ANOVA in Excel

What is ANOVA in Excel?

ANOVA in Excel is a built-in statistical test that is used to analyze the variances. For example, when you buy a new item, we usually compare the available alternatives, which eventually helps us choose the best from all the available alternatives. Using the ANOVA test in excel can help us test the different data sets against each other to identify the best from the lot.

Assume you conducted a survey on three different flavors of ice creams, and you have collated opinions from users. Now you need to identify which flavor is best among opinions. Here we have three different flavors of ice creams, and these are called alternatives, so by running the ANOVA test in excel, we can identify the best from the lot.

ANOVA in Excel

You are free to use this image on your website, templates etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: ANOVA in Excel (wallstreetmojo.com)

Where is ANOVA in Excel?

ANOVA is not a function in excel. If you have already tried to search for ANOVA in excel, you must have failed miserably because ANOVA is part of the “Data Analysis” tool in excel.

Data Analysis is available under the DATA tab in excel.

example 1.1

Now you should see “Data Analysis” under the “DATA” tab.

How to do ANOVA Test in Excel?

Following is the example to understand how to do an ANOVA test in excel.

You can download this ANOVA Excel Template here – ANOVA Excel Template

For this example, consider the below data set of three students marks in 6 subjects.

Excel Anova Example 2.1

Above are the scores of students A, B, and C in 6 subjects. Now we need to identify whether the scores of three students are significant or not.

  • Step 1: Under the Data tab, click on “Data Analysis.”
excel anova example 2.2
  • Step 2: In the “Data Analysis” window, select the first option, “Anova: Single Factor.”
Excel Anova Example 2.3
  • Step 3: In the next window for “Input Range,” select student scores.
Excel Anova Example 2.4
  • Step 4: Since we have selected the data with headers, check the box “Labels in First Row.”
Excel Anova Example 2.5
  • Step 5: Now select the output range as one of the cells in the same worksheet.
Excel Anova Example 2.6
  • Step 6: Click on Ok to complete the calculation. Now we will have detailed Anova: Single Factor analysis.
Excel Anova Example 2.7

Before we interpret the results of ANOVA, let’s look at the hypothesis of ANOVA. To compare the results of the excel ANOVA test, we can frame two hypotheses, i.e., “Null Hypothesis” and “Alternative Hypothesis.”

The Null Hypothesis is “there is no difference between scores of three students.”

The alternative Hypothesis is “there is at least one of the mean is different.”

If “ F value > FCrit value,” then we can reject the null hypothesis.

If “F value < FCrit value,” then we cannot reject the null hypothesis.

If  “P-value < Alpha value,” then we can reject the null hypothesis.

If “P-value > Alpha value,” then we cannot reject the null hypothesis.

Note: Alpha Value is the significance level.

No go back and look at the result of ANOVA.

Excel Anova Example 2.8

First, look at the “P-Value,” i.e., 0.511, which is greater than alpha or significance value (0.05), so we cannot reject the null hypothesis.

Next, F value 0.70 is less than the FCrit value 3.68, so we cannot reject the null hypothesis.

So, we can conclude the test as “Scores of Students A, B, and C are not significantly different.”

Things to Remember

Recommended Articles

This has been a guide to ANOVA in Excel. Here we discuss how to do the ANOVA test in excel with the help of an example and downloadable excel sheet. You can learn more about excel from the following articles –

  • 35+ Courses
  • 120+ Hours
  • Full Lifetime Access
  • Certificate of Completion
LEARN MORE >>