What is 'Analysis Of Variance  ANOVA'
Analysis of variance (ANOVA) is a statistical analysis tool that separates the total variability found within a data set into two components: random and systematic factors. The random factors do not have any statistical influence on the given data set, while the systematic factors do. The ANOVA test is used to determine the impact independent variables have on the dependent variable in a regression analysis.
BREAKING DOWN 'Analysis Of Variance  ANOVA'
The ANOVA test is the initial step in identifying factors that are influencing a given data set. After the ANOVA test is performed, the analyst is able to perform further analysis on the systematic factors that are statistically contributing to the data set's variability. ANOVA test results can then be used in an Ftest on the significance of the regression formula overall.

TwoWay ANOVA
A statistical test used to determine the effect of two nominal ... 
ThreeWay ANOVA
A statistical test used to determine the effect of three nominal ... 
Balanced ANOVA
A statistical test used to determine whether or not different ... 
Analysis Of Variances  ANOVA
An analysis of the variation between all of the variables used ... 
Random Factor Analysis
A statistical analysis performed to determine the origin of random ... 
Random Variable
A variable whose value is unknown or a function that assigns ...

Economics
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Professionals
Regression Analysis
CFA Level 1  Regression Analysis 
Economics
Understanding Statistics
Statistics provide the means to analyze data and then summarize it into a numerical form. 
Professionals
Common Probability Distributions
CFA Level 1  Common Probability Distributions  Basics 
Investing
Systematic Risk
Systematic risk, also known as volatility, nondiversifiable risk or market risk, is the risk everyone assumes when investing in a market. Think of it as the overall, aggregate risk that comes ... 
Investing Basics
Unlevered Beta
Learn about how this number provides a measure of how much systematic risk a firm's equity has compared to the market. 
Fundamental Analysis
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Professionals
Scenario / WhatIf Analysis
We look at some ways that you can evaluate your project. 
Economics
What is Systematic Sampling?
Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample. 
Fundamental Analysis
Explaining Variance
Variance is a measurement of the spread between numbers in a data set.

How do markets account for systematic risk?
Find out how market participants deal with systematic risk, or the kind of market risk that cannot be diversified away through ... Read Answer >> 
What are the advantages and disadvantages of using systematic sampling?
Learn about the primary advantages and disadvantages of using a systematic sampling method when conducting research of a ... Read Answer >> 
What variables are most important when making a prediction through sensitivity analysis?
Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >> 
What kinds of securities are influenced most by systematic risk?
Learn what systematic risk is, how investors can measure it with beta and how securities with a beta greater than 1 are most ... Read Answer >> 
When is it better to use systematic over simple random sampling?
Learn when systematic sampling is better than simple random sampling, such as in the absence of data patterns and when there ... Read Answer >> 
What is the difference between linear regression and multiple regression?
Learn the difference between linear regression and multiple regression and how multiple regression encompasses not only linear ... Read Answer >>