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Analysis of Variance
Income in $Ks
Groups Broken Down
Income in $Ks
Isn’t it conceivable that the differences are due to natural random
variability between samples? Would you want to claim they are
different in the population?
ANOVA
Now…What if three racial groups had incomes distributed
like this in your sample?
All Groups Combined
Income in $Ks
Groups Separated Out
Income in $Ks
Doesn’t it now appear that the groups may be different regardless of
sampling variability? Would you feel comfortable claiming the
groups are different in the population?
ANOVA
Conceptually, ANOVA compares the variance within
groups to the overall variance between all the groups to
determine whether the groups appear distinct from each
other or if they look quite the same.
Categories
of Nominal
Variable
Measures on
Continuous
Variable
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 10 11 12 13 14 15 16
Y-bar Y-bar Y-bar Y-bars
Different groups, different means. Similar groups, similar means.
ANOVA
g–1
… or BSS/g-1 … or WSS/n-g
So, as F gets smaller, the groups are less distinct. As F gets larger, the
groups are more distinct.
ANOVA
Critical F
Most extreme
5% of F’s
Critical F
Most extreme
5% of F’s
By using what we know about the F-ratio, we can tell if our sample could
have come from a population where groups’ means are equal.
WSS = Hmmm… WSS has to be “uncovered” by using the formula for s.d. to find the SS (in numerator
of variance) for each group.
6. Make decision about the null hypothesis: 10.23 > 2.6 (Fcrit); so reject the null