The final area for statistical application is in comparing the means of several different populations. The default method for doing this is the analysis of variance (ANOVA) procedure. This procedure assumes both Normality (in each group) and homoskedasticity. Both assumptions/requirements are important in creating our test statistics.

Objectives

By the end of this module, the student will

• know when it is appropriate to perform ANOVA
• understand the mathematics behind ANOVA
• be able to use software to perform ANOVA for both one- and two-factor designs
• perform post-hoc analysis to better answer the research question

Readings

All readings are from our official textbook.

• Sections 10.1 to 10.5
• Guided Thought Questions

Example Scripts

The following R script provide some additional practice in statistical computing. Consider these to be required activities.

• Analysis of Variance

Statistical Computing Activity

• SCA 7: Analysis of Variance

Assignment

• Assignment 7: Economic Sectors