ANOVA

ANOVA is used to determine whether there are any statistically significant differences between the means of three or more independent groups. In the case of only two samples, we can use the t-test to compare the means of the samples, but in the case of more than two samples, it may be very complicated. We are going to study the relationship between quantitative dependent variable returns and single qualitative independent variable stock. We have five levels of stock: stock1, stock2, .. stock5.

We can study the five levels of stock by means of a box plot and we can compare by executing the following code:

> DataANOVA = read.csv("C:/Users/prashant.vats/Desktop/Projects/BOOK R/DataAnova.csv") 
>head(DataANOVA) 

This displays a few lines of the data used for analysis in tabular format:

	Returns	Stock
1	1.64	Stock1
2	1.72	Stock1
3	1.68	Stock1
4	1.77	Stock1
5	1.56	Stock1
6	1.95	Stock1

>boxplot(DataANOVA$Returns ~ DataANOVA$Stock) 

This gives the...