Professional Documents
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Slide 1
Slide 2
Analysis of Variance:
Testing for the Equality of K Population Means
Slide 3
Between-Samples Estimate
of Population Variance
MSB
n (x
j 1
x )2
k 1
Slide 4
Within-Samples Estimate
of Population Variance
MSW
(n j 1) s 2j
j1
nT k
Slide 5
Slide 6
Hypotheses
H0: 1=2=3=. . . = k
Ha: Not all population means are equal
Test Statistic
F = MSB/MSW
Rejection Rule
Reject H0 if F > F
Slide 7
Slide 8
Analysis of Variance
Observation
Plant 1
Buffalo
Plant 2
Pittsburgh
Plant 3
Detroit
1
2
3
4
5
48
54
57
54
62
73
63
66
64
74
51
63
61
54
56
55
26.0
68
26.5
57
24.5
Sample Mean
Sample Variance
Slide 9
Analysis of Variance
Hypotheses
H0: 1= 2= 3
Ha: Not all the means are equal
where:
1 = mean number of hours worked per
week by the managers at Plant 1
2 = mean number of hours worked per
week by the managers at Plant 2
3 = mean number of hours worked per
week by the managers at Plant 3
Slide 10
Analysis of Variance
Mean Square Between
Since the sample sizes are all equal
x= = (55 + 68 + 57)/3 = 60
SSB = 5(55 - 60)2 + 5(68 - 60)2 + 5(57 - 60)2 = 490
MSB = 490/(3 - 1) = 245
Mean Square Within
SSW = 4(26.0) + 4(26.5) + 4(24.5) = 308
MSW = 308/(15 - 3) = 25.667
Slide 11
Analysis of Variance
F - Test
If H0 is true, the ratio MSB/MSW should be near 1
since both MSB and MSW are estimating 2. If Ha
is true, the ratio should be significantly larger than
1 since MSB tends to overestimate 2.
Rejection Rule
Assuming = .05, F.05 = 3.89 (2 d.f. numerator,
12 d.f. denominator). Reject H0 if F > 3.89
Slide 12
Analysis of Variance
Test Statistic
F = MSB/MSW = 245/25.667 = 9.55
Conclusion
F = 9.55 > F.05 = 3.89, so we reject H0. The mean
number of hours worked per week by department
managers is not the same at each plant.
Slide 13
Example
EFS: Total
Alcoholic
Beverages,
Tobacco
Mean
18.56
14.64
12.39
19.48
19.0
St. Dev.
18.5
15.0
19.7
7.34
14.6
TOTAL
11.99
12.67
19.1
17.8
14
15
Selfemployed
Fulltime
Pt
Unempl.
employee employee
t
x11
x21
x31
x21
x22
x32
Observations
x13
x14
x23
x24
x33
x34
Ret unoc
over min
ni age
6
Unoc under
min ni
age
x15
x25
x35
x16
x26
x36
n1
n5
n6
x1
x2
x5
x6
Overall mean
x3
x4
16
17
ANOVA: data
Suppose that we have n observation within each group and g group
i
Obs.
n
Group mean
TOTAL MEAN
Statistics for Marketing & Consumer Research
Copyright 2008 - Mario Mazzocchi
1
x11
x21
xi1
xn1
2
x12
x22
xi2
xn2
x1
x2
j
x1j
x2j
xij
xnj
xj
g
x1g
x2g
xig
xnn
xg
1 g
x xj
g j 1
18
TOTAL VARIATION
19
20
ANOVA in SPSS
Target variable
Factor
21
SPSS output
ANOVA
Variance between
Between Groups
Within Groups
Total
Sum of
Squares
6171.784
151535.3
157707.1
Variation
decomposition
df
5
494
499
Mean Square
1234.357
306.752
F
4.024
Variance within
Degrees of
freedom
Sig.
.001
The null is
rejected
22