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Guide to Using Excel For Basic Statistical Applications

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1 Guide to Using Excel For Basic Statistical Applications
To Accompany Business Statistics: A Decision Making Approach, 7th Ed. Chapter 12: Analysis of Variance By Groebner, Shannon, Fry, & Smith Prentice-Hall Publishing Company Copyright, 2008

2 Chapter 12 Excel Examples
Analysis of Variance - Hydronics Corporation Digitron Inc. Randomized Complete Block Analysis of Variance Citizens State Bank Two Factor Analysis of Variance with Replications - Fly High Airlines

3 Analysis of Variance - Hydronics Corporation
Issue: The company wants to compare two weight loss supplements with a placebo. Objective: Use Excel to help test a hypothesis about the mean weight loss associated with the three groups. Data file is Hydronics.xls

4 Analysis of Variance – Hydronics Corp.
Open the file Hydronics.xls

5 Analysis of Variance – Hydronics Corp.
Select the Data tab Select Data Analysis Select ANOVA: Single Factor

6 Analysis of Variance – Hydronics Corp.
Input range: b1:d92 Grouped by Columns Labels in First Row Alpha: 0.05 OK

7 Analysis of Variance – Hydronics Corp.
The Excel output shows we should reject the hypothesis of equal variances. The p-value (which is very small) is less than alpha and F is greater than F critical.

8 Analysis of Variance - Digitron, Inc.
Issue: The company wants to compare the stopping distance of four brake systems. Objective: Use Excel to help test a hypothesis about the mean stopping distance associated with the four brake systems. Data file is Digitron .xls

9 Analysis of Variance – Digitron Inc.
Open the file Digitron.xls

10 Analysis of Variance – Digitron Inc.
Select the Data tab Select Data Analysis Select ANOVA: Single Factor OK

11 Analysis of Variance – Digitron Inc.
Set Input range to B1:E11 Grouped by Columns Labels in First Row Alpha = 0.05 New Worksheet Ply ANOVA OK

12 Analysis of Variance – Digitron Inc.
The Excel output shows we should reject the hypothesis of equal variances. The p-value is less than alpha of 0.05 and F is greater than F critical.

13 Randomized Block ANOVA – Citizens State Bank
Issue: Bank managers wish to test the hypothesis that there is no difference in the average house appraisal by three different appraising companies. Objective: Use Excel to test the hypothesis there is no difference in average appraisal value. Data file is Citizens.xls

14 Randomized Block ANOVA – Citizens State Bank
Open the file Citizens.xls Selected the Data tab Select Data Analysis Select ANOVA: Two-Factor Without replication OK

15 Randomized Block ANOVA – Citizens State Bank
Input Range = A1:D6 Select Labels Alpha = 0.05 New Worksheet Ply: ANOVA OK Input Range = A1:D6 Select Labels Alpha = 0.05 New Worksheet Ply: ANOVA OK

16 Randomized Block ANOVA – Citizens State Bank
The F and p-values indicate that both blocking and main effects are significant. Blocking Test Main Test Within

17 Two Factor ANOVA With Replications - Fly High Airlines
Issue: The airline is interested in determining the effect of redemption offers on the number of miles that would be redeemed by age group. Objective: Use Excel to test the hypothesis there is no difference in average redemption rate by age or redemption offer. Data file is Fly High.xls

18 Two Factor ANOVA With Replications – Fly High Airlines
Open the file FlyHigh.xls Select the Data Tab Select Data Analysis Select ANOVA: Two-Factor With Replication OK

19 Two Factor ANOVA With Replications – Fly High Airlines
Input Range = A1:D17 Rows per sample = 4 Alpha = 0.05 New Worksheet Ply: ANOVA OK

20 Two Factor ANOVA With Replications – Fly High Airlines
This is the last part of the Excel output. Note the low F values and that all p-values are larger than alpha.


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