Chapter 11 Analysis of Variance

Slides:



Advertisements
Similar presentations
Chapter 11 Analysis of Variance
Advertisements

© 2010 Pearson Prentice Hall. All rights reserved The Complete Randomized Block Design.
© 2010 Pearson Prentice Hall. All rights reserved Single Factor ANOVA.
Statistics for Managers Using Microsoft® Excel 5th Edition
Part I – MULTIVARIATE ANALYSIS
Chapter 11 Analysis of Variance
Statistics for Business and Economics
Chapter Topics The Completely Randomized Model: One-Factor Analysis of Variance F-Test for Difference in c Means The Tukey-Kramer Procedure ANOVA Assumptions.
Chapter 3 Analysis of Variance
Statistics for Managers Using Microsoft® Excel 5th Edition
Chapter 17 Analysis of Variance
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Statistics for Business and Economics 7 th Edition Chapter 15 Analysis of Variance.
Copyright ©2011 Pearson Education 11-1 Chapter 11 Analysis of Variance Statistics for Managers using Microsoft Excel 6 th Global Edition.
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 10-1 Chapter 10 Analysis of Variance Statistics for Managers Using Microsoft.
Chap 10-1 Analysis of Variance. Chap 10-2 Overview Analysis of Variance (ANOVA) F-test Tukey- Kramer test One-Way ANOVA Two-Way ANOVA Interaction Effects.
Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 11-1 Chapter 11 Analysis of Variance Statistics for Managers using Microsoft Excel.
Chapter 12: Analysis of Variance
Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 12-1 Business Statistics: A Decision-Making Approach 8 th Edition Chapter 12 Analysis.
F-Test ( ANOVA ) & Two-Way ANOVA
Statistics for Business and Economics Chapter 8 Design of Experiments and Analysis of Variance.
QNT 531 Advanced Problems in Statistics and Research Methods
12-1 Chapter Twelve McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
INFERENTIAL STATISTICS: Analysis Of Variance ANOVA
Copyright © 2013, 2010 and 2007 Pearson Education, Inc. Chapter Comparing Three or More Means 13.
© 2003 Prentice-Hall, Inc.Chap 11-1 Analysis of Variance IE 340/440 PROCESS IMPROVEMENT THROUGH PLANNED EXPERIMENTATION Dr. Xueping Li University of Tennessee.
Chapter 10 Two-Sample Tests and One-Way ANOVA
12-1 Chapter Twelve McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
© 2002 Prentice-Hall, Inc.Chap 9-1 Statistics for Managers Using Microsoft Excel 3 rd Edition Chapter 9 Analysis of Variance.
CHAPTER 12 Analysis of Variance Tests
Chapter 10 Analysis of Variance.
© 2003 Prentice-Hall, Inc.Chap 11-1 Analysis of Variance & Post-ANOVA ANALYSIS IE 340/440 PROCESS IMPROVEMENT THROUGH PLANNED EXPERIMENTATION Dr. Xueping.
Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc. Chap th Lesson Analysis of Variance.
Business Statistics: Contemporary Decision Making, 3e, by Black. © 2001 South-Western/Thomson Learning 11-1 Business Statistics, 3e by Ken Black Chapter.
ENGR 610 Applied Statistics Fall Week 9
TOPIC 11 Analysis of Variance. Draw Sample Populations μ 1 = μ 2 = μ 3 = μ 4 = ….. μ n Evidence to accept/reject our claim Sample mean each group, grand.
Business Statistics, A First Course (4e) © 2006 Prentice-Hall, Inc. Chap 10-1 Chapter 10 Two-Sample Tests and One-Way ANOVA Business Statistics, A First.
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 10-1 Chapter 10 Analysis of Variance Statistics for Managers Using Microsoft.
Chap 14-1 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 14-1 Chapter 14 Introduction to Multiple Regression Basic Business Statistics.
Chapter 19 Analysis of Variance (ANOVA). ANOVA How to test a null hypothesis that the means of more than two populations are equal. H 0 :  1 =  2 =
Lecture 9-1 Analysis of Variance
Analysis of Variance (One Factor). ANOVA Analysis of Variance Tests whether differences exist among population means categorized by only one factor or.
Previous Lecture: Phylogenetics. Analysis of Variance This Lecture Judy Zhong Ph.D.
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Statistics for Business and Economics 8 th Edition Chapter 15 Analysis of Variance.
12-1 Chapter Twelve McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
Chapter 11 Analysis of Variance. 11.1: The Completely Randomized Design: One-Way Analysis of Variance vocabulary –completely randomized –groups –factors.
Business Statistics: A First Course (3rd Edition)
Chapter 4 Analysis of Variance
Chap 11-1 A Course In Business Statistics, 4th © 2006 Prentice-Hall, Inc. A Course In Business Statistics 4 th Edition Chapter 11 Analysis of Variance.
Business Statistics, A First Course (4e) © 2006 Prentice-Hall, Inc. Chap 10-1 Chapter 10 Two-Sample Tests and One-Way ANOVA Business Statistics, A First.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. Chapter 10, Slide 1 Two-Sample Tests and One-Way ANOVA Chapter 10.
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Formula for Linear Regression y = bx + a Y variable plotted on vertical axis. X variable plotted on horizontal axis. Slope or the change in y for every.
ENGR 610 Applied Statistics Fall Week 8 Marshall University CITE Jack Smith.
Aron, Aron, & Coups, Statistics for the Behavioral and Social Sciences: A Brief Course (3e), © 2005 Prentice Hall Chapter 10 Introduction to the Analysis.
Chapter 11 Analysis of Variance
CHAPTER 4 Analysis of Variance (ANOVA)
Chapter 10 Two-Sample Tests and One-Way ANOVA.
Statistics for Managers Using Microsoft Excel 3rd Edition
Two-Way Analysis of Variance Chapter 11.
Factorial Experiments
Applied Business Statistics, 7th ed. by Ken Black
Statistics for Business and Economics (13e)
Chapter 10 Two-Sample Tests and One-Way ANOVA.
Chapter 11 Analysis of Variance
Chapter 9 Analysis of Variance
Chapter 15 Analysis of Variance
STATISTICS INFORMED DECISIONS USING DATA
Presentation transcript:

Chapter 11 Analysis of Variance Basic Business Statistics 12th Edition Chapter 11 Analysis of Variance Chap 11-1 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 Chap 11-2 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Analysis of Variance (ANOVA) Chapter Overview DCOVA Analysis of Variance (ANOVA) Randomized Block Design One-Way ANOVA Two-Way ANOVA F-test Tukey Multiple Comparisons Interaction Effects Tukey- Kramer Multiple Comparisons Tukey Multiple Comparisons Levene Test For Homogeneity of Variance Chap 11-3 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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

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

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

Hypotheses of One-Way ANOVA DCOVA All population means are equal i.e., no factor effect (no variation in means among groups) 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) Chap 11-7 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

The Null Hypothesis is True One-Way ANOVA DCOVA The Null Hypothesis is True All Means are the same: (No Factor Effect) Chap 11-8 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA DCOVA The Null Hypothesis is NOT true (continued) The Null Hypothesis is NOT true At least one of the means is different (Factor Effect is present) or Chap 11-9 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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

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

Partition of Total Variation DCOVA Total Variation (SST) Variation Due to Factor (SSA) Variation Due to Random Error (SSW) = + Chap 11-12 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Total Sum of Squares SST = SSA + SSW DCOVA 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) Chap 11-13 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Total Variation DCOVA (continued) Chap 11-14 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Among-Group Variation DCOVA SST = SSA + SSW 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) Chap 11-15 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Among-Group Variation (continued) DCOVA Variation Due to Differences Among Groups Mean Square Among = SSA/degrees of freedom Chap 11-16 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Among-Group Variation DCOVA (continued) Chap 11-17 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Within-Group Variation DCOVA SST = SSA + SSW 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 Chap 11-18 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Within-Group Variation (continued) DCOVA Summing the variation within each group and then adding over all groups Mean Square Within = SSW/degrees of freedom Chap 11-19 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Within-Group Variation DCOVA (continued) Chap 11-20 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Obtaining the Mean Squares DCOVA The Mean Squares are obtained by dividing the various sum of squares by their associated degrees of freedom Mean Square Among (d.f. = c-1) Mean Square Within (d.f. = n-c) Mean Square Total (d.f. = n-1) Chap 11-21 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA Table DCOVA Source of Variation Among Groups SSA FSTAT = Degrees of Freedom Sum Of Squares Mean Square (Variance) F Among Groups SSA FSTAT = c - 1 SSA MSA = c - 1 MSA MSW Within Groups SSW n - c SSW MSW = n - c Total n – 1 SST c = number of groups n = sum of the sample sizes from all groups df = degrees of freedom Chap 11-22 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA F Test Statistic DCOVA H0: μ1= μ2 = … = μc H1: At least two population means are different Test statistic 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) Chap 11-23 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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  Do not reject H0 Reject H0 Fα Chap 11-24 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA F Test Example DCOVA Club 1 Club 2 Club 3 254 234 200 263 218 222 241 235 197 237 227 206 251 216 204 You want to see if when three different golf clubs are used, they hit the ball different distances. You randomly select five measurements from trials on an automated driving machine for each club. At the 0.05 significance level, is there a difference in mean distance? Chap 11-25 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA Example: Scatter Plot DCOVA Distance 270 260 250 240 230 220 210 200 190 Club 1 Club 2 Club 3 254 234 200 263 218 222 241 235 197 237 227 206 251 216 204 • • • • • • • • • • • • • • • 1 2 3 Club Chap 11-26 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA Example Computations DCOVA Club 1 Club 2 Club 3 254 234 200 263 218 222 241 235 197 237 227 206 251 216 204 X1 = 249.2 X2 = 226.0 X3 = 205.8 X = 227.0 n1 = 5 n2 = 5 n3 = 5 n = 15 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 MSW = 1,119.6 / (15-3) = 93.3 Chap 11-27 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA Example Solution DCOVA Test Statistic: Decision: Conclusion: H0: μ1 = μ2 = μ3 H1: μj not all equal  = 0.05 df1= 2 df2 = 12 Critical Value: Fα = 3.89 Reject H0 at  = 0.05  = .05 There is evidence that at least one μj differs from the rest Do not reject H0 Reject H0 Fα = 3.89 FSTAT = 25.275 Chap 11-28 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

One-Way ANOVA Excel Output DCOVA SUMMARY Groups Count Sum Average Variance Club 1 5 1246 249.2 108.2 Club 2 1130 226 77.5 Club 3 1029 205.8 94.2 ANOVA Source of Variation SS df MS F P-value F crit Between Groups 4716.4 2 2358.2 25.275 4.99E-05 3.89 Within 1119.6 12 93.3 Total 5836.0 14   Chap 11-29 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 Chap 11-30 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 μ μ μ x = 1 2 3 Chap 11-31 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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

The Tukey-Kramer Procedure: Example DCOVA 1. Compute absolute mean differences: Club 1 Club 2 Club 3 254 234 200 263 218 222 241 235 197 237 227 206 251 216 204 2. Find the Qα value from the table in appendix E.7 with c = 3 and (n – c) = (15 – 3) = 12 degrees of freedom: Chap 11-33 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

The Tukey-Kramer Procedure: Example (continued) DCOVA 3. Compute Critical Range: 4. Compare: 5. All of the absolute mean differences are greater than critical range. Therefore there is a significant difference between each pair of means at 5% level of significance. 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. Chap 11-34 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

ANOVA Assumptions Randomness and Independence Normality 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 Chap 11-35 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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. Chap 11-36 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Levene Homogeneity Of Variance Test Example DCOVA H0: σ21 = σ22 = σ23 H1: Not all σ2j are equal Calculate Medians Club 1 Club 2 Club 3 237 216 197 241 218 200 251 227 204 Median 254 234 206 263 235 222 Calculate Absolute Differences Club 1 Club 2 Club 3 14 11 7 10 9 4 3 2 12 8 18 Chap 11-37 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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

Levene Homogeneity Of Variance Test Example (Minitab) (continued) DCOVA One-way ANOVA: Abs. Diff versus Club Source DF SS MS F P Club 2 6.4 3.2 0.09 0.912 Error 12 415.6 34.6 Total 14 422.0 S = 5.885 R-Sq = 1.52% R-Sq(adj) = 0.00% Individual 95% CIs For Mean Based on Pooled StDev Level N Mean StDev ---------+---------+---------+---------+ 1 5 7.800 6.017 (---------------*----------------) 2 5 7.000 4.183 (---------------*---------------) 3 5 6.200 7.085 (----------------*---------------) ---------+---------+---------+---------+ 3.5 7.0 10.5 14.0 Pooled StDev = 5.885 Since the p-value is greater than 0.05 there is insufficient evidence of a difference in the variances Chap 11-39 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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

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

Sum of Squares for Blocks DCOVA SST = SSA + SSBL + SSE 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

Partitioning the Variation DCOVA Total variation can now be split into three parts: SST = SSA + SSBL + SSE SST and SSA are computed as they were in One-Way ANOVA SSE = SST – (SSA + SSBL) Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Mean Squares DCOVA Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Randomized Block ANOVA Table DCOVA Source of Variation SS df MS F MSA MSE Among Groups SSA c - 1 MSA Among Blocks MSBL MSE SSBL r - 1 MSBL 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

Testing For Factor Effect DCOVA 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

Test For Block Effect Reject H0 if FSTAT > Fα DCOVA 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

Randomized Block Design Example DCOVA Ratings at Four Restaurants of a Fast-Food Chain RESTAURANTS RATERS A B C D Totals Means 1 70 61 82 74 287 71.75 2 77 75 88 76 316 79.00 3 67 90 80 313 78.25 4 63 96 315 78.75 5 84 66 92 326 81.50 6 78 68 98 86 330 82.50 465 400 546 476 1,887 77.50 66.67 91.00 79.33 78.625 Raters are the blocks so r = 6. Restaurants are the groups of interest so c = 4. n = rc = 24 Chap 11-48 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 Chap 11-49 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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) < difference in the avg. rating of raters. This indicates the blocking has reduced error. Chap 11-50 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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) < difference in the avg. rating of raters. This indicates the blocking has reduced error. Chap 11-51 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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? Chap 11-52 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Two-Way ANOVA Assumptions Populations are normally distributed (continued) DCOVA Assumptions Populations are normally distributed Populations have equal variances Independent random samples are drawn Chap 11-53 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 Chap 11-54 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Two-Way ANOVA Sources of Variation DCOVA (continued) SST = SSA + SSB + SSAB + SSE Degrees of Freedom: SSA Factor A Variation r – 1 SST Total Variation SSB Factor B Variation c – 1 SSAB Variation due to interaction between A and B (r – 1)(c – 1) n - 1 SSE Random variation (Error) rc(n’ – 1) Chap 11-55 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Two-Way ANOVA Equations DCOVA Total Variation: Factor A Variation: Factor B Variation: Chap 11-56 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Two-Way ANOVA Equations (continued) DCOVA Interaction Variation: Sum of Squares Error: Chap 11-57 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Two-Way ANOVA Equations (continued) DCOVA where: r = number of levels of factor A c = number of levels of factor B n’ = number of replications in each cell Chap 11-58 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Mean Square Calculations DCOVA Chap 11-59 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Two-Way ANOVA: The F Test Statistics DCOVA F Test for Factor A Effect H0: μ1..= μ2.. = μ3..= • • = µr.. H1: Not all μi.. are equal Reject H0 if FSTAT > Fα F Test for Factor B Effect H0: μ.1. = μ.2. = μ.3.= • • = µ.c. H1: Not all μ.j. are equal Reject H0 if FSTAT > Fα F Test for Interaction Effect H0: the interaction of A and B is equal to zero H1: interaction of A and B is not zero Reject H0 if FSTAT > Fα Chap 11-60 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Two-Way ANOVA Summary Table DCOVA Source of Variation Degrees Of Freedom Sum of Squares Mean Squares F Factor A r – 1 SSA MSA = SSA /(r – 1) MSA MSE Factor B c - 1 SSB MSB = SSB /(c – 1) MSB MSE AB (Interaction) (r–1)(c-1) SSAB MSAB = SSAB / (r – 1)(c – 1) MSAB MSE Error rc(n’ – 1) SSE MSE = SSE/rc(n’ – 1) Total n - 1 SST Chap 11-61 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 Chap 11-62 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Examples: Interaction vs. No Interaction DCOVA Interaction is present: some line segments not parallel No interaction: line segments are parallel Factor B Level 1 Factor B Level 1 Factor B Level 3 Mean Response Mean Response Factor B Level 2 Factor B Level 2 Factor B Level 3 Factor A Levels Factor A Levels Chap 11-63 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 for factor A, assuming three levels: Chap 11-64 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Multiple Comparisons: The Tukey Procedure DCOVA Critical Range for Factor A: (where Qα is from Table E.7 with r and rc(n’–1) d.f.) Critical Range for Factor B: (where Qα is from Table E.7 with c and rc(n’–1) d.f.) Chap 11-65 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 27 24 21 25 19 35 23 20 31 29 Online 32 16 30 22 Chap 11-66 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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). Chap 11-67 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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. Chap 11-68 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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. Chap 11-69 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 Traditional course condensed Traditional course regular length Online course condensed Online course regular length Chap 11-70 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Excel Analysis Of Collapsed Data DCOVA Traditional regular > Traditional condensed Online condensed > Traditional condensed Traditional regular > Online regular Online condensed > Online regular If the course is take online should use the condensed version and if the course is taken by traditional method should use the regular. Group is a significant effect. p-value of 0.0003 < 0.05 Chap 11-71 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Minitab Analysis Of Collapsed Data Shows Same Conclusions DCOVA Chap 11-72 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

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 Chap 11-73 Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall