Choose one of these tests (Independent T, Dependent T, ANOVA) and state when mig
ID: 3241348 • Letter: C
Question
Choose one of these tests (Independent T, Dependent T, ANOVA) and state when might any of them be appropriate in your future career (Business Adminstration)? Why do you think so? What benefit might come to the profession/people that you work with by doing such a proposed study? Choose one of these tests (Independent T, Dependent T, ANOVA) and state when might any of them be appropriate in your future career (Business Adminstration)? Why do you think so? What benefit might come to the profession/people that you work with by doing such a proposed study?Explanation / Answer
Solution:-
Analysis of variance (ANOVA) is a statistical procedure concerned with comparing means of several samples. It can be thought of as an extension of the t-test for two independent samples to more than two groups. The purpose is to test for significant differences between class means, and this is done by analysis the variances.
The ANOVA test of the hypothesis is based on a comparison of two independent estimates of the population variance [3].
When performing an ANOVA procedure the following assumptions are required:
Ÿ The observations are independent of one another.
Ÿ The observations in each group come from a normal distribution.
Ÿ The population variances in each group are the same (homoscedasticity).
ANOVA is the most commonly quoted advanced research method in the professional business and economic literature. This technique is very useful in revealing important information particularly in interpreting experimental outcomes and in determining the influence of some factors on other processing parameters.
Lets say in future you become Sales Manager,
You want to study the effectiveness of the closing methods as,
One of the most important stages of selling is closing the deal, which is the actions taken by the sales person to gain agreement to the sale. There are many closing techniques in sales, which are prescribed actions that sales people take to persuade the customer to make the necessary commitment.
Problem: Three Sales Closing Methods Tested With Single Factor ANOVA
Three different sale closing methods were used. Three groups of four salespeople were randomly chosen. Each group was instructed to use only one of the closing methods for all of their sales. Sales totals of each salesperson over the next two weeks were collected. Determine with a 95% level of certainty whether there is a difference in the effectiveness of the closing methods. Following are sales results for all 12 salespeople:
This is a Single Factor ANOVA test because we are testing only whether different variations of a single factor (Closing Method) have an effect on measured outcome (sales of each salesperson) using a different method. Nothing else is entered into the test that might have an effect on the measured outcome. The abilities of all salespeople are assumed to be similar. Each individual salesperson will use only one of the closing methods.
The Null Hypothesis for this test states that the closing methods used will have no effect on the measured output (sales).
Level of Certainty = 95% = 1 -
Level of Significance = Alpha = = 0.05
Suppose we work out the complete ANOVA test and the following result was obtained,
The calculated F Statistic(1 = 2, 2 = 9) = 7.04.
This is greater than F Critical = 0.05 (1 = 2, 2 = 9) = 4.265.
This indicates that there is less than a 5% chance that this result could have occurred if there was no difference in the effectiveness between the closing methods.
Therefore, there is at least a 95% certainty that there is a real difference in effectiveness of the closing methods.
The Null Hypothesis, which was therefore rejected, states that choice of closing methods does not affect sales.
As, Statistics help the managers to compare alternative scenarios and choose the best option for the company. Thus, we can say that statistical tools benifits in several ways in the work place.
One of the most important stages of selling is closing the deal, which is the actions taken by the sales person to gain agreement to the sale. There are many closing techniques in sales, which are prescribed actions that sales people take to persuade the customer to make the necessary commitment.
Problem: Three Sales Closing Methods Tested With Single Factor ANOVA
Three different sale closing methods were used. Three groups of four salespeople were randomly chosen. Each group was instructed to use only one of the closing methods for all of their sales. Sales totals of each salesperson over the next two weeks were collected. Determine with a 95% level of certainty whether there is a difference in the effectiveness of the closing methods. Following are sales results for all 12 salespeople:
Sales Group 1 Closing Method 1 - Sales Salesperson 1 16 Salesperson 2 21 Salesperson 3 18 Salesperson 4 13 Sales Group 2 Closing Method 2 - Sales Salesperson 5 19 Salesperson 6 20 Salesperson 7 21 Salesperson 8 20 Sales Group 3 Closing Method 3 - Sales Salesperson 9 24 Salesperson 10 21 Salesperson 11 22 Salesperson 12 25This is a Single Factor ANOVA test because we are testing only whether different variations of a single factor (Closing Method) have an effect on measured outcome (sales of each salesperson) using a different method. Nothing else is entered into the test that might have an effect on the measured outcome. The abilities of all salespeople are assumed to be similar. Each individual salesperson will use only one of the closing methods.
The Null Hypothesis for this test states that the closing methods used will have no effect on the measured output (sales).
Level of Certainty = 95% = 1 -
Level of Significance = Alpha = = 0.05