How can I use Microsoft excel to compute ANOVA computations? I have a data set that I would like to know how to go about this in excel. Can I use this package to compute correlations too? how do I arrange my data set and what other analysis tools does this package offer?
Using excell to analyse ANOVA computaions of the data
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Let me first explain to you the process for computation of single factor ANOVA for excel spreadsheet. Single factor ANOVA which is also known as one-way ANOVA is generally prepared for computation of null hypothesis.
Let's take an example of table below.
 Table shows salaries of teachers with degree in Economics, Medicine and History.
H0: μ1 = μ2 = μ3
H1=Â at least one means is different.
Now for computation of single factor ANOVA we need to perform the below mentioned steps.
Step I. From the Data tab click to Data Analysis.
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Step II Now click Ok to ANOVA:Single Factor as shown in the image below.
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Step III. Now you have to click to the input range box and in this case our input range is A2:C10.
Step IV. Now we need to click output range box to select cell for the output. E.g. I select cell E1.
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Step V. Now click Ok.
The result will be as follows:
Conclusion: When F>F crit, Null hypothesis is rejected.Here 15.196 is greater than 3.443 and that is why Null hypothesis is rejected. Here means of 3 populations are equal too.