Question

Write a discussion on the value of knowing how to run and read the results of the ANOVA statistical analysis for today's marketing agents. Write a discussion on potential shortcomings or weaknesses of the ANOVA analysis and when the marketing agent should and should not use the ANOVA. Minimum word count is 400 words. Your original post must include a minimum of two outside resources - used to support your writing

Answer 1

The thickness of one way ANOVA is used to compare the mean between three or more group. When the independent variable has only two categories, we cannot apply one way ANOVA.

The research hypothesis is to know if there is any significant difference in the average sales of 3 brands of cars namely Mercedes car, Toyota, and Hyundai.

Consider the null hypothesis, ho: there is no significant difference in the average sales of 3 brands of cars namely Mercedes car, Toyota, and Hyundai. This is tested against an alternative hypothesis, h1: At least one of the average sales of 3 brands of cars namely Mercedes car, Toyota, and Hyundai different significantly.

The decision rule is to, Reject Ho if F < F(1-a/2,n1-1,n2-1) or F > F(a/2,n1-1,n2-1).

if the P value is found to be less than alpha (5%), the null hypothesis is rejected at 5% level of significance.

The post hoc analysis should be carried out in order to determine which pair of car brand differ significantly with respect to the average sales.

The formula for critical range of Turkey Crammer is given by following formula.

A specific pair is said to be significantly different if the absolute difference is greater than the critical range.