MGM600-0803B-02 Applied Managerial Decision-Making - Phase 3 Essay

MGM600-0803B-02 Applied Managerial Decision-Making - Phase 3 Discussion Board 2 - Essay Exampleanalysis of variance test is of two types, One-Factor ANOVA and Two-Factor ANOVA (with and without replication). In One-Factor ANOVA, Dependent Variable (numerical) may be affected by one in helpless inconsistent (categorical). In Two-Factor ANOVA, Dependent Variable (numerical) may be affected by two independent variables (categorical).An ANOVA test is useful, when different data sets (more than two) need to be compared for similar distribution population (treatment. A t-test deal also be used for comparison however, it is limited to two samples. For more than two data sets, many t-test needs to be carried out sequentially that bequeath increase statistical error due to accumulation. An ANOVA test lessons the statistical error due to analysis of entire data set at at one time and makes it more likely that a determination can be made in valid manner (Skrzypczak, 2006 Pieniazekon, A. 200 7).Suppose 10 days mundane defect rates for automotive computer chips manufactured production data for four different plant locations were available. Now for this data ANOVA can be useful for determining whether the observed differences in the plants sample mean defect rates merely due to random variation or the observed differences amid the plants defect rates too great to be attributed to chance. Here ANOVA hypothesis will be mean defects rates are same for at all four plants (H0) and at least one mean differs from the others (H1). The One-Factor ANOVA dependent variable will be defect rate and independent variable will be plant locations (Doane, & Seward, 2007).Suppose a hospital management needs to test whether a patients length of a baulk (LOS) depends on the diagnostic-related group (DRG) code and the patients age group, so that resources and fixed costs are correctly allocated. Considering case of bone fracture, LOS is a dependent variable measured in hours and type of fra cture (facial, radius or ulna, hip or femur, other lower extremity, all other) and