What data from an ANOVA table contribute to business decision making?

Question

What data from an ANOVA table contribute to business decision making?

Answer 1

when testing ANOVA, you would like to know whether the difference in level of your testing factors (the independent factors = X1, X2, X3, etc.) have significant impact to the dependent factor (Y) or not. If you know that they have impact, you can adjust your resource.

For example, you would like to test impact of advertising budget you put for a product so you construct the test with different level of advertising budget (X) and the sales volume or sales revenue of the product (Y). If the testing said that it has significant impact => see the p-value (if p-value is less than your significant level - that means the level of advertising budget has impact on the sales volume/revenue. But at this point, you haven't known whether it positively or negatively impacted yet, you can take a look at your data trend. IF it's positively impact, then you can use this information to make decision on whether you should allocate the advertising budget for the product in order to boost up sales.