2003 Prentice-Hall, Inc.

Chap 11-1
Basic Business Statistics
(9
th
Edition)
Chapter 11
Analysis of Variance
2003 Prentice-Hall, Inc. Chap 11-2
The Completely Randomized Design:
One-Way Analysis of Variance
ANOVA Assumptions
F Test for Difference in c Means
The Tukey-Kramer Procedure
Levenes Test for Homogeneity of Variance
The Randomized Block Design
F Test for the Difference in c Means
The Tukey Procedure
Chapter Topics
2003 Prentice-Hall, Inc. Chap 11-3
Chapter Topics
The Factorial Design: Two-Way Analysis of
Variance
Examine Effects of Factors and Interaction
Kruskal-Wallis Rank Test for Differences in c
Medians
Friedman Rank Test for Differences in c
Medians
(continued)
2003 Prentice-Hall, Inc. Chap 11-4
General Experimental Setting
Investigator Controls One or More
Independent Variables
Called treatment variables or factors
Each treatment factor contains two or more groups
(or levels)
Observe Effects on Dependent Variable
Response to groups (or levels) of independent
variable
Experimental Design: The Plan Used to Test
Hypothesis
2003 Prentice-Hall, Inc. Chap 11-5
Completely Randomized Design
Experimental Units (Subjects) are Assigned
Randomly to Groups
Subjects are assumed to be homogeneous
Only One Factor or Independent Variable
With 2 or more groups (or levels)
Analyzed by One-Way Analysis of Variance
(ANOVA)
2003 Prentice-Hall, Inc. Chap 11-6
Factor (Training Method)
Factor Levels
(Groups)
Randomly
Assigned
Units
Dependent
Variable
(Response)
21 hrs 17 hrs 31 hrs
27 hrs 25 hrs 28 hrs
29 hrs 20 hrs 22 hrs
Randomized Design Example

2003 Prentice-Hall, Inc. Chap 11-7
One-Way Analysis of Variance
F Test
Evaluate the Difference Among the Mean
Responses of 2 or More (c ) Populations
E.g., Several types of tires, oven temperature
settings
Assumptions
Samples are randomly and independently drawn
This condition must be met
Populations are normally distributed
F Test is robust to moderate departure from
normality
Populations have equal variances
Less sensitive to this requirement when samples
are of equal size from each population
2003 Prentice-Hall, Inc. Chap 11-8
Why ANOVA?
Could Compare the Means One by One using
Zor t Tests for Difference of Means
Each Z or t Test Contains Type I Error
The Total Type I Error with k Pairs of Means
is 1- (1 - a )
k
E.g., If there are 5 means and use a = .05
Must perform 10 comparisons
Type I Error is 1 (.95)
10
= .40
40% of the time you will reject the null hypothesis
of equal means in favor of the alternative when the
null is true!
2003 Prentice-Hall, Inc. Chap 11-9
Hypotheses of One-Way ANOVA

All population means are equal

No treatment effect (no variation in means among
groups)

At least one population mean is different (others

may be the same!)
There is a treatment effect
Does not mean that all population means are
different
0 1 2
:
c
H = = =
1
: Not all are the same
i
H
2003 Prentice-Hall, Inc. Chap 11-10
One-Way ANOVA
(No Treatment Effect)
The Null
Hypothesis is
True
0 1 2
:
c
H = = =
1
: Not all are the same
i
H
1 2 3
= =
2003 Prentice-Hall, Inc. Chap 11-11
One-Way ANOVA
(Treatment Effect Present)
The Null
Hypothesis is
NOT True
0 1 2
:
c
H = = =
1
: Not all are the same
i
H
1 2 3
= =
1 2 3
= =
2003 Prentice-Hall, Inc. Chap 11-12
One-Way ANOVA
(Partition of Total Variation)
Variation Due to
Group SSA
Variation Due to Random
Sampling SSW
Total Variation SST
Commonly referred to as:
Within Group Variation
Sum of Squares Within
Sum of Squares Error
Sum of Squares Unexplained
Commonly referred to as:
Among Group Variation
Sum of Squares Among
Sum of Squares Between
Sum of Squares Model
Sum of Squares Explained
Sum of Squares Treatment
=
+
2003 Prentice-Hall, Inc. Chap 11-13
Total Variation
2
1 1
1 1
( )
: the -th observation in group
: the number of observations in group
: the total number of observations in all groups
: the number of groups
the over
j
j
n
c
ij
j i
ij
j
n
c
ij
j i
SST X X
X i j
n j
n
c
X
X
n
= =
= =
=
=
_ _
_ _
all or grand mean
2003 Prentice-Hall, Inc. Chap 11-14
Total Variation
(continued)
, , ,
2 2 2
11 21
c
n c
SST X X X X X X = + + +
X
Response, X
Group 1 Group 2 Group 3
2003 Prentice-Hall, Inc. Chap 11-15
2
1
( )
c
j j
j
SSA n X X
=
=
_
Among-Group Variation
Variation Due to Differences Among Groups
1
SSA
M SA
c
=

: The sample mean of group

: The overall or grand mean
j
X j
X
2003 Prentice-Hall, Inc. Chap 11-16
Among-Group Variation
(continued)
, , ,
2 2 2
1 1 2 2 c c
SSA n X X n X X n X X = + + +
X
1
X
2
X
3
X
Response, X
Group 1 Group 2 Group 3
2003 Prentice-Hall, Inc. Chap 11-17
Summing the variation
within each group and then
adding over all groups
: The sample mean of group
: The -th observation in group
j
ij
X j
X i j
Within-Group Variation
2
1 1
( )
j
n
c
ij j
j i
SSW X X
= =
=
_ _
SSW
MSW
n c
=

2003 Prentice-Hall, Inc. Chap 11-18

Within-Group Variation
(continued)
, , ,
2
2 2
11 1 21 1
c
n c c
SSW X X X X X X = + + +
1
X
2
X
3
X
X
Response, X
Group 1 Group 2 Group 3
2003 Prentice-Hall, Inc. Chap 11-19
Within-Group Variation
(continued)
2 2 2
1 1 2 2
1 2
( 1) ( 1) ( 1)
( 1) ( 1) ( 1)
c c
c
SSW
MSW
n c
n S n S n S
n n n
=

+ +---+
=
+ +---+
For c = 2, this is the
pooled-variance in the
t test.
If more than 2 groups,
use F Test.
For 2 groups, use t test.
F Test more limited.
j

2003 Prentice-Hall, Inc. Chap 11-20

One-Way ANOVA
F Test Statistic
Test Statistic

MSA is mean squares among

MSWis mean squares within
Degrees of Freedom

MSA
F
MSW
=
1
1 df c =
2
df n c =
2003 Prentice-Hall, Inc. Chap 11-21
One-Way ANOVA
Summary Table
Source of
Variation
Degrees
of
Freedom
Sum of
Squares
Mean
Squares
(Variance)
F
Statistic
Among
(Factor)
c 1 SSA
MSA =
SSA/(c 1 )
MSA/MSW
Within
(Error)
n c SSW
MSW =
SSW/(n c )
Total n 1
SST =
SSA + SSW
2003 Prentice-Hall, Inc. Chap 11-22
Features of One-Way ANOVA
F Statistic
The F Statistic is the Ratio of the Among
Estimate of Variance and the Within Estimate
of Variance
The ratio must always be positive
df
1
=c -1 will typically be small
df
2
=n - c will typically be large
The Ratio Should Be Close to 1 if the Null is
True
2003 Prentice-Hall, Inc. Chap 11-23
Features of One-Way ANOVA
F Statistic
If the Null Hypothesis is False
The numerator should be greater than the
denominator
The ratio should be larger than 1
(continued)
2003 Prentice-Hall, Inc. Chap 11-24
One-Way ANOVA F Test
Example
As production manager, you
want to see if 3 filling
machines have different mean
filling times. You assign 15
similarly trained &
experienced workers, 5 per
machine, to the machines. At
the .05 significance level, is
there a difference in mean
filling times?
Machine1 Machine2
Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
2003 Prentice-Hall, Inc. Chap 11-25
One-Way ANOVA Example:
Scatter Diagram
27
26
25
24
23
22
21
20
19

Machine1 Machine2
Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
1 2
3
24.93 22.61
20.59 22.71
X X
X X
= =
= =
1
X
2
X
3
X
X
2003 Prentice-Hall, Inc. Chap 11-26
One-Way ANOVA Example
Computations
Machine1 Machine2 Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
, , ,
2 2 2
5 24.93 22.71 22.61 22.71 20.59 22.71
47.164
4.2592 3.112 3.682 11.0532
/( -1) 47.16 / 2 23.5820
/( - ) 11.0532 /12 .9211
SSA
SSW
MSA SSA c
MSW SSW n c

= + +
]
=
= + + =
= = =
= = =
1
2
3
24.93
22.61
20.59
22.71
X
X
X
X
=
=
=
=
5
3
15
j
n
c
n
=
=
=
2003 Prentice-Hall, Inc. Chap 11-27
Summary Table
Source of
Variation
Degrees
of
Freedom
Sum of
Squares
Mean
Squares
(Variance)
F
Statistic
Among
(Factor)
3-1=2 47.1640 23.5820
MSA/MSW
=25.60
Within
(Error)
15-3=12 11.0532 .9211
Total 15-1=14 58.2172
2003 Prentice-Hall, Inc. Chap 11-28
One-Way ANOVA Example
Solution
F 0 3.89
H
0
:
1
=
2
=
3
H
1
: Not All Equal
= .05
df
1
= 2 df
2
= 12
Critical Value(s):
Test Statistic:
Decision:
Conclusion:
Reject at = 0.05.
There is evidence that at
least one
i
differs from
the rest.
= 0.05
F
MSA
MSW
= =
=
23 5820
9211
25 6
.
.
.
2003 Prentice-Hall, Inc. Chap 11-29
Solution in Excel
Use Tools | Data Analysis | ANOVA: Single
Factor
Excel Worksheet that Performs the One-Factor
ANOVA of the Example
Microsoft Excel
Worksheet
2003 Prentice-Hall, Inc. Chap 11-30
The Tukey-Kramer Procedure
Tells which Population Means are Significantly
Different
E.g.,
1
=
2

3
2 groups whose means
may be significantly
different
Post Hoc (A Posteriori) Procedure
Done after rejection of equal means in ANOVA
Pairwise Comparisons
Compare absolute mean differences with critical
range
X
f(X)

1
=

2

3
2003 Prentice-Hall, Inc. Chap 11-31
The Tukey-Kramer Procedure:
Example
1. Compute absolute mean
differences:
Machine1 Machine2 Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
1 2
1 3
2 3
24.93 22.61 2.32
24.93 20.59 4.34
22.61 20.59 2.02
X X
X X
X X
= =
= =
= =
2. Compute critical range:
3. All of the absolute mean differences are greater than the
critical range. There is a significant difference between
each pair of means at the 5% level of significance.
( , )
'
1 1
Critical Range 1.618
2
U c n c
j j
MSW
Q
n n

| |
= + =
|
|
\ .
2003 Prentice-Hall, Inc. Chap 11-32
Solution in PHStat
Use PHStat | c-Sample Tests | Tukey-Kramer
Procedure
Excel Worksheet that Performs the Tukey-
Kramer Procedure for the Previous Example
Microsoft Excel
Worksheet
2003 Prentice-Hall, Inc. Chap 11-33
Levenes Test for
Homogeneity of Variance
The Null Hypothesis

The c population variances are all equal

The Alternative Hypothesis

Not all the c population variances are equal

2 2 2
0 1 2
:
c
H = = =
2
1
: Not all are equal ( 1, 2, , )
j
H j c =
2003 Prentice-Hall, Inc. Chap 11-34
Levenes Test for Homogeneity
of Variance: Procedure
1. For each observation in each group, obtain
the absolute value of the difference between
each observation and the median of the
group.
2. Perform a one-way analysis of variance on
these absolute differences.
2003 Prentice-Hall, Inc. Chap 11-35
Levenes Test for Homogeneity
of Variances: Example
As production manager, you
want to see if 3 filling
machines have different
variance in filling times. You
assign 15 similarly trained &
experienced workers, 5 per
machine, to the machines. At
the .05 significance level, is
there a difference in the
variance in filling times?
Machine1 Machine2
Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
2003 Prentice-Hall, Inc. Chap 11-36
Levenes Test:
Absolute Difference from the Median
Machine1 Machine2 Machine3 Machine1 Machine2 Machine3
25.4 23.4 20 0.3 0.65 0.4
26.31 21.8 22.2 1.21 0.95 1.8
24.1 23.5 19.75 1 0.75 0.65
23.74 22.75 20.6 1.36 0 0.2
25.1 21.6 20.4 0 1.15 0
median 25.1 22.75 20.4
abs(Time - median(Time)) Time
2003 Prentice-Hall, Inc. Chap 11-37
Summary Table
SUMMARY
Groups Count Sum Average Variance
Machine1 5 3.87 0.774 0.35208
Machine2 5 3.5 0.7 0.19
Machine3 5 3.05 0.61 0.5005
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0.067453 2 0.033727 0.097048 0.908218 3.88529
Within Groups 4.17032 12 0.347527
Total 4.237773 14
2003 Prentice-Hall, Inc. Chap 11-38
Levenes Test Example:
Solution
F 0 3.89
H
0
:
H
1
: Not All Equal
= .05
df
1
= 2 df
2
= 12
Critical Value(s):
Test Statistic:
Decision:
Conclusion:
Do not reject at = 0.05.
There is no evidence that
at least one differs
from the rest.
= 0.05
2 2 2
1 2 3
= =
0.0337
0.0970
0.3475
MSA
F
MSW
= = =
2
j

2003 Prentice-Hall, Inc. Chap 11-39

Randomized Blocked Design
Items are Divided into Blocks
Individual items in different samples are matched,
or repeated measurements are taken
Reduced within group variation (i.e., remove the
effect of block before testing)
Response of Each Treatment Group is
Obtained
Assumptions
Same as completely randomized design
No interaction effect between treatments and
blocks
2003 Prentice-Hall, Inc. Chap 11-40
Randomized Blocked Design
(Example)

Factor (Training Method)

Factor Levels
(Groups)
Blocked
Experiment
Units
Dependent
Variable
(Response)
21 hrs 17 hrs 31 hrs
27 hrs 25 hrs 28 hrs
29 hrs 20 hrs 22 hrs
2003 Prentice-Hall, Inc. Chap 11-41
Randomized Block Design
(Partition of Total Variation)
Variation Due
to Group
SSA
Variation
Among
Blocks
SSBL
Variation
Among All
Observations
SST
Commonly referred to as:
Sum of Squares Error
Sum of Squares
Unexplained
Commonly referred to as:
Sum of Squares Among
Among Groups Variation
=
+
+
Variation Due
to Random
Sampling
SSW
Commonly referred to as:
Sum of Squares Among
Block
2003 Prentice-Hall, Inc. Chap 11-42
Total Variation
,
,
2
1
the number of blocks
the number of groups or levels
the total number of observations
the value in the -th block for the -th treatment level
the mean of all val
c r
ij
j i
ij
i
SST X X
r
c
n n rc
X i j
X
= =
-
=
=
=
= =
=
=
__
ues in block
the mean of all values for treatment level
1
j
i
X j
df n
-
=
=
2003 Prentice-Hall, Inc. Chap 11-43
Among-Group Variation
,
2
1
1
(treatment group means)
1
1
c
j
j
r
ij
i
j
SSA r X X
X
X
r
df c
SSA
MSA
c
-
=
=
-
=
=
=
=

_
_
2003 Prentice-Hall, Inc. Chap 11-44
Among-Block Variation
,
2
1
1
(block means)
1
1
r
i
i
c
ij
j
i
SSBL c X X
X
X
c
df r
SSBL
MSBL
r
-
=
=
-
=
=
=
=

_
_
2003 Prentice-Hall, Inc. Chap 11-45
Random Error
,
, ,
, ,
2
1 1
1 1
1 1
c r
ij i j
j i
SSE X X X X
df r c
SSE
MSE
r c
- -
= =
= +
=
=

__
2003 Prentice-Hall, Inc. Chap 11-46
Randomized Block F Test for
Differences in c Means

No treatment effect

Test Statistic

Degrees of Freedom

0 1 2
:
c
H
- - -
= = --- =
1
: Not all are equal
j
H
-
MSA
F
MSE
=
1
1 df c =
, ,
2
1 1 df r c =
0

U
F
F
Reject
2003 Prentice-Hall, Inc. Chap 11-47
Summary Table
Source of
Variation
Degrees of
Freedom
Sum of
Squares
Mean
Squares
F
Statistic
Among
Group
c 1 SSA
MSA =
SSA/(c 1)
MSA/
MSE
Among
Block
r 1 SSBL
MSBL =
SSBL/(r 1)
MSBL/
MSE
Error
(r 1) c 1) SSE
MSE =
SSE/[(r 1)(c 1)]
Total
rc 1 SST
2003 Prentice-Hall, Inc. Chap 11-48
Randomized Block Design:
Example
As production manager, you
want to see if 3 filling machines
have different mean filling
times. You assign 15 workers
with varied experience into 5
groups of 3 based on similarity
of their experience, and
assigned each group of 3
workers with similar experience
to the machines. At the .05
significance level, is there a
difference in mean filling
times?
Machine1 Machine2
Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
2003 Prentice-Hall, Inc. Chap 11-49
Randomized Block Design
Example Computation
Machine1 Machine2 Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
, , ,
,
2 2 2
5 24.93 22.71 22.61 22.71 20.59 22.71
47.164
8.4025
/( -1) 47.16 / 2 23.5820
/ ( -1) 1 8.4025/ 8 1.0503
SSA
SSE
MSA SSA c
MSE SSE r c

= + +
]
=
=
= = =
= = =
]
1
2
3
24.93
22.61
20.59
22.71
X
X
X
X
-
-
-
=
=
=
=
5
3
15
r
c
n
=
=
=
2003 Prentice-Hall, Inc. Chap 11-50
Randomized Block Design
Example: Summary Table
Source of
Variation
Degrees of
Freedom
Sum of
Squares
Mean
Squares
F
Statistic
Among
Group
2
SSA=
47.164
MSA =
23.582
23.582/1.0503
=22.452
Among
Block
4
SSBL=
2.6507
MSBL =
.6627
.6627/1.0503
=.6039
Error
8
SSE=
8.4025
MSE =
1.0503
Total
14
SST=
58.2172
2003 Prentice-Hall, Inc. Chap 11-51
Randomized Block Design
Example: Solution
F 0 4.46
H
0
:
1
=
2
=
3
H
1
: Not All Equal
= .05
df
1
= 2 df
2
= 8
Critical Value(s):
Test Statistic:
Decision:
Conclusion:
Reject at = 0.05.
There is evidence that at
least one
i
differs from
the rest.
= 0.05
F
MSA
MSE
= =
=
23 582
1.0503
22.45
.
2003 Prentice-Hall, Inc. Chap 11-52
Randomized Block Design
in Excel
Tools | Data Analysis | ANOVA: Two Factor
Without Replication
Example Solution in Excel Spreadsheet
Microsoft Excel
Worksheet
2003 Prentice-Hall, Inc. Chap 11-53
The Tukey-Kramer Procedure
Similar to the Tukey-Kramer Procedure for the
Completely Randomized Design Case
Critical Range

, , ( , 1 1 )
Critical Range
U c r c
MSE
Q
r

=
2003 Prentice-Hall, Inc. Chap 11-54
The Tukey-Kramer Procedure:
Example
1. Compute absolute mean
differences:
Machine1 Machine2 Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
1 2
1 3
2 3
24.93 22.61 2.32
24.93 20.59 4.34
22.61 20.59 2.02
X X
X X
X X
- -
- -
- -
= =
= =
= =
2. Compute critical range:
3. All of the absolute mean differences are greater. There
is a significance difference between each pair of means at
5% level of significance.
, , ( , 1 1 )
1.0503
Critical Range 4.04 1.8516
5
U c r c
MSE
Q
r

= = =
2003 Prentice-Hall, Inc. Chap 11-55
The Tukey-Kramer Procedure
in PHStat
PHStat | c-Sample Tests | Tukey-Kramer
Procedure
Example in Excel Spreadsheet
Microsoft Excel
Worksheet
2003 Prentice-Hall, Inc. Chap 11-56
Two-Way ANOVA
Examines the Effect of:
Two factors on the dependent variable
E.g., Percent carbonation and line speed on soft
drink bottling process
Interaction between the different levels of these
two factors
E.g., Does the effect of one particular percentage of
carbonation depend on which level the line speed is
set?
2003 Prentice-Hall, Inc. Chap 11-57
Two-Way ANOVA
Assumptions
Normality
Populations are normally distributed
Homogeneity of Variance
Populations have equal variances
Independence of Errors
Independent random samples are drawn
(continued)
2003 Prentice-Hall, Inc. Chap 11-58
SSE
Two-Way ANOVA
Total Variation Partitioning
Variation Due to
Factor A
Variation Due to
Random Sampling
Variation Due to
Interaction
SSA
SSAB
SST
Variation Due to
Factor B
SSB
Total Variation
d.f.= n-1
d.f.= r-1
=
+
+
d.f.= c-1
+
d.f.= (r-1)(c-1)
d.f.= rc(n-1)
2003 Prentice-Hall, Inc. Chap 11-59
Two-Way ANOVA
Total Variation Partitioning
'
the number of levels of factor A
the number of levels of factor B
the number of values (replications) for each cell
the total number of observations in the experiment
the value of the -th o
ijk
r
c
n
n
X k
=
=
=
=
= bservation for level of
factor A and level of factor B
i
j
2003 Prentice-Hall, Inc. Chap 11-60
Total Variation
,
' '
'
2
1 1 1
1 1 1 1 1 1
'
Sum of Squares Total
= total variation among all
observations around the grand mean
the overall or grand mean
r c n
ijk
i j k
r c n r c n
ijk ijk
i j k i j k
SST X X
X X
X
rcn n
= = =
= = = = = =
=
= =
=
_ _ _
_ _ _ _ _ _
2003 Prentice-Hall, Inc. Chap 11-61
Factor A Variation
,
2
'
1
r
i
i
SSA cn X X
--
=
=
_
Sum of Squares Due to Factor A
= the difference among the various
levels of factor A and the grand
mean
2003 Prentice-Hall, Inc. Chap 11-62
Factor B Variation
,
2
'
1
c
j
j
SSB rn X X
- -
=
=
_
Sum of Squares Due to Factor B
= the difference among the various
levels of factor B and the grand mean
2003 Prentice-Hall, Inc. Chap 11-63
Interaction Variation
,
2
'
1 1
r c
ij i j
i j
SSAB n X X X X
- -- - -
= =
= +
__
Sum of Squares Due to Interaction between A and B
= the effect of the combinations of factor A and
factor B
2003 Prentice-Hall, Inc. Chap 11-64
Random Error
Sum of Squares Error
= the differences among the observations within
each cell and the corresponding cell means
,
'
2
1 1 1
r c n
ij
ijk
i j k
SSE X X
-
= = =
=
___
2003 Prentice-Hall, Inc. Chap 11-65
Two-Way ANOVA:
The F Test Statistic
F Test for Factor B Main Effect
F Test for Interaction Effect
H
0
:
1 .
=
2 .
= =
r .
H
1
: Not all
i .
are equal
H
0
:
ij
= 0 (for all i and j)
H
1
:
ij
0
H
0
:

1
=
. 2
= =
c
H
1
: Not all
. j
are equal
Reject if
F > F
U
Reject if
F > F
U
Reject if
F > F
U
1
MSA SSA
F MSA
MSE r
= =

F Test for Factor A Main Effect

1
MSB SSB
F MSB
MSE c
= =

, ,
1 1
MSAB SSAB
F MSAB
MSE r c
= =

2003 Prentice-Hall, Inc. Chap 11-66
Two-Way ANOVA
Summary Table
Source of
Variation
Degrees of
Freedom
Sum of
Squares
Mean
Squares
F
Statistic
Factor A
(Row)
r 1 SSA
MSA =
SSA/(r 1)
MSA/
MSE
Factor B
(Column)
c 1 SSB
MSB =
SSB/(c 1)
MSB/
MSE
AB
(Interaction)
(r 1)(c 1) SSAB
MSAB =
SSAB/ [(r 1)(c 1)]
MSAB/
MSE
Error rc ( n

1) SSE
MSE =
SSE/[rc ( n

1)]
Total rc n

1 SST
2003 Prentice-Hall, Inc. Chap 11-67
Features of Two-Way ANOVA
F Test
Degrees of Freedom Always Add Up
rcn-1=rc(n-1)+(c-1)+(r-1)+(c-1)(r-1)
Total=Error+Column+Row+Interaction
The Denominator of the F Test is Always the
Same but the Numerator is Different
The Sums of Squares Always Add Up
Total=Error+Column+Row+Interaction
2003 Prentice-Hall, Inc. Chap 11-68
Kruskal-Wallis Rank Test
for c Medians
Extension of Wilcoxon Rank Sum Test
Tests the equality of more than 2 (c)
population medians
Distribution-Free Test Procedure
Used to Analyze Completely Randomized
Experimental Designs
Use _
2
Distribution to Approximate if Each
Sample Group Size n
j
> 5
df =c 1
2003 Prentice-Hall, Inc. Chap 11-69
Kruskal-Wallis Rank Test
Assumptions
Independent random samples are drawn
Continuous dependent variable
Data may be ranked both within and among
samples
Populations have same variability
Populations have same shape
Robust with Regard to Last 2 Conditions
Use F test in completely randomized designs and
when the more stringent assumptions hold
2003 Prentice-Hall, Inc. Chap 11-70
Kruskal-Wallis Rank Test
Procedure
Obtain Ranks
In event of tie, each of the tied values gets their
average rank
Add the Ranks for Data from Each of the c
Groups
Square to obtain T
j
2
2
1
12
3( 1)
( 1)
c
j
j
j
T
H n
n n n
=

= +
(
+
(
]
_
1 2 c
n n n n = + + +
2003 Prentice-Hall, Inc. Chap 11-71
Kruskal-Wallis Rank Test
Procedure
Compute Test Statistic

# of observation in j th sample
H may be approximated by chi-square distribution
with df = c 1 when each n
j
>5
(continued)
2
1
12
3( 1)
( 1)
c
j
j
j
T
H n
n n n
=

= +
(
+
(
]
_
1 2 c
n n n n = + + +
j
n =
2003 Prentice-Hall, Inc. Chap 11-72
Kruskal-Wallis Rank Test
Procedure
Critical Value for a Given a
Upper tail
Decision Rule
Reject H
0
: M
1
= M
2
= = M
c
if test statistic
H >
Otherwise, do not reject H
0
(continued)
2

U
2

U
2003 Prentice-Hall, Inc. Chap 11-73
Machine1 Machine2
Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
Kruskal-Wallis Rank Test:
Example
As production manager, you
want to see if 3 filling machines
have different median filling
times. You assign 15 similarly
trained & experienced workers,
5 per machine, to the
machines. At the .05
significance level, is there a
difference in median filling
times?
2003 Prentice-Hall, Inc. Chap 11-74
Machine1 Machine2
Machine3
14 9 2
15 6 7
12 10 1
11 8 4
13 5 3
Example Solution: Step 1
Obtaining a Ranking
Raw Data Ranks
65 38 17
Machine1 Machine2
Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
2003 Prentice-Hall, Inc. Chap 11-75
Example Solution: Step 2
Test Statistic Computation
2
12
3( 1)
( 1)
1
2 2 2
12 65 38 17
3(15 1)
15(15 1) 5 5 5
11.58
T
c
j
H n
n n n
j
j

(
= +
_
(
+
=
(
]

| |
( |
= + + +
|
+
(
\ .
]
=
2003 Prentice-Hall, Inc. Chap 11-76
Kruskal-Wallis Test Example
Solution
H0: M
1
= M
2
= M
3
H1: Not all equal
= .05
df =c - 1 = 3 - 1 = 2
Critical Value(s): Reject at
Test Statistic:
Decision:
Conclusion:
There is evidence that
population medians are
not all equal.
= .05
o = .05.
H = 11.58
0
5.991
2003 Prentice-Hall, Inc. Chap 11-77
Kruskal-Wallis Test in PHStat
PHStat | c-Sample Tests | Kruskal-Wallis Rank
Sum Test
Example Solution in Excel Spreadsheet
Microsoft Excel
Worksheet
2003 Prentice-Hall, Inc. Chap 11-78
Friedman Rank Test for
Differences in c Medians
Tests the equality of more than 2 (c)
population medians
Distribution-Free Test Procedure
Used to Analyze Randomized Block
Experimental Designs
Use
2
Distribution to Approximate if the
Number of Blocks r > 5
df =c 1
2003 Prentice-Hall, Inc. Chap 11-79
Friedman Rank Test
Assumptions
The r blocks are independent
The random variable is continuous
The data constitute at least an ordinal scale of
measurement
No interaction between the r blocks and the c
treatment levels
The c populations have the same variability
The c populations have the same shape
2003 Prentice-Hall, Inc. Chap 11-80
Friedman Rank Test:
Procedure
Replace the c observations by their ranks in
each of the r blocks; assign average rank
for ties
Test statistic:
R
.j
2
is the square of the rank total for group j
F
R
can be approximated by a chi-square
distribution with (c 1) degrees of freedom
The rejection region is in the right tail
,
,
2
1
12
3 1
1
c
R j
j
F R r c
rc c

=
= +
+
_
2003 Prentice-Hall, Inc. Chap 11-81
Friedman Rank Test: Example
As production manager, you
want to see if 3 filling
machines have different
median filling times. You
assign 15 workers with varied
experience into 5 groups of 3
based on similarity of their
experience, and assigned each
group of 3 workers with similar
experience to the machines. At
the .05 significance level, is
there a difference in median
filling times?
Machine1 Machine2
Machine3
25.40 23.40 20.00
26.31 21.80 22.20
24.10 23.50 19.75
23.74 22.75 20.60
25.10 21.60 20.40
2003 Prentice-Hall, Inc. Chap 11-82
Timing Rank
Machine 1 Machine 2 Machine 3 Machine 1 Machine 2 Machine 3
25.4 23.4 20 3 2 1
26.31 21.8 22.2 3 1 2
24.1 23.5 19.75 3 2 1
23.74 22.75 20.6 3 2 1
25.1 21.6 20.4 3 2 1
15 9 6
225 81 36
Friedman Rank Test:
Computation Table
2
. j
R
. j
R
,
,
, , ,
, , ,
2
1
12
3 1
1
12
342 3 5 4 8.4
5 3 4
c
R j
j
F R r c
rc c

=
= +
+
= =
_
2003 Prentice-Hall, Inc. Chap 11-83
Friedman Rank Test Example
Solution
H0: M
1
= M
2
= M
3
H1: Not all equal
= .05
df =c - 1 = 3 - 1 = 2
Critical Value: Reject at
Test Statistic:
Decision:
Conclusion:
There is evidence that
population medians are
not all equal.
= .05
o = .05
F
R
= 8.4
0
5.991
2003 Prentice-Hall, Inc. Chap 11-84
Chapter Summary
Described the Completely Randomized
Design: One-Way Analysis of Variance
ANOVA Assumptions
F Test for Difference in c Means
The Tukey-Kramer Procedure
Levenes Test for Homogeneity of Variance
Discussed the Randomized Block Design
F Test for the Difference in c Means
The Tukey Procedure
2003 Prentice-Hall, Inc. Chap 11-85
Chapter Summary
Described the Factorial Design: Two-Way
Analysis of Variance
Examine effects of factors and interaction
Discussed Kruskal-Wallis Rank Test for
Differences in c Medians
Illustrated Friedman Rank Test for Differences
in c Medians
(continued)