Analysis of Variance

Analysis of variance is a technique of testing

hypothesis about the significant difference in
several population means.

ANOVA one way classification

ANOVA two way classification




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ANOVA one way table

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Vishal Foods Ltd is a leading manufacturer of
biscuits,. The company has launched a new brand in
the four metros; Delhi, Mumbai, Kolkata, and
Chennai. After one month, the company realizes that
there is a difference in the retail price per pack of
biscuits across the cities. Before the launch, the
company had promised its employees and newly
appointed retailers that the biscuits would be sold at
a uniform price in the country. The difference in price
can tarnish the image of the company. In order to
make a quick inference, the company collected data
about the price from six randomly selected stores
across the four cities. Based on the sample
information, the price per pack of the biscuits (in Rs)
is given below:








Analyze the significant difference in the prices.
Delhi 22 22.5 21.5 22 22.5 21.5
Mumbai 19 19.5 19 20 19 21
Kolkata 18 17 18.5 17 18.5 17
Chennai 21 20 21.5 20 21 20
Price per pack of the biscuits (in Rs)
The following table shows the lives in hours of
four batches of electric lamps:




Perform an analysis of variance these data to
test there is any significant difference among
the four batches.

Batches
1 1600 1610 1650 1680 1700 1720 1800
2 1580 1640 1640 1700 1750
3 1460 1550 1600 1620 1640 1660 1740 1820
4 1510 1520 1530 1570 1600 1680
( )( )
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Design) Block d (Randomize tion classifica way two ANOVA
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Source of variation d.f Sum of squares F-Ratio
Between treatements k-1 SST
Between blocks h-1 SSB
Error (k-1)(h-1) SSE
Total kh-1 TSS
ANOVA two way table
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1 h 1 k
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A leading shoe manufacturer has 500 showrooms
across the country. The company wants to know
the average difference in sales of these
showrooms. It also wants to know the average
sales difference between salesmen. For
ascertaining the productivity of different salesmen,
the company has adopted a practice of retaining
one salesman for three months at one showroom.
The company randomly selected five showrooms
and five salesmen from each of the showrooms.
The table below exhibits the average sales (000 s)
from showrooms and the individual contribution of
the five salesmen placed at different showrooms.









Test
Whether the salesmen significantly differ in
productivity?
Whether there is a significant difference b/w the
average sales of showrooms?
Salesmen I II III IV V
A 55 72 45 85 50
B 56 70 50 88 49
C 58 68 55 89 45
D 60 70 42 90 42
E 62 73 41 91 40
Showroom
Sales volume generated by five salesmen
and sales from different showrooms

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