Categories: Finance

ANOVA Analysis

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify"><strong>Note&colon;<&sol;strong> Reject the null hypothesis if the sig value corresponding to F-statistic is less than 0&period;05&period;<br &sol;>&NewLine;Rejection of the null hypothesis in ANOVA only tells us that all population means are not equal&period; But if we are interested to know the difference between &lpar;group1 and group2&rpar; or &lpar;group 2 and group 3&rpar; then we will also apply Post-Hoc multiple comparison&period;<br &sol;>&NewLine;<strong>Procedure&colon;<&sol;strong> One-Way ANOVA can be applied by using Univariate GLM which is used to assess the effects of several independent variables on a single dependent variable&period;<&sol;p>&NewLine;<h3>Two-Way ANOVA<&sol;h3>&NewLine;<p align&equals;"justify">This is used to know the effects of two independent variables on the same dependent variable&period; For example Educational background &lpar;factor A having two categories Arts and Science&rpar; and experience &lpar;Factor B having two categories of low and high&rpar; affect the salary level&period;<br &sol;>&NewLine;Hypothesis<&sol;p>&NewLine;<p align&equals;"justify">1&period;    There is no difference in the means of factor A<&sol;p>&NewLine;<p align&equals;"justify">2&period;    There is no difference in means of factor B<&sol;p>&NewLine;<p align&equals;"justify">3&period;    There is no interaction between factors A and B<&sol;p>&NewLine;<p align&equals;"justify"><strong>Note&colon;<&sol;strong> Reject the null hypothesis if P value corresponding to F statistic is less than 0&period;05 at 5&percnt; confidence interval&period;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<h3>Difference between One-Way and Two-Way ANNOVA<&sol;h3>&NewLine;<p align&equals;"justify">The difference is that where one-way ANOVA only generates one F-value&comma; two-way ANOVA generates three F-values&colon; one to test the main effects of each factor&comma; and a third to test the interaction effect &lpar;i&period;e&period;&comma; the combined effect of the two factors&rpar;&period; Factorial ANOVA yields the same information that two one-way ANOVA&&num;8217&semi;s would&comma; but it does so in one analysis<&sol;p>&NewLine;<p align&equals;"justify">&NewLine;<p align&equals;"justify"><strong>Written By<&sol;strong><&sol;p>&NewLine;<p align&equals;"justify"><strong>Syed Asif Shah<&sol;strong>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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