(the covariate), we would have a clearer test of our original hypothesis. This is exactly what
the analysis of covariance is designed to do, and this is precisely the situation in which it
does its job best—its job in this case being to reduce the error term.
A more controversial use of the analysis of covariance concerns situations in which the
treatment groups have different covariate (driving experience) means. Such a situation (us-
ing the same hypothetical experiment) is depicted in Figure 16.3, in which two of the treat-
ments have been displaced along the Xaxis. At the point at which the three regression lines
intersect the vertical line , you can see the values , , and. These are the
adjusted Ymeansand represent our best guess as to what the Ymeans would have been if
the treatments had not differed on the covariate. The analysis of covariance then tests
whether these adjustedmeans differ significantly, again using an error term from which
the variance attributable to the covariate has been partialled out. Notice that the adjusted
performance means are quite different from the unadjusted means. The adjustment has
increased 1 and decreased 3.
Although the structure and procedures of the analysis of covariance are the same re-
gardless of whether the treatment groups differ on the covariate means, the different ways
of visualizing the problem as represented in Figures 16.2 and 16.3 are instructive. In the
first case, we are simply reducing the error term. In the second case, we are both reducing
the error term andadjusting the means on the dependent variable. We will have more to say
about this distinction later in the chapter.
Assumptions of the Analysis of Covariance
Aside from the usual analysis of variance assumptions of normality and homogeneity of
variance, we must add two more assumptions. First we will assume that whatever the rela-
tionship between Yand the covariate (C), this relationship is linear.^5 Second, we will assume
homogeneity of regression—that the regression coefficients are equal across treatments—
. This is merely the assumption that the three lines in Figure
16.2 or 16.3 are parallel, and it is necessary to justify our substitution of one regression line
(the pooled within-groups regression line) for the separate regression lines. As we shall see
shortly, this assumption is testable. Note that no assumption has been made about the
nature of the covariate; it may be either a fixed or a random variable. (It can even be a cate-
gorical variable if we create dummy variables to represent the different levels of the vari-
able, as we did in the earlier parts of this chapter.)
b* 1 =b* 2 =b* 3 = Á =b*
Y Y
X=X Y¿ 1 Y¿ 2 Y¿ 3
600 Chapter 16 Analyses of Variance and Covariance as General Linear Models
X
Driving experience
Performance
(X 1 ,Y 1 )
(X 3 ,Y 3 )
Y' 1
(X 2 ,Y 2 )
Y' 2
Y' 3
Figure 16.3 Hypothetical data illustrating mean adjustment in the analysis
of covariance
(^5) Methods for handling nonlinear relationships are available but will not be discussed here.
adjusted Y
means
homogeneity of
regression