Unit 1-objectives Explain the meaning and importance of research Outline the nature of business research Understand how

how managers can effectively interact with researchers Internal team vs. external research team Scientific investigation in research Research- definition The systematic investigation into the study of materials, sources in order to establish facts and reach new conclusions. Oxford Encyclopedic Dictionary The process of finding solution to a problem after a detailed study and analysis of the situational factors It is about finding the truth with the help of study ,observation, comparison and experiment. Nature of research Data are collected systematically Data are interpreted systematically Purpose is to find things out Research -objectives To get familiarity with something and get new insights into it- Exploratory research To describe the features of an entity or situation-Descriptive research To identify the cause of one or more problems and the variables associated with it-causal research Importance of research All progress is born of enquiry. Doubt is better than overconfidence, for it leads to inquiry and inquiry leads to innovation Facilitates decision making Useful in problem solving Vital role in several fields Research method vs. methodology Research methodology is a systematic way to solve a research problem Methods are a part of methodology Types of research Applied vs. Basic Descriptive vs. Analytical Quantitative vs. Qualitative Conceptual vs. Empirical One-time Research vs. Longitudinal Field setting vs. Laboratory Business research Complexity of modern day business Delight the stakeholders

 Darwinian Economy Information is a strategic weapon. Business research Systematic and organised effort to investigate a specific problem or situation in business Encompasses the process of enquiry,investigation,examination and experimentation Areas of research in Business Marketing HRM Operations Finance General management Major areas for Research in Business Marketing Area Consumer behaviour, loyalty Product positioning, product development, product life cycle Branding, brand equity Market segmentation & targeting Advertising, sales promotion Sales and distribution etc Human Resources Area Manpower planning Performance and potential appraisal Training and development Career planning & succession planning Leadership Retirement and separation process Compensation management Stress management Industrial relation etc. Finance Area Risk management and Investment decisions Effective accounting procedures Financial markets Project financing Working capital management Tax management etc. Operations Area Facility location planning Facility capacity and layout Project management Inventory management Work design and scheduling

 Quality management & productivity etc. General Management Area Strategy formulation and implementation Management information system Managing global firms Business laws Professional managers and research Research is useful to explore the unknown, describe the known and establish a cause-effect relationship within the well known. Familiarity with research methodology helps managers Problem solving Decision making Association with consultants Interpret reports Blend experience and scientific knowledge Conduct research economically and effectively The manager and the consultant researcher How to locate and select a researcher? What should be the manager-researcher relationship? Internal consultants- advantages More acceptability Better understanding Involvement in implementation of suggestions and evaluation Cost effective Internal consultants -disadvantages Might become stereotyped Chance for under influences, distractions and misrepresentations Get less attention from managers Organisational biases External consultants Full service suppliers Limited service suppliers Full service suppliers Syndicated services Standardized services Customised services Internet services Limited service suppliers

Field services Coding and data entry services Analytical services Data analysis services Branded research products

External consultants-advantages Wealth of experience Knowledge of advanced problem solving experiences less prone to under biases and influences Wide focus External consultants-disadvantages High cost More time for comprehension Extra fee for involvement in implementation of recommendations and evaluation Research and management effectiveness Quality decision making Effective interaction More confidence Knowledge of research methodology add on to the artillery of modern managers Selecting a research supplier Cost Reputation Ethical standards Flexibility Quality Experience Skill level Science in research Science- body of knowledge and the process of generating knowledge Scientific inquiry is a mental activity Consists of speculative and analytical activity Scientific Method The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions Scientific inquiry Observing the phenomenon Identifying the problem Constructing a theory Developing hypothesis Developing the research design Collecting the data

 Analysing and interpreting the data Features of Scientific Research Purposiveness Rigor Testability Replicability Precision and Confidence Objectivity Generalizability Parsimony The process of logically establishing a general proposition based on observed facts. Logical inferences are drawn from evidences. Inductive conclusions are tentative Induction The process of logically establishing a general proposition based on observed facts. Logical inferences are drawn from evidences. Inductive conclusions are tentative Deduction Arrive at conclusion by logical generalisation of a known fact Inferences drawn from a principle to particular conclusion. Hypothetical-deductive method Observation Preliminary information gathering Theory formulation Hypothesizing Further scientific data collection Data analysis deduction Determining When to Conduct Business Research Time constraints Availability of data Nature of the decision

 Benefits versus costsDetermining When to

Determining W Business Rese

UNIT 2 RSEARCH METHODS

Av ila ilit of D t a b y aa Tim Co st in s e n ra t N t re au

Is sufficient tim e Yes Objectives available before Explain the research process Identifying research problems am anagerial Prepare literature review Describe the various decision research designs Research process Formulating the researchbe m m problem ust ade?
Extensive literature survey Development of hypothesis Preparing the research design Collecting the data Analysing the data Generalisations and interpretations Preparation of the report

Is the inform ation already on hand inadequate for m aking the decision?

Yes

Formulating the problem Identifying the problem and stating it in a general way Understanding the problem thoroughly Phrasing and rephrasing the objectives of the study promptly

N o

N o

D N Con u Bu o ot d ct s

The Problem D
Fig. 2.1

D w D
Tasks Involved in Problem Definition Discussions with Decision Makers Interviews with Industry Experts Secondary Data Analysis Qualitative Research

Factors to be C Environmental
Fig. 2.2

PAS

Fig. 2.3

Proper Definition o

Marketing Research P
Literature survey To establish and enjoy intimacy with the problem Analysis of conceptual and empirical literature. Role of IT. Reasons for literature survey To identify all the variables To state the problem clearly To have proper theoretical framework To formulate hypotheses To save time and cost To ensure that the problem is relevant and worth studying Process of literature review Identify various materials Extract the relevant information Preparing the write up Development of hypothesis Hypothesis is a predictive statement capable of being tested by scientific methods. Helps to focus attention on the relevant aspects Sheds light on the data required and the method of analysis Hypothesis-characteristics Clear and precise Capable of being tested

Broad Statem

 State the relationship between variables Specific and limited in scope Stated in simple terms Consistent with known facts Concepts concerning hypothesis testing Null hypothesis and alternate hypothesis Level of significance Test of hypothesis Type I and Type II error

Type I and Type II

Research Design The structure in which the research is conducted Deals with the collection, measurement and analysis of data The decision regarding what, where, when and how much concerning the research Research Design: Definition A research design is a framework or blueprint for conducting the research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems Research Design contains Sampling design Observation design Statistical design Operational design Concepts related to research design Dependent and independent variables

Decision

 Extraneous variables Control Confounded relationship Hypothesis Experimental and non-experimental hypothesis testing research Experimental and control groups Treatment Experiment Experimental unit Different research designs Exploratory Descriptive Experimental Exploratory research Emphasis on the discovery of ideas or insights Helps in problem formulation Flexible design Stages -search secondary sources of information -interaction with knowledgeable persons -examination of analogous situation Uses of Exploratory Research Formulate a problem or define a problem more precisely Identify alternative courses of action Develop hypotheses Isolate key variables and relationships for further examination Gain insights for developing an approach to the problem Establish priorities for further research Methods of Exploratory Research Survey of experts Pilot surveys Secondary data analyzed in a qualitative way Qualitative research Stages in exploratory studies Search of secondary sources of information Obtaining information from knowledgeable persons Examination of analogous situation Descriptive research Describing the characteristics of an entity Fact finding with adequate interpretation Aims to obtain complete and accurate information

 Rigid design Use of Descriptive Research To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas. To estimate the percentage of units in a specified population exhibiting a certain behavior. To determine the perceptions of product characteristics. To determine the degree to which variables are associated. To make specific predictions. Methods of Descriptive Research Secondary data analyzed in a quantitative as opposed to a qualitative manner Surveys Panels Observational and other data Stages in descriptive research Formulating the objectives of the study Designing the method of data collection Selecting the sample Collecting the data Processing and analysing the data Reporting the findings

A comparis Exploratory
Experimental research Test the hypothesis of causal relationships between the variables

Flexible design Non probability

 Design must reduce bias and increase reliability Must drawing inference about causality Uses of Casual Research To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon To determine the nature of the relationship between the causal variables and the effect to be predicted METHOD: Experiments Importance of research design Facilities the smooth conduct of research Impart efficiency and effectiveness Helps to plan the method of data collection, tools of analysis and operational procedures Ensure the reliability of the results obtained. Characteristics of a good research design Flexibility, suitability and efficiency Minimises bias and maximises reliability Yields maximum information Smallest experimental error Determining the sampling design Sampling-selecting few items from the universe of the study Two aspects -sample size -sample design( way of selecting the sample) Data collection Primary data Secondary data Sources Tools & techniques Analysis of data processing editing, coding, classification and tabulation Analysis work, tools and techniques Generalisations and interpretations Generalization building a theory bases on the logical insights gained from analysis Interpretation effort to explain the findings Preparation of report Presenting the results of the study Report writing

 Oral presentation Research Proposal Executive Summary Background Problem Definition/Objectives of the Research Approach to the Problem Research Design Fieldwork/Data Collection Data Analysis Reporting Cost and Time Appendices Unit III RESEARCH METHODS.. Objectives Explain how variables are measured Describe the characteristics and power of different types of scales Learn about errors of measurement Understand the concepts of validity and reliability Study the two data sources Explain the methods of data collection Learn to design questionnaires Describe the sampling design and types of sampling Measurement design Overall plan regarding the measurement of variables The scales of measurement Scaling techniques Measurement of variables Objective variables Subjective variables Operationalising the concept Measurement and Scaling Measurement means assigning numbers or other symbols to characteristics of objects according to certain pre-specified rules. One-to-one correspondence between the numbers and the characteristics being measured. The rules for assigning numbers should be standardized and applied uniformly. Rules must not change over objects or time. Scaling An extension of measurement

 Scaling involves creating a continuum upon which measured objects are located A scale is a tool to distinguish individuals or entities

Measurement and Scaling

Scaling involves creating a continuum upon which measured objects are located. Consider an attitude scale from 1 to 100. Each respondent is assigned a number from 1 to 100, with 1 = Extremely Unfavorable, and 100 = Extremely Favorable. Measurement is the actual assignment of a number from 1 to 100 to each respondent. Scaling is the process of placing the respondents on a continuum with respect to their attitude toward department stores.

Primary scales of measurement Nominal scale Ordinal scale Interval scale Ratio scale

Primary Scales Measurement

Fig. 8.1

Scale Nominal
Nominal scale

Numbers Assigned to Runners Rank Order of Winners

Lowest level of measurement ie. classification and identification Identification- strict one-to-one correspondence Classification- labels for categories

Ordinal

 Do not reflect the amount of characteristic possessed by the objects Only permissible operation is counting
Primary Scales of Measurement Nominal Scale The numbers serve only as labels or tags for identifying and classifying objects. When used for identification, there is a strict one-to-one correspondence between the numbers and the objects. The numbers do not reflect the amount of the characteristic possessed by the objects. The only permissible operation on the numbers in a nominal scale is counting. Only a limited number of statistics, all of which are based on frequency counts, are permissible, e.g., percentages, and mode. Ordinal scale A ranking scale Numbers are assigned to indicate the extent to which some characteristic is possessed Indicate the relative position of individuals or objects, not the magnitude of difference Allows statistical positional measures like median Primary Scales of Measurement Ordinal Scale A ranking scale in which numbers are assigned to objects to indicate the relative extent to which the objects possess some characteristic. Can determine whether an object has more or less of a characteristic than some other object, but not how much more or less. Any series of numbers can be assigned that preserves the ordered relationships between the objects. In addition to the counting operation allowable for nominal scale data, ordinal scales permit the use of statistics based on centiles, e.g., percentile, quartile, median. Interval scale Numbers are used to rate objects such that numerically equal distance on the scale shows equal distance in the characteristic measured Possess the features of nominal and ordinal scales Interval between successive positions are equal Permit almost all statistical measures Primary Scales of Measurement Interval Scale

 Numerically equal distances on the scale represent equal values in the characteristic being measured. It permits comparison of the differences between objects. The location of the zero point is not fixed. Both the zero point and the units of measurement are arbitrary. Any positive linear transformation of the form y = a + bx will preserve the properties of the scale. It is not meaningful to take ratios of scale values. Statistical techniques that may be used include all of those that can be applied to nominal and ordinal data, and in addition the arithmetic mean, standard deviation, and other statistics commonly used in marketing research. Ratio scales Highest scale Interval scale with natural origin. ie. A zero point Possess all the characteristics of number system Allows the researcher to identify or classify , rank and rate Permit all statistical techniques

Primary Scales of Measurement Ratio Scale Possesses all the properties of the nominal, ordinal, and interval scales. It has an absolute zero point. It is meaningful to compute ratios of scale values. Only proportionate transformations of the form y = bx, where b is a positive constant, are allowed. All statistical techniques can be applied to ratio data.

Primary Sca Measureme

Table 8.1
Different scaling techniques Comparative scales Non-comparative scales Comparative scales Involves direct comparison of objects Have ordinal or nominal properties -paired comparison -rank order scaling -constant sum scaling Non-comparative rating scales Continuous rating scales Itemised rating scales - Likert scale - Semantic difference scale - Stapel scale Measurement error

Scale

Nominal

Basic Characteristics Numbers identify & classify objects

Ordinal

Error due to interviewer bias Error due to instrument Respondent error

Co Ex So nos of f Nos. indicate the Qu relative positions ran of objects but not in a the magnitude of differences between them

Scale evaluation
Reliability Validity Generalisability

Sampling The process of inferring something about a large group of elements by studying only apart of it. Advantages Disadvantages -sampling error -non sampling error Sampling vs census

Type of Study 1. Budget

Sample Vs
Conditions Favoring the Use of Sam ple Census Sm all Short Large Sm all Low High Destructive Yes Large Long Sm all Large High Low Nondestructive No

2. Tim available e 3. Population size 4. Variance in the characteristic 5. Cost of sam pling errors 6. Cost of nonsa m pling errors 7. Nature of m easurem ent 8. Attention to individual cases

The Sampling

Define the Target Population

De

The target population is the collection of elements or objects that possess the information sought by the researcher and about which inferences are to be made. The target population should be defined in terms of: An element is the object about which or from which the information is desired, e.g., the respondent. A sampling unit is an element, or a unit containing the element, that is available for selection at some stage of the sampling process. Extent refers to the geographical boundaries. Time is the time period under consideration.

Classification of Sa

Convenience Sampling

Sampling T

Convenience sampling attempts to obtain a sample of convenient elements. Often, respondents are selected because they happen to be in the right place at the right time. use of students, and members of social organizations mall intercept interviews without qualifying the respondents people on the street interviews

Nonprobability Sampling Techniques

Convenience Sampling

J udgmental Sampling

Quo Samp

A Graphical I llust Convenience Sam

A B C D

Judgmental Sampling Judgmental sampling is a form of convenience sampling in which the population elements are selected based on the judgment of the researcher. test markets purchase engineers selected in industrial marketing research 1 6 11 expert witnesses used in court

16

12

17

13

18

14

19

Graphical I llustrati Sampling

A B C D E

Quota Sampling Quota sampling may be viewed as two-stage restricted judgmental sampling. The first stage1 consists of developing control categories, or quotas, of 16 6 population elements. In the second stage, sample elements are selected based on convenience or judgment.

11

21

Population composition Control Characteristic Percentage Sex Male 48 Female 52 ____ 100 Snowball Sampling Percentage 2 48 52 ____ 100

Sample composition Number 7 480 520 ____ 1000

12

17

22

In snowball sampling, an initial group of respondents is selected, usually at random. 3 After being interviewed, these respondents are asked to identify others who belong to the target population of interest. Subsequent respondents are selected based on the referrals.

13

18

23

14

19

24

Simple Random Sampling Each element in the population has a known and equal probability of selection. Each possible sample of a given size (n) has a known and equal probability of being the sample actually selected. This implies that every element is selected independently of every other element. Systematic Sampling The sample is chosen by selecting a random starting point and then picking every ith element in succession from the sampling frame. The sampling interval, i, is determined by dividing the population size N by the sample size n and rounding to the nearest integer. If the ordering of the elements produces a cyclical pattern, systematic sampling may decrease the representativeness of the sample. For example, there are 100,000 elements in the population and a sample of 1,000 is desired. In this case the sampling interval, i, is 100. A random number between 1 and 100 is selected. If, for example, this number is 23, the sample consists of elements 23, 123, 223, 323, 423, 523, and so on. Stratified Sampling A two-step process in which the population is partitioned into subpopulations, or strata. The strata should be mutually exclusive and collectively exhaustive in that every population element should be assigned to one and only one stratum and no population elements should be omitted. Next, elements are selected from each stratum by a random procedure, usually SRS. A major objective of stratified sampling is to increase precision without increasing cost. The elements within a stratum should be as homogeneous as possible, but the elements in different strata should be as heterogeneous as possible. The stratification variables should also be closely related to the characteristic of interest. Finally, the variables should decrease the cost of the stratification process by being easy to measure and apply. In proportionate stratified sampling, the size of the sample drawn from each stratum is proportionate to the relative size of that stratum in the total population. In disproportionate stratified sampling, the size of the sample from each stratum is proportionate to the relative size of that stratum and to the standard deviation of the distribution of the characteristic of interest among all the elements in that stratum. Cluster Sampling The target population is first divided into mutually exclusive and collectively exhaustive subpopulations, or clusters.

 Then a random sample of clusters is selected, based on a probability sampling technique such as SRS. For each selected cluster, either all the elements are included in the sample (onestage) or a sample of elements is drawn probabilistically (two-stage). Elements within a cluster should be as heterogeneous as possible, but clusters themselves should be as homogeneous as possible. Ideally, each cluster should be a small-scale representation of the population.

Strengths a Basic Samp

Technique
Nonprobability Sampling Convenience sampling Judgmental sampling

Table 11.4 Snowball sampling

Factors

Choosing Nonpro Quota sampling Probability Samp

Probability sampling Simple random sampling

DATA COLLECTION TOOLS AND TECHNIQUES Data collection Primary data Secondary data Sources of Secondary Data The Internal Sources are: Company reports Company accounting reports In-house journals Special reports Internal computer database The External Sources are: Government agencies and official publications Reports of associations Public computer databases Research agencies and data services Library Limitations of secondary data Data fitness problem The accuracy problem Sources of primary data Respondents Analogous situations or case studies Research experiments Primary data collection methods Observation Questionnaire Interview and Projective Techniques Observation Human Vs Mechanical Observation Disguised Vs Undisguised Observation Natural Vs. Contrived Observation Structured Vs Unstructured Observation Questionnaire A questionnaire is a formalized set of questions for obtaining information from respondents. QuesIt must translate the information needed into a set of specific questions A questionnaire must uplift, motivate, and encourage the respondent A questionnaire should minimize response error.

Questionna
Fig. 10.1

questionnaire -merits Cost effectiveness It is free from the bias of the interviewer Respondents get adequate time to think and answer Gets access to more respondents Large Samples can be studied. Questionnaire-demerits Chance of no-response is high. It can be used only when respondents are educated and co-operating. There is possibilities of ambitions replies or omissions. It is the slowest methods of data collection

De Design

Interviews Used for all segments of population People are inclined to talk than to write Flexible

 Can overcome the unwillingness of respondents Interviewer can give clarifications Types of interviews Depth interviews - individual depth interviews - focus group interviews Projective techniques Association Tests Completion Tests Construction Techniques, and Expression techniques Association tests In these tests, the respondents is presented with a stimulus and asked to respond with the first thing that comes to mind. The responses are analysed for measuring attitude to a certain category of stimuli. Word Association tests Consider a study on tea. Check how you will respond in terms of your feeling to the following words. -Flavour -Convenience -Fresh -Packing Completion tests This projective technique requires the respondent to complete an incomplete stimulus situation. It may be sentence completion or story completion. In sentence completion, the respondents are presented with a number of incomplete sentences and asked to complete them. Eg: People who use cell phones are -------------------- Most of the new cell phones are ----------------------- Professional usually use cell phone ---------------------Construction Techniques Construction techniques require the respondents to construct a response in the form of a story, dialogue or description. In a construction technique, the researcher provides less initial structure to the respondent than in a completion technique. Two major techniques under this category are picture response and cartoons Expressive Techniques In expressive techniques, respondent is presented with a verbal or visual situation and asked to relate the feelings and attitudes of other people to the situation (not their own feelings or attitudes). The two main expressive techniques are role playing and third person technique.

Unit 4 DATA ANALYSIS &INTERPRETATIONS Tools & Techniques Data Preparation Raw data from a research project cannot be directly used for analysis. It has to be prepared for analysis and converted into a suitable form. This process in guided by the preliminary plan of data analysis that is specified in the research design

Data Prepar
Questionnaire Checking A questionnaire returned from the field may be unacceptable for several reasons. Parts of the questionnaire may be incomplete. The pattern of responses may indicate that the respondent did not understand or follow the instructions. The responses show little variance. One or more pages are missing. The questionnaire is received after the preestablished cutoff date. The questionnaire is answered by someone who does not qualify for participation. Editing It is the process of reviewing the collected data with the objective of increasing accuracy by detecting errors and omissions and to correct these when possible. -field editing -central editing

Prepare P

Treatment of Unsatisfactory Results Returning to the Field The questionnaires with unsatisfactory responses may be returned to the field, where the interviewers recontact the respondents. Assigning Missing Values If returning the questionnaires to the field is not feasible, the editor may assign missing values to unsatisfactory responses. Discarding Unsatisfactory Respondents In this approach, the respondents with unsatisfactory responses are simply discarded. Key points for editing A proper understanding of the instruction given to the field staff, codes and the editors. While crossing out an original entry, make sure that the same may remain legible. Initial all the responses, which they may change or supply. Place the editors initial and the date of editing on each completed form. Coding Coding is the conversion of raw data into symbols or numerals in order to facilitate tabulation, categorisation and further processing. In other words, coding is the process of assigning numerals or other symbols to answers so that responses can be put into a limited number of categories or classes. Guidelines for coding unstructured questions: Category codes should be mutually exclusive and collectively exhaustive. Only a few (10% or less) of the responses should fall into the other category. Category codes should be assigned for critical issues even if no one has mentioned them. Data should be coded to retain as much detail as possible. Codebook A codebook contains coding instructions and the necessary information about variables in the data set. A codebook generally contains the following information: column number record number variable number variable name question number instructions for coding

Data Tra
Data Cleaning Missing Responses Substitute a Neutral Value A neutral value, typically the mean response to the variable, is substituted for the missing responses. Substitute an Imputed Response The respondents' pattern of responses to other questions are used to impute or calculate a suitable response to the missing questions. In casewise deletion, cases, or respondents, with any missing responses are discarded from the analysis. In pairwise deletion, instead of discarding all cases with any missing values, the researcher uses only the cases or respondents with complete responses for each calculation. Classification According to intervals According to attributes

CATI/ CAPI

Keypunching via CRT Terminal

Statistically Adjusting the Data -Weighting In weighting, each case or respondent in the database is assigned a weight to reflect its importance relative to other cases or respondents. Weighting is most widely used to make the sample data more representative of a target population on specific characteristics. Yet another use of weighting is to adjust the sample so that greater importance is attached to respondents with certain characteristics.

Verification:Correct Keypunching Errors

Computer Memory

Statistically Adjusting the Data Variable Respecification Variable respecification involves the transformation of data to create new variables or modify existing variables. E.G., the researcher may create new variables that are composites of several other variables. Dummy variables are used for respecifying categorical variables. The general rule is that to respecify a categorical variable with K categories, K-1 dummy variables are needed. Statistically Adjusting the Data Scale Transformation Scale transformation involves a manipulation of scale values to ensure comparability with other scales or otherwise make the data suitable for analysis Tabulation This is the process of summarising raw data and displaying the same in compact form for further analysis. In other words, tabulation is an orderly arrangement of data in columns and rows.

Tabulation is advisable because

It conserves space and reduces the need for descriptive statements It facilitates the process of comparison It facilitates the summation of items and the detection of errors and omissions. It provides a basis for various statistical computations

Selecting a Data Analysis Strategy Earlier Steps (1, 2, & 3) of the Research Process Known Characteristics of the Data Properties of Statistical Techniques Background and Philosophy of the Researcher Data Analysis Strategy Frequency Distribution In a frequency distribution, one variable is considered at a time. A frequency distribution for a variable produces a table of frequency counts, percentages, and cumulative percentages for all the values associated with that variable.

Statistics Associat Distribution Meas

Statistics Associated with Frequency Distribution Measures of Location

The median of a sample is the middle value when the data are arranged in ascending or descending order. If the number of data points is even, the median is usually estimated as the midpoint between the two middle values by adding the two middle values and dividing their sum by 2. The median is the 50th percentile

The mean, or average valu measure n central tendency of

X = X i /n
i=1

Statistics Associated with Frequency Distribution Measures of Variability The range measures the spread of the data. It is simply the difference between the largest and smallest values in the sample. Range = Xlargest Xsmallest. The interquartile range is the difference between the 75th and 25th percentile. For a set of data points arranged in order of magnitude, the pth percentile is the value that has p% of the data points below it and (100 - p)% above it. A General Procedure for Hypothesis Testing Step 1: Formulate the Hypothesis The test of the null hypothesis is a one-tailed test, because the alternative hypothesis is expressed directionally. If that is not the case, then a two-tailed test would be required, and the hypotheses would be expressed as: Ho:Pye = .40 H1:Pye not equal .40

Where, Xi = Observed values of t n = Number of observati

The mode is the value that represents the highest peak good measure of location w

A Broad Classificatio
Fig. 15.6

Cross-Tabulation While a frequency distribution describes one variable at a time, a crosstabulation describes two or more variables simultaneously. Cross-tabulation results in tables that reflect the joint distribution of two or more variables with a limited number of categories or distinct values, e.g., Table 15.3. Statistics Associated with Cross-Tabulation Chi-Square

Hypothe

The chi-square statistic ( ) is used to test the statistical significance of the observed association in a cross-tabulation. The expected frequency for each cell can be calculated by using a simple formula: Fe=Nr Nc/n where nr nc n

Tests of Association

= total number in the row = total number in the column = total sample size

Distributions

Means

Fig. 15.8

Chi-square
Do Not Reject H0

Hypothesis Testing Related to Differences Parametric tests assume that the variables of interest are measured on at least an interval scale. Nonparametric tests assume that the variables are measured on a nominal or ordinal scale. These tests can be further classified based on whether one or two or more samples are involved. The samples are independent if they are drawn randomly from different populations. For the purpose of analysis, data pertaining to different groups of respondents, e.g., males and females, are generally treated as independent samples. The samples are paired when the data for the two samples relate to the same group of respondents.

A Classification of H Procedures for Exam

Fig. 15.9

Hypothe

Parametric Tests (Metric Tests) One Sample

z = (X - )/X
X

* t test * Z test
1.5/ 29

One Sampl

Two or More Samples

Note that if the populat Independento Paired assumed be known a t Samples sample, a z te from the Samples * Two-Group t Paired this case, the*value of t test t test

Two I ndependent Samples F

Nonparametric Tests One Sample Sometimes the researcher wants to test whether the observations for a particular variable could reasonably have come from a particular distribution, such as the normal, uniform, or Poisson distribution. The Kolmogorov-Smirnov (K-S) one-sample test is one such goodness-of-fit test. The K-S compares the cumulative distribution function for a variable with a specified distribution. Nonparametri Tests One Sample The chi-square test can also be performed on a single variable from one sample. In this context, the chi-square serves as a goodness-of-fit test. The runs test is a test of randomness for the dichotomous variables. This test is conducted by determining whether the order or sequence in which observations are obtained is random. The binomial test is also a goodness-of-fit test for dichotomous variables. It tests the goodness of fit of the observed number of observations in each category to the number expected under a specified binomial distribution Nonparametric Tests Two Independent Samples When the difference in the location of two populations is to be compared based on observations from two independent samples, and the variable is measured on an ordinal scale, the Mann-Whitney U test can be used. In the Mann-Whitney U test, the two samples are combined and the cases are ranked in order of increasing size. The test statistic, U, is computed as the number of times a score from sample or group 1 precedes a score from group 2. If the samples are from the same population, the distribution of scores from the two groups in the rank list should be random. An extreme value of U would indicate a nonrandom pattern, pointing to the inequality of the two groups.

An F test of sample variance may be perform not known whether the two populations have variance. In this case, the hypotheses are:

H0: H1:

2 1 2 1

2 2

2 2

A Summary of Hyp Related to Differe

Table 15.19

A Summary of Hyp Sample Application Level of S Related to Differen Metric Proportion

One TableSample cont. 15.19, One Sample

Two I ndependent Samples

Distributions

Nonmetric

Two independent samples Distributions

One Sample

Means

Metric

Relationship Among Techniques Analysis of variance (ANOVA) is used as a test of means for two or more populations. The null hypothesis, typically, is that all means are equal. Analysis of variance must have a dependent variable that is metric (measured using an interval or ratio scale). There must also be one or more independent variables that are all categorical (nonmetric). Categorical independent variables are also called factors. Relationship Among Techniques A particular combination of factor levels, or categories, is called a treatment. One-way analysis of variance involves only one categorical variable, or a single factor. In one-way analysis of variance, a treatment is the same as a factor level. If two or more factors are involved, the analysis is termed n-way analysis of variance. If the set of independent variables consists of both categorical and metric variables, the technique is called analysis of covariance (ANCOVA). In this case, the categorical independent variables are still referred to as factors, whereas the metric-independent variables are referred to as covariates.

Relationship Amongst Variance, Analysis of C

Fig. 16.1
One Independent Variable

Metric Dep

Binary

Categorical:

Partial Corre
Regression Analysis

Regression analysis examines associative relationships between a metric dependent variable and one or more independent variables in the following ways: Determine whether the independent variables explain a significant variation in the dependent variable: whether a relationship exists. Determine how much of the variation in the dependent variable can be explained by the independent variables: strength of the relationship. Determine the structure or form of the relationship: the mathematical equation relating the independent and dependent variables. Predict the values of the dependent variable. Control for other independent variables when evaluating the contributions of a specific variable or set of variables. Regression analysis is concerned with the nature and degree of association between variables and does not imply or assume any causality.

A partial correlation co association between two or adjusting for, the effec variables.

rx y . z =

rx y - (rx z ) (ry z )
2 2 1 - rx z 1 - ry z

Discriminant Analysis

Discriminant analysis is a technique for analyzing data when the criterion or dependent variable is categorical and the predictor or independent variables are interval in nature. The objectives of discriminant analysis are as follows:

Partial correlations hav them. The order indica being adjusted or cont The simple correlation

 Development of discriminant functions, or linear combinations of the predictor or independent variables, which will best discriminate between the categories of the criterion or dependent variable (groups). Examination of whether significant differences exist among the groups, in terms of the predictor variables. Determination of which predictor variables contribute to most of the intergroup differences. Classification of cases to one of the groups based on the values of the predictor variables. Evaluation of the accuracy of classification. Factor Analysis Factor analysis is a general name denoting a class of procedures primarily used for data reduction and summarization. Factor analysis is an interdependence technique in that an entire set of interdependent relationships is examined without making the distinction between dependent and independent variables. Factor analysis is used in the following circumstances: To identify underlying dimensions, or factors, that explain the correlations among a set of variables. To identify a new, smaller, set of uncorrelated variables to replace the original set of correlated variables in subsequent multivariate analysis (regression or discriminant analysis). To identify a smaller set of salient variables from a larger set for use in subsequent multivariate analysis. Cluster Analysis Cluster analysis is a class of techniques used to classify objects or cases into relatively homogeneous groups called clusters. Objects in each cluster tend to be similar to each other and dissimilar to objects in the other clusters. Cluster analysis is also called classification analysis, or numerical taxonomy. Both cluster analysis and discriminant analysis are concerned with classification. However, discriminant analysis requires prior knowledge of the cluster or group membership for each object or case included, to develop the classification rule. In contrast, in cluster analysis there is no a priori information about the group or cluster membership for any of the objects. Groups or clusters are suggested by the data, not defined a priori. Conjoint Analysis Conjoint analysis attempts to determine the relative importance consumers attach to salient attributes and the utilities they attach to the levels of attributes. The respondents are presented with stimuli that consist of combinations of attribute levels and asked to evaluate these stimuli in terms of their desirability. Conjoint procedures attempt to assign values to the levels of each attribute, so that the resulting values or utilities attached to the stimuli match, as closely as possible, the input evaluations provided by the respondents.