Statistics for Managers using

Microsoft Excel
6th Edition

Chapter 11

One-Way Analysis of Variance

Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 11-1

 One-Way Analysis of Variance
DCOVA
 Evaluate the difference among the means of three
or more groups
Examples: Accident rates for 1st, 2nd, and 3rd shift
Expected mileage for five brands of tires

 Assumptions
 Populations are normally distributed

 Populations have equal variances

 Samples are randomly and independently drawn

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 Hypotheses of One-Way ANOVA
DCOVA
 H0 : μ1  μ2  μ3    μc
 All population means are equal
 i.e., no factor effect (no variation in means among
groups)

 H1 : Not all of the population means are the same

 At least one population mean is different
 i.e., there is a factor effect
 Does not mean that all population means are
different (some pairs may be the same)

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 One-Way ANOVA
DCOVA
H0 : μ1  μ2  μ3    μc
H1 : Not all μ j are the same
The Null Hypothesis is True
All Means are the same:
(No Factor Effect)

μ1  μ 2  μ 3
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 One-Way ANOVA DCOVA
(continued)
H0 : μ1  μ2  μ3    μc
H1 : Not all μ j are the same
The Null Hypothesis is NOT true
At least one of the means is different
(Factor Effect is present)

or

μ1  μ2  μ3 μ1  μ2  μ3
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 Partitioning the Variation
DCOVA

 Total variation can be split into two parts:

SST = SSA + SSW

SST = Total Sum of Squares

(Total variation)
SSA = Sum of Squares Among Groups
(Among-group variation)
SSW = Sum of Squares Within Groups
(Within-group variation)

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 Partitioning the Variation
(continued)

DCOVA
SST = SSA + SSW

Total Variation = the aggregate variation of the individual

data values across the various factor levels (SST)

Among-Group Variation = variation among the factor

sample means (SSA)

Within-Group Variation = variation that exists among

the data values within a particular factor level (SSW)

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 Total Sum of Squares
DCOVA

SST = SSA + SSW

c nj

SST   ( Xij  X) 2

j 1 i 1
Where:
SST = Total sum of squares
c = number of groups or levels
nj = number of observations in group j
Xij = ith observation from group j
X = grand mean (mean of all data values)
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 Among-Group Variation
DCOVA

SST = SSA + SSW

c
SSA   n j ( X j  X)2
j 1
Where:
SSA = Sum of squares among groups
c = number of groups
nj = sample size from group j
Xj = sample mean from group j
X = grand mean (mean of all data values)
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 Among-Group Variation
(continued)
c DCOVA
SSA   n j ( X j  X)2
j1

SSA
Variation Due to
Differences Among Groups MSA 
c 1
Mean Square Among =
SSA/degrees of freedom

i j

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 Among-Group Variation
DCOVA
(continued)

SSA  n 1 (X1  X) 2  n 2 (X 2  X) 2      n c (X c  X) 2

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 Within-Group Variation
DCOVA

SST = SSA + SSW

c nj

SSW    ( Xij  X j ) 2

j 1 i1
Where:
SSW = Sum of squares within groups
c = number of groups
nj = sample size from group j
Xj = sample mean from group j
Xij = ith observation in group j
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 Within-Group Variation
(continued)

nj
DCOVA
c
SSW    ( Xij  X j ) 2

j 1 i1
SSW
Summing the variation
MSW 
within each group and then
adding over all groups nc
Mean Square Within =
SSW/degrees of freedom

μj
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 Within-Group Variation
DCOVA
(continued)

SSW  (X11  X1 )  (X12  X 2 )      (X cnc  X c )

2 2 2

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 Obtaining the Mean Squares
DCOVA
The Mean Squares are obtained by dividing the various
sum of squares by their associated degrees of freedom

SSA Mean Square Among

MSA  (d.f. = c-1)
c 1
SSW Mean Square Within
MSW 
nc (d.f. = n-c)

SST
MST  Mean Square Total
n 1 (d.f. = n-1)
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 One-Way ANOVA Table
DCOVA

Source of Degrees of Sum Of Mean Square F

Variation Freedom Squares (Variance)

Among SSA FSTAT =

c-1 SSA MSA =
Groups c-1
MSA
Within SSW
n-c SSW MSW = MSW
Groups n-c
Total n–1 SST

c = number of groups
n = sum of the sample sizes from all groups
df = degrees of freedom
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 One-Way ANOVA
F Test Statistic DCOVA

H0: μ1= μ2 = … = μc
H1: At least one population means are different
 Test statistic MSA
FSTAT 
MSW
MSA is mean squares among groups
MSW is mean squares within groups
 Degrees of freedom
 df1 = c – 1 (c = number of groups)
 df2 = n – c (n = sum of sample sizes from all populations)
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 Interpreting One-Way ANOVA
F Statistic DCOVA

 The F statistic is the ratio of the among

estimate of variance and the within estimate
of variance
 The ratio must always be positive
 df1 = c -1 will typically be small
 df2 = n - c will typically be large

Decision Rule:
 Reject H if F 
0 STAT > Fα,
otherwise do not reject
0
H0 Do not
reject H0
Reject H0

Fα
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 One-Way ANOVA
F Test Example DCOVA

You want to see if three Club 1 Club 2 Club 3

different golf clubs yield 254 234 200
different distances. You 263 218 222
randomly select five 241 235 197
measurements from trials on 237 227 206
an automated driving 251 216 204
machine for each club. At the
0.05 significance level, is
there a difference in mean
distance?

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 One-Way ANOVA Example:DCOVA

Club 1 Club 2 Club 3

254 234 200
263 218 222
241 235 197
237 227 206
251 216 204

x1  249.2 x 2  226.0 x 3  205.8

x  227.0

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 One-Way ANOVA Example
Computations DCOVA

Club 1 Club 2 Club 3 X1 = 249.2 n1 = 5

254 234 200 X2 = 226.0 n2 = 5
263 218 222
241 235 197 X3 = 205.8 n3 = 5
237 227 206 n = 15
251 216 204 X = 227.0
c=3
SSA = 5 (249.2 – 227)2 + 5 (226 – 227)2 + 5 (205.8 – 227)2 = 4716.4
SSW = (254 – 249.2)2 + (263 – 249.2)2 +…+ (204 – 205.8)2 = 1119.6

MSA = 4716.4 / (3-1) = 2358.2 2358.2

FSTAT   25.275
MSW = 1119.6 / (15-3) = 93.3 93.3

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 One-Way ANOVA Example
Solution DCOVA

H 0: μ 1 = μ 2 = μ 3 Test Statistic:
H1: μj not all equal
MSA 2358.2
 = 0.05 FSTAT    25.275
MSW 93.3
df1= 2 df2 = 12

Critical Decision:
Value:
Reject H0 at  = 0.05
Fα = 3.89
Conclusion:
 = .05
There is evidence that
0 Do not Reject H 0
at least one μj differs
reject H0
FSTAT = 25.275 from the rest
Fα = 3.89
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 Exercise

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