Presented by: Ravi Bhati(70)

Variance mean of squares of deviations taken from the mean of the given series. Prof. R.A. Fischer developed concept of ANOVA as well its practical explanations. ANOVA is a procedure for testing the significance of difference among different groups of data for homogeneity. Used to investigate the differences among the means of various populations simultaneously

By ANOVA method, total variation in a set of data is broken in to :

Variations due to chance Variations due to specified causes

There can be variations b/w the samples and also within the samples.

Hence, ANOVA can explain :

Difference between various varieties of seeds/fertilizers/soils. Difference b/w various types of drugs for curing a particular disease.

To test for differences among the means of the populations by examining the amount of variation within each sample, w.r.t the amount of variations b/w the samples.

F-test is used to compare the two estimates of

population variances

F=

estimate of population variance b/w the sample variance

estimate of population variance within the sample variance

Value of F is compared to the F-limit for given degrees of freedom If the F value is equal or exceeds the F-limit value, we say that there are significant differences b/w the sample means.

One way (or single factor) ANOVA :

One factor is taken Reason for said factor to be important is that several possible samples can occur within that factor. Differences within that factor are determined, if any. o Coding method can be used to reduce magnitude of big figures by multiplication/division.

Two way ANOVA :

Used when data are classified on the basis of two factors. For example, agricultural o/p classified on the basis of different varieties of seeds as well as fertilizers.

Two way ANOVA is further divided into :

Two way design without repeated values Two way design with repeated values

In case of no repeated values, we calculate the error/residual variation

SS for residual variance = Total SS (SS b/w column + SS b/w rows)

In case of repeated values, we calculate interaction variations.

Interaction is the inter relationship b/w two different classifications.

ANOVA is designed to detect differences among means from populations subject to different treatments ANOVA can be used for product testing, ad copy testing and concept testing Effect of change in marketing-mix variable can be determined. Such variables include price, a specific promotion or type of distribution, color of packaging etc.