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ANOVA is used to check whether there is a difference among multiple groups.

(More
than 2).
Example: ANOVA
One of the three ethnic groups residing in a metropolis claims that there is wage
ANOVA
discrimination. The following data shows the salary of the similar jobs for three ethnic Analysis of variance is a method in which total
groups. variation is broken into two parts; variation within
Ethnici Salary in 1000 of Rs. Total group and variation between groups. If between
Purpose ty groups variation is more and within group variation
A 28 29 32 26 44 45 29 30 263 is less, groups are declared to be different.
B 22 25 25 26 35 39 23 25 220 ANOVA Table:
C 35 34 45 23 35 40 43 32 287 ANOVA table summarizes the all the results of the
770 process. The following table is well described to
Test at 5% significance level whether there is wage discrimination. ( x 2=25970 )
understand it.
Sourc Sum of Squares DF MS F
e (SS)
2 SST
2 ( x ) =1265.83
2
T1 T2
2
T k (
2
x)
2
SSB MSB
SST = x Source SS df MS F Sig.
Betwe + ++ k
n Betwee
288.1 2
144. 3.0 .
en n1 n 2 nk 1n k1 MSW
SSB n 0 9 066
=288.083 Within 977.8 21 46.6
Computatio 2
SSW
T ( x )
2 2 2
T T Withi SST SSB n
n SSB= 1 + 2 ++ k SSW =
Total 1265.9 23
n k nk
(F-test) n1 n 2 nk n
977.75 SPSS Way:
Analyze Compare Means ANOVA
SSW =SST SSB

1. Each sample is an independent random sample.


Assumptio
2. The distribution of the response variable follows a normal distribution.
ns
3. The population variances are equal across responses for the group levels

Ho:
1=2= 3
Null &
Alternate
Hypothesis Ha:
1 2 3
Descriptive can be obtained by clicking on
Significance
= 5% descriptive in Option
Level (Option Descriptive)
SSB Result:
Ethnicit
df B y Mean N SD
Test Value F= F=3.09 A 32.88 8 7.38
SSW B 27.50 8 6.09
df W Non Rejection Region Rejection Region C 35.88 8 6.94
Total 32.08 24 7.42

Critical Value is obtained from F table using dfb (2) and Test
dfw Value
(21). SS df MS F Sig.
Inferential Critical Value is taken as given. Betwee
288.1 2 144.0
3.0
.066
Procedure F = 3.47 n 9
Within 977.8 21 46.6
Reject Ho if Test value 1265.
falls in the rejection
region. Critical Value