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ROI, experiments and ANOVA - Analysis of variance - One factor

Q: What is a one-factor ANOVA?

When we are comparing means from some number of groups that vary along 1 factor e.g. 3 groups of customers that are shown different price points and asked how likely they are to buy it .

Q: What is homogeneity of variance?

That the variability of customer responses is the same for all groups , which allows for pooling ( aggregating ) the data.

Q: What are mean squares? What are they for SS between and SS within ?

Mean squares are the SS corrected by their df . MS between = SS between / (a-1) . E.g. in this case, a=3 because of 3 different groups . MS within = SS within / (a(n-1)) . E.g. in this case n=4 because 4 respondents per group .

Q: What is the test statistic for ANOVA?

F-test. F = MS between / MS within . WIth df = (a-1) and (a(n-1))

4 important questions on ROI, experiments and ANOVA - Analysis of variance - One factor

What is a one-factor ANOVA?

When we are comparing means from some number of groups that vary along 1 factor e.g. 3 groups of customers that are shown different price points and asked how likely they are to buy it.

What is homogeneity of variance?

That the variability of customer responses is the same for all groups, which allows for pooling (aggregating) the data.

What are mean squares? What are they for SS_between and SS_within?

Mean squares are the SS corrected by their df.

MS_between = SS_between / (a-1). E.g. in this case, a=3 because of 3 different groups.
MS_within = SS_within / (a(n-1)). E.g. in this case n=4 because 4 respondents per group.