ANOVA table inference

ANOVA ANalysis Of VAriance: provides an alternative

approach for inferences.
Test H
0
:
1
= 0.
Compare two models:
1. y
i
= + e
i
y
i
= y.
2. y
i
=
0
+
1
x
i
+ e
i
y
i
=

0
+

1
x
i
.
Measure of lack of t using sums of squares.
1. SS
1
=

(y
i
y)
2
= SS
total
2. SS
2
=

(y
i
(

0
+

1
x
i
))
2
= SS
error
= SS
residual
Regression model ts well when
SS
error
< SS
total
signicantly
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SS
model
= SS
regression
= SS
total
SS
error
Collect sums of squares into an ANOVA table:
source of sums of mean
variation df squares square
model 1 SS
model
SS
model
/1
error n-2 SS
error
SS
error
/(n 2)
total n-1 SS
total
Note that MS
error
is the variance estimate S
2
e
.
R
2
= SS
model
/SS
total
is the amount of variation in the
response that is explained by the model.
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ANOVA Table Decomposition
SS
total
=

i
(y
i
y)
2
=

i
(y
i
y
i
+ y
i
y)
2
=

i
(y
i
y
i
)
2
+

i
( y
i
y)
2
+ 2

i
(y
i
y
i
)( y
i
y)
=

i
(y
i
y
i
)
2
+

i
( y y)
2
= SS
error
+ SS
model
Total variation = Variation explained by model + Variation in error
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Inference by ANOVA table
F =
MS
model
MSE
will have an F
1,n2
distribution if
1
= 0 and
tend to be large otherwise.
Reject H
0
:
1
= 0 vs H
1
:
1
= 0 if
F =
MS
model
MSE
> F
(1,n2),1
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Forbes Data Example
Total n=17 observations.
source of sums of mean
variation df squares square F Value Pr > F
model 1 0.22573 MS
model
=0.22573 2961.55 <.0001
error 15 0.00114 MSE=0.00007622
total 16 0.22688
Read Textbook Chapter 7 for ANOVA table.
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