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Unformatted text preview: 1 CHAPTER 14: ANALYSIS OF VARIANCE Stats & Prob. for Bus. Mgmt (Stat1100) Jochem Chap 14: Analysis of Variance b Topics of Chapter 14 b 1. OneWay Analysis of Variance b 2. Multiple Comparisons . Randomized Block/Two ay Analysis of Variance 2 b 3. Randomized Block/TwoWay Analysis of Variance Chap 14: Analysis of Variance b 1. OneWay Analysis of Variance b Ex 14.1: (p51421)Who invests into stocks? s Given: Data on % of financial assets invested into stocks y age groups (<35, 35 9, 50 5, >65 years) 3 by age groups (<35, 3549, 5065, >65 years) Young Early Middle Age Late Middle Age Senior 24.8 28.9 81.5 66.8 35.5 7.3 0.0 77.4 68.7 61.8 61.3 32.9 42.2 53.6 0.0 74.0 44.40 52.47 51.14 51.84 Sample means Chap 14: Analysis of Variance b 1. OneWay Analysis of Variance b Ex 14.1: (p51421)Who invests into stocks? s Given: Data on % of financial assets invested into stocks y age groups (<35, 35 9, 50 5, >65 years) 4 2 Questions: 1. Are all age groups investing equally into stocks? 2. If not, which group over/underinvests relative to the other groups? by age groups (<35, 3549, 5065, >65 years) Young Early Middle Age Late Middle Age Senior 24.8 28.9 81.5 66.8 35.5 7.3 0.0 77.4 68.7 61.8 61.3 32.9 42.2 53.6 0.0 74.0 44.40 52.47 51.14 51.84 Sample means Chap 14: Analysis of Variance b 1. OneWay Analysis of Variance b Ex 14.1: (p51421)Who invests into stocks? s Given: Data on % of financial assets invested into stocks y age groups (<35, 35 9, 50 5, >65 years) 5 2 Questions: 1. Are all age groups investing equally into stocks? 2. If not, which group over/underinvests relative to the other groups? by age groups (<35, 3549, 5065, >65 years) Young Early Middle Age Late Middle Age Senior 24.8 28.9 81.5 66.8 35.5 7.3 0.0 77.4 68.7 61.8 61.3 32.9 42.2 53.6 0.0 74.0 Sample means Other situations: you’d like to try out k packages in a field experiment to see which one sells best. you’d like to test which of k cars/product types/machines is most reliable. you’d like to find out if one medicine/treatment is better than another. you’d like to find out if starting salaries for same degree differ by college. you’d like to find out which public youth program reduces gangviolence most. … any situation in which you compare the mean of several populations. Chap 14: Analysis of Variance b 1. OneWay Analysis of Variance b Ex 14.1: (p51421): Who invests into stocks? s Given: Data on % of financial assets invested into stocks y age groups (<35, 35 9, 50 5, >65 years) 6 Terminology The RV is called the “response variable ” (here: % of assets invested in stocks). Each data point is called a “response ”. Each respondent is called an “experimental unit ” (e.g, person, household, …). The criterion by which we classify the population is called the “factor ” (here, age). Each population is called a (factor) level . We have here 4 levels (age groups)....
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This note was uploaded on 03/26/2012 for the course STAT 1100 taught by Professor Chiappetta during the Spring '08 term at Pittsburgh.
 Spring '08
 Chiappetta
 Variance

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