Analysis of Variance (F-Test) : Name: Jonalyn M. Cerilo Subject: Statistics Professor: Dr. Maria Dela Vega Topic

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University of Northeastern Philippines

School of Graduate Studies


Iriga City

Name : JONALYN M. CERILO


( Master in Public Administration)
Subject : STATISTICS
Professor : DR. MARIA DELA VEGA
Topic : ONE WAY ANALYSIS OF VARIANCE (ANOVA)

ANALYSIS OF VARIANCE (F-TEST)


This a one of the statistical tools wherein you used to compare the means of two or more
independent groups.

It is best applied where more than 2 populations or samples are meant to be compared.

This is a parametric test, which has to meet some conditions, and the data to be analyzed if they
are normal and expressed in an interval or ratio data. This test is more efficient than other tests of
difference.

TYPES OF ANOVA

 One-Way ANOVA
 Two-Way ANOVA

ONE-WAY ANOVA

• a test that allows one to make comparisons between the means of three or more groups of data.

• is used when there is only one independent variable involved

• a hypothesis-based test, meaning that it aims to evaluate multiple mutually exclusive theories
about our data.

• best applied when one is about to compare the means of three or more groups of an
independent variable on a dependent variable.

• Example: if we want to compare whether or not the mean output of three workers is
the same based on the working hours of the three workers.

HYPOTHESES OF A ONE-WAY ANOVA:

In a one-way ANOVA, there are two possible hypotheses:

 The null hypothesis (H 0) is that there is no difference between the groups and the
equality between means.
 The alternative hypothesis (H 1) is that there is a difference between the means and the
groups.

EXAMPLE
A sari-sari store is selling 4 brands of shampoo. The owner is interested if there is a significant
difference in the average sales for one week. The following data are recorded:

BRAND
A B C D
7 9 2 4
3 8 3 5
5 8 4 7
6 7 5 8
9 6 6 3
4 9 4 4
3 10 2 5

I. Perform the analysis of variance and test the hypothesis 0.05 level of significance that the average
sales of the four brands of shampoo are equal.

II. APPLYING THE STEPWISE METHOD

Problem: Is there a significant difference in the average sales of the four brands of shampoo?

Hypotheses: H0: There is no significant difference in the average sales of the four brands of shampoo.

H1: There is a significant difference in the average sales of the four brands of shampoo.

III. LEVEL OF SIGNIFICANCE

• LEVEL OF SIGNIFICANCE

• Usually, the predetermined level of significance USED IS 5%

• α = .05

• DEGREE OF FREEDOM

• To calculate the degree of freedom between the sums of the squares of the groups, we
will subtract one from the number of groups. The sum of squares within the group’s
degree of freedom will be calculated by subtracting the number of groups from the total
observation.

• BSS DF = (G – 1) =4–1 =3

• WSS DF = (N - G) = 28 – 4 = 24

• df = 3 and 24

IV. STATISTICS
F-test one-way-analysis of variance computation:

A B C D
X1 X12 X2 X22 X3 X32 X4 X42
7 49 9 81 2 4 4 16
3 9 8 64 3 9 5 25
5 25 8 64 4 16 7 49
6 36 7 49 5 25 8 64
9 81 6 36 6 36 3 9
4 16 9 81 4 16 4 16
3 9 10 100 2 4 5 25
∑ x 1=37 ∑ x 21=225 ∑ x 2=57 ∑ x 22=475 ∑ x 3=26 ∑ x 23=110 ∑ x 4 =36 ∑ x 24 =204
n1 = 7 n1 = 7 n1 = 7 n1 = 7
x́ 1=5.28 x́ 2=8.14 x́ 3=3.71 x́ 4 =5.14

GIVEN:
∑ x 1= 37
∑ x 2 = 57
∑ x 3 = 26
∑ x 4 = 36
n1, n2, n3, n4 = 7
FORMULA:
CF = ¿
n 1 + n2 + n 3 + n 4
SOLUTION:
CF = ¿
n 1 + n 2 + n 3 + n4
= (37+57+26+36)
7+7+7+7
= (156)2
28
CF = 869.14

GIVEN:

∑ x 21= 225

∑ x 22= 475

∑ x 23= 110

∑ x 24 = 204
CF = 869.14
FORMULA:

TSS = ∑ x 21+ ∑ x22 +∑ x 23 +∑ x 24 – CF


SOLUTION:

TSS = ∑ x 21+ ∑ x22 +∑ x 23 +∑ x 24 – CF

= 225 + 475 + 110 + 204 - 869.14


= 1014 – 869.14
TSS = 144.86

GIVEN:
∑ x 1= 37
∑ x 2 = 57
∑ x 3 = 26
∑ x 4 = 36
n1, n2, n3, n4 = 7
CF = 869.14
FORMULA:
BSS = ¿ + ¿+ ¿+ ¿ – CF
n1 n2 n3 n4
SOLUTION:
BSS = ¿ + ¿+ ¿+ ¿ – CF
n1 n2 n3 n4
= ¿ + ¿+ ¿+ ¿ – 869.14
7 7 7 7
= 195.57 + 464.14 + 96.57 + 185.14 – 869.14
= 941.42 – 869.14
BSS = 72.28

GIVEN:
TSS = 144.86
BSS = 72.28
FORMULA:
WSS = TSS – BSS
SOLUTION:
WSS = TSS – BSS
= 144.86 – 72.28
WSS = 72.58
• AT A PREDETERMINED LEVEL OF SIGNIFICANCE OF 0.05, WE WILL COMPARE AND CALCULATE
THE VALUE WITH CRITICAL TABLE VALUE. TODAY, HOWEVER, COMPUTERS CAN
AUTOMATICALLY CALCULATE THE PROBABILITY VALUE FOR F-RATIO. IF P-VALUE IS LESSER THAN
THE PREDETERMINED SIGINIFICANCE LEVEL, THEN THE GROUP MEANS WILL BE DIFFERENT. OR,
OF THE P-VALUE IS GREATER THAN THE SIGNIFICANCE LEVEL, WE CAN SAY THAT THERE IS NO
DIFFERENCE BETWEEN THE GROUPS’ MEAN.

ANALYSIS OF VARIANCE TABLE


Sources of Variation Degree of Sum of Mean F-Value
Freedom Squares Squares Computed Tabular
Between Groups (K – 1) 3 72.28 24.09 7.98 3.01
Within Group (N – 1) – (K – 1) 24 72.58 3.02
Total (N – 1) 27 144.86
V. DECISION RULE
• If the f-computed value is greater than f-tabular value, the null hypothesis (H0) is rejected.
• If the f-tabular value is greater than the f-computed value, the alternative hypothesis is
accepted.

VI. CONCLUSION
• Since the F-computed value of 7.89 is greater than the F-tabular value of 3.01 at 0.05 level of
significance with 3 and 24 degrees of freedom, the null hypothesis is rejected in favor of the
research hypothesis which means that there is a significant difference in the average sales of the
4 brands of shampoo.

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