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CH-5 Analysis-Of-Variance

The document provides an overview of Analysis of Variance (ANOVA), a statistical method developed by Ronald Fisher in 1921 for comparing variances across different groups. It explains the two main classifications of ANOVA: one-way and two-way, detailing the hypotheses, test statistics, and decision-making process involved in each. Additionally, it includes practical examples to illustrate the application of ANOVA in testing differences in means among groups.

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18 views34 pages

CH-5 Analysis-Of-Variance

The document provides an overview of Analysis of Variance (ANOVA), a statistical method developed by Ronald Fisher in 1921 for comparing variances across different groups. It explains the two main classifications of ANOVA: one-way and two-way, detailing the hypotheses, test statistics, and decision-making process involved in each. Additionally, it includes practical examples to illustrate the application of ANOVA in testing differences in means among groups.

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seadkelil45
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We take content rights seriously. If you suspect this is your content, claim it here.
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ANALYSIS OF VARIANCE

(ANOVA)
PG- STAT-511
DEPARTMENT OF AGRICULTURAL ECONOMICS & STATISTICS

CHANDRA SHEKHAR AZAD UNIVERSITY OF AGRICULTURE AND


TECHNOLOGY

PRESENTED BY: PREETI TIWARI


HISTORY OF ANALYSIS OF COVARIANCE (ANOVA)

• ANOVA was developed by the statistician Ronald Fisher


in 1921 .

• His first application of the analysis of variance was


published in 1921. Analysis of variance became widely
known after being included in Fisher's 1925 book
Statistical Methods for Research Workers.

• ANOVA is based on the law of total variance, where the


observed variance in a particular variable is partitioned
into components attributable to different sources of
variation.
MEANING OF ANALYSIS OF VARIANCE

• Analysis of Variance (ANOVA) is a statistical


formula used to compare variances across the
means (or average) of different groups.

• ANOVA is a statistical method used to test


differences between Means of two or more
groups.
• ANOVA measures two Sources of Variation in
the Data and compares their relatives Sizes.

• Variation BETWEEN Groups:


For each data value look at the difference
between its groups MEAN and overall Mean.

• Variation WITHIN Groups :


For each data value we look at the
difference between that value and the mean
of its Group.
The ANOVA F- statistic is a ratio of the Between
Group variation by the Within Group variation:

F= variance between the sample


Variance within the sample
CLASSIFICATION OF ANOVA
• The Analysis of variance is classified into two
ways:
I. ONE-WAY CLASSIFICATION
II. TWO-WAY CLASSIFICATION
ONE-WAY ANOVA
Data representation for one-way ANOVA

• xij - the j th sample value from the ith treatment, j = 1, 2, …,ni, i =1,
2,…,k
• k - number of treatments compared.
• xi. - the sample total of ith treatment.
• ni - the number of observations in the ith treatment.
The total variation in the observations xij can be split into the
following two components

(i) variation between the levels or the variation due to different


bases of classification, commonly known as treatments.

(ii) The variation within the treatments i.e.


inherent variation among the observations within levels.
• General Formulas : Total Variation
• General Formulas : Variation Among the groups
•General Formulas : Variation within the Groups
Degrees of Freedom (d.f)
ONE-WAY ANOVA TABLE
PROBLEM :Three different techniques namely medication, exercises and
special diet are randomly assigned to (individuals diagnosed with high
blood pressure) lower the blood pressure. After four weeks the reduction
in each person’s blood pressure is recorded. Test at 5% level, whether
there is significant difference in mean reduction of blood pressure among
the three techniques.
Step 1 : Hypotheses
Null Hypothesis: H0: µ1 = µ2 = µ3
That is, there is no significant difference among the three groups on the average
reduction in blood pressure.
Alternative Hypothesis: H1: μi ≠ μj for atleast one pair (i, j); i, j = 1, 2, 3; i ≠ j.
Step 6 : Critical value
f(2, 12),0.05 = 3.8853.

Step 7 : Decision
As F0 = 9.17 > f(2, 12),0.05 = 3.8853, the null hypothesis is rejected. Hence, we conclude
that there exists significant difference in the reduction of the average blood pressure
in atleast one pair of techniques.
TWO-WAY ANOVA
THE DATA CAN BE REPRESENTED IN THE FOLLOWING TABULAR FORM.

We use the following notations.


xij - ith treatment value from the jth block, i = 1,2, ..., k; j = 1,2, ..., m.
The ith treatment total - xi = , i 1, 2, ..., k
The jth block total - x . j xij , j 1, 2, ..., m
Note that, k × m = n, where m = number of blocks, and k = number of treatments
(groups) and n is the total number of observations in the study.
• The total variation present in the
observations xij can be split into the following
three components:

• (i) The variation between treatments (groups)


• (ii) The variation between blocks.
• (ii) The variation inherent within a particular
setting or combination of treatment and
block.
 Test Procedure
• Steps involved in two-way ANOVA are:
• Step 1 : In two-way ANOVA we have two pairs of
hypotheses, one for treatments and one for the blocks.
• Framing Hypotheses
• Null Hypotheses
• H01: There is no significant difference among the population
means of different groups (Treatments)
• H02: There is no significant difference among the population
means of different Blocks
• Alternative Hypotheses
• H11: Atleast one pair of treatment means differs significantly
• H12: Atleast one pair of block means differs significantly
• Step 2 : Data is presented in a rectangular table form
as described in the previous section.

• Step 3 : Level of significance α.

• Step 4 : Test Statistic

• F0t (treatments) = MST / MSE


• F0b (block) = MSB / MSE
• To find the test statistic we have to find the following
intermediate values.
•
 To find the test statistic we have to find the
following intermediate values.
v) Sum of Squares due to Error:
SSE = TSS-SST-SSB

vi) Degrees of freedom


 Mean Sum of Squares
 Step 5 : Calculation of the Test Statistic

TWO-WAY ANOVA TABLE


PROBLEM : A reputed marketing agency in India has three different
training programs for its salesmen. The three programs are Method – A,
B, C. To assess the success of the programs, 4 salesmen from each of the
programs were sent to the field. Their performances in terms of sales are
given in the following table. Test whether there is significant difference
among methods and among salesmen.
Step 1 : Hypotheses

Null Hypotheses: H01 : μM1= μM2 = μM3 (for treatments)


That is, there is no significant difference among the three programs in their mean sales.
H02 : μS1 = μS2 = μS3 = μS4 (for blocks)

Alternative Hypotheses:
H11 : At least one average is different from the other, among the three programs.
H12 : At least one average is different from the other, among the four salesmen.

Step 2 : Data
 Calculation of the Test Statistic
Step 6 : Critical values

f(3, 6),0.05 = 4.7571 (for treatments)


f(2, 6),0.05 = 5.1456 (for blocks)

Step 7 : Decision
(i) Calculated F0t = 3.40 < f(3,
6),0.05 = 4.7571, the null
hypothesis is not rejected and we
conclude that there is significant
difference in the mean sales
among the three programs.
(ii) Calculate F0b = 5.39 > f(2,
6),0.05 = 5.1456, the null
hypothesis is rejected and
conclude that there does not exist
significant difference in the
mean sales among the four
salesmen.

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