) : (
)
SD: (
) : (
)
Quantitative Methods by SM
Sunday, October 12, 2014
ANOVA: Terminology
We may refer to any categorical variable as a factor.
Fertilizer effect
Each factor has a certain number of levels.
A, B,C
A treatment is a specific experimental condition (determined by
factors and their levels).
A, B, C
The experimental unit (Basic Unit of Study) is the smallest unit
to which a treatment can be assigned.
Plots of land where the treatments are applied
Experimental factors are assigned to the experimental units
without any preference
Quantitative Methods by SM
Sunday, October 12, 2014
ANOVA: Data
Sample size: n= 4+4+3=11
If the population means are equal, we expect the variance among
the sample means to be small.
These sample variances can be used to find a pooled estimator of
the population variance.
Quantitative Methods by SM
Sunday, October 12, 2014
ANOVA: Assumptions
We assume independent random sampling from each of the
populations
We assume that the variable under study are normally distributed
with means
What if each pair is tested?
0
0
0
0
= 0.1
Level may increase!!
Quantitative Methods by SM
Sunday, October 12, 2014
ANOVA : Deviations
I II III
Y
11
Y
21
Y
31
Y
1n1
Y
2n2
Y
3n3
3
Grand Mean
n=n
1
+n
2
+n
3
Error deviation:
Treatment deviation:
= +
Under H
0
, t
i
s are small
2
Sum of square due to Treatment: SSTr =
2
=
2
Sum of square due to Error: SSE =
2
=
2
SST = SSTr + SSE : Total deviation=systematic +error
Treatment df = # groups -1; Error df = n - #groups
Total df = n- 1 : # observation restriction for grand mean
Quantitative Methods by SM
Sunday, October 12, 2014
ANOVA : Squared Deviations
Mean square total: MST =
1
Mean square due to Treatment: MSTr = =
1
Mean square due to Error: MSE =
E[MSTr] =
2
+
2
1
; E[MSE] =
2
F= MSTr/MSE;
Under H
0
, E[MSTr] = E[MSE] ; Right tail test
Quantitative Methods by SM
Sunday, October 12, 2014
ANOVA Output for the Moto-tech Data
ANOVA
Angstroms
Sources of
Variation
Sum of Squares df Mean Square F Sig.
Between Groups SSTr = .718 K-1=2 MSTr =.359 .022 .978
Within Groups SSE = 2151.076 N-k= 132 MSE= 16.296
Total SST = 2151.794 N-1= 134
Quantitative Methods by SM
Sunday, October 12, 2014
F-ratio & F-distribution
F = MSTr/MSE
F follows F
k-1,n-k
Reject H
0
if F
obs
> Critical F at level = 0.95, 0.99 etc.
Quantitative Methods by SM
Sunday, October 12, 2014
Conclusion
There is no difference in the mean length of wafers
produced at different temperatures.
Quantitative Methods by SM
Sunday, October 12, 2014
Problem
Research has shown that in the fast-paced world of
electronics, the key factor that separates the winners
from the losers is actually how slow a firm is in
making decisions: The most successful firms take
longer to arrive at strategic decisions on product
development, adopting new technologies, or
developing new products. Time taken for such
decision by high, medium and low performing firms
are given in the data file. Is the claim true? Justify at
level = 5%.