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    The Logic of ANOVA

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    Alp Eren AKYUZ
    The document summarizes the logic and purpose of analysis of variance (ANOVA). It explains that ANOVA compares the variation between sample means to the variation within samples to determine if population means are equal or different. It provides the formulas for calculating sum of squares among groups (SSA) and within groups (SSW). It then illustrates these concepts with a numerical example, calculating the SSA, SSW, mean squares, and F-statistic to test if population means differ. The example shows that while the sample means appear different, the F-statistic is not large enough to reject the null hypothesis that the population means are equal.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd

    The Logic of ANOVA

    Uploaded by

    Alp Eren AKYUZ
    608 views4 pages
    The document summarizes the logic and purpose of analysis of variance (ANOVA). It explains that ANOVA compares the variation between sample means to the variation within samples to determine if population means are equal or different. It provides the formulas for calculating sum of squares among groups (SSA) and within groups (SSW). It then illustrates these concepts with a numerical example, calculating the SSA, SSW, mean squares, and F-statistic to test if population means differ. The example shows that while the sample means appear different, the F-statistic is not large enough to reject the null hypothesis that the population means are equal.

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    The Logic of ANOVA and a numerical example

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    The document summarizes the logic and purpose of analysis of variance (ANOVA). It explains that ANOVA compares the variation between sample means to the variation within samples to determine if population means are equal or different. It provides the formulas for calculating sum of squares among groups (SSA) and within groups (SSW). It then illustrates these concepts with a numerical example, calculating the SSA, SSW, mean squares, and F-statistic to test if population means differ. The example shows that while the sample means appear different, the F-statistic is not large enough to reject the null hypothesis that the population means are equal.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd
    Download as pdf
    608 views4 pages

    The Logic of ANOVA

    Uploaded by

    Alp Eren AKYUZ
    The document summarizes the logic and purpose of analysis of variance (ANOVA). It explains that ANOVA compares the variation between sample means to the variation within samples to determine if population means are equal or different. It provides the formulas for calculating sum of squares among groups (SSA) and within groups (SSW). It then illustrates these concepts with a numerical example, calculating the SSA, SSW, mean squares, and F-statistic to test if population means differ. The example shows that while the sample means appear different, the F-statistic is not large enough to reject the null hypothesis that the population means are equal.

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    The Logic of ANOVA

    Alp Eren AKYUZ∗


    April 2011

    1 The Purpose of ANOVA


    Let us start with the problem at hand. Assume we want to test the following
    hypothesis:

    H0 : µ1 = µ2 = µ3 = . . .

    The easiest way is to test the alternative.

    HA : At least one mean differs.

    The intuition is simple: if the difference between the sample means is


    large enough, than we can conclude the populations they belong cannot have
    equal means. How do we know if the difference is large enough? One way is to
    check the variation between sample means (Sum of Squares Among Groups).
    c
    ¯ 2
    X  
    SSA = nj X̄j − X̄ j
    j=1

    Notice that as the difference between sample means get larger, the vari-
    ation increases. However to assess whether this variation is large enough,
    we should also compare it to another measure of variation. One candidate
    for this comparison is a combination of sample variations (Sum of Squares
    Within Groups).
    ∗
    Department of Management, Bogazici University, alperen.akyuz@boun.edu.tr

    1
    The Logic of ANOVA

    nj
    c X
    X 2
    SSW = Xij − X̄ij
    j=1 i=1

    Before comparing these two values, we should make an adjustment to


    account for the number of observations used in calculation of each. Using
    more observations always drives the variation up so in order to filter this effect
    we divide each variation by its degrees of freedom (number of observations
    used in calculation minus number of observations assumed to stay constant).
    c
    ¯ 2
    P  
    nj X̄j − X̄ j
    j=1
    M SA =
    c−1

    P nj
    c P 2
    Xij − X̄ij
    j=1 i=1
    M SW =
    n−c
    Notice that MSA is calculated exactly as the sample variance. The for-
    mula for MSW is a modified and weighted version of that. Dividing the
    variation of sample means by the weighted variation of observations provides
    a plausible test statistic.

    M SA
    FST AT =
    M SW

    2 A Numerical Example
    To illustrate these ideas in a more solid way, assume we have the information
    given in Table 1.
    From the table we can say the first two populations have approximately
    equal means. The same cannot be said for other pairs.
    Let us start by calculating the SSA and SSW.

    nj
    3 X
    ¯=
    X Xji X11 + X12 + X21 + X22 + . . . + X24 + X32 + . . . + X34
    X̄ =
    j=1 i=1
    10 10

    2
    The Logic of ANOVA

    Table 1: Example dataset


    obs Sample A Sample B Sample C
    1 2 1 2
    2 4 3 6
    3 - 5 8
    4 - 7 12
    5 - - -
    X̄ 3 4 7

    ¯ = (2 + 4) + (1 + 3 + 5 + 7) + (2 + 6 + 8 + 12) = 5
    X̄
    10
    c
    ¯ 2 = 2 (3) + 4 (4) + 4 (7) = 50
    X  
    SSA = nj X̄j − X̄ j
    j=1

    nj
    c X
    X 2
    SSW = Xij − X̄ij
    j=1 i=1

    SSW = (2 − 3)2 + (4 − 3)2 + (1 − 4)2 + (3 − 4)2 + (5 − 4)2

    +(7 − 4)2 +(2 − 7)2 + (6 − 7)2 + (8 − 7)2 + (12 − 7)2 = 74

    Calculate the MSA and MSW.

    SSA 50
    M SA = = = 25
    c−1 3−1

    SSW 74 74
    M SW = = =
    n−c 10 − 3 7
    For the final step, calculate the FST AT .

    M SA 25
    FST AT = = = 2.3648
    M SW 74
    Compare with critical value obtained from the F table for dof1 =2, dof2 =7.

    FCRIT = 4.7374 > 2.3648 = FST AT

    3
    The Logic of ANOVA

    Despite our initial judgement, the conclusion is ”Do NOT reject the null
    hypothesis. The population means are not significantly different.”.

    - END -

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