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Introductory Business Statistics 2e

Key Terms

Introductory Business Statistics 2eKey Terms
Analysis of Variance
also referred to as ANOVA, is a method of testing whether or not the means of three or more populations are equal. The method is applicable if:
  • all populations of interest are normally distributed.
  • the populations have equal standard deviations.
  • samples (not necessarily of the same size) are randomly and independently selected from each population.
  • there is one independent variable and one dependent variable.

The test statistic for analysis of variance is the F-ratio.

One-Way ANOVA
a method of testing whether or not the means of three or more populations are equal; the method is applicable if:
  • all populations of interest are normally distributed.
  • the populations have equal standard deviations.
  • samples (not necessarily of the same size) are randomly and independently selected from each population.

The test statistic for analysis of variance is the F-ratio.

Variance
mean of the squared deviations from the mean; the square of the standard deviation. For a set of data, a deviation can be represented as x – x – x – where x is a value of the data and x – x – is the sample mean. The sample variance is equal to the sum of the squares of the deviations divided by the difference of the sample size and one.
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