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RESEARCH METHODOLOGY FOR MANAGEMENT

Unit – I: Meaning and Importance of Research – Research Process – Types of


Research – Defining Research Problem – Formulation of Hypothesis – Testing of
Hypothesis.
Unit – II: Research Design – Exploratory Research – Descriptive Research – Casual
Research – Sampling and Sampling Design – Sampling Methods – Simple Random
Sampling – Stratified Sampling – Systematic Sampling – Cluster Sampling –
Multistage Sampling, Non– Probability Sampling – Convenience Sampling –
Judgement Sampling – Quota Sampling.
Unit – III: Data Collection – Primary and Secondary Data – Designing of
Questionnaire – Measurement and Scaling – Nominal Scale – Ordinal Scale – Interval
Scale – Ratio Scale – Guttman Scale – Likert Scale – Schematic Differential Scale.
Unit – IV: Editing – Coding – Classification of Data – Tables and Graphic
Presentation – Preparation and Presentation of Research Report.
Unit – V: Non Parametric Tests – Kolmogorov – Smirnov Test – Runs Test for
Randomness – Sign Test – Median Test – Multivariate Analysis – Multiple Regression
Analysis – Concepts and Application of Discriminate Analysis and Factor Analysis.

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Unit – I: Meaning and Importance of Research – Research Process – Types


of Research – Defining Research Problem – Formulation of Hypothesis –
Testing of Hypothesis

The word research is composed of two syllables, re and search. The dictionary
defines the former as a prefix meaning again, anew or over again and the latter as a
verb meaning to examine closely and carefully, to test and try, or to probe. Together
they form a noun describing a careful, systematic, patient study and investigation in
some field of knowledge, undertaken to establish facts or principles.

According to Robert Ross, “research is essentially an investigation, a recording and


an analysis of evidence for the purpose of gaining knowledge.” It can generally be
defined as a systematic method of finding solutions to problems.

A research need not lead to ideal solution but it may give rise to new problems
which may require further research. In other words research is not an end to a
problem since every research gives birth to a new question. It is carried on both for
discovering new facts and verification of old ones.

FEATURES OF RESEARCH

 It means the discovery of new knowledge


 Is essentially an investigation
 Is related with the solution of a problem
 It is based on observation or experimental evidences.
 It demands accurate observation or experimentation.
 In research, the researchers try to find out answers for unsolved questions
 It should be carefully recorded and reported

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IMPORTANCE / AIMS / OBJECTIVES OF RESEARCH

The main importance of research is to produce knowledge that can be applied


outside a research setting. Research also forms the foundation of program
development and policies everywhere around the universe. It also solves particular
existing problems of concern. Research is important because we are able to learn
more about things, people, and events. In doing research, we are able to make
smart decisions.

Marketing research is important because it allows consumers and producers to


become more familiar with the products, goods, and services around them.

1. To find out the truth which is hidden and which has not been discovered so
far.
2. Aims at advancing systematic knowledge and formulating basic theories about
the forces influencing the relation between groups as well as those acting on
personality development and is adjustment with individuals.
3. Try to improve tools of analysis or to test these against the complex human
behavior and institutions.
4. To understand social life and thereby to gain a greater measure of control
over social behavior.
5. To provide an educational program in the accumulated knowledge of group
dynamics, in skills of research, in techniques of training leaders and in social action.
Process of Research:

IDENTIFYING, EVALUATING AND FORMULATING THE RESEARCH


PROBLEMS-:

After creating interest in a research work, a researcher has to think about


formulating the problem related to his research work. Choosing a correct problem

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for study is the most important step in the entire research process. After selecting
the problem, the researcher has to formulate the problem.

EXTENSIVE LITERATURE SURVEY:

Before formulating the research it is desirable that researcher examines all available
literature, both conceptual and empirical. The conceptual literature is one which
deals with concepts and theories. Empirical literature is that which contains studies
made earlier and so it consists of many facts and figures observed in the earlier
studies.

WRITING A PRIMARY SYNOPSIS:

After formulating the problems a brief summary of it should be written down. A


research worker has to write a synopsis of the topic selected for research work
mentioning the summary of what is going to be done under his research.

INDENTIFYING AND LABELING VARIABLES: -

In any research the problem under study deals with relation between variables. The
variables whose change has affected the other variable, is called independent
variable. Therefore there is a cause and effect relation between the variables. The
research problem must be formulated in such a manner that it highlights the nature,
extent and implications of relation existing between the variables. It is only through
this process of establishing the effective relation between variables that meaningful
conclusions are derived from the study.

SETTING UP OF HYPOTHESIS: -

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Specification of working hypothesis is a basic step in the research process. A


hypothesis is a tentative conclusion logically drawn. The research work is conducted
to test the truth of this hypothesis.

PREPARING THE RESEARCH DESIGN:

A research design is a plan that specifies the sources and types of information
relevant to the research problem. It is a strategy which approach will be used for
gathering and analyzing the data. It includes the time and cost budgets since most
studies are done under these two constraints. A research design provides a rational
approach to research enabling one to decide in advance what to do, how to do, in
investigating the subjects.
DETERMINING THE SAMPLE DESIGN:

A sample design is a definite plan determined before any data are actually collected
for obtaining a sample from a given universe. Sample design refers to the technique
or the procedure which the researcher would adopt in selecting some sampling units
from the universe for drawing inferences about the universe. If the proper procedure
is followed to select the sample, definitely the sample will give all dependable
information.

COLLECTING OF DATA: -

There are several ways of collecting the appropriate data. Some of the methods of
collecting primary data are (1) Observation method. (2) Direct personal interview
method. (3) Telephone interview method. (4) Questionnaire method. (5) Schedule
method. A choice of one of these methods.

EXECUTION OF THE PROJECT: -

The researcher has to see that the project is executed in a systematic manner and in
time. He should make necessary preparations for successful conduct of the project.

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PROCESSING, ANALYSIS AND INTERPRETATION OF DATA BY


STATISTICAL METHODS: - The processing of data consists of classification,
tabulation and coding. By classification and tabulation the unwieldy data can be
condense into few manageable and purposeful groups and tables so that further
analysis becomes simple. Coding converts the data into symbols and small figures so
that the data can be dealt with in an easy manner. Editing improves the quality of
the data since it is at this stage that data which is irrelevant can be dropped.
Analysis and interpretation of data results in observation, analysis, conclusion,
induction and deduction. For this various statistical measures are computed.

TESTING OF HYPOTHESIS: -
Depending upon the nature of data and conclusions to be arrived one or two of
these tests can be applied. Testing of hypothesis will results in either accepting or
rejecting the hypothesis. Testing of hypothesis may prove or disprove a theory and a
theory facilitates formulating of a further hypothesis. Testing of hypothesis will result
in contribution to existing theory or the generation of a new theory.

Preparation of the Report or Thesis


A report is a detailed description of what has been done and how it has been done
with respect to a particular area or topic. The report should contain the preliminary
section, the main body and the end matter. The preliminary section contains only
titles, data, acknowledgement foreword and table of contents. The important section
of a report is its main body. It carries introduction, methodology, and statements of
findings, conclusions and recommendations. The end matter includes appendix,
literature selected and bibliography. The appendix includes letters, questions or
other tools used. Bibliography is the list of books, journals. Reports, bulletins etc.
used for reference

Types of research

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FUNDAMENTAL RESEARCH: frequently called basic or pure research, seeks to


extend the boundaries of knowledge in a given area with no necessary immediate
application to existing problems.

APPLIED RESEARCH: also known as decisional research, use existing knowledge


as an aid to the solution of some given problem or set of problem

FUTURISTIC RESEARCH: Futures research is the systematic study of possible


future conditions. It includes analysis of how those conditions might change as a
result of the implementation of policies and actions, and the consequences of these
policies and actions.

ANALYTICAL RESEARCH: The researcher has to use facts or information already


available, and analyses these to make a critical evaluation of the material

CONCEPTUAL RESEARCH: Conceptual research is that related to some abstract


idea(s) or theory. It is generally used by philosophers and thinkers to develop new
concepts or to reinterpret existing ones.

DESCRIPTIVE RESEARCH: includes surveys and fact-finding enquiries of different


kinds. It tries to discover answers to the questions who, what, when and sometimes
how. Here the researcher attempts to describe or define a subject, often by creating
a profile of a group of problems

EXPLANATORY RESEARCH: Explanatory research goes beyond description and


attempts to explain the reasons for the phenomenon that the descriptive research
only observed. The research would use theories or at least hypothesis to account for
the forces that caused a certain phenomenon to occu
PREDICTIVE RESEARCH: If we can provide a plausible explanation for an event
after it has occurred, it is desirable to be able to predict when and in what situations
the event will occur. This research is just as rooted in theory as explanation. This
research calls for a high order of inference making. In business research, prediction

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is found in studies conducted to evaluate specific courses of action or to forecast


current and future values

Hypothesis: it is a statement subject to verification. More precisely, it is a


quantitative
statement about a population, the validity of which remains to be tested. In other
words,
hypothesis is an assumption made about a population parameter.

Testing of Hypothesis: it is a process of examining whether the hypothesis


formulated by the researcher is valid or not. The main objective of hypothesis
testing is whether to accept or reject the hypothesis.

Procedure for Testing of Hypothesis:

The various steps in testing of hypothesis involves the following :-

1.SetUpaHypothesis:

The first step in testing of hypothesis is to set p a hypothesis about population


parameter.
Normally, the researcher has to fix two types of hypothesis. They are null hypothesis
and
alternative.Hypothesis.

Null Hypothesis:- it is the original hypothesis. It states that there is no significant


difference between the sample and population regarding a particular matter under
consideration. The word “null” means ‘invalid’ of ‘void’ or ‘amounting to nothing’.
Null
hypothesis is denoted by Ho.

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For example, suppose we want to test whether a medicine is effective in curing


cancer.
Hence, the null hypothesis will be stated as follows:-

H0: The medicine is not effective in curing cancer (i.e., there is no significant
difference between the given medicine and other medicines in curing cancer
disease.)

Alternative Hypothesis:-Any hypothesis other than null hypothesis is called


alternative hypothesis. When a null hypothesis is rejected, we accept the other
hypothesis, known as alternative hypothesis. Alternative hypothesis is denoted by
H1. In the above example, the
alternative hypothesis may be stated as follows:-

H1: The medicine is effective in curing cancer. (i.e., there is significant


difference
between the given medicine and other medicines in curing cancer
disease.)

2. Set up a suitable level of significance:

After setting up the hypothesis, the researcher has to set up a suitable level of
significance. The level of significance is the probability with which we may reject a
nullhypothesis when it is true. For example, if level of significance is 5%, it means
that in the longrun, the researcher is rejecting true null hypothesis 5 times out of
every 100 times. Level of significance is denoted by α (alpha).
α = Probability of rejecting H0 when it is true. Generally, the level of significance is
fixed at 1% or 5%.
3. Decide a test criterion: The third step in testing of hypothesis is to select an
appropriate test criterion. Commonly used tests are z-test, t-test, X2 – test, F-test,
etc.

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4. Calculation of test statistic: The next step is to calculate the value of the test
statistic using appropriate formula. Thegeneral fromfor computing the value of test
statistic is:-
Value of Test statistic = Difference Standard Error

5. Making Decision: Finally, we may draw conclusions and take decisions. The
decision may be either to accept or reject the null hypothesis.

If the calculated value is more than the table value, we reject the null hypothesis
and accept the alternative hypothesis. If the calculated value is less than the table
value, we accept the null hypothesis.

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Unit – II: Research Design – Exploratory Research – Descriptive Research


– Casual Research – Sampling and Sampling Design – Sampling Methods –
Simple Random Sampling – Stratified Sampling – Systematic Sampling –
Cluster Sampling – Multistage Sampling, Non–Probability Sampling –
Convenience Sampling – Judgement Sampling – Quota Sampling.

A research design is a “Blue Print” for collection, measurement and analysis of data.
It outlines how the research will be carried out. It is like glue which sticks together
the entire process of research. It provides answers to various questions like - What
techniques will be used to gather data. What kind of sampling will be used? How
time and cost constraints be dealt with? Etc.

Essentials of Research Design:

 The design should be an activity and time based plan

 It is always based on research question

 It guides the selection of sources and types of information

 It indicates a framework for specifying the relationship among the study’s


variables

 Outlines procedures for every research activity

 It must be appropriate, efficient and economical

 It should be flexible

 It must be adequate
Three traditional categories of research design:
 Exploratory

 Descriptive

 Causal

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Exploratory research:

Exploratory research is a type of research conducted for a problem that has not
been clearly defined. Exploratory research often relies on secondary research such
as reviewing available literature and sometimes on qualitative approaches such as
informal discussions with consumers, employees, management or competitors, and
more formal approaches through in-depth interviews, focus groups, projective
methods, case studies or pilot studies. Results of exploratory research can provide
significant insight into a given situation.

Descriptive research:

Descriptive research is used to obtain information concerning the current status of


the phenomena to describe "what exists" with respect to variables or conditions in a
situation. The methods involved range from the survey which describes the status
quo, the correlation study which investigates the relationship between variables, to
developmental studies which seek to determine changes over time. Involves
gathering data that describe events and then organizes, tabulates, depicts, and
describes the data.

Experimental research design:

Experiments are conducted to be able to predict phenomenon. Typically, an


experiment is constructed to be able to explain some kind of causation. Experimental
research designs are used for the controlled testing of causal processes.
The general procedure is one or more independent variables are manipulated to
determine their effect on a dependent variable

Sampling: It is concerned with the selection of a subset of individuals from within


a statistical population to estimate characteristics of the whole population. Two
advantages of sampling are that the cost is lower and data collection is faster than
measuring the entire population.

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The sampling process comprises several stages:


 Defining the population of concern
 Specifying a sampling frame, a set of items or events possible to measure
 Specifying a sampling method for selecting items or events from the frame
 Determining the sample size
 Implementing the sampling plan
 Sampling and data collecting

Sampling methods: the various methods of sampling or sampling designs are


grouped as follows
1. Random sampling
2. Non random sampling

Random sampling: it is also called as Probability Sampling In probability sampling


it is possible to both determine which sampling units belong to which sample and
the probability that each sample will be selected.

 Simple Random Sampling (SRS)


 Stratified Sampling
 Systematic Sampling
 Multistage Sampling (in which some of the methods above are combined in
stages)

Simple Random Sampling (SRS): Everyone in the entire target population has
an equal chanceof being selected. This is similar to the national lottery. If the
“population” is everyone who has bought a lottery ticket, then each person has an
equal chance of winning the lottery (assuming they all have one ticket each).
Random samples require a way of naming or numbering the target population and
then using some type of raffle method to choose those to make up the sample.

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Random samples are the best method of selecting your sample from the population
of interest.

The advantages are that your sample should represent the target population and
eliminate sampling bias, but the disadvantage is that it is very difficult to achieve
(i.e. time, effort and money).

Stratified Sampling: The researcher identifies the different types of people that
make up the target population and works out the proportions needed for the
sample to be representative.
.
Ex: university e.g. Engineering 10%, Social Sciences 15%, English 20%, Sciences
25%, Languages 10%, Law 5%, Medicine 15% The sample must then contain all
these groups in the same proportion as in the target population (university
students).

the advantage is that the sample should be highly representative of the target


population and therefore we can generalize from the results obtained. Gathering
such a sample would be extremely time consuming and difficult to do
(disadvantage).

Systematic Sampling: Chooses subjects in a systematic (i.e. orderly / logical)


way from the target population, like every nth participant on a list of names.
To take a systematic sample, you list all the members of the population, and then
decided upon a sample you would like. By dividing the number of people in the
population by the number of people you want in your sample, you get a number we
will call n.

Example: you wanted to sample 150 children from a school of 1,500; you would take
every 10th name.

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The advantage to this method is that is should provide a representative sample,


but the disadvantage is that it is very difficult to achieve (i.e. time, effort and
money).

Multistage sampling: ampling plans where the sampling is carried out in stages
using smaller and smaller sampling units at each stage 002EMultistage sampling can
be a complex form of cluster sampling because it is a type of sampling which
involves dividing the population into groups (or clusters). Then, one or more clusters
are chosen at random and everyone within the chosen cluster is sampled.

Advantages:
Cost and speed that the survey can be done in
Convenience of finding the survey sample
Normally more accurate than cluster sampling for the same size sample

Disadvantages:
Not as accurate as Simple Random Sample [ambiguous] if the sample is the same
size
More testing is difficult to do

Non-Random sampling: A sample, in which each investigator is instructed to


collect information from a predetermined number of individuals (the quota) but the
selection of individuals is left to the investigator's choice.

 Judgmental/Purposive sampling
 Quota Sampling
 Convenience sampling

Judgmental/Purposive sampling: In this type of sampling, subjects are chosen


to be part of the sample with a specific purpose in mind. With judgmental sampling,
the researcher believes that some subjects are fit for the research compared to
other individuals. This is the reason why they are purposively chosen as subjects.

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Quota Sampling: A sample, usually of human beings, in which each investigator is


instructed to collect information from a predetermined number of individuals (the
quota) but the selection of individuals is left to the investigator’s choice.

Convenience sampling: the samples are selected because they are accessible to
the researcher. Subjects are chosen simply because they are easy to recruit. This
technique is considered easiest, cheapest and least time consuming.

Sampling distribution:   it is the distribution of that statistic, considered as


a random variable, when derived from a random sample of size n. It may be
considered as the distribution of the statistic for all possible samples from the same
population of a given size. The sampling distribution depends on the
underlying distribution of the population, the statistic being considered, the sampling
procedure employed, and the sample size used.

Unit – III: Data Collection – Primary and Secondary Data – Designing of


Questionnaire – Measurement and Scaling – Nominal Scale – Ordinal Scale
– Interval Scale – Ratio Scale – Guttman Scale – Likert Scale – Schematic
Differential Scale

The primary and secondary data have been collected to cover every aspect of the
study. The primary data are related to behavior and response of employees, dealers
and customers. The secondary data shows the sales of the company product wise.
These data used in combination as per need of the study. These data having
different merits and demerits and have serves our purpose of the research study.
These are explained below:

Primary Data

Primary data are information collected by a researcher specifically for a research


assignment. In other words, primary data are information that a company must

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gather because no one has compiled and published the information in a forum
accessible to the public. Companies generally take the time and allocate the
resources required to gather primary data only when a question, issue or problem
presents itself that is sufficiently important or unique that it warrants the
expenditure necessary to gather the primary data. Primary data are original in
nature and directly related to the issue or problem and current data. Primary data
are the data which the researcher collects through various methods like interviews,
surveys, questionnaires etc. The primary data have own advantages and
disadvantages:

Advantages of primary data:

 The primary data are original and relevant to the topic of the research study
so the degree of accuracy is very high.

 Primary data is that it can be collected from a number of ways like interviews,
telephone surveys, focus groups etc. It can be also collected across the
national borders through emails and posts. It can include a large population
and wide geographical coverage.

 Moreover, primary data is current and it can better give a realistic view to the
researcher about the topic under consideration.

 Reliability of primary data is very high because these are collected by the
concerned and reliable party.

Disadvantages of primary data:

 For collection of primary data where interview is to be conducted the


coverage is limited and for wider coverage a more number of researchers are
required.

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 A lot of time and efforts are required for data collection. By the time the data
collected, analyzed and report is ready the problem of the research becomes
very serious or out dated. So the purpose of the research may be defeated.

 It has design problems like how to design the surveys. The questions must be
simple to understand and respond. Some respondents do not give timely
responses.

 Sometimes, the respondents may give fake, socially acceptable and sweet
answers and try to cover up the realities. With more people, time and efforts
involvement the cost of the data collection goes high. The importance of the
research may go down.

 In some primary data collection methods there is no control over the data
collection. Incomplete questionnaire always give a negative impact on
research.

 Trained persons are required for data collection. In experienced person in


data collection may give inadequate data of the research.

Secondary Data:

 Secondary data are the data collected by a party not related to the research
study but collected these data for some other purpose and at different time in
the past. If the researcher uses these data then these become secondary
data for the current users. These may be available in written, typed or in
electronic forms. A variety of secondary information sources is available to the
researcher gathering data on an industry, potential product applications and
the market place. Secondary data is also used to gain initial insight into the
research problem. Secondary data is classified in terms of its source – either

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internal or external. Internal, or in-house data, is secondary information


acquired within the organization where research is being carried out. External
secondary data is obtained from outside sources. There are various
advantages and disadvantages of using secondary data.

Advantages of Secondary Data:

 The primary advantage of secondary data is that it is cheaper and faster to


access.

 Secondly, it provides a way to access the work of the best scholars all over
the world.

 Thirdly, secondary data gives a frame of mind to the researcher that in which
direction he/she should go for the specific research.

 Fourthly secondary data save time, efforts and money and add to the value of
the research study.

Disadvantages of Secondary data:

 The data collected by the third party may not be a reliable party so the
reliability and accuracy of data go down.
 Data collected in one location may not be suitable for the other one due
variable environmental factor.
 With the passage of time the data becomes obsolete and very old
 Secondary data collected can distort the results of the research. For using
secondary data a special care is required to amend or modify for use.
 Secondary data can also raise issues of authenticity and copyright.

Instruments for Data Collection

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(a) Questionnaire

Questionnaire is a set of questions has been prepared to ask a number of questions


and collect answers from respondents relating to the research topic. A number of
questions usually in printed or electronic form are to be answered by the individuals.
The forms often have blank spaces in which the answers can be written. Sets of
such forms are distributed to groups and the answers are collected relating to
research topic. A questionnaire is a series of questions asked to individuals to obtain
statistically useful information about a given topic.

When properly constructed and responsibly administered, questionnaires become a


vital instrument by which statements can be made about specific groups or people
or entire populations. Inappropriate questions, incorrect ordering of questions,
incorrect scaling, or bad questionnaire format can make the survey valueless, as it
may not accurately reflect theviews and opinions of the participants. A useful
method for checking a questionnaire and making sure it is accurately capturing the
intended information is to pretest among a smaller subset of target respondents. In
a research or survey questions asked to respondents, and designed to extract
specific information. It serves four basic purposes: to
(1) Collect the appropriate data,
(2) make data comparable and amenable to analysis,
(3) Minimize bias in formulating and asking question, and
(4) To make questions engaging and varied.

For our study purpose a set of questions has been prepared to collect information
relating to the topic of the study. In this study a structured questionnaire has been
used with different types of questions such as closed ended and open ended. Special
case has been taken to select the scales for the questions for collection of responses
very effectively.

Telephone, Mobile Phone and Facsimile

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Telephone and other devices can be used for collecting data verbally and written on
fax from respondents located away from the researcher and having these facilities
plus the researcher having their contact numbers. Use of interviewers encourages
sample persons to respond, leading to higher response rates. Interviewers can
increase comprehension of questions by answering respondents' questions. It is
fairly cost efficient, depending on local call charge structure. It is good for large
national or international respondents and gives wider coverage. It cannot be used
for non-audio information (graphics, demonstrations, taste/smell samples) this
instrument is not suitable for the respondents where the telephone facility is not
available.

Mail

For collection of data from the respondents who are located at a long distance and
do not have any communication facility. They can be contacted through mailed
questionnaire. Only thing is required that the researcher should have the postal
addresses of the respondents. The questionnaire may be handed to the respondents
or mailed to them, but in all cases they are returned to the researcher via mail. The
cost involved is very less but no clarification can be given to the respondents if
required. Respondents can answer at their own convenience. The respondents
cannot be biased by the researchers and the detail information can be collected for
the research purpose. Only one disadvantage this instrument gives is that the
response rate is very less due to lack of interest in the topic of respondents and low
literacy rate.

Interview

In this method the interviewer personally meets the informants and asks
necessary questions to them regarding the subject of enquiry. Usually a set of
questions or a questionnaire is carried by him and questions are also asked
according to that. The interviewer efficiently collects the data from the informants
by cross examining them. The interviewer must be very efficient and tactful to
get the accurate and relevant data from the informants. Interviews like personal
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interview/depth interview or telephone interview can be conducted as per the


need of the study.
Advantages:

 In this method information can be gathered from illiterate people too.

 There are no chances of non-response as the interviewer personally


collects data.

 The collected data is very reliable since the interviewer tactfully collects
the data by cross examining the responders.
Disadvantages:

 The major disadvantages of interview are:

 There is a chance of bias.

 The informants may not answer some personal questions.

 It is a time-consuming process.

 Money and manpower requirements are very high.

 Some time the interviewers are involved in pressurizing respondents to


share their personal information.
To study the topic of the research out of available instruments for research mainly
questionnaire, interview and telephone/mobile phones have been used because
these instruments were found suitable for data collection purpose. Mailed
questionnaire has not been used because the need has not been felt during the
study

Measurement
Measurement is a systematic way of assigning numbers or names to objects and
their attributes. It is easy to assign numbers in respect of properties of some
objects, properties like weight, height.

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Rules of Measurement

 A rule is a guide which instructs us to do.


 Operational definitions help us to specify the rules for assigning the numbers.

Scales

Scales are devised for measuring variable in social science research. Scaling is the
procedure for determining the quantitative measure of abstract concepts like
leadership style, brand image of product etc

Scaling is the process of measuring or ordering entities with respect to quantitative


attributes or traits. For example, a scaling technique might involve estimating
individuals' levels of extraversion, or the perceived quality of products. Certain
methods of scaling permit estimation of magnitudes on a continuum, while other
methods provide only for relative ordering of the entities.
 Any series of items which is progressively arranged according to value or
magnitude into which an item can be placed according to its quantification.
 A continuous spectrum or series of categories

 Used to represent, usually quantitatively, an item’s or person’s place in that


spectrum

Scale Classification

Level of Measurement

 Nominal scales

 Ordinal scales

 Interval scales

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 Ratio scale

Nominal Scale: Numbers or letters assigned to objects which serve as labels for
identification or classification. They are Scales “in name only”.

Ordinal Scale: Arranges objects or alternatives according to their magnitude in an


ordered relationship. eg rating career opportunities as excellent, good, average poor
or very poor.

Interval Scale

Interval scales not only indicate order; they also measure order or distance in units
of equal intervals. When an interval scale is used to measure psychological attribute,
the researcher can comment on the magnitude of differences or compare the
average differences on attributes that are measured, but cannot determine the
actual strength of the attitude towards an object

Ratio Scale

A ratio scale has equal interval properties of an interval scale but has two additional
features:

 Has a true zero. Possible to indicate the complete absence of a property.

 The numerals of the ratio scale have the qualities of real numbers and can be
added, subtracted, multiplied, Divided and expressed in ratio relationships.

Type of scale Numerical Operation Descriptive statistics

Nominal Counting Frequency in each category


Percentage in each
category Mode

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Ordinal Rank ordering Median


Range
Percentile ranking

Interval Arithmetic operations on Mean


intervals between Standard Deviation
numbers Variance

Ratio Arithmetic operations on Geometric mean


actual quantities Coefficient of
variation

Lickert Scale

Respondents indicate their attitude by checking how strongly they agree or disagree
with carefully constructed statements that range from the very positive to the very
negative towards the attitudinal object. Individuals generally choose from five
alternatives: strongly agree, agree, uncertain, disagree and strongly disagree

Example of Lickert scale:

1) If the price of raw materials fell firms


SA A N DA SD
would reduce the price of their food
product.

2) Without Government regulation the firms


would exploit the customers.
3) Most food companies are so concerned
about making profit they do not care
about quality.
4) The food industry spends a great deal of
money making sure that its manufacturing
is hygienic.

Semantic Differential

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An attitude measure consisting of a series of seven –point bipolar rating scales


allowing response to a concept. Bi Polar adjectives such as “good and bad”, “clean
or dirty” anchor the beginning and end poles of the scale.

Numerical Scales: An attitude rating scale similar to a semantic differential except


that it uses numbers as response options to identify response positions instead of
verbal descriptions. Usually five point scale or seven point scale

Constant Sum Scale: A measure of attitudes in which the respondents are asked
to divide a constant sum to indicate the relative importance of the attributes

Staple Scale: Measures the direction and intensity of an attitude simultaneously.


E.g. To measure attitudes towards a supervisor

Supervisor’s name Supportive name


3 -1
2 -2
1 -3

Unit – IV: Editing – Coding – Classification of Data – Tables and Graphic


Presentation – Preparation and Presentation of Research Report

Data continues to be in raw form, unless and until they are processed and analyzed.
Processing is a statistical method by which the collected data is so organized the
further analysis and interpretation of data become easy. It is an intermediary stage
between the collection of data and their analysis and interpretation.

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Processing stages

There are four important stages in the processing of data. They are;

 Editing
 Coding

 Classification

 Tabulation

Editing: As soon as the researcher receives the data, he should screen it for
accuracy. Editing is the process of examining the data collected through various
methods to detect errors and omissions and correct them for further analysis.
Though editing, it is ensured that the collected data are accurate, consistent with
other facts gathered, uniformly entered and well arranged so that further analysis is
made easier

Practical guidelines for editing

While editing care has to be taken to see that the data are as accurate and complete
as possible.

1. The editor should familiarize with the copy of instructions given to the
interviewers.
2. The original entry, if found incorrect, should not be destroyed or erased.
On the other hand, it should be crossed out in such a manner that it is still
eligible.

3. Any, modification to the original entry by the editor must be specifically


indicated.

4. All completed schedules must bear signature of the editor an d the date.

5. Incorrect answer to the questions can be corrected only if the editor is


absolutely sure of the answer, otherwise leave it as such.

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6. Inconsistent, incomplete or missing answers should not be used.

7. Sere that all numerical answers are converted to same units.

Coding

Coding is the process by which r response categories are summarized by numerals


or other symbols to carry out subsequent operations of data analysis. This process
of assigning numerals or symbols to the responses is called coding. It facilitates
efficient analysis of the collected data and helps in reducing several replies to a small
number of classes which contain the critical information required for analysis. In
general, it reduces the huge amount of information collected in to a form that is
amenable to analysis.

Steps in coding

 Study the answers carefully.


 Develop a coding frame by listing the answers and by aligning codes to each
of them.

 Prepare a coding manual with the detail of variable names, codes and
instructions.

 If the coding manual has already been prepared before the collection of the
data, make the required additions for the open ended and partially coded
questions

Coding rules

 Give each respondent a code number for identification.


 Provide code number for each question.

 All responses including ‘don’t know’, ‘no opinion’. Etc is to be coded.

 Assign additional codes to partially coded questions.

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Classification

Classification is the process of reducing large mass of data in to


homogeneous groups for meaningful analysis. It converts data from complex
to understandable and unintelligible to intelligible forms. It divides data in to
different groups or classes according to their similarities and dissimilarities.
When the data are classified, they give summary of whole information.

Objectives of classification

 To organize data in to concise, logical and intelligible form.


 To take the similarities and dissimilarities s between various classes clear.
 To facilitate comparison between various classes of data.
 To help the researcher in understanding the significance of various classes of
data.

Types of classification

Classification on geographical basis

In this type of classification, the data that are collected from different places
are placed in different classes.

Classification on periodical basis (chronological classification)

In this type of classification, the data belonging to a particular time or period


are put under one class. This type of classification is based on period.

A. Classification according to internal characteristics

Data may be classified either according to attributes or according to the


magnitude of variables

Classification according to Attributes

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In this type data are classified on the basis of some attributes an


characteristics.

Simple Classification

If the classification is based on one particular attribute only it is called simple


classification. Eg; classification on the basis of sex.

Manifold Classification

If the classification is based on more than one or several attributes it is called


manifold or multiple classifications. in this data are classified in several
groups.

B. Classification according variables

Here the data are classified to some characteristics that can be measured.
Data are classified on the basis of quantitative characteristics such as age,
height; weight etc. quantitative variables are grouped in to two

 Discrete variable: If the variables can take only exact value, it is called
discrete variable.
 Continuous variable: The variables that can take any numerical value
within a specified range are called continuous variable.

Characteristics of an ideal classification

 Unambiguity- Classification should be unambiguous. The various


classes should be defined properly.
 Stable- it should not change from enquiry to enquiry

 Flexibility- classification should have the capacity of adjustment to new


situations and circumstances.

 Homogeneity- each class should contain homogenous items.

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 Suitability- it should be suitable to objects of any statistical enquiry.

 Exhaustiveness- there should be no item which does not find a class.

Tabulation

Tabulation is the next step to classification. It is an orderly arrangement of


data in rows and columns. It is defined as the “measurement of data in
columns and rows”. Data presented in tabular form is much easier to read
and understand than the data presented in the text the main purpose of
tabulation is to prepare the data for final analysis. It is a stage between
classification of data and final analysis.

Objectives of Tabulation

 To clarify the purpose of enquiry


 To make the significance of data clear.

 To express the data in least possible space.

 To enable comparative study.

 To eliminate unnecessary data

 To help in further analysis of the data.

Types of Tables

Simple Table

Here the data are presented only for one variable or characteristic. Any
frequency distribution of a single variable is simple table

Complex table

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In complex table, two or more characteristics are shown. If the study is


related to more than two variables, it is called multivariate analysis. They may
be of the following tables.

One- way table

In this type of table, data of only one characteristic will be shown. It means
that when one type of information is secured about different groups or
individuals, it can be displayed with the help of one- way table

Two- way table

When mutually related attributes of a phenomenon are to be displayed, two


way tables are used. In other words, this table shows two types of
characteristics.

Three-way table

It displays three types of attributes. It is used when three inter- related or


mutually related attributes or characteristics of a phenomenon are to be
displayed,.

Manifold tables

When information about different mutually attributes or characteristics of a


phenomenon are to be displayed, manifold table is used. Such tables display
information about various characteristics or attributes.

Parts of a statistical table

Following are the important parts of a statistical table.

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Title of the table

The title of the table is placed above the table. If there are more than one table in a
research, each should bear a number for easy reference.

Caption or title of the column

It is also termed as “box head”. There may be sub- captions under the main caption.

Stub (row heading)

Stub refers to the title given to rows

Body (main data)

This is the main body of information needed for the research work.

End note (foot note)

This is placed below the table to convey the expansions of abbreviations to


caption, stub or main body.

Graphs and Diagrams

In research, the data collected may be of complex nature. Diagrams and graphs is
one of the methods which simplifies the complexity of quantitative data and make
them easily intelligible. They present dry and uninteresting statistical facts in the
shape of attracting and appealing pictures. They have a lasting effect on the human
mind than the conventional numbers.

Uses of Graphs and Diagrams

 They help in presenting quantitative facts in simple, clear and effective


pictures.
 They make the whole data readily intelligible.
 They can be used for comparison purpose.
 They are useful in analyzing complex economic theories.

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 They save much time in understanding data.


 Facts can be understood without doing mathematical calculations.
 They help in lo0cating statistical measures such as median. quartile, mode etc

Types of Graphs

The following graphs are commonly used to represent data

 Charts or line graphs


 Bar charts
 Circle charts or pie diagram
 Pictograms

Line Graphs

A line graph displays information in a series of data points that each


represents an individual measurement or piece of data. The series of points are
then connected by a line to show a visual trend in data over a period of time.
The line is connected through each piece chronologically.

For eg; following data show birth rate per thousands of six countries over a
period.

Country Birth Rate

India 30

Germany 16

UK 20

China 40

Newzeland 30

Sweeden 12

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BAR CHARTS

The bar graph is a common type of graph which consists of parallel bars or
rectangles with lengths that are equal to the quantities that occur in a given data
set. The bars can be presented vertically or horizontally to show the contrast and
record information. Bar graphs are used for plotting discontinuous (discrete) data.
Discrete data contains discrete values and are not continuous.
Country Birth
Rate
India 30
Germany 16
UK 20
China 40
Newzeland 30

Sweeden 12

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Histogram

A histogram is a graph of frequency distributions. It is a set of vertical bars whose


are proportional to the frequencies. While constructing histogram, the variable is
always taken on the x- axis and the frequencies on y-axis.

Frequency Polygon

The frequency polygon is a graph of frequency distribution. Here we draw histogram


of the data and then join by straight line and mid points of upper horizontal sides of
these bars. Join both ends of the frequency polygon with the x- Axis.

Frequency Curves

A continuous frequency distribution can be represented by a smoothed curve known


as Frequency curves

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Ogive or Cumulative Frequency Curve

A frequency distribution can be cumulated in two ways, less than cumulative series
and more than cumulative series. Smoothed frequency curves drawn for these two
cumulative series are called cumulative frequency curves or ogives.

Less than ogive curve: In less than ogive curve the upper limit per limit of each
class interval is taken on x- axis in increasing order. For each such upper limit on x-
axis, the cumulative frequency of all the class intervals from the first class interval to
last class interval are taken on the y-axis.

More than ogive curve: In more than ogive curve the lower limit of each class
interval is taken on x- axis in increasing order. For each such lower limit on x- axis
the cumulative frequency of all the class interval from that class interval to the last
class interval are taken on y-axis.

Circle Charts or Pie Diagram

A pie graph is a circle divided into sections which each display the size of a relative
piece of information. Each section of the graph comes together to form a whole. In a
pie graph, the length of each sector is proportional to the percentage it represents.
Pie graphs work particularly well when each slice of the pie represents 25 to 50
percent of the given data.

Country Birth
Rate
India 30
Germany 16
UK 20
China 40
Newzeland 30

Sweeden 12

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Pictograms

A pictogram, also called a pictogram or pictograph, is an ideogram that conveys its


meaning through its pictorial resemblance to a physical object. Pictographs are often
used in writing and graphic systems in which the characters are to a considerable
extent pictorial in appearance. Pictography is a form of writing which uses
representational, pictorial drawings. It is a basis of cuneiform and, to some extent,
hieroglyphic writing, which also uses drawings as phonetic letters or determinative
rhymes.

Kerala
20

Karnataka

28

Tamil Nadu
39

Andhra Pradesh

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42

Unit – V: Non Parametric Tests – Kolmogorov – Smirnov Test – Runs Test


for Randomness – Sign Test – Median Test – Multivariate Analysis –
Multiple Regression Analysis – Concepts and Application of Discriminate
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Analysis and Factor Analysis

NON-PARAMETRIC TEST :

Non-parametric tests cover techniques that do not rely on data belonging to any
particular distribution. These include distribution free methods, which do not rely on
assumptions that the data are drawn from a given probability distribution. As such it
is the opposite of parametric statistics. It includes non-parametric statistical models,
inference and statistical tests. Following are the nonparametric tests

Designed to compare sample means, and relied heavily on assumptions of normality.


We were able to apply them to non-Gaussian populations by using the central limit
theorem, but that only really works for the mean (since the central limit theorem
holds for averages of samples). Sometimes, we’re interested in computing other
sample statistics and evaluating their distributions (remember that all statistics
computed from samples are random variables, since they’re functions of the random
samples) so that we can obtain confidence intervals for them. In other situations, we
may not be able to use the central limit theorem due to small sample sizes and/or
unusual distributions

KOLMOGOROV-SMIRNOV TEST:

The Kolmogorov-Smirnov test tests whether two arbitrary distributions are the same.
It can be used to compare two empirical data distributions, or to compare one
empirical data distribution to any reference distribution. It’s based on comparing two
cumulative distribution functions (CDFs).

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Two Kolmogorov-Smirnov test plots (right column) with histograms of the data being
tested (left column). On the top row, the empirical CDF (green) matches the test
CDF (blue) closely, and the largest difference (dotted vertical red line, near 0.5) is
very small. On the bottom, the empirical CDF is quite different from the test CDF,
and the largest difference is much larger.

Now suppose we want to compare two CDFs, F 1 and F 2 . They might be empirical
CDFs (to compare two different datasets and see whether they’re significantly
different) or one might be a reference CDF (to see whether a particular distribution
is an appropriate choice for a dataset). The Kolmogorov-Smirnov test computes the
statistic Dn:

Dn = max x |F 1 n (x) − F 2 n (x)|

This compares the two CDFs and looks at the point of maximum discrepancy; see
Figure 5.1 for an example. We can theoretically show that if F 1 is the empirical
distribution of x and F 2 is the true distribution x was drawn from, then limn →∞ Dn
= 0. Similarly, if the two distributions have no overlap at all, the maximum
difference will be 1 (when one CDF is 1 and the other is 0). Therefore, we can test
distribution equality by comparing the statistic Dn to 0 (if Dn is significantly larger
than 0 and close to 1, then we might conclude that the distributions are not equal)

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RUN TEST OF RANDOMNESS

RUNS TEST

The runs test (also called Wald–Wolfowitz test after Abraham Wald and Jacob
Wolfowitz) is a non-parametric statistical test that checks a randomness hypothesis
for a two-valued data sequence. More precisely, it can be used to test the
hypothesis that the elements of the sequence are mutually independent.

RANK SUM TEST

The t-test is the standard test for testing that the difference between population
means for two non-paired samples are equal. If the populations are non-normal,
particularly for small samples, then the t-test may not be valid. The rank sum test is
an alternative that can be applied when distributional assumptions are suspect.

The observation in the random model in which the run test is carried out has a
constant variance, and the observations are also probabilistically independent. The
run in a run test is defined as the consecutive sequence of ones and twos. This test
checks whether or not the number of runs are the appropriate number of runs for a
randomly generated series. The observations from the two independent samples are
ranked in increasing order, and each value is coded as a 1 or 2, and the total
number of runs is summed up and used as the test statistics. Small values do not
support suggest different populations and large values suggest identical populations
(the arrangements of the values should be random). Wald Wolfowitz run test is
commonly used.

TEST : Does the X group differ from the Y group in regards to the diet treatment
implemented on both groups?

Data is collected from two independent groups.

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If the run test is being tested for randomness, then it is assumed that the data
should enter in the dataset as an ordered sample, increasing in magnitude.   This
means that for carrying-out the run test for randomness, there should not be any
groupings or other pre-processing.
If the run test is carried out in SPSS, then it is assumed that the variables that are
being tested in the run test should be of numeric type.  This means that if the test
variables are of the string type, then the variables must be coded as numbers in
order to make those variables of the numeric type.

Generally, in non-parametric tests, no underlying distribution is assumed.  This holds


for the run test as well, but if the number of observations is more than twenty, then
it is assumed (in the run test) that the underlying distribution would be normal and
would have the mean and variance that is given by the formulas as discussed above.

Null Hypothesis: The order of the ones and twos is random.


Alternative Hypothesis: The order of ones and twos is not random.

This checking is done in the following manner:


Let us consider that ‘H’ denotes the number of observations.  The ‘Ha‘ is considered
to be the number that falls above the mean, and ‘Hb‘ is considered to be the number
that falls below the mean. The ‘R’ is considered to be the observed number of runs. 
After considering these symbols, then the probability of the observed number of
runs is derived.

Formula of the mean and the variance of the observed number of the runs:
E ( R ) = H + 2 Ha Hb / H
V ( R ) = 2 Ha Hb (2 Ha Hb – H ) / H2 ( H – 1 )

The researcher should note that in the run test for the random type of model, if the
value of the observations is larger than twenty, then the distribution of the observed
number of runs would approximately follow normal distribution.  The value of the

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standard normal variate of the observed number of runs in the run test is given by
the following:

Z = R – E (R) / Stdev (R).

This follows the normal distribution that has the mean as zero and the variance as
1.  This is also called the standard normal distribution that the Z variate must follow.

THE SIGN TEST

The sign test is one of the simplest nonparametric tests. It is for use with 2 repeated
(or
correlated) measures and measurement is assumed to be at least ordinal. For each
subject, subtract the 2nd score from the 1st, and write down the sign of the
difference. (That is write “ -” if the difference score is negative, and “+” if it is
positive.) The usual null hypothesis for this test is that there is no difference
between the two treatments. If this is so, then the number of + signs (or - signs, for
that matter) should have a binomial distribution1 with p = .5, and N = the number
of subjects. In other words, the sign test is just a binomial test with + and - in place
of Head and Tail (or Success and Failure).

MULTIVARIATE ANALYSIS (MVA): It is based on the statistical principle


of multivariate statistics, which involves observation and analysis of more than one
statistical outcome variable at a time. In design and analysis, the technique is used
to perform trade studies across multiple dimensions while taking into account the
effects of all variables on the responses of interest.

Uses for multivariate analysis include:

 design for capability (also known as capability-based design)


 inverse design, where any variable can be treated as an independent variable

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 Analysis of Alternatives  (AoA), the selection of concepts to fulfil a customer


need
 analysis of concepts with respect to changing scenarios
 Identification of critical design-drivers and correlations across hierarchical
levels.

Applications:

 To reduce a large number of variables to a smaller number of factors for data


modeling
 To validate a scale or index by demonstrating that its constituent items load
on the same factor, and to drop proposed scale items which cross-load on
more than one factor.
 To select a subset of variables from a larger set, based on which original
variables have the highest correlations with some other factors.
 To create a set of factors to be treated as uncorrelated variables as one
approach to handling multi-collinearity in such procedures as multiple
regression
 To integrate different data in earth sciences and geo-modeling. For example,
integration of drilling and seismic data 

Multiple Regression Analysis: Multiple regressions is an extension of simple


linear regression. It is used when we want to predict the value of a variable based
on the value of two or more other variables. The variable we want to predict is
called the dependent variable (or sometimes, the outcome, target or criterion
variable). The variables we are using to predict the value of the dependent variable
are called the independent variables (or sometimes, the predictor, explanatory or
regressor variables).

For example, you could use multiple regression to understand whether exam
performance can be predicted based on revision time, test anxiety, lecture
attendance and gender. Alternately, you could use multiple regression to understand

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whether daily cigarette consumption can be predicted based on smoking duration,


age when started smoking, smoker type, income and gender.

Multiple regressions also allow you to determine the overall fit (variance explained)
of the model and the relative contribution of each of the predictors to the total
variance explained. For example, you might want to know how much of the variation
in exam performance can be explained by revision time, test anxiety, lecture
attendance and gender "as a whole", but also the "relative contribution" of each
independent variable in explaining the variance.

Example:

Do age and IQ scores effectively predict GPA?

Do weight, height, and age explain the variance in cholesterol levels?

Assumptions:

Regression residuals must be normally distributed. A linear relationship is assumed


between the dependent variable and the independent variables.

The residuals are homoscedastic and approximately rectangular-shaped.

Absence of multicollinearity is assumed in the model, meaning that the independent


variables are not too highly correlated.

At the center of the multiple linear regressions analysis is the task of fitting a single
line through a scatter plot. More specifically the multiple linear regressions fits a line
through a multi-dimensional space of data points. The simplest form has one
dependent and two independent variables. The dependent variable may also be
referred to as the outcome variable or regress and. The independent variables may
also be referred to as the predictor variables or repressors.

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There are 3 major uses for multiple linear regression analysis. First, it might be
used to identify the strength of the effect that the independent variables have on a
dependent variable.

Second, it can be used to forecast effects or impacts of changes. That is, multiple
linear regression analysis helps us to understand how much will the dependent
variable change when we change the independent variables. For instance, a
multiple linear regression can tell you how much GPA is expected to increase (or
decrease) for every one point increase (or decrease) in IQ.

Third, multiple linear regression analysis predicts trends and future values. The
multiple linear regression analysis can be used to get point estimates. An example
question may be “what will the price of gold be 6 month from now?”

DISCRIMINANTE ANALYSIS: it is finds a set of prediction equations based on


independent variables that are used to classify individuals into groups. There are two
possible objectives in a discriminante analysis: finding a predictive equation for
classifying new individuals or interpreting the predictive equation to better
understand the relationships that may exist among the variables.

In many ways, discriminante analysis parallels multiple regression analysis. The


main difference between these two techniques is that regression analysis deals with
a continuous dependent variable, while discriminante analysis must have a discrete
dependent variable. The methodology used to complete a discriminante analysis is
similar to regression analysis. You plot each independent variable versus the group
variable. You often go through a variable selection phase to determine which
independent variables are beneficial. You conduct a residual analysis to determine
the accuracy of the discriminante equations.

The mathematics of discriminante analysis is related very closely to the one-way


MANOVA. In fact, the roles of the variables are simply reversed. The classification
(factor) variable in the MANOVA becomes the dependent variable in discriminante
analysis. The dependent variables in the MANOVA become the independent variables
in the discriminante analysis.
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RESEARCH METHODOLOGY FOR MANAGEMENT

Assumptions:

 Multivariate normality: Independent variables are normal for each level of the
grouping variable
 Homogeneity of variance/covariance (homoscedasticity): Variances among
group variables are the same across levels of predictors. Can be tested with
Box's M statistic. It has been suggested, however, that linear discriminante
analysis be used when covariance are equal, and that quadratic discriminante
analysis may be used when covariance are not equal.

 Multicollinearity: Predictive power can decrease with an increased correlation


between predictor variables

 Independence: Participants are assumed to be randomly sampled, and a


participant’s score on one variable is assumed to be independent of scores on
that variable for all other participants.

DESCRIPTIVE DISCRIMINANTE ANALYSIS

Steps in performing a descriptive discriminate analysis:

 Determine if discriminate analysis will provide statistical results that answer


your research questions (i.e., is descriptive discriminante analysis suitable for
answering your question?).
 Determine the appropriateness of the data set for discriminante analysis.

 Define the groups that will be used in the analysis.

 Select the variables that will be used in the analysis.

 Test the data to assure that the assumptions of discriminante analysis are
met. If some assumptions are not met, determine whether discriminante
analysis is robust for those assumptions.

 Perform the analysis.

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RESEARCH METHODOLOGY FOR MANAGEMENT

 Interpret the results.

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