Anova Hypothesis

ANOVA

Analysis of Variance

In previous research, Team C assessed whether education or age played a role in the annual income that an individual earns. This research project is different from the previous two in that three different variables’ means are compared to see if the results are statistically significant. Figures for gender, wage, and marital status will be analyzed using the Analysis of Variance or ANOVA technique.

The ANOVA Hypothesis Test for Means has a hypothesis that the three given means for gender, wage, and marital status are all equal with an alternate hypothesis that at least one mean is different. By using a level of significance of .05 a critical value can be determined. If the value of the F test statistic exceeds this critical value the null hypothesis must be rejected; likewise, if the p-value is smaller than the level of significance the null hypothesis must be rejected.

The ANOVA Hypothesis Test for Means

Step 1 State the hypothesis

H0: µ1 = µ2 = µ3

HA: At least one µ is different

Step 2 Level of Significance

Level of a significance of .05

Step 3 Test Statistic

Test statistic used is F test (ANOVA).

Step 4 State the Decision Rule

Decision rule: Reject the null hypothesis, if the calculated value of test statistic is greater than the critical value. Or Reject the null hypothesis, if the observed significance (P value) is less than significance level.

Step 5 Take a sample and arrive at the decision

Randomized blocks ANOVA | | | | |

| | | | | |

| Mean | n | Std. Dev |   | |

| 302,686.500 | 2 | 45,800.013 | Treatment 1 | |

| 50.000 | 2 | 4.243 | Treatment 2 | |

| 49.000 | 2 | 4.243 | Treatment 3 | |

| | | | | |

| 111,721.667 | 3 | 193,427.063 | Block 1 | |

| 90,135.333 | 3 | 156,028.044 | Block 2 | |

| 100,928.500 | 6 | 157,617.583 | Total | |

| | | | | |

ANOVA table | | | | | |

Source | SS | df | MS | F | p-value |

Treatments |...