The two-way ANOVA is an extension of the one-way ANOVA and examines the effect of two independent variables on a dependent variable, while testing for interaction effects. It includes specific assumptions about sample distribution, independence, and equal variances, and allows for the testing of three null hypotheses. An example using teachers' social responsibility shows the significance of socio-economic status (SES) while highlighting that there is no significant effect of treatment exposure on social responsibility.