CHAPTER 12 Analysis of variance tests to accompany Introduction to business statistics fourth edition by ronald M. Weiers Presentation by priscilla chaffe-Stengel Donald n. Stengel o The Wadsworth Group
CHAPTER 12 Analysis of Variance Tests to accompany Introduction to Business Statistics fourth edition, by Ronald M. Weiers Presentation by Priscilla Chaffe-Stengel Donald N. Stengel © 2002 The Wadsworth Group
l Chapter 12- Learning objectives Describe the relationship between analysis of variance, the design of experiments, and the types of applications to which the experiments are applied Differentiate one-way, randomized block, and two-way analysis of variance techniques Arrange data into a format that facilitates their analysis by the appropriate analysis of variance technique Use the appropriate methods in testing ypotheses relative to the experimental data o 2002 The Wadsworth Group
Chapter 12 - Learning Objectives • Describe the relationship between analysis of variance, the design of experiments, and the types of applications to which the experiments are applied. • Differentiate one-way, randomized block, and two-way analysis of variance techniques. • Arrange data into a format that facilitates their analysis by the appropriate analysis of variance technique. • Use the appropriate methods in testing hypotheses relative to the experimental data. © 2002 The Wadsworth Group
l Chapter 12-Key terms ° Factor level, treatment,· Two-way analysis of block, interaction variance, factorial Within-group experiment variation Sum of squares ° Between-group Treatment variation Error Completely randomized design Block Interaction Randomized block design Total o 2002 The Wadsworth Group
Chapter 12 - Key Terms • Factor level, treatment, block, interaction • Within-group variation • Between-group variation • Completely randomized design • Randomized block design • Two-way analysis of variance, factorial experiment • Sum of squares: – Treatment – Error – Block – Interaction – Total © 2002 The Wadsworth Group
l Chapter 12-Key Concepts Differences in outcomes on a dependent variable may be explained to some degree by differences in the independent variables Variation between treatment groups captures the effect of the treatment Variation within treatment groups represents random error not explained by the experimental treatments o 2002 The Wadsworth Group
Chapter 12 - Key Concepts • Differences in outcomes on a dependent variable may be explained to some degree by differences in the independent variables. • Variation between treatment groups captures the effect of the treatment. Variation within treatment groups represents random error not explained by the experimental treatments. © 2002 The Wadsworth Group
ll One-Way anovA o Purpose: Examines two or more levels of an independent variable to determine if their population means could be equal ypotheses: 0·1 H: At least one of the treatment group means differs from the rest, or At least two of the population means are not equal where t= number of treatment groups or levels o 2002 The Wadsworth Group
One-Way ANOVA • Purpose: Examines two or more levels of an independent variable to determine if their population means could be equal. • Hypotheses: – H0 : µ1 = µ2 = ... = µt * – H1 : At least one of the treatment group means differs from the rest. OR At least two of the population means are not equal. * where t = number of treatment groups or levels © 2002 The Wadsworth Group