Analysis of Variance
Analysis of Variance
(ANOVA)
ANOVA
• Used when multiple sample cases are involved
• To examine the significance of difference amongst more
than two sample means at the same time
• Prof. R. A. Fisher was the first man to use the term
“variance”
• ANOVA is essentially a procedure for testing the
difference among different groups of data for
homogeneity.
USES
• Can investigate any number of factors which are
hypothesized to influence the dependent variable.
• To investigate the differences amongst various categories
within each of these factors which may have a large
number of possible values.
• If we take only one factor and investigate the differences
amongst its various categories having numerous possible
values, we use ONE-WAY ANOVA
• If we investigate two factors at the same time, we use
TWO-WAY ANOVA
Basic principle of ANOVA
• To test for differences among the means of the populations by
examining the amount of variation within each of these
samples, relative to the amount of variation between the
samples.
• We assume that each of the samples is drawn from a normal
population and that each of these populations has the same
variance
• We use F- test for ANOVA
Steps- short cut
•1. Take the total of individual values in all samples and call it T
ie, T= ∑ Xij
2. Work out correction factor as
3. SS total =∑
4. SS between = -
5. SS within =
ANOVA TABLE
Source of Sum of Degrees of Mean Square F-ratio
variation Squares (SS) freedom (d.f) (MS)