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8/7/2019 Analysis of Variance 19 Apr

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 TOPIC TOPIC

 ANALYSIS ANALYSIS OFOF

 VARIANCE VARIANCE

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SEQUENCESEQUENCE IntroductionIntroduction

Practical study of the TopicPractical study of the Topic inclincl fewfew

definitions and Terminologiesdefinitions and Terminologies

Case Study, SWOT Analysis (strengths,Case Study, SWOT Analysis (strengths,

weaknesses, opportunities & threats)weaknesses, opportunities & threats)

RecommendationsRecommendations ReferencesReferences

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Definition of Definition of Analysis of  Analysis of 

 Variance Variance Analysis Analysis of of variance variance isis usedused inin

financefinance inin severalseveral differentdifferent ways, ways, suchsuch asas toto forecastforecast thethemovementsmovements of  of security  security 

pricesprices by by firstfirst determining determining  which which factorsfactors influenceinfluence

stock stock fluctuationsfluctuations..

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 Analysis Of  The Variation Analysis Of  The Variation

 A A  Variance Variance isis consideredconsidered favorablefavorable if if actualactual costscosts areare lessless thanthan standardstandardcostscosts;; itit isis unfavorableunfavorable if if actualactual costscostsexceedexceed standardstandard costscosts.. UnfavorableUnfavorable

 variances variances needneed furtherfurther investigationsinvestigations..

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CL A SSES OF A N A LY SIS OF CL A SSES OF A N A LY SIS OF 

 VAR I A  TION MODELS VAR I A  TION MODELS

There are three classes of ANOVA models: There are three classes of ANOVA models:

FixedFixed--Effects ModelsEffects Models.. Assume that the data came Assume that the data came

fromfrom normal populationsnormal populations which may differ only in which may differ only intheir means. (Model 1)their means. (Model 1)

Random Effects ModelsRandom Effects Models.. Assume that the data Assume that the data

describe a hierarchy of different populations whosedescribe a hierarchy of different populations whosedifferences are constrained by the hierarchy. (Model 2)differences are constrained by the hierarchy. (Model 2)

MixedMixed--Effect ModelsEffect Models .. Describe the situations whereDescribe the situations where

both fixed and random effects are present. (Model 3)both fixed and random effects are present. (Model 3)

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 Variation Variation VariationVariation is the sum of squares of theis the sum of squares of the

deviations of the values from the mean of deviations of the values from the mean of 

those valuesthose values

As long as the values are not identical, As long as the values are not identical,

there will be variationthere will be variation

Abbreviated as SS for Sum of Squares Abbreviated as SS for Sum of Squares

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Degrees of FreedomDegrees of Freedom

The The d egrees of free d om d egrees of free d om are the number of valuesare the number of values

that are free to vary once certain parametersthat are free to vary once certain parametershave been establishedhave been established

 Abbreviated as Abbreviated as df df 

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FF F is the F test statisticF is the F test statistic

There will be an F test statistic for each source There will be an F test statistic for each source

except for the errorexcept for the error F is the ratio of two sample variancesF is the ratio of two sample variances

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 The A NO VA  Table The A NO VA  Table

The ANOVA table is composed of rows, each The ANOVA table is composed of rows, eachrow represents one source of variationrow represents one source of variation

For each source of variation «For each source of variation «  The variation is in the SS column The variation is in the SS column

 The degrees of freedom is in the The degrees of freedom is in the df df columncolumn

 The variance is in the MS column The variance is in the MS column

 The MS value is found by dividing the SS by the The MS value is found by dividing the SS by the df df 

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 The A NO VA  Table The A NO VA  Table

SourceSource SSSS(variation)(variation)

df df MSMS(variance)(variance)

FF

Explained*Explained*

Error Error 

TotalTotal

The explained* variation has

different names depending on the

particular type of  ANOVA problem

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Example 1Example 1

SourceSource SSSS df  df MSMS FF

ExplainedExplained 18.918.9 33

Error Error 72.072.0 1616

TotalTotal

The Sum of Squares and Degrees

of Freedom are given. Complete

the table.

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Example 1Example 1 ²  ² Find  TotalsFind  Totals

SourceSource SSSS df  df MSMS FF

ExplainedExplained 18.918.9 33

Error Error 72.072.0 1616

TotalTotal 90.990.9 1919

 Add the SS and df columns to get

the totals.

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Example 1Example 1 ²  ² Find FFind F

SourceSource SSSS df  df MSMS FF

ExplainedExplained 18.918.9 33 6.306.30 1.401.40

Error Error 72.072.0 1616 4.504.50

TotalTotal 90.990.9 1919 4.784.78

F = 6.30 / 4.50 = 1.4

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PRA CTIC A L  C A SE PRA CTIC A L  C A SE 

S TUD Y S TUD Y 

Ministry of Health of PakistanMinistry of Health of Pakistan

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Ministry of Health of PakistanMinistry of Health of Pakistan

 The The MinistryMinistry of of HealthHealth of of PakistanPakistanisis aa governmentgovernment agency agency responsibleresponsible forforPakistan'sPakistan's healthhealth systemsystem..

ItIt isis headedheaded by by thethe HealthHealth MinisterMinister of of PakistanPakistan onon democraticdemocratic levellevel

EachEach of of thethe fourfour provincesprovinces of of PakistanPakistan hashasitsits respectiverespective healthhealth departmentdepartment andandSecretariat,Secretariat, underunder thethe supervisionsupervision of of aa

healthhealth ministerminister of of thatthat provinceprovince..

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SPECIFIC HE A LTHSPECIFIC HE A LTH

PR OJECTSPR OJECTS National Programme for Family Planning &National Programme for Family Planning &Primary Health Care(LHW ProgrammePrimary Health Care(LHW Programme)). LHW. LHW

Programme is the world's largest communityProgramme is the world's largest community

based primary health care programme deliveringbased primary health care programme deliveringservices through 96,000 LHWs in their ownservices through 96,000 LHWs in their own

communitiescommunities

Ex panded Program on Immunization (EPIEx panded Program on Immunization (EPI).). EPI EPI 

is aimed at immunization children againstis aimed at immunization children against

Childhood  Tuberculosis, PoliO, Diphtheria,Childhood  Tuberculosis, PoliO, Diphtheria,

Measles and  Tetanus.Measles and  Tetanus.

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NationalNational Maternal,Maternal, NeonatalNeonatal andand ChildChild

HealthHealth (MNCH)(MNCH) ProgrammeProgramme.. The The aimaim of  of 

thethe MNCHMNCH programme programme isis toto improveimproveaccessibilityaccessibility andand qualityquality of of  healthhealth servicesservices

andand fillfill thethe resourceresource gapsgaps without without

duplicatingduplicating inputsinputs oror activitiesactivities..

NationalNational ProgrammeProgramme forfor PreventionPrevention andand

ControlControl of of HepatitisHepatitis.. MoreMore thanthan 400400,,000000

 persons persons havehave beenbeen vaccinated vaccinated throughthrough thisthis

 programme, programme, w hile w hile 104104 hospitalshospitals havehave beenbeen

 well well equippedequipped toto provide provide freefree of  of costcost

treatmenttreatment toto thethe atientsatients..

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NationalNational A  IDS A IDS ControlControl ProgrammeProgramme

Pakistan·sPakistan·s FederalFederal MinistryMinistry of  of HealthHealth

establishedestablished NationalNational A  IDS A IDS ControlControlProgrammeProgramme (N A CP)(N A CP) inin 19861986--8787.. InIn itsits earlyearly

stages,stages, thethe ProgrammeProgramme focusedfocused onon

laboratorylaboratory diagnosisdiagnosis of of suspectedsuspected HI V HI V casescases..

NationalNational Tuberculosis Tuberculosis ControlControl ProgrammeProgramme

HavingHaving treatedtreated 700700,,000000 TB TB  patients patients soso far,far,

freefree diagnosisdiagnosis andand treatment,treatment, andand public public

awarenessawareness regardingregarding thethe diseasedisease areare thethe

mainmain com onentscom onents of of thisthis ro rammero ramme..

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Health FactsHealth Facts

HospitalsHospitals : 965: 965

DispensariesDispensaries : 4,916: 4,916

Basic Health Units : 4,872Basic Health Units : 4,872

MCH CentersMCH Centers :: 1,1381,138

 TB Centers : 371 TB Centers : 371 First Aid PointsFirst Aid Points : 1,080: 1,080

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Human Resources(Registered, 2007)Human Resources(Registered, 2007) DoctorsDoctors :: 1,07,8351,07,835

Doctors specialistsDoctors specialists :: 19,62319,623 DentistsDentists :: 7,4467,446 Dental specialistsDental specialists :: 433433

NursesNurses :: 43,64643,646 MidwivesMidwives :: 2,7882,788 Lady Health VisitorsLady Health Visitors :: 3,8643,864 Lady Health WorkersLady Health Workers :: 95,00095,000 Lady Health Supervisors:Lady Health Supervisors: 3,3853,385 Population per doctorPopulation per doctor :: 1,4751,475 Population per dentistPopulation per dentist :: 21,36221,362

Population per nursePopulation per nurse :: 3,6443,644

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 Academic Institutions(2007) Academic Institutions(2007)

Public sector Medical colleges :Public sector Medical colleges : 2323Dental collegesDental colleges : 9: 9 Private sector Medical colleges :Private sector Medical colleges : 2424Dental collegesDental colleges :: 1212

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S WOTS WOTS TR ENG THS TR ENG TH� Highly Qualified Staff � Highly Qualified Staff 

� Reasonable Prices� Reasonable Prices�

Offers training, certifications & other employees�

Offers training, certifications & other employeesfacilitiesfacilities

 WE AK NESSES WE AK NESSES

�Lack of 

 Technology 

�Lack of 

 Technology 

� Limited funds� Limited funds

� Lack of fore sightedness� Lack of fore sightedness

� Lack of decision making � Lack of decision making 

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O pportunitiesO

 pportunities.. Proper advertisement (Direct mail,Proper advertisement (Direct mail,sponsorships, place mats, radio,sponsorships, place mats, radio,

television)television).. Better use of database (Identify Better use of database (Identify 

professionals, use of database)professionals, use of database)

.. Educational level (EducateEducational level (Educatecustomers/Non credit courses throughcustomers/Non credit courses throughlocal College)local College)

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 Threats Threats

New market players are coming inNew market players are coming innear future.near future.

Current price war may reach at aCurrent price war may reach at aposition where only brand namesposition where only brand names

survive.survive.

Due to expensive quality of serviceDue to expensive quality of servicenow a days can be affected.now a days can be affected.

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R ECOMMENDA  TIONSR ECOMMENDA  TIONS

GoodGood andand BroadBroad Advertisement Advertisement bebe mademade totoattractattract internationalinternational marketsmarkets..

DatabaseDatabase bebe mademade availableavailable inin allall partspartsof of country country..

EducationalEducational levellevel bebe promotedpromoted(Educate(Educate customers/Noncustomers/Non creditcredit

coursescourses throughthrough locallocal Colleges)Colleges)

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ReferencesReferences I collected my data fromI collected my data from " The Validity of " The Validity of 

Comparative Experiments"Comparative Experiments"..  J ournal of the Royal  J ournal of the Royal 

Statistical Society Statistical Society .. http://www.jstor.org http://www.jstor.org 

http://www.health.gov.pk/http://www.health.gov.pk/

I also collected my data from MBA course book.I also collected my data from MBA course book.

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 THANKS THANKS