Analysis of Variance
Subject: Business Statistics | Topics:

Analysis of Variance (ANOVA) is a statistical method used to test differences between two or more means. It may seem odd that the technique is called “Analysis of Variance” rather than “Analysis of Means.” ANOVA is used to test general rather than specific differences among means. It is based on the approach in which the procedure uses variances to determine whether the means are different. The procedure works by comparing the variance between group means versus the variance within groups as a way of determining whether the groups are all part of one larger population or separate populations with different characteristics.

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