Final answer:
ANOVA is correctly used when data is numerical and there are more than two groups being compared. It tests for significant differences in group means under the assumption of normally distributed, equal variance, and independent samples.
Step-by-step explanation:
ANOVA, or Analysis of Variance, is a statistical method used to compare the means of three or more groups to determine if at least one group mean is significantly different from the others. The correct situation in which to perform an ANOVA is when: B) Data is numerical with more than two groups. When conducting a one-way ANOVA, several assumptions must be met, including that each population from which a sample is taken is normally distributed, all samples must be randomly selected and independent, the populations must have equal variances, the factor being studied is a categorical variable, and the response is a numerical variable. The one-way ANOVA uses the F distribution to calculate the F statistic, comparing the variance within each group to the variance between the group means.