REPORT ON:

Measures of Relationship

Submitted by: Syed Shujaat Hussain

ROLL# AH-533404

Syed Shujaat Hussain Roll. No. AH-533404, RWP

Acknowledgement
The hardest steel goes through the hottest furnace. The same was the case with me. I faced many problems when I started the work on report but I am greatly thankful to Almighty Allah for enabling me to get successfully through my responsibilities. Very warm and special thanks to my respected teachers, whose real dedication and devotion kindled in me hope and light. Sir I thank your ability of extracting the very best out of me, for your patience and perseverance, and also for acknowledging the efforts made by me during the whole semester. Thank you. God Bless you From: - Syed Shujaat Hussain

Syed Shujaat Hussain Roll. No. AH-533404, RWP

Table of Contents
TOPICS
INTRODUCTION MEASUREMENT SCALES SCATTER PLOTS AND LINEAR RELATIONSHIPS THREE MOST WIDELY USED MEASURES OF RELATIONSHIP PRACTICAL STUDY DATA COLLECTION METHODS SWOT CONCLUSION RECOMMENDATIONS REFERENCES THANK YOU

PAGES
4 5 6-8 9-12 13-18 19 20-21 22 23 24 25

Syed Shujaat Hussain Roll. No. AH-533404, RWP

Introduction:
Measures of Relationship
As I have being assigned a topic of Measures of Relationship so we should have to discuss some main things and terms for going to the main topic:-

What is a Relationship?
Correlation coefficients are measures of the degree of relationship between two or more variables. When we talk about a relationship, we are talking about the manner in which the variables tend to vary together. For example, if one variable tends to increase at the same time that another variable increases, we would say there is a positive relationship between the two variables. If one variable tends to decrease as another variable increases, we would say that there is a negative relationship between the two variables. It is also possible that the variables might be unrelated to one another, so that you cannot predict one variable by knowing the level of the other variable. As a child grows from an infant into a toddler into a young child, both the child's height and weight tend to change. Those changes are not always tightly locked to one another, but they do tend to occur together. So if we took a sample of children from a few weeks old to 3 years old and measured the height and weight of each child, we would likely see a positive relationship between the two. A relationship between two variables does not necessarily mean that one variable causes the other. When we see a relationship, there are three possible causal interpretations. If we label the variables A and B, A could cause B, B could cause A, or some third variable (we will call it C) could cause both A and B.

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With the relationship between height and weight in children, it is likely that the general growth of children, which increases both height and weight, accounts for the observed correlation. It is very foolish to assume that the presence of a correlation implies a causal relationship between the two variables.

Measurement Scales
Variables differ in how well they can be measured, i.e., in how much measurable information their measurement scale can provide. There is obviously some measurement error involved in every measurement, which determines the amount of information that we can obtain. Another factor that determines the amount of information that can be provided by a variable is its type of measurement scale. Specifically, variables are classified as (a) nominal, (b) ordinal, (c) interval, or (d) ratio. (a) NOMINAL Nominal variables allow for only qualitative classification. That is, they can be measured only in terms of whether the individual items belong to some distinctively different categories, but we cannot quantify or even rank order those categories. For example, all we can say is that two individuals are different in terms of variable A (e.g., they are of different race), but we cannot say which one "has more" of the quality represented by the variable. Typical examples of nominal variables are gender, race, color, city, etc. (b) ORDINAL Ordinal variables allow us to rank order the items we measure in terms of which has less and which has more of the quality represented by the variable, but still they do not allow us to say "how much more." A typical example of an ordinal variable is the socioeconomic status of families. For example, we know that upper-middle is higher than middle but we cannot say that it is, for example, 18% higher. Also, this very distinction between nominal, ordinal, and interval scales itself represents a good example of an ordinal variable. For example, we can say that nominal measurement provides less information than ordinal measurement, but we cannot say

Syed Shujaat Hussain Roll. No. AH-533404, RWP

"how much less" or how this difference compares to the difference between ordinal and interval scales. (c) INTERVAL Interval variables allow us not only to rank order the items that are measured, but also to quantify and compare the sizes of differences between them. For example, temperature, as measured in degrees Fahrenheit or Celsius, constitutes an interval scale. We can say that a temperature of 40 degrees is higher than a temperature of 30 degrees, and that an increase from 20 to 40 degrees is twice as much as an increase from 30 to 40 degrees.

(d) RATIO Ratio variables are very similar to interval variables; in addition to all the properties of interval variables, they feature an identifiable absolute zero point, thus, they allow for statements such as x is two times more than y. Typical examples of ratio scales are measures of time or space. For example, as the Kelvin temperature scale is a ratio scale, not only can we say that a temperature of 200 degrees is higher than one of 100 degrees, we can correctly state that it is twice as high. Interval scales do not have the ratio property. Most statistical data analysis procedures do not distinguish between the interval and ratio properties of the measurement scales.

Scatter Plots and Linear Relationships

A helpful way to visualize a relationship between two variables is to construct a scatter plot. A scatter plot represents each set of paired scores on a two dimensional graph, in which the dimensions are defined by the variables. For example, if we wanted to create a scatter plot of our sample of 100 children for the variables of height and weight, we would start by drawing the X and Y axes, labeling one height and the other weight, and marking off the scales so that the range on these axes is sufficient to handle the range of scores in our sample. Let's suppose that our first child is 27 inches tall and 21 Syed Shujaat Hussain Roll. No. AH-533404, RWP 6

pounds. We would find the point on the weight axis that represents 21 pounds and the point on the height axis that represents 27 inches. Where these two points cross, we would put a dot that represents the combination of height and weight for that child, as shown in the figure below.

We then continue the process for all of the other children in our sample, which might produce the scatter plot illustrated below.

It is always a good idea to produce scatter plots for the correlations that you compute as part of your research. Most will look like the scatter plot above, suggesting a linear relationship. Others will show a distribution that is less organized and more scattered, suggesting a weak relationship Syed Shujaat Hussain Roll. No. AH-533404, RWP 7

between the variables. But on rare occasions, a scatter plot will indicate a relationship that is not a simple linear relationship, but rather shows a complex relationship that changes at different points in the scatter plot. The scatter plot below illustrates a nonlinear relationship, in which Y increases as X increases, but only up to a point; after that point, the relationship reverses direction. Using a simple correlation coefficient for such a situation would be a mistake, because the correlation cannot capture accurately the nature of a nonlinear relationship.

Three Most Widely Used Measures of Relationship

Here I introduced you to the three most widely used measures of relationship: Syed Shujaat Hussain Roll. No. AH-533404, RWP 8

a. Pearson product-moment correlation. b. Spearman rank-order correlation. c. Phi correlation.

Pearson Product-Moment Correlation

The Pearson product-moment correlation was devised by Karl Pearson in 1895, and it is still the most widely used correlation coefficient. The Pearson product-moment correlation is an index of the degree of linear relationship between two variables that are both measured on at least an ordinal scale of measurement. The index is structured so the a correlation of 0.00 means that there is no linear relationship, a correlation of +1.00 means that there is a perfect positive relationship, and a correlation of -1.00 means that there is a perfect negative relationship.

As you move from zero to either end of this scale, the strength of the relationship increases. You can think of the strength of a linear relationship as how tightly the data points in a scatter plot cluster around a straight line. In a perfect relationship, either negative or positive, the points all fall on a single straight line. The symbol for the Pearson correlation is a lowercase r, which is often subscripted with the two variables. For example, rxy would stand for the correlation between the variables X and Y. The Pearson product-moment correlation was originally defined in terms of Z-scores. In fact, you can compute the product-moment correlation as the average cross-product Z, as show in the first equation below. But that is an equation that is difficult to use to do computations. The more commonly used equation now is the second equation below.

Syed Shujaat Hussain Roll. No. AH-533404, RWP

Although this equation looks much more complicated and looks like it would be much more difficult to compute, in fact, this second equation is by far the easier of the two to use if you are doing the computations with nothing but a calculator.

Spearman Rank-Order Correlation

The Spearman rank-order correlation provides an index of the degree of linear relationship between two variables that are both measured on at least an ordinal scale of measurement. If one of the variables is on an ordinal scale and the other is on an interval or ratio scale, it is always possible to convert the interval or ratio scale to an ordinal scale. The Spearman correlation has the same range as the Pearson correlation, and the numbers mean the same thing. A zero correlation means that there is no relationship, whereas correlations of +1.00 and -1.00 mean that there are perfect positive and negative relationships, respectively. The formula for computing this correlation is shown below. Traditionally, the lowercase r with a subscript s is used to designate the Spearman correlation (i.e., rs). The one term in the formula that is not familiar is d, which is equal to the difference in the ranks for the two variables

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The Phi Coefficient

The Phi coefficient is an index of the degree of relationship between two variables that are measured on a nominal scale. Because variables measured on a nominal scale are simply classified by type, rather than measured in the more general sense, there is no such thing as a linear relationship. Nevertheless, it is possible to see if there is a relationship. For example, suppose you want to study the relationship between religious background and occupations. You have classification systems for religion that includes Catholic, Protestant, Muslim, Other, and Agnostic/Atheist (Nonbeliever). You have also developed a classification for occupations that include Unskilled Laborer, Skilled Laborer, Clerical, Middle Manager, Small Business Owner, and Professional/Upper Management. You want to see if the distributions of religious preferences differ by occupation, which is just another way of saying that there is a relationship between these two variables. The Phi Coefficient is not used nearly as often as the Pearson and Spearman

correlations. Therefore, we will not be devoting space here to the computational procedures. However, interested students can consult advances statistics textbooks for the details.

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Practical Study
Against my assignment topic of Measures of Relationship, I am, as an employee of an Airport Ground Support Company AIRPORT SERVICES (Pvt.) Ltd, so I preferred to have this firm in my practical theory. Choosing of this firm is because I have a knowledge of the internal and external setup of this company and involve in the firms decisions since Sep, 2007 and there is a complete structure of scientific methods for each and every work to be done.

Royal

Company Profile
Name of Organization:

Royal
Address:

AIRPORT SERVICES (Pvt.) Ltd. Excellence in HANdlING

Head Office: Flat # 44 Street # 11 Sector I-9/2 Islamabad Website: www.ras.com.pk Karachi, Lahore, Islamabad and Peshawar International Airports. 1500 (Aprox)

Working Stations: Top Management:

CEO:

Number of Employees:

Mr. Shujaat Azeem Mr. Saleem Bashir Liang Air Cdre (Retd) Tariq Shahab

COO/Director Admin & HR: Director Operations:

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Client Airlines:

Qatar Airways Etihad Airways Gulf Air Saudi Arabian Airlines Fly Dubai

Services:

Ticketing Terminal Services Ramp Handling Cargo handling ATC Operational Handling Corporate Aircraft Handling

Travel Wing

RAS has established Ticketing Offices at the four major International airports of Pakistan. These offices are established at prime locations at all the four airports. They are equipped with state of the art equipment i.e. iMac Computers and communications systems. These offices are artistically decorated and furnished to match the international standards. The uniformed RAS personnel are positioned at all the offices and are fully trained on the all the GDS (Global Distribution Systems) and have the requisite experience to cope up with the ticketing operations of any international airlines. The strength of the staff caters for 24 hours a day and seven days a week operation. The operations of all the four offices are controlled by GM Marketing & Sales at Head Office in Islamabad. The Head Office is located in the business centre. It is fully furnished with latest computer and communication systems. The staff is fully trained on all GDS) and is handling all ticketing and reservation assignments.

Terminal Services

Passenger Check-In Accompanied Baggage Handling Passenger Boarding Embarkation / Disembarkation Mishandled Baggage Lost & Found Baggage Load Control Preparation Assistance in refueling ATC Briefing Operations Briefing 13

Syed Shujaat Hussain Roll. No. AH-533404, RWP

Cargo Handling:

Royal Airport Services is providing cargo and freight forwarding services to its regular client airlines, non-schedule carriers, and Cargo Freighters, from major gateways i.e. Lahore, Karachi, Islamabad and Peshawar. In order to ensure higher safety standards, better quality, leading edge of technology and enhanced customer services, RAS has now constructed state of the art facilities at Karachi, Lahore which are fully computerized including the PRAL system while at Islamabad it has a leased cargo hangar from Askari Aviation which is also equipped with the same facilities. Fully equipped with state of the art facilities and allied equipment the sections at these stations are managed by experienced team of highly trained professionals fully equipped to handle all kinds of exports and imports. At Peshawar RAS has signed a contract with PIA as scarcity of space at this station forbids any new construction.

IMPORT CARGO SERVICES

General Cargo Handling Valuable Handling IATA Standard Messages ULD Stock Disposal / Track Cargo Track/Warehousing

Perishable Handling Oversize Cargo Handling Import Documentation Import Acceptance Delivery

EXPORT CARGO SERVICES

General Cargo Handling Valuable Handling IATA Standard Messages Export Documentation ULD Tracking Warehousing &

Perishable Handling Oversize Cargo Handling IATA DGR Goods Handling ULD Stocking Acceptance of Consignment

Cargo Tracking

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Practical example of Measures of Relationship in Royal Airport Services:

Communication during flight handling:Efficiency of an airport handling agency is lying in accurate and intime arrival and departure of flights. Communication plays a vital role in achieving of the said efficiency goal for a GHA at airport. During flight handling especially in Terminal services, GHAs use Walki talky Radio Sets for communication among the working staff on duty. Use of these RTs mattered for effective communication as well as excellent handling. Here below I draw a Table of words (Pleasant & Unpleasant) announced by RAS staff during flight handling. In this chart I show the comparison and relationship of pleasant and unpleasant announcement of words by different shifts of RAS staff on duty. Tabular Form of RAS Communication words:Pair 1 2 3 4 5 6 7 8 9 10 Pleasant X 7 7 8 8 9 9 9 9 10 10 86 X2 49 49 64 64 81 81 81 81 100 100 750 1.5 1.5 3.5 3.5 6.5 6.5 6.5 6.5 9.5 9.5 Rank1 Unpleasant Rank2 Y 6 8 8 5 6 7 7 9 6 8 70 Y2 36 64 64 25 36 49 49 81 36 64 504 3 8.0 8.0 1 3 5.5 5.5 10 3 8 XY 42 56 64 40 54 63 63 81 60 80 603 d2 2.25 42.25 20.25 6.25 12.25 1.00 1.00 12.25 42.25 2.25 142.00 15

Syed Shujaat Hussain Roll. No. AH-533404, RWP

Scattered Plot of RAS Communication words:-

10 9 8 7 6 5 4 3 2 1 0 0 2 4 6 8 10 12 Y-Values

Scatter-plot of announcments of pleasant (X-axis) and unpleasant (Y--axis) words

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Pearson Product-Moment Correlation

0.08

( ( ) (

) ( )

)( (

) ) ( )

Spearman Rank-Order Correlation

rs = 0.14 = 1 - {[6(142)] /

[10(99)]}

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Data Collection Method

Primary Data
BOOKS Statistics for Management 7th Edition By:Richard I. Levin Devid S. Rubin Web site www.wikipedia.org www.scribd.com www.googl.com

Secondary Data
Organization

Royal AIRPORT SERVICES (Pvt.) Ltd

Web site http://www.ras.com.pk

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SWOT
Strength:
Royal Airport Services starts his business in Oct, 2007 with the handling contract of his 1st client Airline i.e. Qatar Airways. Today within 4 years, RAS enjoying the business of 05 International airlines mentioned above. Following are some of merits of RAS: RAS has a skilled and experienced staff for handling of his client airlines. RAS has inducted highly experienced managers in his management team, who are giving excellent performance in all research and practical fields of RAS handling projects. Mr. Shujaat Azeem CEO RAS is a matured and wise businessman, who believes on research and elevating his business by eliminating the handling mistakes of staff. RAS has a 50 % share of international flights handling business in Pakistan as compared to his competitors, e.g. SAPS, AAPS and Gerry Dnata.

Weaknesses:
RAS still lacking in some fields of aviation and competencies comparatively to his competitors, following are the some examples of his de-merits: RAS research and evaluation system is not systematic. RAS still have not established any statistical research department. Currently Director HR and Director Operations are looking after the research and evaluation activities. RAS has appointed GM Quality Assurance but separate department has not been erected. Statistical research and data is not being shared at supervisory level, just given the instructions to implement. Because of this lack, supervisors are not cleared about the instructions of higher management and ultimately 100 % results are not being achieved. Syed Shujaat Hussain Roll. No. AH-533404, RWP 19

Opportunities:
RAS is doing outstanding progress in GHAs business. Within three years during a short span of time, RAS has got a large business and succeeded to induct 05 international airlines in his fleet. Today RAS equipped with more experienced and skilful manpower. RAS is now able to present himself through a better research and evaluation process of his day to day performance.

Threats:
The completion in Ground handling business of Pakistan can affect the RAS. Because his competitors i.e. Shaheen Airport Svcs, Askari Airport Services and Gerry Dnatta also trying to present their best services to attract the airlines. Competitors always try to attract client airlines by providing more effective handling/facilities through their dedicated staff. Hence RAS should be aware of this and be one step ahead to attract his customers through a systematic evaluation and research for the betterment of his performance.

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Conclusion
As well as I move to my topic of Measures of Relationship, I had to provide some of the problems that occurs and being solved by the management of RAS. RAS, in this era of technology not only satisfying the customer by its services but also satisfying the employees by placing them at the right spot and by supporting them to a favorable pay system. In this statistical research process the whole year is being counted as then the General Managers provide all the relevant information regarding the performance of equipment and employees to Manager Operation. Manager Ops scrutinize whole the data provided by stations and put a comprehensive research report to CEO RAS for final decisions on the different issues of all the four stations of RAS in Pakistan. In order to visit the organization RAS I think a better firm in the modern era and also related to my topic quite well. In RAS I saw that work is very good and I saw their old persons who are experiences and a young person who has high willingness of doing better works. Thats all in my conclusion.

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Recommendations
RAS is a newly operated handling agency and progressing day by day and developing his business by defeating his competitor SAPS. Strength of RAS staff has been crossed from the limit of 1500 at all 4 Intl airports of Pakistan. Hence I recommend for RAS higher management to adopt international research and statistical methods and implement in true spirit. Here are some suggestions for betterment of RAS research system: Research system should be faster than the current slow system. Some employees who are working with many years of experience should be promoted and the persons coming after them without experience should be their juniors. Company should have to make a policy regarding paying status of employees.

These standards will help RAS to attract more international client airlines and increase his business.

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References
1. Mr. Haroon Iqbal Qureshi Station Manager RAS Station BBIA Islamabad 2. Sqn Ldr M. Asgher Raja (Retd) Asstt Mgr Admin RAS Station BBIA Islamabad 3. Mr. Younas Ali Asstt Mgr Cargo RAS Station BBIA Islamabad

www.wikipedia.org http://www.ras.com.pk www.businessdictionary.com

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