Question

Conduct an ANOVA analysis for the wages/salaries of three categories of workers in your firm. Clearly, indicate the F-Statistic and the Critical Value and their meanings

		Wages			Total
		1	2	3
Salaries	Managers	150000	148000	137000	435000
	Engineers	120000	117500	98000	335500
	Officers	80000	78000	50000	208000
Total		350000	343500	285000

.

Answer 1

Using Minitab software, (Stat -> ANOVA -> One way), we get the following output :

The test statistic can be written as

which under H₀ follows a F distribution with df = (df(Categories), df(Error)) = (2,6)

We reject H₀ at 5% level of significance if

Now,

The value of F statistic F_obs = 27.23

and critical value

Since , we reject H₀ at 5% level of significance and we can conclude that salaries of different categories workers are significantly different.