Basilio, Renz Tyrone P. STATS A-232 Assignment: Module 7. ANOVA test 1. A rural bank has four branches in a certain city. The bank president was anxious that employees were taking advantage of the bank’s substantial sick leave policy; and he alleged that it might be associated with the branch where employees work. He requested each branch manager to submit the records of sick leave (in days) availed of randomly select employees the previous year. The table below shows the results. At a .01 alpha, is there significant difference on the mean number of sick leave availed of employees from the four branches? Branch A Branch B Branch C Branch D 12 10 18 10 18 9 16 7 15 11 15 8 10 10 17 9 11 14 Total 55 51 80 34 Mean 13.75 10.2 16 8.5 Variance 12.25 0.70 2.50 1.67 Grand Mean = (13.75+10.2+16+8.5) = 12.11 4 Null Hypothesis: There is no significant difference on the mean number of sick leave availed of employees from the four branches. Alternative Hypothesis: There is significant difference on the mean number of sick leave availed of employees from the four branches. Level of significance: .01 Degree of freedom = k –1 = 4 -1 = 3 N – k = 18 – 4 = 14 Critical F value: 5.56 Normal Curve 5.56 Decision rule: Reject the null hypothesis if F > 5.56; otherwise, do not reject the null hypothesis. Computation: Basilio, Renz Tyrone P. STATS A-232 SSA= ∑knj (xbarj – grand mean)2 = 4(13.75 – 12.11) 2 + 5(10.2-12.11)2+5(16- 12.11)2+4(8.5 – 12.11)2 = 156.79 SSW= (n1 – 1) (S21) + (n2 – 1) (S22) + (n3 – 1) (S23) + (n4 – 1) (S24) = 3(12.25) + 4(0.70) + 4(2.50) + 3(1.67) = 54.56 SST= SSA + SSW = 156.79 + 54.56 = 211.35 MSA= SSA / k-1 = 156.79/ 4-1 = 52.26 MSW= SSW/ N- k = 54.56/ 18-4= 3.90 F = MSA/MSW = 52.26/3.90 = 13.40 Conclusion: Reject the null hypothesis, 13.40 > 5.56; which means there is significant difference on the mean number of sick leave availed of employees from the four branches. Recommendation: Based on the findings, it appears that certain employees at each branch are taking advantage of their sick leave, as the mean average days of leave each branch differs significantly. Sick leave is compensated time off from work that employees can utilize to be at home and care for their health needs. Abusing sick days, on the other hand, not only affects productivity but also puts additional strain on your coworkers, who will have to pick up the slack while you are out of the office. As a result, I strongly advise the general manager to instruct each of the branch managers to closely monitor each employee's leave and to require evidence such as a medical certificate for the leave to be legal. This step will undoubtedly reduce the number of sick days and, as a result, the risk of unproductiveness in the bank. 2. A student researcher studied the daily coffee consumptions (in ounces) of people from Cavite, Laguna, Batangas, and Quezon. The table next page shows the summary results. At a .05 alpha, is there significant difference on the mean daily coffee consumptions of the people from the four places? Cavite Laguna Batangas Quezon Sample 30 25 45 24 Mean 3.7 3.4 4.0 3.5 Variance 4.2 4.1 3.9 3.3 Grand Mean = (3.7 +3.4+4+3.5) / 4 = 3.65 Null Hypothesis: There is no significant difference on the mean daily coffee consumptions of the people from the four places. Alternative Hypothesis: There is significant difference on the mean daily coffee consumptions of the people from the four places. Level of Significance: .05 Degree of freedom: k-1 = 4 -1 = 3 N- k 124-4 = 120 Critical F- value: 2.68 Basilio, Renz Tyrone P. STATS A-232 Normal curve 2.68 Decision Rule: Reject the null hypothesis if F > 2.68; otherwise, do not reject the null hypothesis. Computation: SSA= ∑knj(xbarj – grand mean)2 = 30(3.7-3.65)2+ 25(3.4-3.65)2+ 45(4.0 – 3.65)2+24(3.5-3.65)2 = 7.69 SSW= (n1 – 1) (S21) + (n2 – 1) (S22) + (n3 – 1)(S23) + (n4 – 1) (S24) = 29(4.2) + 24(4.1) + 44(3.90) + 23(3.3) = 467.70 SST= SSA + SSW = 7.69 + 467.70 = 475.39 MSA= SSA/ k - 1 = 7.69/ 4-1 = 2.56 MSW= SSW/ N-k = 467.70/ 124 -4 = 3.90 F = MSA/MSW = 2.56/ 3.90 = 0.66 Conclusion: Do not reject the null hypothesis, 0.66 < 2.68; which means there is no significant difference on the mean daily coffee consumptions of the people from the four places. Recommendation: It is demonstrated that there is no significant difference in the mean daily coffee consumptions of the people from the four areas based on the ANOVA test result, which is less than the critical value. It's possible that this occurred since the four locations are all in the same country and are close to one another. As a result, it is strongly advised that the researcher increase the population of his or her study in order to conduct more diverse and realistic research. Having said that, due to the comparable surroundings, they will be able to prevent similar outcomes.