Question

How do you run an ANOVA test when some of the values are non-numeric?

I have a large excel database, over 100,000 cells worth of data. For the assignment, I need to see if there is a relation between the type of distribution channel (non-numeric) and the average amount of money spent (numeric). I HAVE to use ANOVA to solve this but I am not sure how. There are 11 different distribution channels and 100,000 different values for the amount of money spent. I tried using the excel function but it said I had to have all numeric cells..maybe I did something wrong?

Answer 1

The research question is: Is there a relation between the type of distribution channel (non-numeric) and the average amount of money spent (numeric) ?

For answering this question, for enabling ANOVA to be applicable, the same question is rewritten in equivalent modified form as follows:

The research question is:

Is there a significant difference among the average amount of money spent (numeric) of the 11 types of distribution channels (non-numeric), ANOVA is the appropriate choice as follows:

H0: Null Hypothesis: ( There is no significant difference among the average amount of money spent (numeric) of the 11 types of distribution channels (non-numeric)

HA: Alternative Hypothesis: ( There is no significant difference among the average amount of money spent (numeric) of the 11 types of distribution channels (non-numeric)

In ANOVA, the independent variable is of nominal scale.The dependent variable is continuous.