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Anova Case Study

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Eng.

Mohamed Noureldin TWO WAY ANOVA CASE STUDY

ANOVA CASE STUDY

We prepare our data as a matrix with one factor on the rows and one on the columns.

GROUP FEMALE MALE


ACCOUNTING 118600 97500
159400 91000
110000 154700
108800 157300
105300 120900
131500 88400
100100 113100
93700 106600
118600 109200
84700 85800
BANKING 96800 104000
99200 115700
125900 133900
81400 72800
128700 92300
141300 71500
110000 109200
101000 101400
114400 109200
101100 93600
CONSULTING 131600 163800
125800 156000
110300 150800
117600 163800
116800 149200
100100 128700
100800 135900
115700 128000
113900 134800
102800 156800

We establish hypothesis
Eng. Mohamed Noureldin TWO WAY ANOVA CASE STUDY

1- industry will have no effect on the people’s annual salary.

2- gender will have no effect on the people’s annual salary.

3- industry and gender will have no effect on the people’s annual salary.

We run our data through EXCEL (Data analysis) as follows:


1- We set our data in a matrix

2- We select data analysis (anova two way with replication)

3- We select the input range and insert number of rows per sample
Eng. Mohamed Noureldin TWO WAY ANOVA CASE STUDY

4- After pressing ok excel solve the anova


Eng. Mohamed Noureldin TWO WAY ANOVA CASE STUDY

Source of SS df MS F P-value F crit


Variation
Sample 6565788000 2 3282894000 9.49066 0.000294 3.168246
Columns 881666666.7 1 881666667 2.548848 0.116211 4.019541
Interaction 5107465333 2 2553732667 7.382696 0.001464 3.168246
Within 18679026000 54 345907889

Total 31233946000 59

From this table we find:


For the industry (sample) F > F critical

We reject the null hypothesis (industry will have no effect on the people’s annual salary)

So 1- INDUSTRY DO HAVE AN EFFECT ON THE PEOPLE’S ANNUAL SALARY

For the gender (columns) F < F critical

We fail to reject the null hypothesis (gender will have no effect on the people’s annual salary)

So 2- GENDER WILL HAVE NO EFFECT ON THE PEOPLE’S ANNUAL SALARY

For both industry and gender (interaction) F > F critical

We reject the null hypothesis (industry and gender will have no effect on the people’s annual salary)

So 3- INDUSTRY AND GENDER DO HAVE AN EFFECT ON THE PEOPLE’S ANNUAL SALARY

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