One Way Analysis Of Variance (ANOVA)
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One Way Analysis Of Variance (ANOVA)
One way analysis of variance (ANOVA) is used to show if there are statistically significant differences between the means of three or more unrelated groups. The analysis incorporates comparing the means of different groups and shows whether they are statistically significantly different from each other. This means that it tests the null hypothesis. The one-way ANOVA test does not show the specific groups that are statistically significantly different from one another. If you need to know the specific group that was statistically significantly different from others, you will need to run an ad hoc test.
The test assumes that the data was collected using statistically-valid methods and, therefore, no hidden relationships among observations. The values of dependent variables are normally distributed, and variations in each group being compared are similar for all the groups. For example, as an entrepreneur, you might research to show whether there is a difference in sales between three types of sodas. You will collect sales data for Coke, Pepsi, and Fanta to determine the difference between the three types of sodas. Therefore, we can reject the null hypothesis or accept the alternative hypothesis based on the one-way ANOVA test.