DEFINITION of 'TwoWay ANOVA'
A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable. A twoway ANOVA test analyzes the effect of the independent variables on the expected outcome along with their relationship to the outcome itself. Random factors would be considered to have no statistical influence on a data set, while systematic factors would be considered to have statistical significance.
BREAKING DOWN 'TwoWay ANOVA'
An ANOVA test is the first step in identifying factors that influence a given outcome. Once an ANOVA test is performed, a tester may be 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.

Balanced ANOVA
A statistical test used to determine whether or not different ... 
Variability
The extent to which data points in a statistical distribution ... 
Regression
A statistical measure that attempts to determine the strength ... 
Expected Value
Anticipated value for a given investment. In statistics and probability ... 
Endogenous Variable
A classification of a variable generated by a statistical model ... 
Outcome Bias
A decision based on the outcome of previous events without regard ...

Economics
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Fundamental Analysis
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Investing Basics
Regression Basics For Business Analysis
This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. 
Investing
4 Variables That Could Affect Your Portfolio This Earnings Season
... 
Retirement
Variable Annuity Basics
Find out how variable annuities can help you plan for retirement by offering the returns of the stock market with the guarantee of insurance. 
Financial Advisors
Variable Annuities: The Pros and Cons
Variable annuities are one of the most complicated financial instruments. Here is an in depth look at their pros and cons. 
Retirement
How a Variable Annuity Works After Retirement
These investments can provide extra income after you retire. Here’s a guide to when and how you will receive the payout. 
Economics
Can Investors Trust Official Statistics?
The official statistics in some countries need to be taken with a grain of salt. Find out why you should be skeptical. 
Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Fundamental Analysis
Guide To Excel For Finance: Advanced Calculations
Monte Carlo SimulationIn its most basic form, the Monte Carlo simulation seeks to simulate realworld outcomes by showing a range of outcomes for a given variable set. For example, in the casino ...

What is the difference between direct costs and variable costs?
Learn about variable costs and direct costs, how direct costs and variable costs are classified and the differences between ... Read Answer >> 
When does positive correlation prove causation?
When is correlation causation? Never. Use correlation wisely, the way a true statistician would. Don't get fooled by fancy ... Read Answer >> 
How liquid are variable annuities?
Understand whether variable annuities are liquid. Learn more about the two types of variable annuities and which is more ... Read Answer >> 
How should I interpret a negative correlation?
Learn more about correlation and how businesses analyze variables. Find out how negative correlations are interpreted by ... Read Answer >> 
How are variable annuities regulated?
Discover the various rules that the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority ... Read Answer >> 
Do production costs include all fixed and variable costs?
Learn more about fixed and variable costs and how they affect production costs. Understanding how to graph these costs can ... Read Answer >>