ANALYSIS OF VARIANCE (ANOVA) AND EXPERIMENTAL DESIGN

ANOVA can be used to test for equality of three or more population means.

Exp: National Computers Product,Inc. manufactures printers and fax machines at plants located in Atlanta, Dallas, and Seatle. To measure how much employees at these plants know about total quality management, a random sample of six employees was selected from each plant and given a quality awareness examination (table 13.1)STT CH 13 (ANOVA & EXP.
DESIGN).xlsx

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For each population, the response variables is normally distributed. Implication: In the NCP example, the examination scores (response variable) must be normally distributed at each plant. The variance of the response variable, denoted , is the same for all of the populations. The observation must be independent.

 If

the means for the three populations are equal, we would expect the three sample means to be close together. If the variability among the sample means is Small, it supports Ho If the variability among the sample means is Large, it supports Ha

HYPOTHESES:

FORMULA FOR THE SAMPLE MEAN AND SAMPLE VARIANCE FOR TREATMENT j:

The overall sample mean:

If the size of each sample is n, nT = kn;

 If

n1 n2 n3... nk

The estimate of : Mean Square Due to Treatments (MSTR)

If Ho is true, MSTR provides an unbiased estimate of . However, if the means of the k populations are not equal, MSTR is not an unbiased estimate of

The estimate of (MSE)

: Mean Square Due to Error

MSE is based on the variation within each of the treatments; its not influenced by whether the null hypothesis is true. Thus, MSE always provides an unbiased estimate of

Test statistic for The Equality of k Population Means.

F = 258/ 28,67 = 9

F table:
Area in Upper Tail F Value (fd1=2, df2=15) 0,10 2,70 0,05 3.68 0,025 4,77 ,01 6,36

F=9 Because F = 9 is greater than 6,36, the area in the upper tail at F = 9 is less than 0,01. Thus, the p-value is less than 0,01=> Ho is rejected.

 The

test provides sufficient evidence to conclude that the means of the three populations are not equal. In other words, analysis of variance supports the conclusion that the population mean examination scores at the three NCP plants are not equal.

The general form of an interval estimate of a population mean is

t0,025 = 2,131 In the analysis of variance the best estimate of is provided by the square root of MSE or the Pooled StDev.

Thus, the individual 95% confidence interval for the Atlanta plant goes from 79-4,66 = 73,34 to 79+4,66 = 83,66

Because the sample size are equal for the NCP example, the individual confidence intervals for the Dallas are also constructed by adding and subtracting 4,66 from each sample mean.

FISHERS LSD (Least Significant Difference): determine where the difference occur.

Do the mean of population 1 and 2 differ? Do the mean of population 1 and 3 differ? Do the mean of population 2 and 3 differ?

Summary of Fishers LSD Prosedure

Test statistic

Rejection Rule at a Level of Significance

Sample Differences Significant? Method A Method B = 62-66 = - 4 No Method A Method C = 62-52 = 10 Yes Method B Method C = 66-52 = 4 Yes

Rejection Rule: p-value approach: Reject Ho if p-value

Critical

value approach: Reject Ho if t - t/2 or t t/2 df: nT k