- ANOVA model – Basic principle is “A dependent continuous variable is a function of one or more categorical independent variables. Each categorical variable has two or more levels”
- Variables can be 1 or 2 or n. Accordingly ANOVA model would be One-Way, Two-Way or n-Way(or MANOVA – Multiple ANOVA)
- SCENARIO:
Productivity based on type of drinks consumed by employees on the floor. The number shows the calls per day taken by given employee consuming the given drink for the day.
- This is a One-Way ANOVA with Beverages as variable and Juice, Coffee and Tea as Factors/Levels
- NULL Hypothesis, H0: Mean of Juice = Mean of Coffee = Mean of Tea
- Alternate Hypothesis, Ha: At least one mean is different
- Total Variance of the data = Variation between groups + Variation within groups
- F-Statistic = Variation between groups / Variation within groups
- NOTE: F-Statistic is always a positive value and the distribution curve is always a positive curve
- F-Statistic = 0 is shown as a starting point in the normal curve
- F-Statistic can have values from 0 till infinity
- When Variation b/w Groups is high, then Variation within groups will be less or vice versa
REFERENCES
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