ANOVA

What is ANOVA?

• An ANOVA is an analysis of
the variation present in an
experiment. It is a test of the
hypothesis that the existence
of differences among several
population means.
 One-way ANOVA
• It is used for differences among two or more
independent groups.

• The relation between ANOVA and t is given by

F = t²
The Hypothesis Test of Analysis of Variance

• In an analysis of variance:
We have r independent random samples, each one
corresponding to a population subject to a different
treatment.
We have:
 n = n1+ n2+ n3+ ...+nr total observations.
 r sample means: x1, x2 , x3 , ... , xr
Application of ANOVA in marketing
• Product testing.
• We can manipulate certain
variables.
• Marketing mix.
• Experiment with just one
independent variables.
• The key is degree of
control.