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ANOVA 2 Omkumar

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5 views20 pages

ANOVA 2 Omkumar

Uploaded by

mukhiommandwani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Q6.

I have selected the file bankloan_cs.sav to perform an ANOVA test to compare the
means of household income across the different bank branches. But first, the data
needs to check and cleared of outliers. After that I will check assumptions of ANOVA
test and after that I will perform The ANOVA test.
House ho T d Income tn thousands

15
25

572
Branch
75
For this data set, we know that it is simple random so assumption 1 is met. We know that the
samples are independent from each other as the household income of branch 3 will have no
effect on the household income of branch 13 and etc. The 2 remaining assumptions are normal
populations and equal standard deviations which we will check.
Normal Q-Q Plot of Household income in thousands
for branch= 3

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 13

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 15

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 20

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 25

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 49

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 60

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 64

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 68

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 73

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 74

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 75

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 76

E
o

Observed Value
Normal Q-Q Plot of Household income in thousands
for branch= 77

E
o

Observed Value
All the above normal QQ plot diagrams shows that the data for each branch is approximately
normally distributed. Since the test is robust against violations of normality, we can carry out and
perform the ANOVA test now.

null hypothesis: average household income across all the bank branches are the same.
alternative hypothesis: average household income across all the bank branches are not
the same

1. Taking alpha value as 0.05


Descriptives
Household income in thousands

N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Minimum Maximum
Lower Bound Upper Bound

3 81 36.89 13.695 1.522 33.86 39.92 12 70


13 89 42.37 21.977 2.330 37.74 47.00 16 98
15 81 37.59 16.512 1.835 33.94 41.24 12 81
20 75 37.04 13.411 1.549 33.95 40.13 16 68
25 88 44.91 19.723 2.102 40.73 49.09 16 97
49 90 42.53 19.704 2.077 38.41 46.66 15 96
60 79 43.51 17.855 2.009 39.51 47.51 18 89
64 91 39.70 21.304 2.233 35.27 44.14 14 97
68 89 39.00 19.164 2.031 34.96 43.04 14 90
73 88 41.44 19.242 2.051 37.37 45.52 15 94
74 84 37.64 14.890 1.625 34.41 40.87 15 72
75 90 43.03 21.935 2.312 38.44 47.63 13 95
76 88 40.86 19.380 2.066 36.76 44.97 15 85
77 90 38.82 18.853 1.987 34.87 42.77 13 89
91 87 39.67 18.986 2.035 35.62 43.71 13 92
Total 1290 40.39 18.797 .523 39.37 41.42 12 98

The table above shows the test results of some descriptive. We have in total 15 bank branches
and 1290 observations. The mean column shows the average income of household for different
branches.

3.

ANOVA
Household income in thousands
Sum of Squares df Mean Square F Sig.

Between Groups 7657.160 14 546.940 1.557 .085


Within Groups 447804.362 1275 351.219
Total 455461.522 1289

4. The above is the ANOVA table. The calculated F-statistic is 1.557 with a df = (14,1275) and
the P-value is 0.085.
5. Using the p-value approach, the calculated p value is greater than 0.05

6. At the 5% significance level, we accept the null hypothesis and conclude that the average
household income across the 15 bank branches are the same.

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