Basic Business Statistics

12th Edition

Chapter 5

Analysis of Variance

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-1
 Learning Objectives
In this chapter, you learn:
 The basic concepts of experimental design
 How to use one-way analysis of variance to test for differences
among the means of several populations (also referred to as
“groups” in this chapter)
 To learn the basic structure and use of a randomized block design
 How to use two-way analysis of variance and interpret the
interaction effect
 How to perform multiple comparisons in a one-way analysis of
variance and a two-way analysis of variance

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-2
 Chapter Overview
DCOVA
Analysis of Variance (ANOVA)

One-Way Randomized Two-Way

ANOVA Block Design ANOVA
F-test
Tukey Multiple Interaction
Tukey- Comparisons Effects
Kramer
Multiple Tukey Multiple
Comparisons Comparisons
Levene Test
For
Homogeneity
of Variance
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-3
 General ANOVA Setting
DCOVA

 Investigator controls one or more factors of interest

 Each factor contains two or more levels

 Levels can be numerical or categorical

 Different levels produce different groups

 Think of each group as a sample from a different

population
 Observe effects on the dependent variable
 Are the groups the same?

 Experimental design: the plan used to collect the data

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-4
 Completely Randomized Design
DCOVA

 Experimental units (subjects) are assigned

randomly to groups
 Subjects are assumed homogeneous
 Only one factor or independent variable
 With two or more levels
 Analyzed by one-factor analysis of variance
(ANOVA)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-5
 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

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-6
 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)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-7
 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
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-8
 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
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-9
 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)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-10
 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)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-11
 Partition of Total Variation
DCOVA
Total Variation (SST)

Variation Due to Variation Due to Random

= Factor (SSA) + Error (SSW)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-12
 Total Sum of Squares
DCOVA

SST = SSA + SSW

c nj
2
SST   ( X ij  X )
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)
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-13
 Total Variation DCOVA
(continued)

SST  ( X 11  X ) 2  ( X 12  X ) 2      ( X cnc  X ) 2
Response, X

Group 1 Group 2 Group 3

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-14
 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)
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-15
 Among-Group Variation
(continued)
c DCOVA
SSA   n j ( X j  X ) 2
j 1

Variation Due to SSA

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

i j

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-16
 Among-Group Variation
DCOVA
(continued)

SSA  n1 ( X 1  X ) 2  n2 ( X 2  X ) 2      nc ( X c  X ) 2

Response, X

X3
X2 X
X1

Group 1 Group 2 Group 3

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-17
 Within-Group Variation
DCOVA

SST = SSA + SSW

c nj
2
SSW    ( X ij  X j )
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
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-18
 Within-Group Variation
(continued)
nj
DCOVA
c
2
SSW    ( X ij  X j )
j 1 i 1

Summing the variation SSW

within each group and then MSW 
adding over all groups nc
Mean Square Within =
SSW/degrees of freedom

μj
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-19
 Within-Group Variation
DCOVA
(continued)

SSW  ( X 11  X 1 ) 2  ( X 12  X 2 ) 2      ( X cnc  X c ) 2

Response, X

X3
X2
X1

Group 1 Group 2 Group 3

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-20
 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  (d.f. = n-c)
nc
SST Mean Square Total
MST 
n1 (d.f. = n-1)
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-21
 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

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-22
 One-Way ANOVA
F Test Statistic DCOVA

H0: μ1= μ2 = … = μc
H1: At least two 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)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-23
 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 H0 if FSTAT > Fα, 
otherwise do not reject
H0 0 Do not Reject H0
reject H0
Fα
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-24
 One-Way ANOVA
F Test Example DCOVA

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

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

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-25
 One-Way ANOVA Example:
Scatter Plot DCOVA
Distance
Club 1 Club 2 Club 3 270
254 234 200 260 •
263 218 222 250 •• X1
241 235 197 240 •
237 227 206 • ••
251 216 204 230
220
•
X2 • X
••
210
X1  249.2 X 2  226.0 X 3  205.8 •• X3
200
••
X  227.0 190

1 2 3
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Club Chap 11-26
 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
X3 = 205.8 n3 = 5
241 235 197
237 227 206 n = 15
X = 227.0
251 216 204 c=3
SSA = 5 (249.2 – 227)2 + 5 (226 – 227)2 + 5 (205.8 – 227)2 = 4,716.4
SSW = (254 – 249.2)2 + (263 – 249.2)2 +…+ (204 – 205.8)2 = 1,119.6

MSA = 4,716.4 / (3-1) = 2,358.2 2,358.2

F STAT   25.275
MSW = 1,119.6 / (15-3) = 93.3 93.3
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-27
 One-Way ANOVA Example
Solution DCOVA

H0: μ1 = μ2 = μ3 Test Statistic:

H1: μj not all equal
MSA 2358.2
 = 0.05 FSTAT    25.275
df1= 2 df2 = 12 MSW 93.3

Critical Decision:
Value:
Reject H0 at  = 0.05
Fα = 3.89
 = .05 Conclusion:
There is evidence that
0 Do not Reject H at least one μj differs
0
reject H0
FSTAT = 25.275 from the rest
Fα = 3.89
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-28
 Exercise

A student analyzed data for a one-way analysis of

variance situation for which there were 3 levels of the
factor, and 21 people measured at each level.
Unfortunately, after running the analysis, the student lost
the computer output. She said “All I remember is that one
of the mean squares was 100 and the other one was 500,
but I can’t remember which was which. Oh, and I
remember that the p-value for the test was about .01.”

 Based on this information, can you construct the

analysis of variance table?

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-29
 One-Way ANOVA
Excel Output DCOVA

SUMMARY
Groups Count Sum Average Variance
Club 1 5 1246 249.2 108.2
Club 2 5 1130 226 77.5
Club 3 5 1029 205.8 94.2
ANOVA
Source of
SS df MS F P-value F crit
Variation
Between
4716.4 2 2358.2 25.275 4.99E-05 3.89
Groups
Within
1119.6 12 93.3
Groups
Total 5836.0 14

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-30
 One-Way ANOVA
Minitab Output DCOVA
One-way ANOVA: Distance versus Club

Source DF SS MS F P
Club 2 4716.4 2358.2 25.28 0.000
Error 12 1119.6 93.3
Total 14 5836.0

S = 9.659 R-Sq = 80.82% R-Sq(adj) = 77.62%

Individual 95% CIs For Mean Based on Pooled StDev

Level N Mean StDev -------+---------+---------+---------+--

1 5 249.20 10.40 (-----*-----)
2 5 226.00 8.80 (-----*-----)
3 5 205.80 9.71 (-----*-----)
-------+---------+---------+---------+--
208 224 240 256
Pooled StDev = 9.66

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-31
 The Tukey-Kramer Procedure
DCOVA

 Tells which population means are significantly

different
 e.g.: μ1 = μ2  μ3
 Done after rejection of equal means in ANOVA
 Allows paired comparisons
 Compare absolute mean differences with critical
range

μ1= μ2 μ3 x

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-32
 Tukey-Kramer Critical Range
DCOVA

MSW  1 1 
Critical Range  Qα   
2 n n 
 j j' 

where:
Qα = Upper Tail Critical Value from Studentized
Range Distribution with c and n - c degrees
of freedom (see appendix E.7 table)
MSW = Mean Square Within
nj and nj’ = Sample sizes from groups j and j’

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-33
 The Tukey-Kramer Procedure:
Example DCOVA
1. Compute absolute mean
Club 1 Club 2 Club 3 differences:
254 234 200
263 218 222 x1  x 2  249.2  226.0  23.2
241 235 197 x1  x 3  249.2  205.8  43.4
237 227 206
251 216 204 x 2  x 3  226.0  205.8  20.2

2. Find the Qα value from the table in appendix E.7 with

c = 3 and (n – c) = (15 – 3) = 12 degrees of freedom:

Q α  3.77

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-34
 The Tukey-Kramer Procedure:
Example
(continued)
3. Compute Critical Range: DCOVA

MSW  1 
Critical Range  Qα   1   3 .77 93 .3  1  1   16 .285
2 n n  2  5 5
 j j' 

4. Compare:
5. All of the absolute mean differences
x1  x 2  23.2
are greater than critical range.
Therefore there is a significant x1  x 3  43.4
difference between each pair of
means at 5% level of significance. x 2  x 3  20.2
Thus, with 95% confidence we can conclude
that the mean distance for club 1 is greater
than club 2 and 3, and club 2 is greater than
club 3.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-35
 ANOVA Assumptions
DCOVA

 Randomness and Independence

 Select random samples from the c groups (or
randomly assign the levels)
 Normality
 The sample values for each group are from a normal
population
 Homogeneity of Variance
 All populations sampled from have the same
variance
 Can be tested with Levene’s Test

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-36
 ANOVA Assumptions
Levene’s Test DCOVA

 Tests the assumption that the variances of each

population are equal.
 First, define the null and alternative hypotheses:
 H0: σ21 = σ22 = …=σ2c
 H1: Not all σ2j are equal
 Second, compute the absolute value of the difference
between each value and the median of each group.
 Third, perform a one-way ANOVA on these absolute
differences.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-37
 Levene Homogeneity Of Variance
Test Example
DCOVA

H0: σ21 = σ22 = σ23

H1: Not all σ2j are equal

Calculate Medians Calculate Absolute Differences

Club 1 Club 2 Club 3 Club 1 Club 2 Club 3

237 216 197 14 11 7
241 218 200 10 9 4
251 227 204 Median 0 0 0
254 234 206 3 7 2
263 235 222 12 8 18

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-38
 Levene Homogeneity Of Variance
Test Example (Excel) (continued)
DCOVA
Anova: Single Factor
SUMMARY Since the
Groups Count Sum Average Variance p-value is
Club 1 5 39 7.8 36.2
greater
Club 2 5 35 7 17.5
than 0.05
Club 3 5 31 6.2 50.2
there is
insufficient
P- evidence
Source of Variation SS df MS F value F crit of a
Between Groups 6.4 2 3.2 0.092 0.912 3.885
difference
Within Groups 415.6 12 34.6 in the
Total 422 14 variances

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-39
 Levene Homogeneity Of Variance
Test Example (Minitab)
(continued)
One-way ANOVA: Abs. Diff versus Club
DCOVA

Source DF SS MS F P Since the

Club 2 6.4 3.2 0.09 0.912
Error 12 415.6 34.6
p-value is
Total 14 422.0 greater
S = 5.885 R-Sq = 1.52% R-Sq(adj) = 0.00%
than 0.05
there is
Individual 95% CIs For Mean Based on Pooled StDev
insufficient
Level N Mean StDev ---------+---------+---------+---------+ evidence
1 5 7.800 6.017 (---------------*----------------)
2 5 7.000 4.183 (---------------*---------------)
of a
3 5 6.200 7.085 (----------------*---------------) difference
---------+---------+---------+---------+
3.5 7.0 10.5 14.0
in the
variances
Pooled StDev = 5.885

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-40
 The Randomized Block Design
DCOVA

 Like One-Way ANOVA, we test for equal

population means (for different factor levels, for
example)...

 ...but we want to control for possible variation

from a second factor (with two or more levels)

 Levels of the secondary factor are called blocks

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-41
 Partitioning the Variation
DCOVA

 Total variation can now be split into three parts:

SST = SSA + SSBL + SSE

SST = Total variation

SSA = Among-Group variation
SSBL = Among-Block variation
SSE = Random variation

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-42
 Sum of Squares for Blocks
DCOVA

SST = SSA + SSBL + SSE

r
2
SSBL  c  ( X i.  X )
i 1
Where:
c = number of groups
r = number of blocks
Xi. = mean of all values in block i
X = grand mean (mean of all data values)
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-43
 Partitioning the Variation
DCOVA

 Total variation can now be split into three parts:

SST = SSA + SSBL + SSE

SST and SSA are SSE = SST – (SSA + SSBL)

computed as they were
in One-Way ANOVA

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-44
 Mean Squares
DCOVA

SSBL
MSBL  Mean square blocking 
r 1

SSA
MSA  Mean square among groups 
c1

SSE
MSE  Mean square error 
( r  1)(c  1)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-45
 Randomized Block ANOVA Table
DCOVA
Source of SS df MS F
Variation
Among MSA
Groups SSA c-1 MSA
MSE
Among SSBL r-1 MSBL MSBL
Blocks
MSE
Error SSE (r–1)(c-1) MSE

Total SST rc - 1
c = number of populations rc = total number of observations
r = number of blocks df = degrees of freedom
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-46
 Testing For Factor Effect
DCOVA

H 0 : μ .1  μ .2  μ .3      μ . c
H 1 : Not all population means are equal

MSA
FSTAT =
MSE  Main Factor test: df1 = c – 1
df2 = (r – 1)(c – 1)

Reject H0 if FSTAT > Fα

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-47
 Test For Block Effect
DCOVA

H 0 : μ1.  μ 2.  μ 3.  ...  μ r.
H1 : Not all block means are equal

MSBL
FSTAT =
MSE  Blocking test: df1 = r – 1
df2 = (r – 1)(c – 1)

Reject H0 if FSTAT > Fα

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-48
 Randomized Block Design
Example DCOVA
Ratings at Four Restaurants of a Fast-Food Chain
RESTAURANTS

RATERS A B C D Totals Means

Raters are the blocks
1 70 61 82 74 287 71.75
so r = 6.
2 77 75 88 76 316 79.00
Restaurants are the
3 76 67 90 80 313 78.25 groups of interest so
c = 4.
4 80 63 96 76 315 78.75
n = rc = 24
5 84 66 92 84 326 81.50

6 78 68 98 86 330 82.50 c r
 X ij
j 1 i 1 1,887
Totals 465 400 546 476 1,887 X    78.625
rc 24

Means 77.50 66.67 91.00 79.33 78.625

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-49
 Hypothesis Tests For This
Example DCOVA

To decide whether there is a difference in average rating

among the restaurants:

H0: μA= μB= μC= μD vs H1: At least one of the μ’s is different

To decide whether there is a difference in average rating

among the raters and the blocking has reduced error:

H0: μ1= μ2= μ3= μ4 = μ5= μ6 vs

H1: At least one of the μ’s is different

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-50
 ANOVA Output From Excel
DCOVA

Do the restaurants differ in

average rating?

Since the p-value (0.0000) <

0.05 conclude there is a
difference in avg. rating.

Do the raters differ in average

rating?

Since the p-value (0.0205) <

0.05 conclude there is a
difference in the avg. rating of
raters. This indicates the
blocking has reduced error.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-51
 ANOVA Output From Minitab
DCOVA

Do the restaurants differ in

average rating?

Since the p-value (0.0000) <

0.05 conclude there is a
difference in avg. rating.

Do the raters differ in average

rating?

Since the p-value (0.0205) <

0.05 conclude there is a
difference in the avg. rating of
raters. This indicates the
blocking has reduced error.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-52
 Factorial Design:
Two-Way ANOVA DCOVA

 Examines the effect of

 Two factors of interest on the dependent
variable
 e.g., Percent carbonation and line speed on soft drink
bottling process
 Interaction between the different levels of these
two factors
 e.g., Does the effect of one particular carbonation
level depend on at which level the line speed is set?

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-53
 Two-Way ANOVA
(continued)
DCOVA
 Assumptions

 Populations are normally distributed

 Populations have equal variances
 Independent random samples are
drawn

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-54
 Two-Way ANOVA
Sources of Variation DCOVA

Two Factors of interest: A and B

r = number of levels of factor A
c = number of levels of factor B
n’ = number of replications for each cell
n = total number of observations in all cells
n = (r)(c)(n’)
Xijk = value of the kth observation of level i of
factor A and level j of factor B
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-55
 Two-Way ANOVA DCOVA
Sources of Variation (continued)

SST = SSA + SSB + SSAB + SSE Degrees of

Freedom:
SSA r–1
Factor A Variation

SST SSB c–1

Factor B Variation
Total Variation
SSAB
Variation due to interaction (r – 1)(c – 1)
between A and B
n-1
SSE rc(n’ – 1)
Random variation (Error)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-56
 Two-Way ANOVA Equations
DCOVA

Total Variation: r c n
2
SST     ( X ijk  X )
i 1 j 1 k 1

Factor A Variation: r
2
SSA  cn  ( X i ..  X )

i 1

Factor B Variation: c
SSB  rn ( X . j .  X ) 2
j 1

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-57
 Two-Way ANOVA Equations
(continued)
DCOVA

Interaction Variation:
r c
SSAB  n  ( X ij.  X i..  X .j.  X ) 2
i  1 j 1

Sum of Squares Error:

r c n
2
SSE     ( X ijk  X ij . )
i 1 j 1 k 1

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-58
 Two-Way ANOVA Equations
(continued)
r c n

where:  X
i1 j 1 k 1
ijk DCOVA
X  Grand Mean
c n
rcn
 X
j1 k 1
ijk

Xi..   Mean of ith level of factor A (i  1, 2, ..., r)

cn
r n

 X ijk
X. j.  i1 k 1
 Mean of jth level of factor B (j  1, 2, ..., c)
rn

Xijk n
r = number of levels of factor A
Xij.    Mean of cell ij c = number of levels of factor B
k 1 n n’ = number of replications in each cell

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-59
 Mean Square Calculations
DCOVA
SSA
MSA  Mean square factor A 
r 1

SSB
MSB  Mean square factor B 
c 1

SSAB
MSAB  Mean square interaction 
( r  1)(c  1)

SSE
MSE  Mean square error 
rc ( n'1)
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-60
 Two-Way ANOVA:
The F Test Statistics DCOVA

F Test for Factor A Effect

H0: μ1..= μ2.. = μ3..= • • = µr..
MSA Reject H0 if
H1: Not all μi.. are equal F STAT 
MSE FSTAT > Fα

F Test for Factor B Effect

H0: μ.1. = μ.2. = μ.3.= • • = µ.c.
MSB Reject H0 if
H1: Not all μ.j. are equal F STAT 
MSE FSTAT > Fα

F Test for Interaction Effect

H0: the interaction of A and B is
equal to zero
MSAB Reject H0 if
H1: interaction of A and B is not F STAT 
MSE
zero FSTAT > Fα
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-61
 Two-Way ANOVA
Summary Table DCOVA

Degrees
Source of Sum of Mean
Of F
Variation Squares Squares
Freedom
MSA MSA
Factor A r–1 SSA
= SSA /(r – 1) MSE
MSB MSB
Factor B c-1 SSB
= SSB /(c – 1) MSE

AB MSAB MSAB
(r–1)(c-1) SSAB
(Interaction) = SSAB / (r – 1)(c – 1) MSE

MSE =
Error rc(n’ – 1) SSE
SSE/rc(n’ – 1)
Total n-1 SST

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-62
 Features of Two-Way ANOVA
F Test DCOVA

 Degrees of freedom always add up

 n-1 = rc(n’-1) + (r-1) + (c-1) + (r-1)(c-1)
 Total = error + factor A + factor B + interaction

 The denominators of the F Test are always the

same but the numerators are different
 The sums of squares always add up
 SST = SSA + SSB + SSAB + SSE
 Total = factor A + factor B + interaction + error

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-63
 Examples:
Interaction vs. No Interaction
DCOVA
 Interaction is present:
 No interaction: line some line segments
segments are parallel not parallel

Factor B Level 1
Mean Response

Mean Response
Factor B Level 1
Factor B Level 3

Factor B Level 2
Factor B Level 2
Factor B Level 3

Factor A Levels Factor A Levels

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-64
 Multiple Comparisons:
The Tukey Procedure DCOVA

 Unless there is a significant interaction, you

can determine the levels that are significantly
different using the Tukey procedure
 Consider all absolute mean differences and
compare to the calculated critical range
 Example: Absolute differences X1..  X 2..
for factor A, assuming three levels:
X1..  X3..

X 2..  X3..
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-65
 Multiple Comparisons:
The Tukey Procedure DCOVA

 Critical Range for Factor A:

MSE
Critical Range  Q
c n'
(where Qα is from Table E.7 with r and rc(n’–1) d.f.)

 Critical Range for Factor B:

MSE
Critical Range  Q
r n'
(where Qα is from Table E.7 with c and rc(n’–1) d.f.)

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-66
 Do ACT Prep Course Type & Length
Impact Average ACT Scores DCOVA
ACT Scores for Different Types and Lengths of Courses
LENGTH OF COURSE

TYPE OF COURSE Condensed Regular

Traditional 26 18 34 28

Traditional 27 24 24 21

Traditional 25 19 35 23

Traditional 21 20 31 29

Traditional 21 18 28 26

Online 27 21 24 21

Online 29 32 16 19

Online 30 20 22 19

Online 24 28 20 24

Online 30 29 23 25

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-67
 Plotting Cell Means Shows A
Strong Interaction DCOVA

Nonparallel lines indicate

the effect of condensing
the course depends on
whether the course is
taught in the traditional
classroom or by online
distance learning

The online course yields

higher scores when
condensed while the
traditional course yields
higher scores when not
condensed (regular).

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-68
 Excel Analysis Of ACT Prep
Course Data DCOVA

The interaction between course

length & type is significant
because its p-value is 0.0000.

While the p-values associated

with both course length &
course type are not significant,
because the interaction is
significant you cannot directly
conclude they have no effect.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-69
 Minitab Analysis Of ACT Prep
Course Data DCOVA
The interaction between course
length & type is significant
because its p-value is 0.0000.

While the p-values associated

with both course length &
course type are not significant,
because the interaction is
significant you cannot directly
conclude they have no effect.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-70
 With The Significant Interaction
Collapse The Data Into Four Groups
DCOVA

 After collapsing into four groups do a one way

ANOVA

 The four groups are

1. Traditional course condensed
2. Traditional course regular length
3. Online course condensed
4. Online course regular length

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-71
 Excel Analysis Of Collapsed
Data
DCOVA

1. Traditional regular > Traditional condensed

2. Online condensed > Traditional condensed
Group is a significant effect. 3. Traditional regular > Online regular
4. Online condensed > Online regular
p-value of 0.0003 < 0.05
If the course is take online should use the
condensed version and if the course is taken
by traditional method should use the regular.
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-72
 Minitab Analysis Of Collapsed Data
Shows Same Conclusions
DCOVA

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-73
 Chapter Summary
 Described one-way analysis of variance
 The logic of ANOVA
 ANOVA assumptions
 F test for difference in c means
 The Tukey-Kramer procedure for multiple comparisons
 The Levene test for homogeneity of variance
 Examined the basic structure and use of a
randomized block design
 Described two-way analysis of variance
 Examined effects of multiple factors
 Examined interaction between factors

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 11-74