ANOVA (Analysis of Variance):

• What it is: Used to compare the means of more than two groups. ANOVA essentially generalizes the t-test to more than two groups.
• Types:
  • One-way ANOVA: One independent variable.
  • Two-way ANOVA: Two independent variables.
• Assumptions: Normally distributed populations, equal variances across populations, and independent samples.
• Use case: Let's say you're testing three different trading algorithms and want to see which one has the highest average return. Instead of doing multiple t-tests between each pair, you can use ANOVA to see if there's a significant difference among the three.

Remember, the tests themselves don't tell you where the differences are (e.g., which group is different), especially in cases like ANOVA. If you find a significant difference using ANOVA, you'd often use additional post hoc tests to determine which groups are different from each other.