Guide to Using Excel For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 7th Ed. Chapter 12: Analysis of Variance By Groebner, Shannon, Fry, & Smith Prentice-Hall Publishing Company Copyright, 2008

Chapter 12 Excel Examples Analysis of Variance - Hydronics Corporation Digitron Inc. Randomized Complete Block Analysis of Variance Citizens State Bank Two Factor Analysis of Variance with Replications - Fly High Airlines

Analysis of Variance - Hydronics Corporation Issue: The company wants to compare two weight loss supplements with a placebo. Objective: Use Excel to help test a hypothesis about the mean weight loss associated with the three groups. Data file is Hydronics.xls

Analysis of Variance – Hydronics Corp. Open the file Hydronics.xls

Analysis of Variance – Hydronics Corp. Select the Data tab Select Data Analysis Select ANOVA: Single Factor

Analysis of Variance – Hydronics Corp. Input range: b1:d92 Grouped by Columns Labels in First Row Alpha: 0.05 OK

Analysis of Variance – Hydronics Corp. The Excel output shows we should reject the hypothesis of equal variances. The p-value (which is very small) is less than alpha and F is greater than F critical.

Analysis of Variance - Digitron, Inc. Issue: The company wants to compare the stopping distance of four brake systems. Objective: Use Excel to help test a hypothesis about the mean stopping distance associated with the four brake systems. Data file is Digitron .xls

Analysis of Variance – Digitron Inc. Open the file Digitron.xls

Analysis of Variance – Digitron Inc. Select the Data tab Select Data Analysis Select ANOVA: Single Factor OK

Analysis of Variance – Digitron Inc. Set Input range to B1:E11 Grouped by Columns Labels in First Row Alpha = 0.05 New Worksheet Ply ANOVA OK

Analysis of Variance – Digitron Inc. The Excel output shows we should reject the hypothesis of equal variances. The p-value is less than alpha of 0.05 and F is greater than F critical.

Randomized Block ANOVA – Citizens State Bank Issue: Bank managers wish to test the hypothesis that there is no difference in the average house appraisal by three different appraising companies. Objective: Use Excel to test the hypothesis there is no difference in average appraisal value. Data file is Citizens.xls

Randomized Block ANOVA – Citizens State Bank Open the file Citizens.xls Selected the Data tab Select Data Analysis Select ANOVA: Two-Factor Without replication OK

Randomized Block ANOVA – Citizens State Bank Input Range = A1:D6 Select Labels Alpha = 0.05 New Worksheet Ply: ANOVA OK Input Range = A1:D6 Select Labels Alpha = 0.05 New Worksheet Ply: ANOVA OK

Randomized Block ANOVA – Citizens State Bank The F and p-values indicate that both blocking and main effects are significant. Blocking Test Main Test Within

Two Factor ANOVA With Replications - Fly High Airlines Issue: The airline is interested in determining the effect of redemption offers on the number of miles that would be redeemed by age group. Objective: Use Excel to test the hypothesis there is no difference in average redemption rate by age or redemption offer. Data file is Fly High.xls

Two Factor ANOVA With Replications – Fly High Airlines Open the file FlyHigh.xls Select the Data Tab Select Data Analysis Select ANOVA: Two-Factor With Replication OK

Two Factor ANOVA With Replications – Fly High Airlines Input Range = A1:D17 Rows per sample = 4 Alpha = 0.05 New Worksheet Ply: ANOVA OK

Two Factor ANOVA With Replications – Fly High Airlines This is the last part of the Excel output. Note the low F values and that all p-values are larger than alpha.