the analysis. A demonstration problem is provided to illustrate how to perform a one-way ANOVA using Excel, concluding that there is a significant difference in the mean ages of workers across three manufacturing plants.

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14 views2 pages

One-Way ANOVA

The document explains the Completely Randomized Design and One-Way ANOVA, which is used to analyze data from experiments with one independent variable and multiple treatment levels. It outlines the hypotheses tested in a one-way ANOVA and the assumptions required for the analysis. A demonstration problem is provided to illustrate how to perform a one-way ANOVA using Excel, concluding that there is a significant difference in the mean ages of workers across three manufacturing plants.

Uploaded by

Sankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The Completely Randomized Design (One-Way ANOVA)

One of the simplest experimental designs is the completely randomized design. In the completely
randomized design, subjects are assigned randomly to treatments. The completely randomized design
contains only one independent variable, with two or more treatment levels, or classifications. If only
two treatment levels, or classifications, of the independent variable are present, the design is the same
one used to test the difference in means of two independent populations presented in Chapter 10, which
used the t test to analyze the data. In this section, we will focus on completely randomized designs with
three or more classification levels. Analysis of variance, or ANOVA, will be used to analyze the data
that result from the treatments.

One-Way Analysis of Variance


A technique that analyzes all the sample means at one time and thus precludes the buildup of error rate:
analysis of variance (ANOVA). A completely randomized design is analyzed by a one-way analysis of
variance. In general, if k samples are being analyzed, the following hypotheses are being tested in a
one-way ANOVA: H0: µ1= µ2 = µ3 = ... µk; Ha: At least one of the means is different from the others.
The null hypothesis states that the population means for all treatment levels are equal. Because of the
way the alternative hypothesis is stated, if even one of the population means is different from the others,
the null hypothesis is rejected.
Several important assumptions underlie analysis of variance:
1. Observations are drawn from normally distributed populations.
2. Observations represent random samples from the populations.
3. Variances of the populations are equal.

Demonstration Problem
A company has three manufacturing plants, and company officials want to determine whether there is
a difference in the average age of workers at the three locations. The following data are the ages of five
randomly selected workers at each plant. Perform a one-way ANOVA to determine whether there is a
significant difference in the mean ages of the workers at the three plants. Use α = 0.01 and note that the
sample sizes are equal.

Step 1: State the hypotheses: H0: µ1= µ2 = µ3 = ... µk; Ha: At least one of the means is different from
the others.

Step 2: The appropriate test statistic is the F test calculated from ANOVA.

Step 3: α = 0.01.

Step 4+: Perform the ANOVA test in Excel. Input for following data into Excel.

Plant (Employee Ages)


1 2 3
29 32 25
27 33 24
30 31 24
27 34 25
28 30 26

To conduct a one-way ANOVA, begin by selecting the Data tab on the Excel worksheet. From the
Analysis panel at the right top of the Data tab worksheet, click on Data Analysis. If your Excel
worksheet does not show the Data Analysis option, then you can load it as an add-in following
directions given in Chapter 2. From the Data Analysis pulldown menu, select Anova: Single Factor.
Click and drag over all the data and enter in Input Range. Check Labels in the First Row if you
included labels in the data. Insert the value of 0.01 in Alpha.

Step 7. The decision is to reject the null hypothesis because the observed F value of 39.72 is greater
than the critical table F value of 6.93.

Step 8. There is a significant difference in the mean ages of workers at the three plants. This difference
can have hiring implications. Company leaders should understand that because motivation, discipline,
and experience may differ with age, the differences in ages may call for different managerial approaches
in each plant.

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