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ANOVA or analysis of variance

Why organizations should use it? Designed to compare various population means and to test the differences between these means, and then, to determine the influence significance of a factor towards total variation.

How organizations should use it? By gathering data’s from different populations, setting hypotheses, constructing ANOVA table and validating results.

What is it for? Statistical analysis tool.

 ANOVA steps are composed of:

  1. Determination of null and alternative hypotheses
  2. Determination of the significance level
  3. Construction of the ANOVA table
  4. Calculation of the critical F-value (as test statistic)
  5. Determination whether the null hypothesis should be rejected and conclusion

Models are:

  • Fixed-effects models
  • Random-effects models
  • Mixed-effects models


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