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You're reading from  The Statistics and Machine Learning with R Workshop

Product typeBook
Published inOct 2023
Reading LevelIntermediate
PublisherPackt
ISBN-139781803240305
Edition1st Edition
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Author (1)
Liu Peng
Liu Peng
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Liu Peng

Peng Liu is an Assistant Professor of Quantitative Finance (Practice) at Singapore Management University and an adjunct researcher at the National University of Singapore. He holds a Ph.D. in statistics from the National University of Singapore and has ten years of working experience as a data scientist across the banking, technology, and hospitality industries.
Read more about Liu Peng

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Introducing ANOVA

ANOVA is a statistical hypothesis testing method used to compare the means of more than two groups, which extends the two-sample t-test discussed in the previous section. The goal of ANOVA is to test potential significant differences among the group means (the between-group variability) while accounting for the variability within each group (the within-group variability).

ANOVA relies on the F-statistic in hypothesis testing. The F-statistic is a ratio of two estimates of variance: the between-group variance and the within-group variance. The between-group variance measures the differences among the group means, while the within-group variance represents the variability within each group. The F-statistic can be calculated based on these two group variances.

In hypothesis testing, the null hypothesis for ANOVA states that all group means are equal, and any observed differences are due to chance. The alternative hypothesis, on the other hand, suggests that at...

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You have been reading a chapter from
The Statistics and Machine Learning with R Workshop
Published in: Oct 2023Publisher: PacktISBN-13: 9781803240305

Author (1)

author image
Liu Peng

Peng Liu is an Assistant Professor of Quantitative Finance (Practice) at Singapore Management University and an adjunct researcher at the National University of Singapore. He holds a Ph.D. in statistics from the National University of Singapore and has ten years of working experience as a data scientist across the banking, technology, and hospitality industries.
Read more about Liu Peng