Analysis of variances (ANOVA)

Analysis of variances (ANOVA),

Definition of Analysis of variances (ANOVA):

  1. Analysis of variances (ANOVA) statistical models were initially introduced in a scientific paper written by Richard Fisher, a British mathematician, in the early 20th century. He is credited with first introducing the term variance.

  2. Quality control: Methodology employed in determining if the variance between the mean in different sets of observations is greater than what may be attributable to chance.

  3. Accounting: Investigation of causes of difference between actual costs and estimated or standard costs.

  4. Analysis of variances (ANOVA) is used in finance in several different ways, such as to forecast the movements of security prices by first determining which factors influence stock fluctuations. This analysis can provide valuable insight into the behavior of a security or market index under various conditions.

  5. General: Statistical technique for determining the degree of difference or similarity between two or more groups of data. It is based on the comparison of the average value of a common component.

Meaning of Analysis of variances (ANOVA) & Analysis of variances (ANOVA) Definition