RESEARCH

METHODOLOGY
Prof. Tejas Fadia
CURRICULUM
Role of Business Research
Theory Building
Research Process: An overview
- Problem Definition
- Research Proposal
- Hypothesis Development
- Exploratory Research
- Qualitative Analysis
- Secondary data (Literature Review)
- Research Methods: Collecting Primary Data
a) Survey: Interview and Questionnaire
b) Experimental: Laboratory and Field
c) Observation
- Measurement and Scaling Concepts
- Sampling Strategy
- Data Analysis (Uni / Bi / Multi Variate)
- Report writing
CURRICULUM

60 marks Final Written Paper

40 marks Project and Presentation

REFERENCE BOOKS
1) Business Research Methods:
Zikmund, Babin, Carr, Adhikari, Griffin

2) Business Research Methods: Bryman
and Bell

3) Statistics for Management: Levin and
Rubin

PROJECT
Team Members: Group of 2 to 3 people
Project Title: Business Research on .
Presentation: 10 mins with each member
presenting
Question and Answer Session: 5 mins
PROJECT
Problem
Discovery
Exploratory
Research
Selection of
Research
Method
Selection of
Sample Design
Collection of the
Data
Editing and
Coding
Data Processing
Interpretation of
the Findings
Report
Presentation
Basic / Pure Research
Applied Research
RESEARCH: TYPES
BASIC / PURE RESEARCH
Attempts to expand the limits of
knowledge or verify the acceptability of
a given theory

Not directly involved in the solution to a
pragmatic problem.
EXAMPLE
Is Executive success correlated with high need for
achievement?

Are members of highly cohesive work groups
more satisfied than members of less cohesive
work groups?

Investigation of 5 personality traits to explain the
purchasing behavior of automobile buyers.
APPLIED RESEARCH
Conducted when a decision must be
made about a specific problem or about
a particular course of action or policy
decision
EXAMPLES
Should McDonalds add Italian pasta dinners to its
menu?

Should Procter & Gamble add a high-priced teeth
bleaching kit to its product line?

Investigation of consumers attitudes toward a
prototype of an innovative type of product, a home
Cleaning kit for use on clothes that require dry
cleaning.
The Systematic and Objective process of
generating information for aid in making
business decisions.

BUSINESS RESEARCH
BUSINESS RESEARCH
Information is Scientific: i.e. neither intuitive
nor haphazardly gathered.
Must be objective
Detached and impersonal rather than biased
Facilitates the managerial decision process
for all aspects of a business.

SCIENTIFIC METHOD

Analysis and Interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions.
THE DECISION-MAKING
PROCESS
Identifying Problems and Opportunities
Diagnosis and Assessment
Selecting and Implementing a course of
action
Evaluating the Course of action
- Evaluation Research
- Performance Monitoring Research

EVALUATION RESEARCH
Formal, Objective Measurement and
Appraisal
of the extent to which a given
Activity, Project, or Program
has achieved its Objectives.
PERFORMANCE-
MONITORING RESEARCH
Regularly provides feedback for evaluation
and control of business activity

Indicates things are or are not going as
planned

Research may be required to explain why
something went wrong
Is sufficient time
available before
a managerial
decision
must be made?
Is the infor-
mation already
on hand
inadequate
for making
the decision?
Is the decision
of considerable
strategic
or tactical
importance?
Does the value
of the research
information
exceed the cost
of conducting
research?
Conduct
Business
Research
Do Not Conduct Business Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits vs. Costs
Yes
No
No No No
RESEARCH NEEDED???
Yes Yes Yes
Value
Decreased Uncertainty
Increased likelihood of
a correct decision
Improved business
performance and
resulting higher profits
Costs
Research
expenditures
Delay of business
decision and
possible disclosure
of information to
rivals
Possible erroneous
research results
Value Should Exceed
Estimated Costs
Vegetation
Fruit
Banana
Reality
I
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e
a
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l
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m
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A Ladder Of Abstraction
For Concepts
Theory Building A Process Of
Increasing Abstraction
Theories
Propositions
Concepts
Observation of objects
and events (reality )
I
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a
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m
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a
b
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CONCEPT
A generalized IDEA about a class of
objects, attributes, occurrences, or
processes that has been given a name

Eg: Leadership, Productivity, Gross National
Product, Asset, Age of Worker, Reward
Preference
PROPOSITIONS
Propositions are Statements concerned
with the Relationships among concepts.

Eg: Reward preference of a worker
changes as per the age of the worker
THEORY
A coherent set of general Propositions,
used as principles of explanation of the
apparent relationships of certain
observed phenomena

Eg: Older workers prefer different
rewards than younger workers
Goals Of Theory
Prediction
Understanding





Always makes
four Sales Calls
a day
Dollar Bonus Pay for
Sales Volume
over quota
Concept B
(Habits)
Hypothesis at Empirical Level
Concept A
(Reinforcement)
Proposition at Abstract Level
Variable: Words underlined
Scientific Business Researchers Operate
at 2 Levels
A hypothesis is a proposition that is
empirically testable i.e. verifiable by
observation, experimentation or experience.
It is an empirical statement concerned with
the relationship among variables.

A variable is anything that may assume
different numerical values.
DEFINITIONS
How are Theories Generated?
Deductive Reasoning
Inductive Reasoning
Deductive Reasoning
The logical process of deriving a conclusion
from a known premise or something
known to be true. (Abstract Level)

We know that all managers are human beings.
If we also know that John Smith is a manager,
then we can deduce that John Smith is a
human being.
Inductive Reasoning
The logical process of establishing a
general proposition on the basis of
observation of particular facts. (Empirical
Level)

All managers that have ever been seen are
human beings;
therefore all managers are human beings.

Types Of Research
Exploratory
Descriptive
Causal
COMPLETELY
CERTAIN
ABSOLUTE
AMBIGUITY
CAUSAL OR
DESCRIPTIVE
EXPLORATORY
Uncertainty Influences
The Type Of Research

Exploratory Research Descriptive Research Causal Research
(Unaware of Problem) (Aware of Problem) (Problem Clearly
Defined)



Degree of Problem Definition
Our sales are
declining and we dont
know why.
What kind of people
are buying our
product? Who buys our
competitors product?
Will buyers purchase
more of our products
in a new package?
Would people be
interested in our new
product idea?
What features do
buyers prefer in our
product?
Which of two
advertising campaigns
is more effective?
35
Exploratory Research
Secondary data

Experience survey

Pilot studies

Case Study
Exploratory Research
Initial research conducted to clarify and
define the nature of a problem
Does not provide conclusive evidence
Subsequent research expected
Descriptive Research
Describes characteristics of a population
or phenomenon
Some understanding of the nature of
the problem
Descriptive Research Example
Weight Watchers average customer
Woman about 40 years old
Household income of about $50,000
At least some college education
Trying to juggle children and a job
Descriptive Research Example
Mens fragrance market
1/3 size of womens fragrance market
But growing at a faster pace
Women buy 80 % of mens fragrances
Causal Research
Conducted to identify cause and effect
relationships
Identifying Causality
A causal relationship is impossible to
prove.
Evidence of causality:
1. The appropriate causal order of events
2. Concomitant variation--two
phenomena vary together
3. An absence of alternative plausible
explanations
Stages of the Research Process
Problem Discovery
and Definition
Research
Design
Sampling
Data
Gathering
Data Processing
and Analysis
Conclusions and
Report
Discovery and
Definition
and so on
Problem
discovery
Problem definition
(statement of
research objectives)
Secondary
(historical)
data
Experience
survey
Pilot
study
Case
study
Selection of
exploratory research
technique
Selection of
basic research
method
Experiment

Survey


Observa
tion
Secondary
Data Study
Laboratory Field Interview Questionnaire
Selection of
Sample design
Sampling
Probability
Non
probability
Collection of
data
(fieldwork)
Editing and
coding
data
Data
processing
Interpretation
of
findings
Report
Data
Gathering
Data
Processing
and
Analysis
Conclusions
and Report
Research Design
Problem Discovery
and Definition
Statement of
Research Objectives
Problem Definition
Defining Problem Results in
Clear Cut Research Objectives
Exploratory
Research
(Optional)
Analysis of
the Situation
Symptom Detection
A Sea Horses Tale
Sea Horse
Eel Speedy Flipper
Sponge Jet Propelled Scooter
Shark Open Mouth
Moral: If you are not sure where you are
going, you are liable to end up someplace else
and not even know it
The formulation of the problem
is often more essential than its
solution.

Albert Einstein
Problem Definition
Indicates of a specific business /
managerial decision area to be clarified
Or a problem to be solved
by answering some research questions

Eg: 1980s Coco Cola New Coke
Introduction based on narrow research
The Process of
Problem Definition
Ascertain the
decision makers
objectives
Understand
background of the
problem
Isolate / identify the
problem, not the
symptoms
Determine unit of
analysis
Determine relevant
variables
State research
questions and
objectives
49
Ascertain the Decision Makers
Objectives
Decision makers objectives

Managerial goals expressed in measurable terms.
The Iceberg Principle
(10 v/s 90)
The principle indicating that the dangerous part
of many business problems is neither visible to
nor understood by managers.
51
Understand the Background of
the Problem
Objectives are clear: Problem can be
identified by Exercising Managerial Judgment

Objectives not clear: Situation analysis -
The informal gathering of background
information to familiarize researchers or
managers with the decision area. (Exploratory
Research)
52
Isolate and Identify the
Problems, Not the Symptoms
Symptoms can be confusing
Problem Definition
Organization Symptoms Based on Symptom True Problem
Twenty-year-
old
neighborhoo
d swimming
association
in a major
city.


Membership has
been declining
for years. New
water park with
wave pool and
water slides
moved into town
a few years ago.

Neighborhood
residents prefer
the expensive
water park and
have negative
image of
swimming pool.


Demographic
changes:
Children in this
20-year-old
neighborhood
have grown up.
Older residents
no longer swim
anywhere.
Cellular
Phone
Manufacturer


Women
employees
complain that
salaries are too
low
Salaries need to
be compared to
industry average


Benefits
program is not
suited to
womens needs
(maternity leave)
TOTI
EMUL
ESTO
What Language Is Written on This
Stone Found by Archaeologists?
TO
TIE
MULES
TO
The Language Is English:
56
Determine the Unit of Analysis
Individuals, households, organizations, etc.

Eg:
1) Study of Home buying: Husband and Wife
2) Study of Organizational Behavior: Cross Functional
teams
57
Determine the Relevant
Variable
Anything that may assume different numerical or
categorical values

Key Variable to be identified in the problem
definition stage
Types of Variables
Categorical: Ltd no. of distinct values

Eg: Gender

Continuous: Infinite no. of positive values

Eg: Sales Volume, Population of India


Types of Variables
Dependent: Criteria / Variable that is to be
predicted or explained

Independent: Expected to influence the
dependent variable. Its value can be changed
or altered independently of any other variable

Eg: DV: Average hourly Pay
IV: No. of years of Experience
60
State the Research Questions
and Research Objectives
Clarify the problem statement:
- Series of Research Questions
- Hypothesis
Problem Research Qs. Research Objective
Should the
organization offer
outplacement
services?
1) Are managers aware
of outplacement
services?
2) How concerned are
managers about
outplacement
services?
1) To determine managers
awareness using aided
recall
2) To obtain ratings and
rankings of the various
outplacement services

Which of the services
should be offered?
a)Severance pay?
b)New employment
assistance
c)Personal counseling
d)Job contacts
1) How do managers
evaluate the need for
A) severance pay
B) New employment
assistance
C) Personal counseling
D) Job contacts

1) To measure managers
satisfaction with existing
personnel policies

Problem Research Qs. Research Objective
Should the services
be provided by in
house personnel or
outside consultants?
a) What are the benefits
of each outplacement
service?
b) Would managers
prefer in house
personnel or outside
consultants?
c) How much would
each alternative cost
a) To identify perceived
benefits and perceived
disadvantages of each
outplacement service
b) To measure managers
perception of the benefits
and disadvantages of in
house versus outside
consultants
c) To measure managers
preference for these
alternatives if discharge
occurred
d) To identify costs
associated with each
alternative
Exploratory Research
Initial research conducted to clarify and
define the nature of a problem
Does not provide conclusive evidence
Could be a single research investigation or a
series of informal studies intended to provide
background information
Subsequent research expected


Diagnose a situation

Screening of alternatives

Discover new ideas
Why Conduct Exploratory
Research?
Diagnosing a situation
-Diagnose the dimensions of problem

Eg: a) Preliminary interviews with employees to learn
current hot issues as well as concerns in the
organization

b) Advertising agency got the account for a new coffee
that contained chicory. So initial research was to find
whether people had heard about this ingredients, what
kind of people use it conclusion was that no one knew
about it and hence advertising could portray the
ingredient any way the client wanted.


Screening Alternatives
When several opportunities arise but the
budget precludes investigating all possible
options

Concept testing
Concept Testing
Exploratory research procedure that tests some sort of
stimulus as a proxy for an idea about a new, revised, or
repositioned product

Evaluating ideas by providing a feel for the merits of an
idea prior to the commitment of R & D, manufacturing or
other co. resources.

Eg: XYZ Ltd. conducted a concept test to determine if
consumers would accept the idea of a new product

Discovering new ideas
Factory workers have suggestions for
increasing production or improving safety

Consumers may suggest new product ideas
or un thought of problems may be identified
Categories of Exploratory
Research
Experience surveys
Case studies
Pilot studies
Secondary data analysis

Experience Surveys
Ask knowledgeable individuals about a particular
research problem
Purpose is to help formulate the problem and clarify
concepts rather than develop conclusive evidence
It is generally an informal method
most are quite willing

Eg: Research Analyst wants to do research on Pharma
Industry: Speak to Doctors, Scientists, MRs,
Hospital staff
Case Study Method
Intensely investigates one or a few situations similar to
the problem
Investigate in depth
Careful study
May require cooperation

Eg: a) A new bank may investigate the computer security
activities of an innovative bank
b) Business Researcher Manager: Bicycles: Observational
Case Study
Pilot Study
A collective term
Any small scale exploratory study that uses
sampling
But does not apply rigorous standards
Generates primary data, usually for
Qualitative Analysis
Pilot Studies
Focus Group Interviews
Projective Techniques
In-Depth Interviews
Focus Group Interviews
Unstructured, Free flowing, Group interview
Start with broad topic and focus is on specific
issues
Generally used for concept screening

Group Composition:
6 to 10 people, Relatively homogeneous
Similar lifestyles and experiences

Outline for a Focus Group
Establish a rapport
Begin with broad topic
Focus is on specific topic
Generate discussion and interaction
Have a Discussion Guide

The Moderator
Develops rapport - helps people relax
Interacts
Listens to what people have to say
Everyone gets a chance to speak
Maintains loose control and focuses discussion
Stimulates spontaneous responses

Advantages of Focus Groups
Synergy
Easy to Execute
Snowballing effect
Security
Spontaneity
Inexpensive and speedy
Flexible
Disadvantages of Focus Groups
Not a representative sample
Cannot take the place of Quantitative studies

If moderator is not effective then purpose of
the group will not be achieved

Streaming Media and Video
Conferencing
Online Focus Groups
Group of individuals provide unstructured
comments by entering their remarks into a
computer connected to the internet.
Advantages of Online
Focus Groups
Fast
Inexpensive
Bring together many participants from
wide-spread geographical areas
Respondent anonymity
Transcript automatically recorded
Disadvantages of Online
Focus Groups
Less group interaction
Absence of tactile stimulation
Absence of facial expression and body
language
Moderators job is different
Projective Techniques
Help discover an individuals attitudes, motivations,
defensive reactions and characteristic ways of
responding

Indirect means of questioning that enables a
respondent to project beliefs and feelings onto a
3
rd
party, an inmate object or a task situation

Eg: Mercedes (Value for money, does not
depreciate much, comfortable v/s status seeker)
Projective Techniques
Word Association Tests
Sentence completion method
Third-person technique
Role playing
T.A.T.
Picture frustration version of T.A.T.
Word Association
Subject is presented with a list of words
Asked to respond with first word that
comes to mind
Verbal and Non Verbal responses are
recorded
Used for testing brand names, pretest
words or ideas to be used in
questionnaire

Word Association
Examples
GREEN



CHEESE

Money
Lawn
Pakistani flag

mayonnaise
smile
pizza

Sentence Completion
Respondents are required to complete a
number of partial sentences with the
first word or phrase that comes to mind

Answers in this method tend to be more
extensive than answers to word
association tests
Sentence Completion

People who drink beer are ______________________

A man who drinks light beer is ___________________

Imported beer is most liked by ___________________

A woman will drink beer when____________________
Third Person Technique
Respondent is asked why a third person does
what he or she does or what he or she thinks
about an object, event, person or activity.

Respondent is expected to transfer his or her
attitudes to the third person
Third Person Technique
1
st
List 2
nd
List
Bunch of cauliflower Bunch of cauliflower
2 loaves of bread 2 loaves of bread
Bunch of carrots Bunch of carrots
1 can of baking powder 1 can of baking powder
Nescafe Instant Coffee Maxwell House Coffee
5 kg Potatoes 5 kg Potatoes
2 dozen Oranges 2 dozen Oranges
Role Play
Dynamic reenactment of the third person
technique

Requires the subject / respondent to act out
someone elses behavior in a particular setting

Investigating situations involving interpersonal
relations.

Eg: Worker - Supervisor
Thematic Apperception Test
T.A.T.
Test consisting of a series of pictures is
shown to respondents who are then
asked to provide a description of the
pictures.

Researcher analyses the content of
these descriptions in an effort to clarify
a research problem
Thematic Apperception Test
TAT: Picture frustration
Version of TAT that uses a cartoon
drawing for which the respondent
suggests dialogue that the cartoon
characters might speak.
In -Depth Interview
Unstructured, Extensive Interview used in the
primary stages of the research process

Researcher asks many questions and probes for
elaborations after subject answers

Interviewers role is very important

Eg: Can you tell me more about that?
Secondary Data
Data gathered and recorded by someone else
prior to and for a purpose other than the current
project

Is Historical, Already assembled, Economical

Eg: Standard and Poors (S & Ps) Market Value
Index

Secondary Data
Exact Figures could be used directly or

2 or 3 Datas are combined to come to a
conclusion

Eg: a) 10% Mumbaites like Instant Coffee
b) Company A has 45% share in the Instant Coffee
Market
c) Coffee Market Value: 1.2 Crores in Mumbai
Conclusion: Sales of Company A is: 5.4 Lakhs
Advantages of Secondary Data
Inexpensive

Obtained Rapidly.. Save Time

Government Data Is Often Free
Eg: Population Census
Disadvantages of
Secondary Data
Uncertain Accuracy
Data Not Consistent with Needs
Inappropriate Units of Measurement
Time Period Inappropriate (Dated)
Evaluating Secondary Data
Does the data help to
answer questions
set out in the
problem definition?
Does the data apply to
the time period of
interest?

Does the data apply to
the population of
interest?

Applicability
to project
objectives
Do the other terms
and variable
classifications
presented apply?
Are the units of
measurement
comparable?

If possible, go to the
original source of the
data?

Accuracy
of the data
Is the cost of data
acquisition worth it?


Accuracy
of the data
Is there a possibility
of bias?


Can the accuracy of
data collection be
verified?

a) Fact Finding: Collecting Descriptive Information
to support decision making
- Identifying consumption patterns
- Tracking trends
- Environmental Scanning

b) Model building: Specify relations between
variables based on secondary data, sometimes
using descriptive or predictive equations

Common Research Objectives
for Secondary Data Studies
Common Research Objectives
for Secondary Data Studies
- Estimating market potential
- Forecasting sales
- Selecting trade areas and sites

Data Base Marketing:
- Development of Prospect Lists
- Enhancement of Customer Lists
Classification of Secondary Data
Internal Data
External Data
Internal Data
Internal and proprietary data is more
descriptive

Accounting information
Sales information
Backorders
Customer complaints
External Data
Created, recorded, or generated by an entity
other than the researchers organization

Government
Trade associations
Newspapers and journals
Libraries
Internet
External Data
Vendors
Producers
Books and periodicals
Government sources (Census of Population)
Media sources
Commercial sources (Market Share Data
A.C. Neilson)
SURVEYS
Ask respondents for information using verbal
or written questioning

Respondents: representative sample of
people

Primary Data: Data gathered and
assembled specifically for the research
project at hand

Errors in Survey Research
Administrative
error
Respondent
error
Systematic
error (bias)
Random
Sampling error
Total
error
Unconscio
us misrep
resentation
Deliberate
falsification
Acquiescence
bias
Extremity
bias
Interviewer
bias
Auspices
bias
Social desir
ability bias
Non
response
error
Response
bias
Data
processing
error
Sample
selection
error
Interviewer
error
Interviewer
cheating
Refusal
No Contact
Self Select
ion bias
Survey Research Methods
Structure and
Disguise
Time
Frame
Method of
Communication
Structured - Disguised
Structured - Undisguised
Unstructured - Disguised
Unstructured -Undisguised
Cross
Sectional
Studies
Longitudi
nal
Studies
Panel
Study
Interactive
Media
NonInterac
tive Media
Human IM
Electronic IM
PI (D2D, Mall
Intercept)
Telephonic
Intvw
Internet Email
Interactive
Kiosk
Self
Administered
Printed
Questionnaire
Mail, Inserts, Fax,
In-person drop-off
Structured Unstructured
Undisguised




Disguised
Example:

Typical descriptive survey
with straight-forward, structured
questions
Example:

Survey with open-ended
questions to discover new
answers or focus group interview
Example:

Survey interview to measure
brand As image versus
competitive brands images or
brand recall (unaided recall)
Example:

Projection techniques used
mostly for exploratory research
Classifying Surveys
by Degree of Structure and Degree of Disguise
s/w can
assure
none
High Medium Medium Low Item non
response
rate
Moderate Varies(in
centive)
Moderate Moderate
to long
Long Questionnai
re Length
Extremely
versatile
Not
versatile
Moderate Extremely
versatile
Quite
versatile
Versatility of
questioning
Varies Moderate
to low
Good Moderate
to low
Excellent Respondent
cooperation
High High High Confined
(urban)
Ltd to
moderate
Geographic
flexibility
Instantan
eous
Slow Very fast Fast Moderate Speed of
Data
Collection
Internet
Survey
Mail
Survey
Tele
Intrvw
Mall Inter
cept PI
Door to
Door PI
Advantages /Disadvantages of Different Survey Methods
Low Low Low to
moderat
e
Moderat
e to high
Highest Cost
Difficult Easy Easy Difficult Difficult Ease of call back
or follow up
Anonymo
us known
High Moderat
e
Low Low Anonymity of
respondent
High High Average Low Low Possibility for
respondent
misunderstanding
Internet
Survey
Mail
Surve
y
Tele
Intrw
Mall
Interce
pt PI
Door to
Door PI
N. A. N. A. High Moderat
e to high
Moderat
e
Supervision of
interviewers
None None Moderat
e
High High Degree of intervie
wer influence on
answers
Selecting the Appropriate Survey
Research Design
How quickly is the information needed?
Will the study require a long and complex
questionnaire?
How large is the budget?
Is the assistance of an interviewer necessary?
Will cooperation be easily attained?

Pretesting
A trial run with a group of respondents to iron
out fundamental problems in the instructions
or survey design
OBSERVATION
Serves as a formulated research purpose
Is planned systematically
Is recorded systematically
Is subjected to checks or controls on validity
and reliability
Phenomena Example
1) Human behavior or physical Shoppers movement
action pattern in a store, wear
and tear of book how
much it is used

2) Verbal behavior Statements made by
airline travelers who wait
in line

3) Expressive behavior Facial expressions, tone
of voice, and other form
of body language
What Can Be Observed
Phenomena Example
4) Spatial relations How close visitors at an
and locations art museum stand to paintings

5) Temporal patterns How long fast-food customers
wait for their order to be served

6) Physical objects What brand name items are
stored in consumers pantries

7) Verbal and Pictorial Bar codes on product packages
Records

What Can Be Observed
Categories of Observation
Human V/S mechanical
Visible V/S hidden
Direct Observation V/S Contrived Observation

- Response Latency: Recording the decision
time necessary to make a choice between
two alternatives. Longer the time more
closer the alternatives are in preference

Observation of Human
Behavior: Benefits
Communication with respondent is not necessary
Data without distortions due to self-report (e.g.:
without social desirability) Bias
No need to rely on respondents memory
Nonverbal behavior data may be obtained
Environmental conditions may be recorded
May be combined with survey to provide
supplemental evidence
Observation of Human
Behavior: Limitations
Interpretation of data may be a problem
Not all activity can be recorded
Only short periods can be observed
Observer bias possible
Possible invasion of privacy
Content Analysis
Obtains data by observing and analyzing the
content of advertisements, letters, articles,
etc.
Deals with the study of the message itself
Measures the extent of emphasis or omission
Mechanical Observation
Traffic Counters
Scanners
Television monitoring: Peoplemeter
Web Traffic
- Hits and page views
- Nielsen NetRatings
Physiological Measures
Physiological Reactions
Eye tracking
Record how the subject actually reads or views
an advertisement. Measure unconscious eye
movements

Pupilometer
Observes and records changes in the diameter
of the subjects pupils.
Physiological Reactions
Psychogalvanometer
Measures galvanic skin response, Involuntary
changes in the electrical resistance of the skin
Assumption: physiological changes
accompany emotional reactions

Voice pitch
Measures emotional reactions through
physiological changes in a persons voice
Measurement Terms
Concept: A generalized idea about a class of
objects, attributes, occurrences, or processes
Eg: Media Skepticism: degree to which individuals
are skeptical toward the reality presented in the
mass media.

Operational Definition: Specifies what the
researcher must do to measure the concept
under investigation
Eg: Please tell me how true each statement is
about the media. Is it very true, not very true, or
not at all true?
1. The program was not very accurate in its
portrayal of the problem.
2. Most of the story was staged for entertainment
purposes.
3. The presentation was slanted and unfair.
Measurement Terms
Concept Conceptual
Definition
Operational Definition
Job
Challenge
Reflects a
workers desire
for stimulation
and challenge
in his or her
job and ability
to exercise
skills in his or
her job
Pls tell me how true each
stmt is abt ur job. Is it very
true, somewhat true, nt
very true, or not at all true?
1. The work is interesting
2. I have an opportunity to
develop my own special
abilities .
3. I am given a chance to do
the things I do best.
Precise Measurement
Requires
- Careful conceptual definition
- Operational definition
- And System of consistent rules for assigning
scores or numbers


Eg: Task is to define height of a boy, Mr. A

Different rules of measurements could be:
a) Create categories like: quite tall for his age,
moderately tall for his age, abt avg for his age,
moderately short for his age, quite short for his
age
b) Compare with others and do ranking
c) Conventional measurement system like
centimeters, foot
d) Define two categories: nice height, not so nice
height

Scale
Series of items arranged according to value
for the purpose of quantification

A continuous spectrum
Nominal Scale
Uniquely classifies
Sachin Tendulkar # 10

Males: 1, Females : 2

Roll No. of students in the class

Ordinal Scale
Uniquely classifies
Preserves order
Arranges objects or alternatives according to
their magnitude in an ordered relationship

Eg: Rate a professor as excellent, good, fair or
poor, Rank of Students in the class

Interval Scale
Uniquely classifies
Preserves order
Equal intervals but zero point is arbitrary
Consumer Price Index (Base 100)
Fahrenheit temperature
Ratio Scale
Uniquely classifies
Preserves order
Equal intervals
Natural zero
Weight and distance
Index Measures
ATTRIBUTES: A single characteristic or
fundamental feature that pertains to an
object, person, or issue

INDEX MEASURE: A multi-item instrument / a
composite measure of several variables
constructed to measure a single concept

Eg: Social Class Residence, Occupation and
Education
Criterion for Good Measurement
Validity: The ability of a scale to measure
what was intended to be measured

Reliability: The degree to which measures are
free from random error and therefore yield
consistent result

Sensitivity: Ability to accurately measure
variability in stimuli or responses
Old Rifle New Rifle New Rifle

Sun glare
Low Reliability High Reliability Reliable but Not
Valid
(Target A) (Target B) (Target C)
Reliability and Validity on
Target
TEST RETEST
STABILITY
EQUIVALENT FORMS SPLITTING HALVES
INTERNAL CONSISTENCY
RELIABILITY
FACE OR CONTENT
CONCURRENT PREDICTIVE
CRITERION VALIDITY CONSTRUCT VALIDITY
Validity
Hypothetical Construct
A variable that is not directly observable, but
is measurable by an indirect means such as
verbal expression or overt behavior

Eg: Attitude
Attitude
An enduring disposition to consistently respond in a
given matter to various aspects of the world,
composed of 3 components:

Affective: Feelings or emotions toward an object
Cognitive: Knowledge and beliefs
Behavioral: Predisposition to action, Intentions,
Behavioral expectations
Techniques of Measuring
Attitudes
Ranking - Rank order preference
Rating - Estimates magnitude of a characteristic
Sorting - Arrange or classify concepts
Choice - Selection of preferred alternative
Physiological measures - measuring attitudes without
verbally questioning the respondent, galvanic skin
responses, measure blood pressure
Simple Attitude Rating Scale
Most basic form, merely checklists, nominal scale
An individual agrees with a statement or responds
to a single question.
Merely classifies respondents into one of two
categories
Eg:
THE PRESIDENT SHOULD RUN FOR RE-ELECTION
_______ AGREE ______ DISAGREE
Category Scales
More sensitive measure than a scale having
only two response categories
Provides more information.
Questions wording is an extremely important
factor in the usefulness of these scales.
Example of Category Scale
How important were the following in your decision to visit
Kashmir (check one for each item)
VERY SOMEWHAT NOT TOO
IMPORTANT IMPORTANT IMPORTANT

CLIMATE ___________ ___________ ___________
COST OF TRAVEL ___________ ___________ ___________
FAMILY ORIENTED ___________ ___________ ___________
EDUCATIONAL/
HISTORICAL ASPECTS _________ ___________ ___________
FAMILIARITY WITH
AREA ___________ ___________ ___________
Concept Scale wordings
Quality Excellent, good, fair, poor
Importance V. Impt, Fairly Impt, Neutral, not
so Impt, Not at all Impt
Frequency All of the time, very often, often,
sometimes, hardly ever
Truth Very true, somewhat true, not
very true, not at all true
The Likert Scale
An extremely popular means for measuring
attitudes.
Respondents indicate their own attitudes by
checking how strongly they agree or disagree
with statements.
Responses range from 3 to 9.
Single: Ordinal Scale, Multi Item: Index Measure
Likert Scale for Measuring
Attitudes Toward Cricket
It is more fun to play a tough, competitive
Cricket match than to play an easy one.
___Strongly Agree
___Agree
___Not Sure
___Disagree
___Strongly Disagree
Likert Scale for Measuring
Attitudes Toward Cricket
There is really no such thing as a cricket stroke
that cannot be mastered.
___Strongly Agree
___Agree
___Not Sure
___Disagree
___Strongly Disagree
Playing cricket is a great way to exercise.
___Strongly Agree
___Agree
___Not Sure
___Disagree
___Strongly Disagree
Likert Scale for Measuring
Attitudes Toward Cricket
Semantic Differential Scale
A series of seven-point bipolar rating scales.
Bipolar adjectives, such as good and bad,
anchor both ends (or poles) of the scale.

A weight is assigned to each position on the
rating scale. Traditionally, scores are 7, 6, 5,
4, 3, 2, 1, or +3, +2, +1, 0, -1, -2, -3.

Semantic Differential Scales for
Measuring Attitudes Toward Cricket
Exciting ___ : ___ : ___ : ___ : ___ : ___ : ___ : Calm
Interesting ___ : ___ : ___ : ___ : ___ : ___ : ___ : Dull
Simple___ : ___ : ___ : ___ : ___ : ___ : ___ Complex
Passive ___ : ___ : ___ : ___ : ___ : ___ : ___ Active
Numerical Scales
Have numbers as response options, rather than
semantic space or verbal descriptions, to identify
categories (response positions).

Eg: Now that you have had your mobile for about
one year, please tell us how satisfied you are with
your Blackberry
Extremely Satisfied 7 6 5 4 3 2 1 Extremely
Dissatisfied
Suppose you have 5000 Rs. In benefits per
month. Divide the amount according to your
preference for the below listed benefits

Salary _________
Medical Insurance _________
Gratuity _________
Retirement Plan _________
Constant Sum Scales
Stapel Scales
Place a single adjective as a substitute for the
semantic differential when it is difficult to create
pairs of bipolar adjectives.
Supervisors Name
+3
+2
+1
Supportive
-1
-2
-3
Graphic Rating Scales
A graphic rating scale presents respondents
with a graphic continuum.
3 2 1
Very Very
Good Poor
Developed for measuring the behavioral intentions
of subjects towards any object or category of
objects.

Eg:
A 25-year old woman sales representative
Would __ : __ : __ : __ : __ : __ : __ : Would Not
Ask this person for advice.
Behavioral Differential
Paired Comparisons
Respondents are presented with two objects
at a time and asked to pick the one they
prefer.


Monadic Rating Scale
A Monadic Rating Scale asks about a single concept

Now that youve had your automobile for about 1 year, please tell us how
satisfied you are with its engine power.

Completely Very Fairly Well Somewhat Very
Satisfied Satisfied Satisfied Dissatisfied Dissatisfied
A Comparative Rating Scale
A Comparative Rating Scale asks respondents to rate a
concept by comparing it with a benchmark

Please indicate how the amount of authority in your present position
compares with the amount of authority that would be ideal for this position.

TOO MUCH ABOUT RIGHT TOO LITTLE
An Unbalanced Scale
An Unbalanced Scale has more responses distributed at one
end of the scale

How satisfied are you with the bookstore in the Student Union?

Neither Satisfied Quite Very
Satisfied Nor Dissatisfied Satisfied Dissatisfied
Major Decisions in Questionnaire
Design
1. What should be asked?
Questionnaire relevance
Questionnaire accuracy (reliable and valid)

2. How should each question be phrased?
Open-ended questions
Fixed-alternative / Close-ended questions

a) Avoid Complexity: use simple, conversational
language

Eg: When effluents from a paper mill can be drunk and
exhaust from factory smokestacks can be breathed,
then humankind will have done a good job in saving
the environment.. Dont you agree that what we want
is zero toxicity: no effluence?

b) Avoid leading and loaded questions
Eg: 99% of the people feel that the movie 3 idiots has
had an impact on them. What do you feel about the
same on you?

Eg: I feel capable of handling myself in most social
situations: ___ Agree ______ Disagree
c) Avoid ambiguity: be as specific as possible

Eg: How often do you feel that you can consider all of
the alternatives before making a decision to follow
a specific course of action?
_____ always ____ occasionally ___ never

d) Avoid double-barreled items

Eg: Are you satisfied with the present system of
handling the books in the library? Are the required
materials ordered promptly? Are the borrowing
regulations adequate for the students use of
materials?
______ yes _______no
e) Avoid making assumptions

Eg: Should I continue my excellent lectures on RM?
____ yes _____ no

f) Avoid burdensome questions

Eg: Do you remember what was taught in 5
th
lecture of
RM?
_____ yes ____ no
Major Decisions in Questionnaire
Design
3) Question sequence
Order bias
Funnel technique
Filter bias
4) Question layout
5) Question Pretesting
- Preliminary Tabulation
Dear Passenger:

Jet Airlines is pleased to have you on board today.

To help us provide the best service possible, we need to know
more about you and your opinions of our service. If you are
over 11 years old, we would appreciate it if you would complete
this questionnaire.

Your flight attendant will pick up your completed questionnaire
shortly.

1. Please indicate: Flight number ___________ Date_____________

2a. At the city where you boarded this particular plane, did you make a
connection from another flight?
Yes, from Jet Airlines . . . . 1
Yes, from Other Airline . . 2
No . . . . . . . . . . . . . . . . . . 3

b. Did you board this plane at the airport from which it just took off, or
were you a through passenger for which that was an intermediate stop?

Boarded here . . . . . . . . . . 1
Through passenger. . . . . . 2

3. How would you rate the overall service from Jet for this flight, all things
considered, from your arrival at the airport terminal until now?

Excellent Good Fair Poor
Overall Service . . . . . . . . . . 1 2 3 4
4. Please rate each of the following with regard to this flight, if applicable.


Excellent Good Fair Poor
1 2 3 4
Courtesy and Treatment from the:
Skycap at airport . . . . . . . . . . . . . .
Airport Ticket Counter Agent . . . . .
Boarding Point (Gate) Agent . . . . .
Flight Attendants . . . . . . . . . . . . . .
Your Meal or Snack. . . . . . . . . . . . .
Beverage Service . . . . . . . . . . . . . .
Seat Comfort. . . . . . . . . . . . . . . . . .
Carry-On Stowage Space. . . . . . . .
Cabin Cleanliness . . . . . . . . . . . . .
Video/Stereo Entertainment . . . . . .
On-Time Departure . . . . . . . . . . . .
Sampling Terminology
Sample
Population or universe
Population element
Census
Define the target population
Select a sampling frame / working population
Conduct fieldwork
Determine if a probability or non probability
sampling method will be chosen
Plan procedure for selecting sampling units
Determine sample size
Select actual sampling units
Stages in the
Selection
of a Sample
Probability Sampling
Simple Random sample
Systematic sample
Stratified sample
- Proportional
- Disproportional
Cluster sample
Non Probability Sampling
Convenience / Haphazard / Accidental
Judgment / Purposive
Quota
Snowball
Sampling Units
Group selected for the sample
Primary Sampling Units (PSU)
Secondary Sampling Units
Tertiary Sampling Units

Eg: NLDIMSR Students Course wise Year
Division Based
What is the
Appropriate Sample Design?
Degree of Accuracy
Resources
Time
Advanced knowledge of the population
National versus local
Who Conducts Fieldwork?
FIELD-
WORKERS
FIELD INTERVIEWING
SERVICE
(2
nd
Party or 3
rd
Party)

IN-HOUSE
INTERVIEWERS
BRIEFING SESSIONS
In-House Training
MAKING INITIAL
CONTACT
PROBING
RECORDING
RESPONSES
ASKING
QUESTIONS
TERMINATING
INTERVIEWS
Making Initial Contact
and Securing the Interview
Good afternoon, my name is
Foot-in-the-door
Door-in-the-face
Asking the Questions
Exactly as worded
Read slowly
Questions in the proper order
Ask every question
Repeat questions that are not understood
Probing
Verbal attempts; when the respondent must be
motivated to communicate his or her answers
more fully

SILENT
PROBE
REPEAT REPLY
NEUTRAL
QUESTION
REPEAT QUESTION
Recording the Response
All fieldworkers should use the same mechanism
Closed Qs: Check in the box

Record Responses during the interview
Use respondents own words
Dont summarise or paraphase the respondents ans
Include everything that pertains to the qs.
Objectives
Include all of your probes
Terminating the Interview
How to close interview and exit household is
important
Should not close the interview before all the
pertinent information is collected
Re interviewing may be required
Fieldwork Management
Select
Train
Supervise
Control
DATA ANALYSIS

DATA ENTRY

ERROR
CHECKING
AND
VERIFICATION
CODING
EDITING
Stages of Data Analysis
Editing
The process of checking and adjusting the
data
for omissions
for legibility and reliability
for consistency
And readying them for coding and storage
Editing
Field editing
In-house editing
Reasons for editing
CONSISTENCY

COMPLETENESS
QUESTIONS
ANSWERED
OUT OF ORDER
Editing: I Dont Know
Legitimate dont know
Reluctant dont know
Confused dont know

Coding
The process of identifying and assigning a
numerical score or other character symbol to
previously edited data

Codes:
- The rules for interpreting, classifying, and
recording data

1a. How many years have you been playing tennis on a regular basis?
Number of years: __________

b. What is your level of play?

Novice . . . . . . . . . . . . . . . -1 Advanced . . . . . . . -4
Lower Intermediate . . . . . -2 Expert . . . . . . . . . -5
Upper Intermediate . . . . . -3 Teaching Pro . . . . -6

c. In the last 12 months, has your level of play improved, remained the
same or decreased?

Improved. . . . . . . . . . . . . . -1 Decreased. . . . . . . -3
Remained the same . . . . . -2
I believe that people judge your
success by the kind of car you drive.
Strongly agree 1
Mildly agree 2
Neither agree
nor disagree 3
Mildly agree 4
Strongly disagree 5
Strongly agree + 1
Mildly agree +2
Neither agree
nor disagree 0
Mildly agree - 1
Strongly disagree - 2
Coding Open-Ended
Responses
Test Tabulation
Data Entry
The process of transforming data from the
research project to computers.
Optical scanning systems
Marked-sensed questionnaires
Statistics
Descriptive statistics
Describe or summarize information
Eg: Number of people, Trends in employment

Inferential statistics
Make an inference about a population from a
sample
Statistics
Population Parameter
Variables in a population
Measured characteristics of a population

Sample Statistics
Variables in a sample
Measures computed from data
Frequency (number of
people making deposits
Amount in each range)
less than Rs. 3,000 499
Rs. 3,000 - Rs. 4,999 530
Rs. 5,000 - Rs. 9,999 562
Rs. 10,000 - Rs. 14,999 718
Rs. 15,000 or more 811
3,120
Frequency Distribution
Amount Percent
less than Rs. 3,000 16
Rs. 3,000 - Rs. 4,999 17
Rs. 5,000 - Rs. 9,999 18
Rs. 10,000 - Rs. 14,999 23
Rs. 15,000 or more 26
100
Percentage Distribution
Amount Probability
less than Rs. 3,000 .16
Rs. 3,000 - Rs. 4,999 .17
Rs. 5,000 - Rs. 9,999 .18
Rs. 10,000 - Rs. 14,999 .23
Rs. 15,000 or more .26
1.00
Probability Distribution
Measures of Central Tendency
Mean - arithmetic average
, Population; , sample

Median - midpoint of the distribution

Mode - the value that occurs most often
X
Mean
Population Mean


Sample Mean
N
Xi E
=
n
X
X
i E
=
Number of
Salesperson Sales calls
Meher 4
Parag 3
Bittu 2
Bhargav 5
Jigar 3
Farhan 3
Chaitanya 1
Samarth 5
26
Number of Sales Calls Per Day
by Salespersons
Mean: 3.25
Median: 3
Mode: 3
Measures of Dispersion
or Spread
Range: distance between the smallest and
the largest value in the set.

Mean absolute deviation
Variance
Standard deviation
Product A Product B
196 150
198 160
199 176
199 181
200 192
200 200
200 201
201 202
201 213
201 224
202 240
202 261
Sales for Products A and B,
Both Average 200
Range: 6, 111
Deviation Scores
The differences between each
observation value and the mean:
x x d i i =





150 160 170 180 190 200 210
5

4

3

2

1
Low Dispersion
Value on Variable
Low Dispersion Verses High
Dispersion





150 160 170 180 190 200 210
5

4

3

2

1
High dispersion
Value on Variable
Low Dispersion Verses High
Dispersion
Average Deviation:


Mean Std Deviation


Variance
0
) (
=

n
X X i
n
X Xi

2
) (
2
2
S
Sample
Population
o
Variance
1
)
2
2

( E
=
n
X X
S
Variance
The variance is given in squared units
The standard deviation is the square root of
variance:
Standard Deviation
( )
1
2

E
=
n
X X
i
S
Sample:



Population:
2
o o =
2
S S =
The Normal Distribution
Normal curve
Bell shaped
Almost all of its values are within plus or
minus 3 standard deviations
I.Q. is an example
2.14%
13.59%
34.13% 34.13%
13.59%
2.14%
Normal Distribution
MEAN

85 115
100
145 70
Normal Curve: IQ Example
Standardized Normal
Distribution
Symetrical about its mean
Mean identifies highest point
Infinite number of cases - a continuous
distribution
Area under curve has a probability density =
1.0
Mean of zero, standard deviation of 1
Standard Normal Curve
The curve is bell-shaped or symmetrical
About 68% of the observations will fall within
1 standard deviation of the mean
About 95% of the observations will fall within
approximately 2 (1.96) standard deviations
of the mean
Almost all of the observations will fall within 3
standard deviations of the mean
0
1
-1 -2
2
z
A Standardized Normal Curve
The Standardized Normal is the
Distribution of Z

z +z
o

=
x
z
Standardized Values
Used to compare an individual value to
the population mean in units of the
standard deviation


x
o o
Population Distribution

X
X
S
Sample Distribution
X
S
X X

Sampling Distribution
Standard Error of the Mean
Standard deviation of the sampling
distribution
Central Limit Theorem

Standard Error of the Mean
n
S
x
o
=
Distribution Mean Standard
Deviation
Population

o
Sample

X S
Sampling
X

X
S
Parameter Estimates
Point estimates
Confidence interval estimates
error sampling small a X =
Confidence Interval
X
cl
S Z = ERROR SAMPLING SMALL
E = X
Estimating the Standard Error
of the Mean
n
S
S
x
=
n
S
Z X
cl
=
Random Sampling Error
and Sample Size are
Related
Sample Size
Variance (standard deviation)
Magnitude of error
Confidence level
2
|
.
|

\
|
=
E
zs
n
Sample Size Formula - Example
Suppose a survey researcher, studying
expenditures on lipstick, wishes to have a 95
percent confident level (Z) and a range of error
(E) of less than $2.00. The estimate of the
standard deviation is $29.00.
2
E
zs
n
|
.
|

\
|
=
( )( )
2
00 . 2
00 . 29 96 . 1
(

=
2
00 . 2
84 . 56
(

= ( )
2
42 . 28 =
808 =
Sample Size Formula -
Example
Suppose, in the same example as the one
before, the range of error (E) is acceptable at
$4.00, sample size is reduced.
Sample Size Formula -
Example
2
E
zs
n
|
.
|

\
|
=
( )( )
2
00 . 4
00 . 29 96 . 1
(

=
2
00 . 4
84 . 56
(

= ( )
2
21 . 14 =
202 =
Sample Size Formula -
Example
99% Confidence
Calculating Sample Size
| |
1389
=
26
5
. 37
2
=
2
53 . 74
2
(

(



=
2
) 29 )( 57 . 2 (
n
2
(

(



=
|
347
=
| 6325 . 18
2
=
4
53 . 74
2
(

(



=
4
) 29 )( 57 . 2 (
n
2
(

(



=
n
p p
or
n
pq
p s
) 1 (

=
Standard Error of the
Proportion
p clS Z p
Confidence Interval for a
Proportion
2
2
E
pq Z
n =
Sample Size for a Proportion
2
2
E
pq z
n
=
Where:
n = Number of items in samples
Z
2
= The square of the confidence interval in standard
error units.
p = Estimated proportion of success
q = (1-p) or estimated the proportion of failures
E
2
= The square of the maximum allowance for error
between the true proportion and sample proportion or
zs
p
squared.
Calculating Sample Size
at the 95% Confidence Level
753
=
001225 .
922 .
=
001225
) 24 )(. 8416 . 3 (
=
) 035 ( .
) 4 )(. 6 (. ) 96 1. (
n
4 . q
6 . p
2
2
=
=
=
Descriptive Analysis
The transformation of raw data into a form
that will make them easy to understand and
interpret; rearranging, ordering, and
manipulating data to generate descriptive
information
Type of
Measurement
Nominal
Two
categories
More than
two categories
Frequency table
Proportion (percentage)


Frequency table
Category proportions
(percentages)
Mode
Type of
descriptive analysis
Type of
Measurement
Type of
descriptive analysis
Ordinal
Rank order
Median
Interval
Arithmetic mean
Ratio
Index numbers
Geometric mean
Harmonic mean
Measure of
Central Measure of
Type of Scale Tendency Dispersion

Nominal Mode None
Ordinal Median Percentile
Interval or ratio Mean Standard
deviation
Central Tendency
Cross-Tabulation

A technique for organizing data by groups,
categories, or classes, thus facilitating
comparisons; a joint frequency distribution of
observations on two or more sets of variables

Contingency table- The results of a cross-
tabulation of two variables, such as survey
questions
Cross-Tabulation
Analyze data by groups or categories
Compare differences
Contingency table
Percentage cross-tabulations
Base

The number of respondents or observations
(in a row or column) used as a basis for
computing percentages
Elaboration and Refinement
Moderator variable
A third variable that, when introduced into
an analysis, alters or has a contingent
effect on the relationship between an
independent variable and a dependent
variable.
Spurious relationship
An apparent relationship between two
variables that is not authentic.
Two
rating
scales
4 quadrants
two-dimensional
table
Importance-
Performance
Analysis)
Quadrant Analysis
Data Transformation
Data conversion
Changing the original form of the data to a
new format
More appropriate data analysis
New variables
Data Transformation
Summative Score =
VAR1 + VAR2 + VAR 3
Collapsing a Five-Point Scale
Strongly Agree
Agree
Neither Agree nor
Disagree
Disagree
Strongly Disagree
Strongly
Agree/Agree
Neither Agree nor
Disagree
Disagree/Strongly
Disagree
Index Numbers
Score or observation recalibrated to indicate
how it relates to a base number
CPI - Consumer Price Index
Calculating Rank Order
Ordinal data
Brand preferences
Tables
Bannerheads for columns
Studheads for rows
Univariate Statistics
Test of statistical significance
Hypothesis testing one variable at a
time
Hypothesis
Unproven proposition
Supposition that tentatively explains certain
facts or phenomena
Assumption about nature of the world
Hypothesis
An unproven proposition or supposition that
tentatively explains certain facts or
phenomena
Null hypothesis
Alternative hypothesis
Null Hypothesis
Statement about the status quo
No difference

Alternative Hypothesis
Statement that indicates the opposite of the
null hypothesis
Significance Level
Critical Probability
Confidence Level
Alpha
Probability Level selected is typically .05
or .01
Too low to warrant support for the null
hypothesis

0 . 3 : =
o
H
The null hypothesis that the mean is
equal to 3.0:
0 . 3 :
1
= H
The alternative hypothesis that the
mean does not equal to 3.0:

=3.0
x
o=.025
o=.025
A Sampling Distribution

LOWER
LIMIT
UPPER
LIMIT
=3.0
A Sampling Distribution
Critical values of
Critical value - upper limit
n
S
Z ZS
X
+ + = or
|
.
|

\
|
+ =
225
5 . 1
96 . 1 0 . 3
( ) 1 . 0 96 . 1 0 . 3 + =
196 . 0 . 3 + =
196 . 3 =
Critical values of
Critical value - lower limit
n
S
Z ZS
X
- or - =
|
|
.
|

\
|
=
225
5 . 1
96 . 1 - 0 . 3
Critical values of
( ) 1 . 0 96 . 1 0 . 3 =
196 . 0 . 3 =
804 . 2 =
Critical values of
Region of Rejection

LOWER
LIMIT
UPPER
LIMIT
=3.0
Hypothesis Test

2.804
3.196
=3.0
3.78
Accept null Reject null
Null is true
Null is false
Correct-
no error
Type I
error
Type II
error
Correct-
no error
Type I and Type II Errors
Type I and Type II Errors
in Hypothesis Testing
State of Null Hypothesis Decision
in the Population Accept Ho Reject Ho

Ho is true Correct--no error Type I error
Ho is false Type II error Correct--no error
Calculating Z
obs
x s
x
z
obs

=
X
obs
S
X
Z

=
Alternate Way of Testing the
Hypothesis
X
obs
S
Z

=
78 . 3
1 .
0 . 3 78 . 3
=
1 .
78 . 0
= 8 . 7 =
Alternate Way of Testing the
Hypothesis
Choosing the Appropriate
Statistical Technique
Type of question to be answered
Number of variables
Univariate
Bivariate
Multivariate
Scale of measurement
t-Distribution
Symmetrical, bell-shaped distribution
Mean of zero and a unit standard
deviation
Shape influenced by degrees of
freedom
Degrees of Freedom
Abbreviated d.f.
Number of observations
Number of constraints
or
X
l c
S t X
. .
=
n
S
t X
l c . .
limit Upper + =
n
S
t X
l c . .
limit Lower =
Confidence Interval Estimate
Using the t-distribution
= population mean
= sample mean
= critical value of t at a specified confidence
level
= standard error of the mean
= sample standard deviation
= sample size

. .l c
t

X
X
S
S
n
Confidence Interval Estimate
Using the t-distribution
x
cl
s t X =
17
66 . 2
7 . 3
=
=
=
n
S
X
Confidence Interval Estimate
Using the t-distribution
07 . 5
) 17 66 . 2 ( 12 . 2 7 . 3 limit upper
=
+ =
33 . 2
) 17 66 . 2 ( 12 . 2 7 . 3 limit Lower
=
=
Suppose that a production manager believes the
average number of defective assemblies each day to
be 20. The factory records the number of defective
assemblies for each of the 25 days it was opened in a
given month. The mean was calculated to be 22,
and the standard deviation, ,to be 5.
X
S
Univariate Hypothesis Test
Utilizing the t-Distribution
20 :
20 :
1
0
=
=

H
H
n S S
X
/ =
25 / 5 =
1 =
The researcher desired a 95 percent confidence, and
the significance level becomes .05.The researcher
must then find the upper and lower limits of the
confidence interval to determine the region of
rejection. Thus, the value of t is needed. For 24
degrees of freedom (n-1, 25-1), the t-value is 2.064.
Univariate Hypothesis Test
Utilizing the t-Distribution
: limit Lower
( ) 25 / 5 064 . 2 20
. .
=
X
l c
S t
( ) 1 064 . 2 20 =
936 . 17 =
: limit Upper
( ) 25 / 5 064 . 2 20
. .
+ = +
X
l c
S t
( ) 1 064 . 2 20+ =
064 . 20 =
X
obs
S
X
t

=
1
20 22
=
1
2
=
2 =
Univariate Hypothesis Test
t-Test
Testing a Hypothesis about a
Distribution
Chi-Square test
Test for significance in the analysis of
frequency distributions
Compare observed frequencies with
expected frequencies
Goodness of Fit

=
i
i i
) (

E
E O
x
Chi-Square Test
x = chi-square statistics
O
i
= observed frequency in the i
th
cell
E
i
= expected frequency on the i
th
cell
Chi-Square Test
n
C R
E
j i
ij
=
Chi-Square Test
Estimation for Expected Number
for Each Cell
Chi-Square Test
Estimation for Expected Number
for Each Cell
R
i
= total observed frequency in the i
th
row
C
j
= total observed frequency in the j
th
column
n = sample size
( ) ( )
2
2
2 2
1
2
1 1
2
E
E O
E
E O
X

+

=
Univariate Hypothesis Test
Chi-square Example
( ) ( )
50
50 40
50
50 60
2 2
2

+

= X
4 =
Univariate Hypothesis Test
Chi-square Example
Hypothesis Test of a
Proportion
t is the population proportion
p is the sample proportion
t is estimated with p


5 . : H
5 . : H
1
0
= t
= t
Hypothesis Test of a
Proportion
( )( )
100
4 . 0 6 . 0
=
p
S
100
24 .
=
0024 . =
04899 . =
p
S
p
Zobs
t
=
04899 .
5 . 6 .
=
04899 .
1 .
=
04 . 2 =
0115 . S
p
=
000133 . S
p
=
1200
16 .
S
p
=
1200
) 8 )(. 2 (.
S
p
=
n
pq
S
p
=
20 . p
=
200 , 1 n
=
Hypothesis Test of a
Proportion: Another Example
0115 . S
p
=
000133 . S
p
=
1200
16 .
S
p
=
1200
) 8 )(. 2 (.
S
p
=
n
pq
S
p
=
20 . p
=
200 , 1 n
=
Hypothesis Test of a
Proportion: Another Example
Indeed .001 the beyond t significant is it
level. .05 the at rejected be should hypothesis null the so 1.96, exceeds value Z The
348 . 4 Z
0115 .
05 .
Z
0115 .
15 . 20 .
Z
S
p
Z
p
=
=

=
t
=
Hypothesis Test of a
Proportion: Another Example
Type of Measurement
Differences between
two independent groups
Differences among
three or more
independent groups
Interval and ratio
Independent groups:
t-test or Z-test
One-way
ANOVA
Common Bivariate Tests
Ordinal
Mann-Whitney U-test
Wilcoxon test
Kruskal-Wallis test
Nominal
Z-test (two proportions)
Chi-square test
Chi-square test
Differences Between Groups
Contingency Tables
Cross-Tabulation
Chi-Square allows testing for significant
differences between groups
Goodness of Fit
Chi-Square Test

=
i
i i
) (

E
E O
x
x = chi-square statistics
O
i
= observed frequency in the i
th
cell
E
i
= expected frequency on the i
th
cell
n
C R
E
j i
ij
=
R
i
= total observed frequency in the i
th
row
C
j
= total observed frequency in the j
th
column
n = sample size
Chi-Square Test



Degrees of Freedom
(R-1)(C-1)=(2-1)(2-1)=1


Men Women Total
Aware 50 10 60

Unaware 15 25 40
65 35 100
Awareness of Tire
Manufacturers Brand
Chi-Square Test: Differences
Among Groups Example
21
) 21 10 (
39
) 39 50 (
2 2
2

+

= X
14
) 14 25 (
26
) 26 15 (
2 2

+
161 . 22
643 . 8 654 . 4 762 . 5 102 . 3
2
2
=
= + + + =
_
_
1 ) 1 2 )( 1 2 ( . .
) 1 )( 1 ( . .
= =
=
f d
C R f d
X
2
=3.84 with 1 d.f.
Differences Between Groups
when Comparing Means
Ratio scaled dependent variables
t-test
When groups are small
When population standard deviation is
unknown
z-test
When groups are large
0
2 1
2 1
=

OR
Null Hypothesis About Mean
Differences Between Groups
means random of y Variabilit
2 mean - 1 mean
t =
t-Test for Difference of Means
2 1
2 1

X X
S
t

X X
=
X
1
= mean for Group 1
X
2
= mean for Group 2
S
X
1
-X
2
= the pooled or combined standard error
of difference between means.
t-Test for Difference of Means
2 1
2 1

X X
S
t

X X
=
t-Test for Difference of Means
X
1
= mean for Group 1
X
2
= mean for Group 2
S
X
1
-X
2
= the pooled or combined standard error
of difference between means.
t-Test for Difference of Means
Pooled Estimate of the
Standard Error
( )
|
|
.
|

\
|
+
|
|
.
|

\
|
+
+
=

2 1 2 1
2
2 2
2
1 1
1 1
2
) ) 1 ( 1
2 1
n n n n
S n S n
S
X X
S
1
2
= the variance of Group 1
S
2
2

= the variance of Group 2
n
1
= the sample size of Group 1
n
2
= the sample size of Group 2
Pooled Estimate of the
Standard Error

Pooled Estimate of the Standard
Error
t-test for the Difference of Means
( )
|
|
.
|

\
|
+
|
|
.
|

\
|
+
+
=

2 1 2 1
2
2 2
2
1 1
1 1
2
) ) 1 ( 1
2 1
n n n n
S n S n
S
X X
S
1
2
= the variance of Group 1
S
2
2

= the variance of Group 2
n
1
= the sample size of Group 1
n
2
= the sample size of Group 2
Degrees of Freedom
d.f. = n - k
where:
n = n
1 +
n
2
k = number of groups
( )( ) ( )( )
|
.
|

\
|
+
|
|
.
|

\
|
+
=

14
1
21
1
33
6 . 2 13 1 . 2 20
2 2
2 1
X X
S
797 . =
t-Test for Difference of Means
Example
797 .
2 . 12 5 . 16
= t
797 .
3 . 4
=
395 . 5 =
H
Comparing Two Groups when
Comparing Proportions
Percentage Comparisons
Sample Proportion - P
Population Proportion -
Differences Between Two Groups
when Comparing Proportions
The hypothesis is:
H
o
: H
1
= H
2

may be restated as:
H
o
: H
1
H
2
= 0
2 1
: t t =
o
H
or
0 :
2 1
= t t
o
H
Z-Test for Differences of
Proportions
Z-Test for Differences of
Proportions
( ) ( )
2 1
2 1 2 1
p p
S
p p
Z

=
t t
p
1
= sample portion of successes in Group 1
p
2
= sample portion of successes in Group 2
(t
1
t
1
) = hypothesized population proportion
1
minus hypothesized population
proportion 1 minus
S
p1-p2
= pooled estimate of the standard errors
of
difference of proportions
Z-Test for Differences of
Proportions
Z-Test for Differences of
Proportions
|
|
.
|

\
|
=

2 1
1 1
2 1
n n
q p S
p p
p = pooled estimate of proportion of success
in a
sample of both groups
p = (1- p) or a pooled estimate of proportion
of
failures in a sample of both groups
n
1
= sample size for group 1
n
2
= sample size for group 2
p
q
p
Z-Test for Differences of
Proportions
Z-Test for Differences of
Proportions
2 1
2 2 1 1
n n
p n p n
p
+
+
=
( )( )
|
.
|

\
|
+ =

100
1
100
1
625 . 375 .
2 1
p p
S
068 . =
Z-Test for Differences of
Proportions
( )( ) ( )( )
100 100
4 . 100 35 . 100
+
+
= p
375 . =
A Z-Test for Differences of
Proportions
Analysis of Variance
Hypothesis when comparing three groups

1
=
2
=
3
groups within Variance
groups between Variance
F


=
Analysis of Variance
F-Ratio
Analysis of Variance
Sum of Squares
between within total
SS SS SS + =

= =
=
n
i
c
j 1 1
2
total
) ( SS X X
ij
Analysis of Variance
Sum of SquaresTotal
Analysis of Variance
Sum of Squares
p
i
= individual scores, i.e., the i
th

observation or
test unit in the j
th
group
p
i
= grand mean
n = number of all observations or test units
in a
group
c = number of j
th
groups (or columns)
ij
X
X

= =
=
n
i
c
j
j
1 1
2
within
) ( SS X X
ij
Analysis of Variance
Sum of SquaresWithin
Analysis of Variance
Sum of SquaresWithin
p
i
= individual scores, i.e., the i
th
observation or
test unit in the j
th
group
p
i
= grand mean
n = number of all observations or test units in
a
group
c = number of j
th
groups (or columns)
ij
X
X

=
=
n
j
j j
n
1
2
between
) ( SS X X
Analysis of Variance
Sum of Squares Between
Analysis of Variance
Sum of squares Between
= individual scores, i.e., the i
th
observation or
test unit in the j
th
group
= grand mean
n
j
= number of all observations or test units in a
group
j
X
X
1
=
c
SS
MS
between
between
Analysis of Variance
Mean Squares Between
c cn
SS
MS
within
within

=
Analysis of Variance
Mean Square Within
within
between
MS
MS
F =
Analysis of Variance
F-Ratio
Sales in Units (thousands)
Regular Price
$.99

130
118
87
84

X
1
=104.75
X=119.58
Reduced Price
$.89

145
143
120
131

X
2
=134.75

Cents-Off Coupon
Regular Price

153
129
96
99

X
1
=119.25




Test Market A, B, or C
Test Market D, E, or F
Test Market G, H, or I
Test Market J, K, or L

Mean
Grand Mean
A Test Market Experiment
on Pricing
ANOVA Summary Table
Source of Variation
Between groups
Sum of squares
SSbetween
Degrees of freedom
c-1 where c=number of groups
Mean squared-MSbetween
SSbetween/c-1
ANOVA Summary Table
Source of Variation
Within groups
Sum of squares
SSwithin
Degrees of freedom
cn-c where c=number of groups, n=
number of observations in a group
Mean squared-MSwithin
SSwithin/cn-c
WITHIN
BETWEEN
MS
MS
F =
ANOVA Summary Table
Source of Variation
Total
Sum of Squares
SStotal
Degrees of Freedom
cn-1 where c=number of groups, n=
number of observations in a group
Measures of Association
A general term that refers to a number
of bivariate statistical techniques used
to measure the strength of a
relationship between two variables.
Relationships Among Variables
Correlation analysis
Bivariate regression analysis

Type of
Measurement
Measure of
Association
Interval and
Ratio Scales
Correlation Coefficient
Bivariate Regression
Ordinal Scales
Chi-square
Rank Correlation
Nominal
Chi-Square
Phi Coefficient
Contingency Coefficient

Correlation Coefficient
A statistical measure of the covariation
or association between two variables.
Are dollar sales associated with
advertising dollar expenditures?


The Correlation coefficient for two
variables, X and Y is

xy r
.
Correlation Coefficient
r
r ranges from +1 to -1
r = +1 a perfect positive linear
relationship
r = -1 a perfect negative linear
relationship
r = 0 indicates no correlation
( )( )
( ) ( )

= =
2 2
Y Yi X Xi
Y Y X X
r r
i i
yx xy
Simple Correlation Coefficient
2 2
y x
xy
yx xy
r r
o o
o
= =
Simple Correlation Coefficient
= Variance of X
= Variance of Y
= Covariance of X and Y
2
x
o
2
y
o
xy
o
Simple Correlation Coefficient
Alternative Method
X
Y
NO CORRELATION
.
Correlation Patterns
X
Y
PERFECT NEGATIVE
CORRELATION -
r= -1.0
.
Correlation Patterns
X
Y
A HIGH POSITIVE CORRELATION
r = +.98
.
Correlation Patterns
Pg 629
( )( ) 589 . 5 837 . 17
3389 . 6
= r
712 . 99
3389 . 6
=
635 . =
Calculation of r
Coefficient of Determination
Variance
variance
2
Total
Explained
r =
Correlation Does Not Mean
Causation
High correlation
Roosters crow and the rising of the sun
Rooster does not cause the sun to rise.
Teachers salaries and the consumption
of liquor
Covary because they are both influenced
by a third variable
Correlation Matrix

The standard form for reporting
correlational results.
Correlation Matrix
Var1 Var2 Var3
Var1 1.0 0.45 0.31
Var2 0.45 1.0 0.10
Var3 0.31 0.10 1.0

Walkups
First Laws of Statistics

Law No. 1
Everything correlates with everything,
especially when the same individual defines
the variables to be correlated.
Law No. 2
It wont help very much to find a good
correlation between the variable you are
interested in and some other variable that you
dont understand any better.
Law No. 3
Unless you can think of a logical reason
why two variables should be connected as
cause and effect, it doesnt help much to
find a correlation between them. In
Columbus, Ohio, the mean monthly rainfall
correlates very nicely with the number of
letters in the names of the months!


Walkups
First Laws of Statistics





Going back to previous conditions
l Tall mens sons
DICTIONARY
DEFINITION
GOING OR
MOVING
BACKWARD
Regression
Bivariate Regression
A measure of linear association that
investigates a straight line relationship
Useful in forecasting
Bivariate Linear Regression

A measure of linear association that
investigates a straight-line relationship
Y = a + bX
where
Y is the dependent variable
X is the independent variable
a and b are two constants to be
estimated
Y intercept
a
An intercepted segment of a line
The point at which a regression line
intercepts the Y-axis

Slope
b
The inclination of a regression line as
compared to a base line
Rise over run
D - notation for a change in

Y
160

150

140

130

120

110

100

90

80
70 80 90 100 110 120 130 140 150 160 170 180 190
X
My line
Your line
.
Scatter Diagram
and Eyeball Forecast






130

120

110

100

90

80
80 90 100 110 120 130 140 150 160 170 180 190
X
Y

.
X a Y |

+ =
X A
Y

A
Regression Line and Slope
X
Y
160

150

140

130

120

110

100

90

80
70 80 90 100 110 120 130 140 150 160 170 180 190
Y hat for
Dealer 3
Actual Y for
Dealer 7
Y hat for Dealer 7
Actual Y for
Dealer 3
Least-Squares
Regression Line






130

120

110

100

90

80
80 90 100 110 120 130 140 150 160 170 180 190
X
Y

}
}
{
Deviation not
explained
Total deviation
Deviation explained by the regression
Y
.
Scatter Diagram of Explained
and Unexplained Variation
The Least-Square Method
Uses the criterion of attempting to
make the least amount of total error in
prediction of Y from X. More technically,
the procedure used in the least-squares
method generates a straight line that
minimizes the sum of squared
deviations of the actual values from this
predicted regression line.
The Least-Square Method
A relatively simple mathematical
technique that ensures that the straight
line will most closely represent the
relationship between X and Y.
Regression - Least-Square
Method

=
n
i
i
e
1
2
minimum is


= - (The residual)
= actual value of the dependent variable
= estimated value of the dependent variable (Y
hat)
n = number of observations
i = number of the observation
i
e
i
Y
i
Y

i
Y
i
Y

The Logic behind the Least-

Squares Technique
No straight line can completely
represent every dot in the scatter
diagram
There will be a discrepancy between
most of the actual scores (each dot)
and the predicted score
Uses the criterion of attempting to
make the least amount of total error in
prediction of Y from X
X Y a |

=
Bivariate Regression
( ) ( )( )
( ) ( )
2
2

=
X X n
Y X XY n
|
Bivariate Regression


= estimated slope of the line (the regression
coefficient)
= estimated intercept of the y axis
= dependent variable
= mean of the dependent variable
= independent variable
= mean of the independent variable
= number of observations

|

X
Y
n
a

Y
X
( )
( ) 625 , 515 , 3 759 , 245 15
875 , 806 , 2 345 , 193 15

= |
625 , 515 , 3 385 , 686 , 3
875 , 806 , 2 175 , 900 , 2

=
760 , 170
300 , 93
=
54638 . =
( ) 125 54638 . 8 . 99

= a
3 . 68 8 . 99 =
5 . 31 =
( ) 125 54638 . 8 . 99

= a
3 . 68 8 . 99 =
5 . 31 =
( ) X Y 546 . 5 . 31

+ =
( ) 89 546 . 5 . 31 + =
6 . 48 5 . 31 + =
1 . 80 =
( ) X Y 546 . 5 . 31

+ =
( ) 89 546 . 5 . 31 + =
6 . 48 5 . 31 + =
1 . 80 =
( ) 165 546 . 5 . 31

129) value Y (Actual 7 Dealer
7
+ =
=
Y
6 . 121 =
( ) 95 546 . 5 . 31

) 80 value Y (Actual 3 Dealer
3
+ =
=
Y
4 . 83 =
9 9

Y Y e
i
=
5 . 96 97 =
5 . 0 =
( ) 165 546 . 5 . 31

129) value Y (Actual 7 Dealer
7
+ =
=
Y
6 . 121 =
( ) 95 546 . 5 . 31

) 80 value Y (Actual 3 Dealer
3
+ =
=
Y
4 . 83 =
9 9

Y Y e
i
=
5 . 96 97 =
5 . 0 =
( ) 119 546 . 5 . 31

9
+ = Y
F-Test (Regression)
A procedure to determine whether there is
more variability explained by the regression
or unexplained by the regression.
Analysis of variance summary table
Total Deviation can be
Partitioned into Two Parts
Total deviation equals
Deviation explained by the regression
plus
Deviation unexplained by the regression
( ) ( ) ( )
i i i i
Y Y Y Y Y Y

+ =
Partitioning the Variance
Total
deviatio
n
=
Deviation
explained by
the regression
Deviation
unexplained
by the
regression
(Residual
error)
+


= Mean of the total group
= Value predicted with regression
equation
= Actual value
Y
Y

i
Y
( ) ( ) ( )

+ =
2 2
2

i i i i
Y Y Y Y Y Y


Total
variation
explaine
d
=
Explained
variation
Unexplaine
d variation
(residual)
+

SSe SSr SSt + =
Sum of Squares
Coefficient of Determination
r
2

The proportion of variance in Y that is
explained by X (or vice versa)
A measure obtained by squaring the
correlation coefficient; that proportion
of the total variance of a variable that is
accounted for by knowing the value of
another variable
Coefficient of Determination
r
2

SSt
SSe
SSt
SSr
r = = 1
2
Source of Variation
Explained by Regression
Degrees of Freedom
k-1 where k= number of estimated
constants (variables)
Sum of Squares
SSr
Mean Squared
SSr/k-1
Source of Variation
Unexplained by Regression
Degrees of Freedom
n-k where n=number of observations
Sum of Squares
SSe
Mean Squared
SSe/n-k
r
2
in the Example
875 .
4 . 882 , 3
49 . 398 , 3
2
= = r
Multiple Regression
Extension of Bivariate Regression
Multidimensional when three or more
variables are involved
Simultaneously investigates the effect
of two or more variables on a single
dependent variable
Discussed in Chapter 24
Correlation Coefficient, r = .75

Correlation: Player Salary and Ticket
Price
-20
-10
0
10
20
30
1995 1996 1997 1998 1999 2000 2001
Change in Ticket
Price
Change in
Player Salary
Multivariate Statistical Analysis
Statistical methods that allow the
simultaneous investigation of more than
two variables
All multivariate
methods
Are some of the
variables dependent
on others?
Yes
No
Dependence
methods
Interdependence
methods
A Classification of Selected
Multivariate Methods
Dependence Methods
A category of multivariate statistical
techniques; dependence methods
explain or predict a dependent
variable(s) on the basis of two or more
independent variables
Dependence
Methods
How many
variables are
dependent
One dependent
variable
Several
Dependent var
Multiple Indpendnt
and dependent var
Nonmetric
Metric
Multiple
discriminant
analysis
Multiple
regression
analysis
Metric
Multivariate
analysis of
variance
Nonmetric
Conjoint
analysis
Metric
Or nonmetric
Canonical correlation
analysis
Interdependence Methods

A category of multivariate statistical
techniques; interdependence methods
give meaning to a set of variables or
seek to group things together
Interdependence
methods
Are inputs metric?
Metric Nonmetric
Metric
multidimensional
scaling
Cluster
analysis
Factor
analysis
Multiple Regression
An extension of bivariate regression
Allows for the simultaneous
investigation
two or more independent variables
a single interval-scaled dependent variable
Y= a +|
1
X
1
+|
2
X
2
+|
3
X
3
...+|
n
X
n
Coefficients
of Partial Regression
|
1
Independent variables correlated with
one another
The % of the variance in the dependent
variable that is explained by a single
independent variable, holding other
independent variables constant
Coefficient
of Multiple Determination
R
2

The % of the variance in the dependent
variable that is explained by the
variation in the independent variables.
Y = 102.18 + .387X
1
+ 115.2X
2
+
6.73X
3
Coefficient of multiple
determination (R
2
) .845
F-value 14.6

Statistical Results
of a Multiple Regression
( )
( ) ( ) 1 /
/

=
k n SSe
k SSr
F
F-Test
Degrees of Freedom (d.f.) are
Calculated as Follows:
d.f. for the numerator = k
for the denominator = n - k - 1
Degrees of Freedom
k = number of independent variables
n = number of observations or
respondents




where
k = number of independent
variables
n = number of observations
) 1 /( ) (
/ ) (

=
k n SSe
k SSr
F
F-test
Multiple Discriminant Analysis
A statistical technique for predicting the
probability of objects belonging in two
or more mutually exclusive categories
(dependent variable) based on several
independent variables
Z
i
= b
1
X
1i
+ b
2
X
2i
+ . . . + b
n
X
ni

where
Z
i
= ith applicants discriminant score
b
n
= discriminant coefficient for the nth
variable
X
ni
= applicants value on the nth
independent variable
i i i
X b X b Z
2 2 1 1
+ =
ni n
X b + +........
Discriminant Analysis
= applicants value on the jth
independent variable
= discriminant coefficient for the j
th

variable
= i
th
applicants discriminant score
ji
X
j
b
i
Z
Discriminant Analysis
Canonical Correlation
Two or more criterion variables
(dependent variables)
Multiple predictor variables
(independent variables)
An extension of multiple regression
Linear association between two sets of
variables
Canonical Correlation
Z = a
1
X
1
+ a
2
X
2
+ . . . + a
n
X
n
W = b
1
Y
1
+ b
2
Y
2
+ . . . + b
n
Y
n
Factor Analysis
Summarize the information in a large
number of variables
Into a smaller number of factors
Several factor-analytical techniques
Factor Analysis

A type of analysis used to discern the
underlying dimensions or regularity in
phenomena. Its general purpose is to
summarize the information contained in
a large number of variables into a
smaller number of factors.
Height
Weight
Occupation
Education
Source of
Income
Size
Social Status
Factor Analysis
Copyright 2000 Harcourt, Inc. All rights reserved.
Cluster Analysis

A body of techniques with the purpose
of classifying individuals or objects into
a small number of mutually exclusive
groups, ensuring that there will be as
much likeness within groups and as
much difference among groups as
possible
Multidimensional Scaling
A statistical technique that measures
objects in multidimensional space on
the basis of respondents judgments of
the similarity of objects
Multivariate Analysis of
Variance (MANOVA)
A statistical technique that provides a
simultaneous significance test of mean
difference between groups for two or
more dependent variables
Report parts
Prefatory parts Main body of the report Appended parts
Title page
Letter of
transmittal
Letter of
authorization
Table of
contents
Objectives
Results
Conclusions
Recommendations
Summary








Main body of the report
Introduction
Methodology
Area 1
Area 2
Final area
Results







Limitations
Conclusions and
recommendations
Appended parts
Data collection
forms
Detailed
calculations
General tables
Bibliography