11-1
Student Lecture Notes
Business Statistics:
A Decision-Making Approach
6th Edition
Chapter 11
Analysis of Variance
Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc.
Chap 11-1
Chapter Goals
After completing this chapter, you should be able to: Recognize situations in which to use analysis of variance
Understand different analysis of variance designs
Perform a single-factor hypothesis test and interpret results
Conduct and interpret post-analysis of variance pairwise comparisons procedures
Set up and perform randomized blocks analysis
Analyze two-factor analysis of variance test with replications results Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc.
Business Statistics: A Decision-Making Approach, 6e
Chap 11-2
© 2005 Prentice-Hall, Inc.
Chapter 11
11-2
Student Lecture Notes
Chapter Overview
Analysis of Variance (ANOVA)
One-Way
ANOVA
Randomized
Complete
Block ANOVA
Two-factor
ANOVA
with replication
F-test
F-test
TukeyKramer test Fisher’s Least
Significant
Difference test
Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc.
Chap 11-3
General ANOVA Setting
Investigator controls one or more independent variables Called factors (or treatment variables)
Each factor contains two or more levels (or categories/classifications) Observe effects on dependent variable
Response to levels of independent variable
Experimental design: the plan used to test hypothesis Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc.
Business Statistics: A Decision-Making Approach, 6e
Chap 11-4
© 2005 Prentice-Hall, Inc.
Chapter 11
11-3
Student Lecture Notes
One-Way Analysis of Variance
Evaluate the difference among the means of three or more populations
Examples: Accident rates for 1st, 2nd, and 3rd shift
Expected mileage for five brands of