Two Types of Categories to Compare

Comparisons of Independent Categories

Most commonly, we wish to compare whether a certain dependent variable differs between independent groups of observations. For instance, you might wish to compare sales levels between:
  • Two groups, such as salespeople with versus without previous sales experience (i.e. compare the average levels of sales between these two groups; here sales experience is the differentiating factor and it has two levels);
  • Multiple groups, including:
    • Groups falling under one factor, such as sales differences between four different sales regions (here “Region” is a single differentiating factor and it has four levels).
    • Subgroups formed from combinations of multiple ...

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