Analysis of Variance (ANOVA)
📈 Investing
Quick Definition
Analysis of Variance (ANOVA) is a statistical method used to determine if there are any statistically significant differences between the means of three or more independent (unrelated) groups.
Formula
SS_{total} = SS_{between} + SS_{within}Examples
- 1Comparing the average returns of three different investment portfolios to determine if one outperforms the others significantly.
- 2Analyzing the performance of different marketing strategies on sales revenue across multiple regions.
- 3Examining the effect of different interest rates on loan repayment rates among various demographic groups.
Tags
statisticsdata-analysisinvestment-analysisportfolio-managementfinancial-modeling
Related Terms
Other terms you might find helpful
P-Value
The p-value is a statistical measure that helps determine the significance of the results obtained from a data set, indicating the probability of observing results at least as extreme as those measured when the null hypothesis is true.
Standard Deviation
Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values.
Quick Info
Category:Investing
Difficulty:advanced
Last Updated:6/17/2025