The use of ANOVA is majorly determining the different processes of product creation in order to see which process has cost efficiency. The process of the test compares two groups at the same time. This is to decide whether a relationship occurs. In the ANOVA result there is F-ratio or the F statistics. In this ratio, there is analysis of multiple groups of data to decide the variations between each sample. However, if there is no difference in the tested data, the name would be null hypothesis.
In the ANOVA F-ratio with null hypothesis, the statistical result would be one. In other words, all the possible values of F statistic distribution is F-distribution. Basically, this is the form of a distribution function group along with the characteristic numbers. The name of the numerator is the degrees of freedom and the denominator degrees of freedom.
There are a few examples of the use of the ANOVA test. Generally, this method is very useful for business researchers to even students from colleges. In the business, R&D researchers use the two different processes to create a product. This is to foresee which process is better and which process is cost efficient. There are also many types of ANOVA test based on a number of factors. Especially, when the data is experimental, the application is highly necessary.
People choose this method if there is no access to statistical software from the ANOVA computing by hand. Therefore, if the samples are small, it becomes a suitable method. Experimental designs allow the sample sizes to be the same with the level of combinations from the various factors.
