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Trading and Investment Terms

Analysis of Variance (ANOVA)

 It is a parametric statistical technique used to compare datasets. This technique was invented by R.A. Fisher.

An ANOVA test is a way to find out if the surveyor experiment results are significant. 

In other words, they help you to figure out if you need to reject the null hypothesis or accept the alternate hypothesis.

You’re testing groups to see if there’s a difference between them. 

For Examples:

  1. A group of psychiatric patients is trying three different therapies: Counseling 

                           Medication

                           Biofeedback

 You want to see which therapy is better than the other.

  1.  A manufacturer has two different processes to make light bulbs. They want to know which process is better than the other.
  2. Students from different colleges take the same exam. You want to see which college outperforms the other.

 

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