Chapter 14.docx

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Operations Management and Information System
OMIS 2010
Alan Marshall

Chapter 14 Analysis of Variance ANOVAThis chapter helps compare two or more populations of interval dataDetermines whether differences exist between populations meansAnalyzes sample varianceOneWay ANOVAANOVA tests to determine whether differences exist between two or more population meansOne way ANOVA procedure used when samples are independently drawnoFor each population we draw independent random samples oj nth sampleok number of populations oX response variableoUnits measured are called experimental units oFactor criterion by which we classify the populationsoEach population called a Factor levelTest StatisticIf null hypothesis is true population means would all be equal H0 is always states that there is no difference between the means H1 always says at least two means differ Between treatment variation or SST measures proximity of sample means to each otheroIf sample means close to each other all of the sample means would be close to the grand mean and SST will be smalloIf all means are the same SST0oIf differences between sample means exist a large value of SST will be producedoVariation attributed to differences between treatment meansWithintreatments variation or SSE measures amount of variation in the response variable that is not cause by the treatments oGroup all sources of variation and call them errors This variation is measured by sum of squares for error SSE oSSE is a combined or pooled variation of k samples
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