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Variables: A quantity which changes its value time to time, place to place and person to person is called variable

and if the corresponding probabilities are attached with the values of variable then it is called a random variable. For example If we say x ! or x " or x #$ then x is a variable but if a variable appears in the following way then it is %nown as a random variable.

&'x(

).*

).+

).!

).,

Population:
A large count or the whole count of the ob-ect related things is called population. .here are two types of population it may be finite or infinite. If the population elements are countable then it is %nown as finite population but if the population elements are uncountable then it is called an infinite population.
For example: Population of MBA students at IUGC (Finite Population)

Population of the University tea hers in Pa!istan (Finite Population) Population of trees (Infinite Population) Population of sea life (Infinite Population)

"he population is also ate#ori$ed in t%o %ays& '& )& (omo#eneous population (etero#eneous population

Homogeneous Population:
If all the population elements have the same properties then the population is !no%n as homo#eneous population& For example: Population of shops* Population of houses* Population of +oys* Population of ri e in a +ox et &

Heterogeneous Population:
If all the population elements do not have the same properties then the population is !no%n as homo#eneous population& For example: Population of MBA students (Male and Female)* Population of plants* et &

Parameter:
A onstant omputed from the population or a population hara teristi is !no%n as parameter& For ,xample: Population Mean -* Population standard deviation .* oeffi ient of s!e%ness and !urtosis for the population&

Statistic:
A onstant omputed from the /ample or a sample hara teristi is !no%n as parameter& For ,xample: /ample mean * sample standard deviation s* oeffi ient of s!e%ness and !urtosis for the sample&

Estimator:
A /ample statisti used to estimate the population parameter is !no%n as estimator&

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For ,xample: /ample mean is used to estimate the population mean& /o sample mean is also alled an estimator of population mean&

/ample variance is used to estimate the population variance. /o sample variance is also called an estimator of population variance.

Hypothesis:
An assumption a+out the population parameter tested on the +asis of sample information is alled hypothesis or hypothesis testin#& "hese assumptions are esta+lished in the %ay that %e #enerate t%o alternative statements say 0null and alternative hypothesis1 in su h a manner if one statement is found %ron# automati ally other one is sele ted as orre t statement&

Types of Hypothesis: 1) Null Hypothesis:


A /tatement or the first thin! a+out the parameter value is alled a null hypothesis& But statisti ally %e an say that a null hypothesis is a statement should onsist e2uality si#n su h as: (3: (3: (3: - 4 -3 - 5 -3 - 6 -3

As it is lear from a+ove statements there are t%o types of null hypothesis& '7 /imple null hypothesis )7 Composite null hypothesis

1-Simple Null Hypothesis:


If a null hypothesis is +ased on the sin#le value (or it onsist of only e2ual si#n) then the null hypothesis is alled a simple null hypothesis For ,xample Phrases Avera#e rain fall in United /tates of Ameri a durin# '888 %as )33 mm& Page 3 (3: - 4 -3

Quantitative Techniques in Analysis

"he avera#e on entrations of t%o su+stan es are same "he I9 level of MBA and BBA students are same& I9 level is independent from edu ation level&

2-Composite Null Hypothesis:


If a null hypothesis is +ased on the interval of the parameter value (or it onsist of less then or #reater then si#n %ith e2ual si#n) then the null hypothesis is alled a Composite null hypothesis For ,xample (3: (3: Phrases "he mean hei#ht of BBA students are at most :3 in hes "he performan e of P(; students is at most same as MBA students <aria+ility in a data set must +e positive (Greater or e2ual to $ero) - 5 -3 - 6 -3

2) Alternati e Hypothesis:
An Automati ally #enerated statement a#ainst the esta+lished null hypothesis is alled an alternative hypothesis& For ,xample: Null Hypothesis (3: (3: (3: - 4 -3 - 5 -3 - 6 -3 Alternati es Hypothesis ((':- = -3* ((':- = -3* ((':- = -3* (':- > -3* (':- > -3* (':- > -3* ( ': ( ': ( ': - ? - 3) - ? - 3) - ? - 3)

It is lear from the a+ove stated alternatives that there are t%o different types of alternatives& '7 @ne tailed or @ne sided alternative hypothesis )7 "%o tailed or t%o sided alternative hypothesis

1-!ne taile" Alternati e Hypothesis:


If an alternative is +ased on either the #reater then (>) or a less then (?) si#n in the statement then the alternative hypothesis is !no%n as the one tailed hypothesis& For ,xample: Phrases Quantitative Techniques in Analysis Page 4 (':- > -3* @r ( ': - ? -3

Avera#e rain fall in Pa!istan is more then from avera#e rain fall in Aa!arta& In$amam is more onsistent player then /haid Afridi& Baseem A!ram is a +etter +o%ler then M Grath& Gold pri es are dependent on oil pri es&

2-T#o taile" Alternati e Hypothesis:


If an alternative is +ased on only an une2ual (=) si#n in the statement then the alternative hypothesis is !no%n as the t%o tailed hypothesis& For ,xample: Phrases "he Con entration of t%o su+stan es is not same& "here is a si#nifi ant differen e +et%een the %heat produ tion of /ind and PunCa+& "he onsisten y of D/, and //, is not same& In this type of alternatives the total han e of type I error remain in only one side of the normal urve In this type of alternatives the total han e of type I error is divided in t%o sides of the normal urve (': - = -3*

Pro$a$ilities Associate" #ith %ecisions:


Ho is True Ho is &alse False ;e ision Corre t ;e ision Accept Ho 1-' "ype II ,rror ' False ;e ision (e)ect Ho "ype I ,rror 1-+ *

Corre t ;e ision

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True Population

Other Population

It is lear from the a+ove fi#ures that +oth the errors an not +e minimi$ed at the same time& An in rease is o+served in the type II error %hen type I error is minimi$ed&

P- ,alue:
It is the minimum value of alpha 0E1 %hi h is needed to reCe t a true null hypothesis& As it is the value of 0E1 so it an +e explain as the minimum value of type I error %hi h is asso iated %ith a hypothesis %hile it is testin#& "herefore* it is used in t%o %ays* one in de ision ma!in# and the other to determine the pro+a+ility of type I error asso iated %ith the testin#&

%ecision (ule on the $asis of p - alue:


FeCe t (o if p G value ? 3&3H A ept (o if p G value 6 3&3H For example: If the p- alue for any test appears -.-1& It is indi atin# that our null hypothesis is to +e reCe ted and there is only 'I han e of reCe tin# a true null hypothesis& "hat further an explain as %e are 88I onfident in reCe tion of the null hypothesis& @r %e an say that %e an reCe t our this null hypothesis up to E 4 'I or 88I onfiden e level If the p- alue for any test appears -.21& It is indi atin# that our null hypothesis is to +e a epted and there is )'I han e of reCe tin# a true null hypothesis& "hat further an explain as %e are :8I onfident in our de ision and reCe tion of the null hypothesis& @r %e an say that our this true null hypothesis may +e reCe ted at E 4 )'I&

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T-test:A t-test is a statisti al hypothesis test in %hi h the test statisti has a /tudentJs t distri+ution if the null hypothesis is true& It is applied %hen the population is assumed to +e normally distri+uted +ut the sample si$es are small enou#h that the statisti on %hi h inferen e is +ased is not normally distri+uted +e ause it relies on an un ertain estimate of standard deviation rather than on a pre isely !no%n value&

/ses of T-test:Amon# the most fre2uently used t tests are:


A test of %hether the mean of a normally distri+uted population has a value spe ified in a null hypothesis& A test of the null hypothesis that the means of t%o normally distri+uted populations are e2ual& Given t%o data sets* ea h hara teri$ed +y its mean* standard deviation and num+er of data points& Be an use some !ind of t7test to determine %hether the means are distin t* provided that the underlyin# distri+utions an +e assumed to +e normal& "here are different versions of the t- test dependin# on %hether the t%o samples are
o

Unpaired* independent of ea h other (e&#&* individuals randomly assi#ned into t%o #roups* measured after an intervention and ompared %ith the other #roup)* or Paired* so that ea h mem+er of one sample has a uni2ue relationship %ith a parti ular mem+er of the other sample (e&#&* the same people measured +efore and after an intervention&

0nterpretation of the results:If the al ulated p7value is +elo% the threshold hosen for statisti al si#nifi an e (usually the 3&'3* the 3&3H* or 3&3' level)* then the null hypothesis %hi h usually states that the t%o #roups do not differ is reCe ted in favor of an alternative hypothesis* %hi h typi ally states that the #roups do differ& A test of %hether the slope of a re#ression line differs si#nifi antly from 3&

Statistical Analysis of the t-test:

"he formula for the t7test is a ratio& "he top part of the ratio is Cust the differen e +et%een the t%o means or avera#es& "he +ottom part is a measure of the varia+ility or dispersion of the s ores& "his formula is essentially another example of the si#nal7to7 noise metaphor in resear h: the differen e +et%een the means is the si#nal that* in this ase* %e thin! our pro#ram or treatment introdu ed into the dataK the +ottom part of the formula is a measure of varia+ility that is essentially noise that may ma!e it harder to see

Quantitative Techniques in Analysis

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the #roup differen e& Fi#ure sho%s the formula for the t7test and ho% the numerator and denominator are related to the distri+utions&

"he top part of the formula is easy to ompute 77 Cust find the differen e +et%een the means& "he +ottom part is alled the standard error of the differen e& "o ompute it* %e ta!e the varian e for ea h #roup and divide it +y the num+er of people in that #roup& Be add these t%o values and then ta!e their s2uare root "he t7value %ill +e positive if the first mean is lar#er than the se ond and ne#ative if it is smaller& @n e you ompute the t7value %e have to loo! it up in a ta+le of si#nifi an e to test %hether the ratio is lar#e enou#h to say that the differen e +et%een the #roups is not li!ely to have +een a han e findin#& "o test the si#nifi an e* %e need to set a ris! level ( alled the alpha level)& In most so ial resear h* the Lrule of thum+L is to set the alpha level at &3H& "his means that five times out of a hundred %e %ould find a statisti ally si#nifi ant differen e +et%een the means even if there %as none (i&e&* +y L han eL)& Be also need to determine the de#rees of freedom (df) for the test& In the t7test* the de#rees of freedom is the sum of the persons in +oth #roups minus )& Given the alpha level* the df* and the t7value* %e an loo! the t7value up in a standard ta+le of si#nifi an e (availa+le as an appendix in the +a ! of most statisti s texts) to determine %hether the t7value is lar#e enou#h to +e si#nifi ant& If it is* %e an on lude that the differen e +et%een the means for the t%o #roups is different (even #iven the varia+ility&

Calculations:a) 0n"epen"ent one-sample t-test

Quantitative Techniques in Analysis

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In testin# the null hypothesis that the population means is e2ual to a spe ified value 3* one uses the statisti &

Bhere 0s is the sample standard deviation of the sample and 0n is the sample si$e& "he de#rees of freedom used in this test is 0n G '1& $) 0n"epen"ent t#o-sample t-test:A) ,2ual sample si$es* e2ual varian e "his test is only used %hen +oth:

the t%o sample si$es (that is* the n or num+er of parti ipants of ea h #roup) are e2ualK It an +e assumed that the t%o distri+utions have the same varian e&

<iolations of these assumptions are dis ussed +elo%& "he t statisti to test %hether the means are different an +e al ulated as follo%s:

BhereK

(ere 0 1 is the #rand standard deviation (or pooled standard deviation)* ' 4 #roup one* ) 4 #roup t%o& "he denominator of 0t is the standard error of the differen e +et%een t%o means& For si#nifi an e testin#* the de#rees of freedom for this test is 0n1 + n2 M )1 %here n1 4 N of parti ipants of #roup N 0'1 and 0n2= N of parti ipants of #roup N 0)1 B) Une2ual sample si$es* une2ual varian e
Quantitative Techniques in Analysis Page 9

"his test is used only %hen the t%o sample si$es are une2ual and the varian e is assumed to +e different& /ee also Bel hJs t test& "he t statisti to test %hether the means are different an +e al ulated as follo%s:

Where n1 4 num+er of parti ipants of #roup 0'1 and n2 is num+er of parti ipants #roup t%o& In this ase* varian e is not a pooled varian e& For use in si#nifi an e testin#* the distri+ution of the test statisti is approximated as +ein# an ordinary /tudentJs t distri+ution %ith the de#rees of freedom al ulated usin#

"his is alled the Bel h7/atterth%aite e2uation& Oote that the true distri+ution of the test statisti a tually depends (sli#htly) on the t%o un!no%n varian es& "his test an +e used as either a one7tailed or t%o7tailed test& c) %epen"ent t-test for paire" samples:"his test is used %hen the samples are dependentK that is* %hen there is only one sample that has +een tested t%i e (repeated measures) or %hen there are t%o samples that have +een mat hed or LpairedL&

For this e2uation* the differen es +et%een all pairs must +e al ulated& "he pairs are either one personJs pre7test and post7test s ores or +et%een pairs of persons mat hed into meanin#ful #roups (for instan e dra%n from the same family or a#e #roup: see ta+le)& "he avera#e ( XD) and standard deviation (sD) of those differen es are used in the e2uation& "he onstant 3 is non7$ero if you %ant to test %hether the avera#e of the differen e is si#nifi antly different than 3& "he de#ree of freedom used is 0N G '1&

E1ample 2 -1
Quantitative Techniques in Analysis Page 10

Analysis through SPSS:A) !ne-sample t-test:/P// need:7 ') "he data should +e in the form of numeri al (i&e the numeri al varia+le) )) A test value %hi h is our hypotheti al value to %hi h %e are #oin# to test& "o analy$e the 0one7sample t7test1 I have use the employeesP salaries of an or#ani$ation& For this purpose* I have sele t the sample of 0Q:Q1 employees of the ompany& "he hypotheses are: a) "he null hypothesis states that the avera#e salary of the employee is e2ual to 0R3*3331& (3 : R3*333

+) "he alternative hypothesis states that the avera#e salary of the employee is not e2ual to 0R3*3331& (A: Method:
,nter the data in the data editor and the varia+le is la+eled as employeeJs urrent salary& Oo% li ! on Analyze %hi h %ill produ e a drop do%n menu* hoose Compare means from that and li ! on one-samples t test* a dialo#ue +ox appears* in %hi h all the input varia+les appear in the left7hand side of that +ox& From this +ox %e have to sele t a varia+le* %hi h is to +e omputed& "he varia+le omputed in our ase is Current salaries of the employees& "he varia+les an +e sele ted for analysis +y transferrin# them to the test variable +ox& Oext* han#e the value in the test value +ox* %hi h ori#inally appears as 3* to the one a#ainst %hi h you are testin# the sample mean& In this ase* this value %ould +e RH333& Oo% li ! on OK to run the analysis&

R3*333

Pi torial Fepresentation
Analy3e 5Scale) Compare 4eans 6i e Test ,alue !ne-Sample T Test %rag Test ,aria$le !7

Quantitative Techniques in Analysis

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/P// output:7
!ne-Sample Statistics N Current Salary 474 Mean !4"4#$.%7 Std. Deviation #7"&7%.''# Std. Error Mean 7(4.!##

Interpretation:7

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In a+ove ta+le 0O1 sho%s the total num+er of o+servation& "he avera#e salary of total employees is 0RQ*Q'8&H:1& "he standard deviation of the data is 0':*3:H&SS'1and the standard error of the mean is 0:TQ&R''1&
!ne-Sample Test )est *alue + !&&&& t Current Salary %.'!% D, 47! Si-. ./-tailed0 .&&& Mean Di,,eren1e 4"4#$.%'( $%2 Con,iden1e 3nterval o, t4e Di,,eren1e 5o6er /"(7(.4& 7pper %"$'&.7!

Interpretation:7 "hrou#h a+ove ta+le %e an o+serve that* i) ii) iii) iv) v) ;e ision:7 @n the +asis of follo%in# o+servation I reCe t my 0Oull hypothesis1 and a ept the 0Alternative hypothesis1& I am almost 0'33I1 sure on my de ision& i) ii) "he 0P7value1 is 03&3331 %hi h is less than 03&3H1& "he onfiden e interval limits does not ontains $ero& 0"1 value is positive %hi h sho% that our estimated mean value is #reater than a tual value of mean& ;e#ree of freedom is (O G ') 4 Q:R& "he 0P7value1 is 03&3331 %hi h is less than 03&3H1& "he differen e +et%een the estimated U a tual mean is 0Q*Q'8&HST1& Confiden e interval has the lo%er U upper limit )*T:T&Q U H*8S3&:R respe tively& "he onfiden e interval limits does not ontains $ero&

Comments:7 "he avera#e salary of employees is not e2ual to 0R3*3331&

E1ample 2 -2
8) 0n"epen"ent t-test:/P// need:7
Quantitative Techniques in Analysis Page 13

') "%o varia+le are re2uired one should +e numeri al and other should +e ate#ori al %ith t%o levels& "o analy$e the 0independent t7test1 I have use the employeesP salaries of an or#ani$ation& For this purpose* I have sele t the sample of 0Q:Q1 employees of the ompany ontainin# the +oth males and females& In my analysis I assi#ned males as 0m1 and female as 0f1& "he hypotheses are: a) "he null hypothesis states that the avera#e salary of the male employee is e2ual to avera#e salary of the male employee& (3 : i&e +) "he alternative hypothesis states that the avera#e salary of the male employee is not e2ual to avera#e salary of the male employee& (A : i&e Method:
,nter the data in the data editor and the varia+les are la+eled as employeeJs +e#innin# salary and employeeJs desi#nations respe tively& Cli ! on Analyze %hi h %ill produ e a drop do%n menu* hoose Compare means from that and li ! on independent samples t-test* a dialo#ue +ox appears* in %hi h all the input varia+les appear in the left7hand side of that +ox& "o perform the independent samples t7test* transfer the dependent varia+le into the test variable +ox and transfer the varia+le that identifies the #roups into the -roupin- variable +ox& In this ase* the 8e-innin- salary of the employees is the dependent varia+le to +e analy$ed and should +e transferred into test varia+le +ox +y li !in# on the first arro% in the middle of the t%o +oxes& 9ob 1ate-ory is the varia+le %hi h %ill identify the #roups of the employees and it should +e transferred into the #roupin# varia+le +ox& @n e the #roupin# varia+le is transferred* the de,ine -roups +utton %hi h %as earlier ina tive turns a tive& Cli ! on it to define the t%o #roups& In this ase -roup# represents the employees +elon# to leri al ate#ory and -roup/ represents the employees +elon# to the ustodial ate#ory& "herefore put ' in the +ox a#ainst #roup' and ) in the +ox a#ainst #roup) and li ! ontinue& Oo% li ! on OK to run the analysis&

Pi torial Fepresentation
Analy3e 6rouping ,aria$le Compare 4eans %efine 6roups 0n"epen"ent-Samples T Test !7 %rag Test 9

Quantitative Techniques in Analysis

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/P// output:7
6roup Statistics

Quantitative Techniques in Analysis

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:ender Current Salary Male ;emale

N /%( /#'

Mean 4#"44#.7( /'"&!#.$/

Std. Deviation #$"4$$./#4 7"%%(.&/#

Std. Error Mean #"/#!.$'( %#4./%(

Interpretation:7 "hrou#h a+ove ta+le %e an o+serve that* i) ii) iii) iv) "otal num+er of male is 0)HT1 and the female is 0)'S1& "he mean value of salaries of male employee is Q'*QQ'&:T U the female employee is )S*3R'&8)& /tandard deviation of salaries of male employee is '8*QQ8&)'Q U the female employee is :*HHT&3)'& /tandard error of mean of salaries of male employees is '*)'R&8ST U the /tandard error of mean of salaries of female employees is H'Q&)HT&

0n"epen"ent Samples Test

Current /alary

VeveneJs "est for ,2uality of <arian es F /i#& t df /i#& ()7 tailed)

t7test for ,2uality of Means Mean ;ifferen e W'H*Q38&TS) '3&8QH Q:) &333 W'H*Q38&TS) ''&STT RQQ&)S) &333 W'*R'T&Q33 W')*T'S&:)T W'T*33)&88S W'*Q3:&83S W')*SQR&R)) W'T*':S&Q3' /td& ,rror ;ifferen e 8HI Confiden e Interval of the ;ifferen e Vo%er Upper

,2ual varian es assumed ,2ual varian es not assumed ''8&SS8 &333

Interpretation:7 In a+ove ta+le %e have t%o parts (a) f7test* (+) t7test* throu#h %hi h %e an o+serve that* i) ii) iii) iv) 0F1 value is 0''8&SS81 %ith si#nifi ant value of 03&331 %hi h is less than 03&3H1& @n the +asis of P7value of F7test part %e assume that that the varian e of the t%o populations is not e2ual& 0"1 value is positive %hi h sho% that the mean value of salaries of male employees is #reater than the mean value of salaries of female employees ;e#ree of freedom is 0RQQ&)S)1&
Page 16

Quantitative Techniques in Analysis

v) vi) vii) viii) ;e ision:7

"he 0P7value1 is 03&3331 %hi h is less than 03&3H1& "he differen e +et%een the t%o population mean is 0'H*Q38&TS)1& "he standard error differen e +et%een the t%o population mean is 0'*R'T&Q331& Confiden e interval has the lo%er U upper limit 0')*T'S&:)T1 U 0'T*33)&88S1 respe tively& "he onfiden e interval limits does not ontains $ero&

@n the +asis of follo%in# o+servation I reCe t my 0Oull hypothesis1 and a ept the 0Alternative hypothesis1& I am almost 0'33I1 sure on my de ision& i) ii) "he 0P7value1 is 03&3331 %hi h is less than 03&3H1& "he onfiden e interval limits does not ontains $ero&

Comments:7 "he avera#e salaries of male U female employees are not e2ual&

E1ample 2 -:
C) Paire" t-test:/P// need:7 ') "%o numeri al varia+les are re2uired %hi h should +e e2ual in num+ers& "o analy$e the 0paired t7test1 I used the +e##in# U endin# salaries of the employeesP of an or#ani$ation& For this purpose* I have sele t the sample of 0Q:Q1 employees of the or#ani$ation& "he hypotheses are: a) "he null hypothesis states that the avera#e salary of the male employee is e2ual to avera#e salary of the male employee& (3 : i&e
Quantitative Techniques in Analysis

3
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+) "he alternative hypothesis states that the avera#e salary of the male employee is not e2ual to avera#e salary of the male employee& (A : i&e Method:
,nter the data in the data editor and the varia+les are la+eled as employeeJs urrent and +e#innin# salary respe tively& Cli ! on Analyze %hi h %ill produ e a drop do%n menu* hoose Compare means from that and li ! on <aired-samples t test* a dialo#ue +ox appears* in %hi h all the input varia+les appear in the left7hand side of that +ox& From this +ox %e have to sele t varia+les* %hi h are to +e omputed& "he t%o varia+les omputed in our ase are Current and 8e-innin- salaries& /ele t these to#ether and they %ill immediately appear in the +ox at the +ottom la+eled urrent sele tion& "hey are simultaneously hi#hli#hted in the +ox in %hi h they ori#inally appeared& @n e the varia+les are sele ted the arro% at the enter +e omes a tive& "he varia+les an +e transferred to the <aired-*ariables +ox +y li !in# on this arro%& "hey %ill appear in the +ox as Current-8e-innin-& Oo% li ! on OK to run the analysis&

Pi torial Fepresentation
Analy3e Compare 4eans ,aria$les 5Scale) Paire"-Samples T Test !7 %rag Paire"

Quantitative Techniques in Analysis

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/P// output:7
Paire" Samples Statistics /td& ,rror Mean W:TQ&R'' WRS'&H'3

Pair '

Current /alary Be#innin# /alary

Mean WRQ*Q'8&H: W':*3'S&38

O Q:Q Q:Q

/td& ;eviation W':*3:H&SS' W:*T:3&SRT

Interpretation:7 "hrou#h a+ove ta+le %e an o+serve that* i) ii) iii) iv) "he mean vale of urrent U +e#innin# salary is 0RQ*Q'8&H:1 U 0':*3'S&381 respe tively& "otal num+er of +oth #roups is 0Q:Q1 individually& "he standard deviation of 0:*T:3&SRT1 respe tively& urrent U +e#innin# salary is 0':*3:H&SS'1 U

"he standard error mean of urrent U +e#innin# salary is 0:TQ&RR'1 U 0RS'&H'31 respe tively&
Paire" Samples Correlations O Pair ' Current /alary U Be#innin# /alary Q:Q Correlation &TT3 /i#& &333

Analyze

Interpretation:7
Quantitative Techniques in Analysis Page 19

"hrou#h a+ove ta+le %e an o+serve that* i) ii) iii) "he total num+er of pair is 0Q:Q1& 03&TT1 sho% that the +oth values of #roup are hi#hly o7related* %hi h indi ate that the employees %ho has #reater +e##in# salary has also #reater urrent salary& "he P7value is 03&331 %hi h is less than 03&3H1&
Paire" Samples Test

Mean

/td& ;eviation

/td& ,rror Mean

8HI Confiden e Interval of the ;ifferen e Vo%er Upper W'S*Q):&Q3: W'T*R:8&HHH

df

/i#& ()7tailed)

Pair ' Current /alary 7 Be#innin# /alary

W':*Q3R&QT'

W'3*T'Q&S)3

WQ8S&:R)

RH&3RS

Q:R

&333

Interpretation:7 In a+ove ta+le %e have t%o parts (a) f7test* (+) t7test* throu#h %hi h %e an o+serve that* i) ii) iii) iv) v) vi) vii) "he mean value of pair is 0':*Q3R&QT'1& "he standard deviation of pair is 0'3*T'Q&S)31& "he standard error mean of pair is 0Q8S&:R)1& Confiden e interval has the lo%er U upper limit 0'S*Q):&Q3:1 U 0'T*R:8&HHH1 respe tively& "he onfiden e interval limits does not ontains $ero& "7 <alue is 0RH&3RS1& ;e#ree of freedom is (O7') 4 0Q:R1& P7vale is 03&331 %hi h is less than 03&3H1&

;e ision:7 @n the +asis of follo%in# o+servation I reCe t my 0Oull hypothesis1 and a ept the 0Alternative hypothesis1& I am almost 0'33I1 sure on my de ision& iii) "he 0P7value1 is 03&3331 %hi h is less than 03&3H1&
Page 20

Quantitative Techniques in Analysis

iv)

"he onfiden e interval limits does not ontains $ero&

Comments:7 "he mean differen e of the t%o paired varia+les i&e& urrent and +e#innin# salary is si#nifi ant or not same&

!ne-;ay AN!,A:
AO@<A is a ommonly used statisti al method for ma!in# simultaneous omparisons +et%een t%o or more population means* that yield values that an +e tested to determine %hether a si#nifi ant relation exist +et%een varia+les or not& Its simplest form is !ne-;ay AN!,A< it involves only one dependent varia+le and one or more independent varia+les&

;ata /our e:
C:X/P//,<AVX,mployee ;ata

<aria+les: (ere %e analy$e t%o different varia+les +y @ne7Bay AO@<A* i&e&


A) Current salary of the employees& B) ,mployment Cate#ory&

(ypothesis:
(3: (A: -' 4 -) 4 -R at least one mean is not e2ual&

/P// Oeed:
/P// need t%o types of varia+les for analy$in# one7%ay AO@<A& Oumeri al <aria+le (/ ale)& Cate#ori al <aria+le (%ith more than t%o ate#ories)&

Method:
First of all enter the data in the data editor and the varia+les are la+eled as employeeJs urrent salary and employment ate#ory respe tively& Cli ! on Analyze %hi h %ill produ e a drop do%n menu* hoose Compare means from that and li ! on One-=ay ANO*A* a dialo#ue +ox appears* in %hi h all the input varia+les appear in the left7hand side of that +ox& "o perform one7%ay AO@<A* transfer the dependent varia+le into the +ox la+eled Dependent 5ist and all fa torin# varia+le into the +ox la+eled ;a1tor& In our ase Current salary is the dependent varia+le and should +e transferred to the dependent list +ox +y li !in# on the first arro% in the middle of the t%o +oxes& Employment Cate-ory is the fa torin# varia+le and should +e transferred to the fa tor +ox +y li !in# on the se ond arro% and then li ! OK to run the analysis& If the null hypothesis is reCe ted* AO@<A only tells us that all population means are not e2ual& Multiple omparisons are used to assess %hi h #roup mean are differ from %hi h other* on e the overall F7test sho%s that at least one differen e exists& Many tests are listed under <ost >o1 in /P//* V/; (Veast /i#nifi ant ;ifferen e) and "u!ey test is one of the most onservative and ommonly used tests&

Pi torial Fepresentation
Quantitative Techniques in Analysis Page 21

Analy$e U Fa tors

Compare Means Post (o (@ptional)

@ne7Bay AO@<A @D

;ra# ;ependent Vist

Quantitative Techniques in Analysis

Page 22

!utput:
ANOVA Current Salary 0et/een 6r(up* 7it5in 6r(up* 4(tal Su' (. S8uare* 943 4 392!.943 4 47 011!10.397 13791649!436.340 d. 2 471 473 +ean S8uare 44719241962.972 10292!714.4!9 9 434.4 1 Si). .000

"he a+ove ta+le #ives the test results for the analysis of one7%ay AO@<A& "he results are #iven in three ro%s& "he first ro% la+eled bet6een -roups #ives the varia+ility due to the different desi#nations of the employees (!no%n reasons)& "he se ond ro% la+eled 6it4in -roups #ives the varia+ility due to random error (un!no%n reasons)* and the third ro% #ives the total varia+ility& In this ase* F7value is QRQ&QT'* and the orrespondin# p7value is less than 3&3H& "herefore %e an safely reCe t the null hypothesis and on lude that the avera#e salary of the employees is not the same in all three ate#ories&

Post Hoc Tests


Multiple Comparisons Dependent Variable: Current Salary LSD +ean Di..eren,e #--$% -$3,100.349 -$36,139.2! " $3,100.349 -$33,03 .909" $36,139.2! " $33,03 .909" 9!2 C(n.iden,e -nter3al L(/er 0(und 1pper 0(und -$7,077.06 $ 76.37 -$3 ,!!2.99 -$33,72!.!3 -$ 76.37 $7,077.06 -$37,449.20 -$2 ,62 .62 $33,72!.!3 $3 ,!!2.99 $2 ,62 .62 $37,449.20

#-% &'pl(y'ent Cate)(ry Cleri,al Cu*t(dial +ana)er

#$% &'pl(y'ent Cate)(ry Cu*t(dial +ana)er Cleri,al +ana)er Cleri,al Cu*t(dial

Std. &rr(r $2,023.760 $1,22 .3!2 $2,023.760 $2,244.409 $1,22 .3!2 $2,244.409

Si). .126 .000 .126 .000 .000 .000

". 45e 'ean di..eren,e i* *i)ni.i,ant at t5e .0! le3el.

"he Post7(o test presents the result of the omparison +et%een all the possi+le pairs& /in e %e have three #roups* a total of six pairs %ill +e possi+le in %hi h three %ill +e mirror ima#es& "he results are sho%n in three ro%s& "he p7 value for Clerical = 4anager and Custo"ial = 4anager omparison is sho%n as 3&333* %hereas it is 3&')S for Clerical = Custo"ial omparison& "his means that the avera#e urrent salary of the employees +et%een Cleri al and Mana#er as %ell as Mana#er and Custodial are si#nifi antly different* %hereas the same is not si#nifi antly different +et%een Cleri al and Custodial& Conclusion: As our null hypothesis is reCe ted and %e on lude that all three means are not same& "o identify the mean %hi h is different from other %e used V/; test and on lude that AO@<A of mana#ers is si#nifi antly different from other t%o means %hereas the other t%o means are insi#nifi ant %ith ea h other&

T#o-;ay AN!,A
Quantitative Techniques in Analysis Page 23

In t#o-;ay Analysis< %e have t%o independent varia+les or !no%n fa tors and %e are interested in !no%in# their effe t on the same dependent varia+le&

;ata /our e:
C:X/P//,<AVXCarpet

<aria+les: (ere %e analy$e t%o different ate#ori al varia+les %ith a numeri al varia+le +y "%o7Bay AO@<A*
i&e& A) Preferen e B) Pa !a#e desi#n C) Brand (Oumeri al) (Cate#ori al) (Cate#ori al)

(ypothesis:
&or 8ran": &or Pac>age: (3: (A: (3?: (A?: -i 4 -C -i = -C Y for all i U C -i 4 -C -i = -C Y for all i U C

/P// Oeed:
/P// need t%o types of varia+les for analy$in# t%o7%ay AO@<A& Oumeri al <aria+le (/ ale)& "%o ate#ori al <aria+les (%ith more than t%o levels)&

Method:
First of all enter the data in the data editor and the varia+les are la+eled as <re,eren1e* brand* pa1?a-e desi-n respe tively& Cli ! on Analyze %hi h %ill produ e a drop do%n menu* hoose :eneral 5inear model from that and li ! on 7nivariate* a dialo#ue +ox appears* in %hi h all the input varia+les appear in the left7hand side of that +ox& "o perform t%o7%ay AO@<A* transfer the dependent varia+le .<re,eren1e0 into the +ox la+eled Dependent variable and fa tor varia+le .8rand @ <a1?a-e0 into the +ox la+eled ;iAed ;a1tor& After definin# all varia+les* no% li ! on OK to run the analysis& If the null hypothesis is reCe ted* multiple omparisons are used to assess %hi h #roup mean are differ from %hi h other* on e the overall F7test sho%s that at least one differen e exists& Many tests are listed under <ost >o1 in /P//* V/; (Veast /i#nifi ant ;ifferen e) and "u!ey test is one of the most onservative and ommonly used tests&

Pi torial Fepresentation
Analy$e General Vinear Model ;ra# ;ependent <aria+le U Fixed Fa tors Univariate Post (o @D

Quantitative Techniques in Analysis

Page 24

!utput:

Quantitative Techniques in Analysis

Page 25

Between-Subjects Factors =a,>a)e de*i)n 0rand na'e 1.00 2.00 3.00 1.00 2.00 3.00 Value Label :" 0" C" ;2< 6l(ry 0i**ell ? 9 6 7 7 7

"his ta+le sho%s the value la+el under ea h ate#ory and the fre2uen y of ea h value la+el& Be have totaled S value la+els under pa !a#e desi#n and +rand name&
Tests of Between-Subjects Effects Dependent Variable: =re.eren,e S(ur,e pa,>a)e brand &rr(r 4(tal 4ype --- Su' (. S8uare*
a

d. 2 2 13 22

+ean S8uare 26 .616 1 .0!4 1!.910

9 16. 3 1.13!

Si). .000 .3!1

!37.231 36.10 206. 33 37! .000

a. < S8uared @ .763 #:dAu*ted < S8uared @ .617%

"he a+ove ta+le #ives the test results for the analysis of t%o7%ay AO@<A& "he results are #iven in four ro%s& "he first ro% la+eled pa1?a-e #ives the varia+ility due to the different pa !a#e desi#n of the arpets* %hi h may affe t the ustomerJs preferen es (!no%n reason)& "he se ond ro% la+eled brand #ives the varia+ility due to the different +rand names (!no%n reason)& "he third ro% la+eled error #ives the varia+ility due to random error* %hi h also affe ts the ustomerJs preferen es (un!no%n reasons)& "he fourth ro% #ives the total varia+ility in the ustomerJs preferen es due to +oth !no%n and un!no%n reasons& In this ase* F7value for pa !a#e desi#n is 'S&TTR* and the orrespondin# p7value is less than 3&3H& "herefore %e an safely reCe t the null hypothesis for pa !a#e desi#n and on lude that the avera#e preferen e for all pa !a#es is not same& Oo% the F7value for +rand name is '&'RH* and the orrespondin# p7value is #reater than 3&3H& /o %e an a ept the null hypothesis for +rand and on lude that all avera#e +rand preferen es are found approximately same&

Post Hoc Tests

Quantitative Techniques in Analysis

Page 26

Pac>age "esign
Multiple Comparisons Dependent Variable: =re.eren,e LSD +ean Di..eren,e #--$% 11.!!!6" 9.269 " -11.!!!6" -2.2 !7 -9.269 " 2.2 !7

#-% =a,>a)e de*i)n :" 0" C"

#$% =a,>a)e de*i)n 0" C" :" C" :" 0"

Std. &rr(r 2.10226 2.0101! 2.10226 2.21914 2.0101! 2.21914

Si). .000 .000 .000 .322 .000 .322

9!2 C(n.iden,e -nter3al L(/er 0(und 1pper 0(und 7.0139 16.0972 4.9272 13.612! -16.0972 -7.0139 -7.0799 2.!0 ! -13.612! -4.9272 -2.!0 ! 7.0799

0a*ed (n (b*er3ed 'ean*. ". 45e 'ean di..eren,e i* *i)ni.i,ant at t5e .0! le3el.

As our null hypothesis for pa !a#e desi#n is reCe ted* so multiple omparisons are used to assess that %hi h #roup mean is different from the others& "he a+ove ta+le #ives the results for multiple omparisons +et%een ea h value la+el under pa !a#e desi#n ate#ory& "he Post7(o test presents the result of the omparison +et%een all the possi+le pairs& /in e %e have three #roups* a total of six pairs %ill +e possi+le in %hi h three %ill +e mirror ima#es& "he results are sho%n in three ro%s& "he p7 value for A@ = 8@ and A@ = C@ omparison is sho%n as 3&333* %hereas it is 3&R)) for 8@ = C@ omparison& "his means that the avera#e preferen e for pa !a#e desi#n +et%een AZ and BZ as %ell as AZ and CZ are si#nifi antly different* %hereas the same is not si#nifi antly different +et%een BZ U CZ& Conclusion: As our null hypothesis for pa !a#e desi#n is reCe ted and %e on lude that all mean preferen es for pa !a#e desi#n are not same& "o identify the mean %hi h is different from other %e used V/; test and on lude that AO@<A of A@ is si#nifi antly different from other t%o means %hereas the other t%o means are insi#nifi ant %ith ea h other& But in the ase of +rand name* our null hypothesis is a epted and %e on lude that all mean +rand preferen es are same& /o there is no need for multiple omparisons in the ase of +rand&

Chi-SAuare Test
Chi7s2uare test is a test %hi h is ommonly used to test the hypothesis re#ardin#K Goodness of fit test "est for Asso iation [ Independen e [ Attri+utes

It is denoted +y BC2B and its de#ree of freedom is Bn-1B* %here n 4 Oum+er of ate#ories It is a positively s!e%ed distri+ution so that* it has one tailed riti al re#ion on the ri#ht tail of the urve and the value of C2 is al%ays positive&

Chi-SAuare 6oo"ness of &it Test


Quantitative Techniques in Analysis Page 27

Chi-SAuare goo"ness of fit test is used %hen the distri+ution is non7normal and the sample si$e is less than R3* so the hi7s2uare #oodness of fit test determines %hether the distri+ution follo%s uniform distri+ution or not&

;ata /our e:
C:X/P//,<AVXCarpet

<aria+les: (ere %e are interested to analy$e a numeri


Pri e (Oumeri al)

al varia+le i&e&

(ypothesis:
(3: (A: Fit is #ood& (;ata follo%s Uniform ;istri+ution[ Pri es are Uniform) Fit is not #ood& (;ata does not follo% Uniform ;istri+ution[ Pri es are not uniform)

/P// Oeed:
/P// need a ate#ori al varia+le or a numeri al varia+le for analy$in# Chi7/2uare #oodness of fit test&

Graphi al Fepresentation:

Fre uenc!

+ean @ 2.00 Std. De3. @ 0. 72 7 ? @ 22 0 0.!0 1.00 1.!0 2.00 2.!0 3.00 3.!0

Price

Quantitative Techniques in Analysis

Page 28

,xplanation of Graph
From the a+ove #raph %e see that our numeri al varia+le (pri e) is on x7axis and its fre2uen y on the y7axis& "he mean and standard deviation of )) o+servations are )&33 and 3&T:)T: respe tively& "he a+ove #raph learly sho%s that the sele ted numeri al varia+le i&e& pri e does not follo% a normal distri+ution* so %e use hi7s2uare #oodness of fit test to determine if the sample under investi#ation has +een dra%n from a population* %hi h follo%s some spe ified distri+ution&

Method:
First of all enter the data in the data editor and the varia+les are la+eled as pri1e& Cli ! on Analyze %hi h %ill produ e a drop do%n menu* hoose non-parametri1 test from that and li ! on C4i-sBuare test* a dialo#ue +ox appears* in %hi h all the input varia+les appear in the left7hand side of that +ox& /ele t the varia+le you %ant to analy$e& Bhen you sele t the test varia+le* the arro% +et%een the t%o +oxes %ill no% a tive and you an transfer the varia+le on the +ox la+eled test variable list +y li !in# on the arro%& In this ase our test varia+le is pri1e and it should +e transferred to the test varia+le +ox& \ou also li ! on the options +utton* if you are interested to !no% the des riptive statisti s of the tested varia+le& Oo% li ! on OK to run the analysis&

Pi torial Fepresentation
Analy3e Non-parametric test !7 Chi-sAuare %efine test ,aria$le list

Quantitative Techniques in Analysis

Page 29

Quantitative Techniques in Analysis

Page 30

!utput
Price Bb*er3ed ? $1.19 $1.39 $1.!9 4(tal 6 22 &Cpe,ted ? 7.3 7.3 7.3 <e*idual .7 -1.3 .7

First olumn of the a+ove ta+le sho%s the three ate#ories in pri e varia+le& "he olumn la+eled !$ser e" N #ives the a tual num+er of ases fallin# in different ate#ories of test varia+le* %hi h is dire tly o+tained from the data #iven& "he olumn la+eled E1pecte" N #ives the expe ted num+er of ases that should fall in ea h ate#ory of the test varia+le& "he olumn la+eled (esi"ual #ives the differen e +et%een o+served and expe ted fre2uen ies of ea h ate#ory* and it is ommonly !no%n as Error&

Test Statistics C5i-S8uare a d. :*y'p. Si). =ri,e .364 2 . 34

a. 0 ,ell* #.02% 5a3e eCpe,ted .re8uen,ie* le** t5an !. 45e 'ini'u' eCpe,ted ,ell .re8uen,y i* 7.3.
"he a+ove ta+le #ives the test results for Chi7/2uare Goodness of Fit "est& In this ase the hi7s2uare value is 3&RSQ %ith a de#ree of freedom )& "he p7value for the test is sho%n as 3&TRQ %hi h is #reater than 3&3H* so %e an a ept our null hypothesis that Fit is #ood& Quantitative Techniques in Analysis Page 31

Conclusion: "he test results are statisti ally si#nifi ant at HI level of si#nifi an e and the data provide suffi ient eviden e to on lude that our null hypothesis is orre t and our test varia+le (pri e) follo%s a uniform distri+ution* and %e are 'S&SI onfident in our de ision and the reCe tion of the null hypothesis&

Chi-SAuare Test for 0n"epen"ence


Chi-SAuare test for in"epen"ence is used to test the hypothesis that t%o ate#ori al varia+les are independent of ea h other& A small hi7s2uare statisti s indi ates that the null hypothesis is orre t and that the t%o varia+les are independent of ea h other&

;ata /our e:
C:X/P//,<AVX,mployee ;ata

<aria+les: (ere %e analy$e t%o different

ate#ori al varia+les i&e& (Cate#ori al) (Cate#ori al)

A) Gender of the employees B) ;esi#nation of the employees

(ypothesis:
(3: (A: ;esi#nation is independent of /ex& ;esi#nation is not independent of /ex&

/P// Oeed:
/P// need t%o ate#ori al varia+les for analy$in# Chi7/2uare test for independen e&

Method:
First of all enter the data in the data editor and the varia+les are la+eled as :ender* Desi-nation* respe tively& Cli ! on Analyze %hi h %ill produ e a drop do%n menu* hoose Des1riptive Statisti1s from that and li ! on Crosstabs* a dialo#ue +ox appears* in %hi h all the input varia+les appear in the left7hand side of that +ox& /ele t the varia+le you %ant to reate the ro% of your ontin#en y ta+le and transfer it to the +ox la+eled Co6.s0* transfer the other varia+le to the +ox la+eled Column.s0& In this ase %e transfer #ender to the +ox la+eled Fo%(s) and desi#nation to the +ox la+eled olumn(s)& Oext* li ! on the Statisti1s +utton* %hi h +rin#s up a dialo#ue +ox& (ere )i1? the first +ox la+eled C4i-SBuare and li ! 1ontinue to return to the previous s reen& Cli ! on OK to run the analysis&

Pi torial Fepresentation
Analy$e /tatisti s ;ra# Fo% ;es riptive Crossta+s and Column <aria+les "i ! Chi7/2uare @D

Quantitative Techniques in Analysis

Page 32

!utput
"en#er $ Emplo!ment Cate%or! Crosstabulation C(unt &'pl(y'ent Cate)(ry Cleri,al Cu*t(dial +ana)er 206 0 10 1!7 27 74 363 27 4 4(tal 216 2! 474

6ender 4(tal

9e'ale +ale

Quantitative Techniques in Analysis

Page 33

Cross ta+ulation is used to examine the variation in the ate#ori al data* it is a ross measurin# analysis& A+ove %e are ross examine the #ender and desi#nation of the employees& Be ta!e desi#nation of the employees in the olumn and #ender of the employees in ro%* and %e have totaled Q:Q o+servations& "he results are #iven in t%o ro%sK the first ro% sho%s the num+er of female employees in ea h employment ate#ory& "he se ond ro% sho%s the num+er of male employees in ea h employment ate#ory&
C&i-S uare Tests Value 79.277a 474 d. 2 :*y'p. Si). #2-*ided% .000

=ear*(n C5i-S8uare ? (. Valid Ca*e*

a. 0 ,ell* #.02% 5a3e eCpe,ted ,(unt le** t5an !. 45e 'ini'u' eCpe,ted ,(unt i* 12.30.

"he a+ove ta+le #ives the test results for the hi7s2uare test for independen e& "he first ro% la+eled Pearson ChiSAuare sho%s that the value of ]) is :8&):: %ith ) de#ree of freedom& "he t%o7tailed p7value is sho%n as 3&333* %hi h is less than 3&3H* so %e an reCe t our null hypothesis and on lude that the ;esi#nation is not independent of /ex& Conclusion: "he test results are statisti ally si#nifi ant at HI level of si#nifi an e and the data provide suffi ient eviden e to on lude that the desi#nation of the employees is not independent of the sex* and %e are almost '33I onfident on our de ision and the reCe tion of the null hypothesis&

/e ond Approa h
Consider a ase in %hi h the data is not availa+le and only the ta+le la+eled as 6en"er@Employment Category Crossta$ulation in the a+ove output* is #iven& @n the +asis of the output ta+le you an easily find out the same result as a+ove +y usin# /P// %ei#ht ases options& Belo% %e +riefly explain that ho% to enter the data on the +asis of the ta+le and to find out the desired results&

Method
First of all* in the varia+le vie% of /P// define three varia+les and la+eled them as :ender* Employment Cate-ory and *alue& Oo% on the data vie% of the /P//* enter the data in a different manner& Be see that the ta+le ontains t%o ro%s and R olumns& In ro% %e have t%o ate#ories i&e& Female and MaleK similarly in olumns %e have three ate#ories i&e& Cleri al* Custodial* and Mana#er& Oo% the female and male employees* +oth are fall in the three employment ate#ory& /o in the data vie% %e simply define the ro% data i&e& Gender and its opposite define the olumn data i&e& ,mployment ate#ory and its orrespondin# fre2uen ies in the <alue olumn& "he resulted data vie% is sho%n in the pi ture +elo%&

Quantitative Techniques in Analysis

Page 34

& After definin# the data Cust li ! on Data* %hi h %ill produ e a drop do%n menu* hoose 6ei-4t 1ases from that* a dialo#ue +ox appears in %hi h all the varia+les are on the left hand side of that +ox& "i ! 6ei-4t 1ases by and dra# value in the +ox la+eled ;reBuen1y *ariable +y li !in# on the arro% +et%een the t%o +oxes& Oo% li ! OK to return to the previous %indo%&

"he Further pro ess is same as des ri+ed a+ove& Aust define Gender in ro% and ,mployment ate#ory in Column& "i ! C4i-sBuare +y li !in# on the Statisti1s +utton& Oo% li ! OK to run the analysis& Bhen the output appears* you %ill see that /P// %ill #ive you the same result as %e find out earlier throu#h data&

Regression Analysis
Regression is the relationship between selected values of independent variable and observed values of dependent variable, from which the most probable value of dependent variable can be predicted for any value of independent variable. The use of regression to make quantitative predictions of one variable from the values of another variable is called regression analysis. There are following several types of regression, which may be used by the researcher. Linear regression Multiple linear regression Quadratic / urvilinear regression Logistic / !inary logistic regression Multivariate logistic regression

Linear Regression

"hen one dependent variable depends on single independent variable then their dependency called linear regression and its model is given by Quantitative Techniques in Analysis Page 35

y = a + bx "here, y x a b is is is is a depending variable a independent variable called the regression constant called the regression coefficient

Regression Coefficient
#egression coefficient is a measure of how strongly the independent variable predicts the dependent variable. There are two types of regression coefficient. $n%standardi&ed coefficients 'tandardi&ed coefficients commonly known as Beta.

The un-standardized coefficients can be used in the equation as coefficients of different independent variables along with the constant term to predict the value of dependent variable. The standardized coefficient is, however, measured, in standard deviations. The beta value of ( associated with a particular independent variable indicates that a change of ) standard deviation in that particular independent variable will result in change of ( standard deviations in the dependent variable.

Data Source: Variables:


*+',''-./L+-mployee 0ata

1ere we are interested to analy&e two numerical variables i.e. urrent salary !eginning salary 23umerical4 23umerical4

Hypothesis:
15* 1/* #egression coefficient is &ero. #egression coefficient is not &ero.

SPSS Need:

','' need two numerical variables and both should be scaled.

Quantitative Techniques in Analysis

Page 36

Method:
The given data is entered in the data editor and the variables are labeled as current salary and beginning salary. lick on Analyze which will produce a drop down menu, choose Regression from that and click on Linear, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. Transfer the dependent variable into the right%hand side bo6 labeled Dependent. Transfer the independent variable into the bo6 labeled Independent(s). 7n our case, current salary is a dependent variable and beginning salary is an independent variable. 3e6t we have to select the method for analysis in the bo6 labeled Method. ','' gives five options here* Enter, Stepwise, Remo e, !orward, and "ac#ward. 7n the absence of a strong theoretical reason for using a particular method, Enter should be used. The bo6 labeled Selection ariable is used if we want to restrict the analysis to cases satisfying particular selection criteria. The bo6 labeled $ase labels is used for designating a variable to identify points on plots. /fter making the appropriate selections click on Statistics button. This will produce a dialogue bo6 labeled Linear regression% Statistics. Tick against the statistics you want in the output. The Estimates option gives the estimate of regression coefficient. The Model &it option gives the fit indices for the overall model. !esides these the R'S(uared change option is used to get the incremental #%square value when the models change. 8ther options are not commonly used. lick on the $ontinue button to return to the main dialogue bo6. The )lots button in the main dialogue bo6 may be used for producing histograms and normal probability plots of residual. The Sa e button can be used to save statistics like predicted values, residuals, and distances. The options button can be used to specify the criteria for stepwise regression. 3ow click on *+ in the main dialogue bo6 to run the analysis.

Pictorial Representation
Analyze !lots Regression Linear "ic# $istogra% & &or%al !robability !lot Define DV & V '(

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OUTPUT
Quantitative Techniques in Analysis Page 38

b Variables Entere#'(emo)e#

+(del 1

Variable* &ntered 0e)innin) a Salary

Variable* <e'(3ed .

+et5(d &nter

a. :ll re8ue*ted 3ariable* entered. b. Dependent Variable: Current Salary

The above table tells us about the independent variable and the regression method used. 1ere we see that the independent variable i.e. beginning salary is entered for the analysis as we selected the -nter method.
b Mo#el Summar!

+(del 1

< .

0a

< S8uare .77!

:dAu*ted < S8uare .774

Std. &rr(r (. t5e &*ti'ate $ ,11!.3!6

a. =redi,t(r*: #C(n*tant%, 0e)innin) Salary b. Dependent Variable: Current Salary

This table gives us the R-value, which represents the correlation between the observed values and predicted values of the dependent variable. R-)*uare is called the coefficient of determination and it gives the adequacy of the model. 1ere the value of #%'quare is 5.99: that means the independent variable in the model can predict 99.:; of the variance in dependent variable. Ad+usted R-)*uare gives the more accurate information about the model fitness if one can further ad<ust the model by his own.

ANOVAb +(del 1 <e)re**i(n <e*idual 4(tal Su' (. S8uare* 106 3104 7!0.13 310 !4466 6.216 13791649!436.34 d. 1 472 473 +ean S8uare 106 3104 7!0.1 6! ! 997.217 9 1622.11 Si). .000a

a. =redi,t(r*: #C(n*tant%, 0e)innin) Salary b. Dependent Variable: Current Salary

The above table gives the test results for the analysis of one%way /38./. The results are given in three rows. The first row labeled Regression gives the variability in the model due to known reasons. The second row labeled Residual gives the variability due to random error or unknown reasons. ,-value in this case is )=((.))> and the p%value is given by 5.555 which is less that 5.5:, so we re<ect our null hypothesis and conclude that the mean beginning salary is not equal to the mean current salary of the employees.

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a Coefficients

+(del 1

#C(n*tant% 0e)innin) Salary

1n*tandardiDed C(e..i,ient* 0 Std. &rr(r 192 .206 .6 0 1.909 .047

StandardiDed C(e..i,ient* 0eta . 0

t 2.170 40.276

Si). .031 .000

a. Dependent Variable: Current Salary

The above table gives the regression constant and coefficient and their significance. These regression coefficient and constant can be used to construct an ordinary least squares 28L'4 equation and also to test the hypothesis of the independent variable. $sing the regression coefficient and the constant term given under the column labeled !? one can construct the 8L' equation for predicting the current salary i.e. -urrent salary = ./012034 + 5.2/3/6 5Beginning salary6 3ow we test our hypothesis, we see that the p%value for regression coefficient of beginning salary is given by 5.555, which is less that 5.5:, so we can re<ect our null hypothesis and conclude that the regression coefficient is not &ero.

Charts
$istogra%
+epen#ent Variable, Current Salar!

12!

Fre uenc!

100

7!

!0

2! +ean @ -3.17&-16 Std. De3. @ 0.999 ? @ 474

0 -!.0 -2.! 0.0 2.! !.0 7.!

(e%ression Stan#ar#i*e# (esi#ual

The above histogram of standardi&ed residuals shows the value of mean and standard deviation of the residual in the model. The mean and standard deviation is appro6imately 5

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and ) respectively, which shows that the fitted model is best and the chances of error is minimum. &or%al ! 7! !lot of Regression )tandardized Residual

+epen#ent Variable, Current Salar!


1.0

E-pecte# Cum Prob

0.

0.6

0.4

0.2

0.0 0.0 0.2 0.4 0.6 0. 1.0

Obser)e# Cum Prob

The above 3ormal probability plot of regression standardi&ed residual shows the regression line which touches ma6imum number of points presents in the model and it also shows the accuracy of the fitted model. )catter !lot
+epen#ent Variable, Current Salar!
$140,000 $120,000

Current Salar!

$100,000 $ 0,000 $60,000 $40,000 $20,000 $0 -!.0 -2.! 0.0 2.! !.0 7.!

(e%ression Stu#enti*e# +elete# .Press/ (esi#ual

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The above scatter plot also shows the adequacy of the fitted model as we can see that the data is scattered and it does not follow any particular pattern, so we can say that the fitted model has minimum chances of error.

Multiple Regression Hierarchical Method!


Multiple regression is the most commonly used technique to assess the relationship between one dependent variable and several independent variables. There are three ma<or types of multiple regression i.e. 'tandard multiple regression. 1ierarchical or 'equential regression. 'tepwise or statistical regression.

Data Source:

*+',''-./L+-mployee 0ata

Variables:

1ere we are interested to analy&e four numerical variables i.e. urrent salary !eginning salary -ducational Level Month since 1ire 23umerical4 23umerical4 23umerical4 23umerical4

Hypothesis:
15* 1/* #egression coefficients are &ero. #egression coefficients are not &ero.

SPSS Need: Method:

','' need more than two numerical variables that should be scaled.

The method for analy&ing multiple regression is same as we discuss earlier in the case of linear regression. The only change in the case of multiple regression is that we have one dependent variable along with three independent variables. 1ere $urrent salary is the dependent variable, whereas "eginning salary, Educational Le el, and Month since hire are the independent variables. 'o here we transfer current salary in the bo6 labeled Dependent and beginning salary, educational level, and month since hire in the bo6 labeled Independent(s).

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The further procedure and uses of advance options for e6tra results are discussed earlier in the case of linear regression. 3ow after making appropriate selections of options for better results click on *+ to run the analysis.

OUTPUT
b Variables Entere#'(emo)e#

+(del 1 2 3

Variable* &ntered 0e)innin) Salarya &du,ati(nal Le3el #year*%a +(nt5* *in,e Eirea

Variable* <e'(3ed . . .

+et5(d &nter &nter &nter

a. :ll re8ue*ted 3ariable* entered. b. Dependent Variable: Current Salary

The above table shows that beginning salary was entered in model one followed by educational level in model two followed by months since hire in model three. 3ote that model one includes only beginning salary as independent variable. "hereas model two includes beginning salary and educational level as independent variables, and so on model three includes beginning salary, educational level, and months since hire as independent variables. -nter method is used to assess all three models.

Mo#el Summar! C5an)e Stati*ti,* +(del 1 2 3 < . 0a . 90b . 9!, < S8uare .77! .792 . 01 :dAu*ted < S8uare .774 .792 . 00 Std. &rr(r (. t5e &*ti'ate $ ,11!.3!6 $7,796.!24 $7,64!.99 < S8uare C5an)e .77! .01 .00 9 C5an)e 1622.11 40.393 19.72 d.1 1 1 1 d.2 472 471 470 Si). 9 C5an)e .000 .000 .000

a. =redi,t(r*: #C(n*tant%, 0e)innin) Salary b. =redi,t(r*: #C(n*tant%, 0e)innin) Salary, &du,ati(nal Le3el #year*% ,. =redi,t(r*: #C(n*tant%, 0e)innin) Salary, &du,ati(nal Le3el #year*%, +(nt5* *in,e Eire

The above table shows different #%values along with change statistics for the three models in different rows. 7n this table we get some additional statistics under the column change statistics. $nder change statistics, the first column labeled R-s*uare c8ange gives change in the #%square value between the three models. The last column labeled Sig, ! $hange tests whether there is a significant improvement in models as we introduce additional independent variables. 7n other words it tells us if the inclusion of additional independent variables in different steps helps in e6plaining significant additional variance in the Quantitative Techniques in Analysis Page 43

dependent variable. "e can see the #%square change value in row three is 5.55>. This means that the inclusion of month since hire after beginning salary and educational level helps in e6plaining the additional 5.>; variance in the current salary of the employees. The p%value for all three models shows that our value falls in the critical region, so we can re<ect our null hypothesis that means regression coefficients are not &ero.

a Coefficients

+(del 1 2

#C(n*tant% 0e)innin) Salary #C(n*tant% 0e)innin) Salary &du,ati(nal Le3el #year*% #C(n*tant% 0e)innin) Salary &du,ati(nal Le3el #year*% +(nt5* *in,e Eire

1n*tandardiDed C(e..i,ient* 0 Std. &rr(r 192 .206 .6 0 1.909 .047 -7 0 .714 17!3. 60 1.673 .0!9 1020.390 160.!!0 -199 6.! 3236.616 1.6 9 .0! 966.107 1!7.924 1!!.701 3!.0!!

StandardiDed C(e..i,ient* 0eta . 0

.771 .172 .779 .163 .092

t 2.170 40.276 -4.4!2 2 .423 6.3!6 -6.17! 29.209 6.11 4.442

Si). .031 .000 .000 .000 .000 .000 .000 .000 .000

a. Dependent Variable: Current Salary

The above table gives the regression coefficients and related statistics for three models separately in different rows. These regression coefficient and constant can be used to construct an ordinary least squares 28L'4 equation and also to test the hypothesis of the independent variable. $sing the regression coefficient and the constant term given under the column labeled !? one can construct the 8L' equation for predicting the current salary of the employees for three models i.e. 9'D:L . 9'D:L 0 9'D:L ; ' @ )A(>.(5= B 2).A5A4 2!'4 ' @ %9>5>.9)C B 2).=9D4 2!'4 B 2)5(5.DA54 2-L4 ' @ )AA>=.:5 B 2).=>A4 2!'4 B 2A==.)594 2-L4 B 2)::.95)4 2M'14

3ow we test our hypothesis, we see that the p%value for regression coefficient in all three models is less that 5.5:, so we can re<ect our null hypothesis and conclude that the regression coefficient is not &ero. -onclusion< !y using hierarchal or stepwise method for multiple regression we concluded that model adequacy is being increased by introducing each independent variable but the increased in adequacy by including the independent variable i.e. educational level is more than the adequacy increased by introducing the independent variable, months since hire. !ut as our p%value lie in the critical region so we can re<ect our null hypothesis and conclude that the regression coefficients for all three models are not equal to &ero.

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Charts:
This model also produces three diagrams for the standardi&ed residual i.e. -istogram, .ormal )robability )lot, and Scatter )lot. The charts and its interpretation are almost same as we discuss under the case of linear regression. 'o we are not describing these charts and its interpretations again.

Cur"ilinear # $uadratic Regression


The relationship between variables when the regression equation is nonlinear i.e. quadratic or higher order then their dependency called curvilinear or quadratic regression. There may be more than one dependent variable depending on one independent variable.

Data Source:

*+',''-./L+-mployee 0ata

Variables:

1ere we are interested to analy&e three numerical variables i.e. urrent salary !eginning salary -ducational level 23umerical4 23umerical4 23umerical4

Hypothesis:
15* 1/* #egression coefficient is &ero. #egression coefficient is not &ero.

SPSS Need:

','' need two numerical variables and both should be scaled.

Method:
The given data is entered in the data editor and the variables are labeled as current salary, beginning salary and Educational le el. lick on Analyze which will produce a drop down menu, choose Regression from that and click on $ur e Estimation, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. Transfer the dependent variable into the right%hand side bo6 labeled Dependent(s). Transfer the independent variable into the bo6 labeled Independent. 7n our case, current

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salary and !eginning salary are dependent variables and -ducational level is an independent variable. 3ow choose an appropriate model you want by ticking its bo6 appearing below the window labeled $ur e Estimation. 7n this case we choose /uadratic model by ticking its corresponding bo6. The Sa e button can be used to save statistics like predicted values, residuals, and predicted intervals. 3ow click on *+ in the main dialogue bo6 to run the analysis.

Pictorial Representation
Analyze Regression -urve :sti%ation Define DVs and V "ic# =uadratic '(

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OUTPUT
Mo#el +escription +(del ?a'e Dependent Variable 1 2 +BDF2 Current Salary 0e)innin) Salary Guadrati, &du,ati(nal Le3el #year*% -n,luded 1n*pe,i.ied .0001

&8uati(n 1 -ndependent Variable C(n*tant Variable 75(*e Value* Label Bb*er3ati(n* in =l(t* 4(leran,e .(r &nterin) 4er'* in &8uati(n*

The above table gives the description of the model. 7n this case we have two dependent variables i.e. urrent salary and !eginning salary along with one independent variable i.e. -ducational level 2years4.

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Case Processin% Summar! ? 4(tal Ca*e* &C,luded Ca*e*a 9(re,a*ted Ca*e* ?e/ly Created Ca*e* 474 0 0 0

a. Ca*e* /it5 a 'i**in) 3alue in any 3ariable are eC,luded .r(' t5e analy*i*.

The above table shows the number of cases fall in the selected model. 7n our case the total number of cases is C9C, with no e6cluded or missing cases.

Mo#el Summar! an# Parameter Estimates Dependent Variable: Current Salary &8uati(n Guadrati, < S8uare .! 9 +(del Su''ary 9 d.1 337.246 2 d.2 471 Si). .000 =ara'eter &*ti'ate* C(n*tant b1 b2 !43 .237 -1242 .! 612.9!0

45e independent 3ariable i* &du,ati(nal Le3el #year*%. The above table gives the test results for the quadratic regression. #%value shows the correlation between the observed and e6pected values of the dependent variables. 7n this case the E%value is given by DD9.(C=, with level of significance equals 5.555 which is less that 5.5:. This means that our value falls in the critical region, so we can re<ect our null hypothesis and conclude this as the regression coefficients are not &ero.

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Scatter Plots
Current Salar!

$140,000

Bb*er3ed Guadrati,

$120,000

$100,000

$ 0,000

$60,000

$40,000

$20,000

$0 10 12 14 16 1 20 22

E#ucational 0e)el .!ears/

Be%innin% Salar!

$ 0,000

Bb*er3ed Guadrati,

$60,000

$40,000

$20,000

$0 10 12 14 16 1 20 22

E#ucational 0e)el .!ears/

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The above charts for residuals of dependent variables clearly show that the residual values are not scattered and it follows a particular pattern, this means that the fitted model is not good.

Lin%er &ype Scaling


Lin#er type scaling is a method used for nominations on categorical data in order to make the categorical data meaningful, when we have to apply some statistical test on the data. Through this scaling approach the ranks assign can be treated as numerical values and its statement at once. 'uppose we have to collect the data about the awareness, preferences, usage, likeness, and dislikeness as well as the agreement with any statement that should return in qualitative form and we have to record the responses, which can be analy&e statistically. 'o in this condition we use lin#er type scaling.

Data Source:
#$3 ++temp+temp+/li #a&a+Mateen.sav

Hypothesis:
15* 1/* FMale @ FEemale FMale FEemale

Variables:
1ere we are interested to analy&e two categorical variables i.e. Gender. 2 ategorical4 ,reference of cellular service with respect to network coverage. 2 ategorical but treated as 3umerical4

1ere we consider the preference of cellular service as a numerical variable and statistically test the hypothesis that 9ean preference of %ale and fe%ale over cellular service >it8 respect to net>or# coverage is sa%e. The method, we use to test the above hypothesis is ndependent sa%ples t-test.

Method:
-nter the data in the data editor and the variables are labeled as 0ender and pre&erence. lick on Analyze which will produce a drop down menu, choose $ompare means from that and click on independent samples t'test, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the independent samples t%test, transfer the dependent variable into the test ariable bo6 and transfer the variable that identifies the groups into the grouping ariable bo6. 7n this case, the )re&erence is the dependent variable to be analy&ed and should be transferred into test

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variable bo6. 0ender is the variable which will identify the groups and it should be transferred into the grouping variable bo6. 8nce the grouping variable is transferred, the de&ine groups button which was earlier inactive turns active. lick on it to define the two groups. 7n this case group1 represents Male and group2 represents female. Therefore put ) in the bo6 against group) and ( in the bo6 against group( and click continue. 3ow click on *+ to run the analysis.

Pictorial Representation
/naly&e ompare Means 0rag Test H Grouping .ariable 7ndependent%'amples T Test 0efine Groups 8I

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OUTPUT
"roup Statistics 6ender ,(ntain 0(t5 'ale and .e'ale +ale 9e'ale ? 100 100 +ean 4.12 4.32 Std. De3iati(n . 91 .61 Std. &rr(r +ean .0 9 .062

7ide net/(r> ,(3era)e '(ti3ate t5e indu3idual t( pre.er a parti,ular ,ellulare *er3i,e

This table contains the descriptive statistics for both groups. "e have taken (55 observations for the independent samples t%Test in which )55 belongs to male category and )55 to female category. The column labeled 9ean shows that the mean preferences of cellular service with respect to network coverage for both groups are appro6imately ?. This means that both groups are Agree that wide network coverage motivate the individual to prefer a particular cellular service.

The above table contains the test statistics for independent samples t%test. Levene@s "est< The table contains two sets of analysis, the first one assuming equal variances in the two groups and the second one assuming unequal variances. The LeveneJs test tells us which statistic to consider analy&ing the equality of means. The p%value for LeveneJs test is given by 32.3, which is greater than 323A. Therefore, the statistic associated with equal variances assumed should be used for the t%test for equality of means of two independent populations. !-Value< shows that the value of our test statistic does not fall in the critical region i.e. 3234B K 323A so we can accept our 3ull 1ypothesis i.e. C9ale = C,e%ale -onclusion< The test results are statistically significant at A:; confidence level and the data provide sufficient evidence to conclude that the mean preference of cellular service
1n#epen#ent Samples Test Le3eneH* 4e*t .(r &8uality (. Varian,e*

t-te*t .(r &8uality (. +ean* 9!2 C(n.iden,e -nter3al (. t5e Di..eren,e

Quantitative Techniques in Analysis 9


7ide net/(r> ,(3era)e '(ti3ate t5e indu3idual t( pre.er a parti,ular ,ellulare *er3i,e &8ual 3arian,e* a**u'ed &8ual 3arian,e* n(t a**u'ed 2.730

Si). .100

t -1. 4! -1. 4!

d. 19 176.31

Si). #2-tailed% .067 .067

+ean Di..eren,e -.200 -.200

Std. &rr(r 52 Di..eren,e Page L(/er .10 .10 -.414 -.414

1pper .014 .014

with respect to network coverage for male and female is same and there is only =.9; chance of re<ecting a true 3ull 1ypothesis and we are AD.D; confident in our decision.

Reliability Analysis
Reliability analysis is applied to check the reliability of the data, that whether the conclusions and the analysis perform for the data are reliable to understand and forecast. 8ne way to ideally measure reliability is by the test%retest method. 1owever, establishing reliability through test%retest is practically very difficult. 'ome of the commonly used techniques for assessing reliability include -o8en@s (appa -oefficient for categorical data and -ronbac8@s Alp8a for internal reliability of the data set.

Data Source: Variables:

*+',''-./L+1ome 'ales L!y 3eighborhoodM.sav

1ere we are interested to check the reliability of data set, which includes five numerical variables i.e. /ppraised land .alue. /ppraised value of improvements. Total /ppraised .alue. 'ales ,rice. #atio of 'ales price to total /ppraised .alue.

3ote that the data contains one )tring variable labeled as &eig8bor8ood? we deleted this variable because ','' does not check the reliability, if the data contains any )tring or Blan# variable.

SPSS Need:

Eor reliability analysis through ','', one can use any variable of any nature e6cept the 'tring and !lank .ariables.

Method:
-nter the data in the data editor and labeled them. lick on Analyze which will produce a drop down menu, choose Scale from that and click on Reliability Analysis, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the reliability analysis, transfer the variables in the bo6 labeled Items by clicking on the arrow between the two bo6es. 7n this case, we have five numerical variables in the data set that should be transferred to the 7tems bo6.

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hoose appropriate Model by clicking on that bo6, here we choose Alpha as model. 3ow click on Statistics button, a dialogue bo6 appears. Tick the corresponding bo6 which you want to analy&e in the output. 3ow click $ontinue to return to the main dialogue bo6. lick on *+ to run the analysis.

Pictorial Representation
/naly&e 0rag 7tems 'cale hoose Model #eliability /nalysis Give 'tatistics 8I

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OUTPUT
Case Processin% Summar! Ca*e* Valid &C,ludeda 4(tal ? 2440 0 2440 2 100.0 .0 100.0

a. Li*t/i*e deleti(n ba*ed (n all 3ariable* in t5e pr(,edure.

The above table shows the total number of cases fall in the data set. "e have (CC5 observations with no missing and e6cluded cases.

(eliabilit! Statistics Cr(nba,5H* :lp5a .!76 ? (. -te'* !

The above table shows the test results for the reliability analysis. The value of ronbachJs /lpha is given by 32AB4? the number of items in the data set is A. The value associated with /lpha is said to be !oor and the conclusions draw from this data is not reliable to understand and forecast.

1tem-Total Statistics S,ale +ean i. -te' Deleted 1641!1.7603 140212.214 132761.3423 1064!4.2! 7 1 1191.6111 S,ale Varian,e i. -te' Deleted !!3319661 4646009 01 !160 1!037 192 !23141 6 01!3713 C(rre,ted -te'-4(tal C(rrelati(n .6 .!0! .314 .!6! -.032 Cr(nba,5H* :lp5a i. -te' Deleted .4 0 .43 .!33 .477 .61!

:pprai*ed Land Value :pprai*ed Value (. -'pr(3e'ent* 4(tal :pprai*ed Value Sale =ri,e <ati( (. Sale =ri,e t( 4(tal :pprai*ed Value

The above table shows the statistics associated with each item. The last column of the table shows the improvement in the value of /lpha, if the corresponding item is deleted from the data set. 3ow the value associated with the top four items in the data set is less than the current value of /lpha which is 32AB4, that means if one of these items is deleted, the value of ronbachJs /lpha is become worst. !ut the value associated with the item labeled Ratio of sale price to total appraised value is given by 324.A. This means that if this Quantitative Techniques in Analysis Page 55

item is deleted from the analysis and retests the reliability of the entire data, the value of ronbachJs /lpha becomes 324.A. 'o, in order to improve the value of /lpha to make our data set more reliable we delete the last item and retest the value of our ronbachJs /lpha.
(eliabilit! Statistics Cr(nba,5H* :lp5a .61! ? (. -te'* 4

1ere we retest our data after deletion of one item and our new value of /lpha is given by 324.A. 3ow the total number of items in the entire data set is ?. The value associated with /lpha in this set of reliability statistics is said to be Acceptable and the conclusions draw from this data is reliable to understand and forecast.

1tem-Total Statistics S,ale +ean i. -te' Deleted 1641!0.!7 140211.03 132760.16 1064!3.07 S,ale Varian,e i. -te' Deleted !!3319 039 464600 210 !160 13 63 192 !3033! C(rre,ted -te'-4(tal C(rrelati(n .6 .!0! .314 .!6! Cr(nba,5H* :lp5a i. -te' Deleted .!40 .493 .!99 .!36

:pprai*ed Land Value :pprai*ed Value (. -'pr(3e'ent* 4(tal :pprai*ed Value Sale =ri,e

This table shows that if we delete any other item from the data set and retest the reliability, then our value of /lpha becomes !oor. !ecause all the values associated with the remaining four items in last column of the above table is less than the current value of our ronbachJs /lpha i.e. 324.A. 'o we donNt need to further retest the reliability of the data set, which means the data is reliable at the current value of our ronbachJs /lpha.

Correlation Analysis
-orrelation refers to the degree of relation between two numerical variables. 7t is denoted by DrD, which is typically known as -orrelation -oefficient.

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Correlation Coefficient
The -orrelation coefficient gives the mathematical value for measuring the strength of the linear relation between two variables. Mathematically the value of DrD always lay between %) and ) with* 2a4 B) representing absolute positive linear relationship 2as O increases, P increases4. 2b4 5 representing no linear relationship 2O and P have no pattern4. 2c4 %) representing absolute inverse relationship 2as O increases, P, 0ecreases4.

'i"ariate Correlation
Bivariate correlation tests the strength of relationship between two variables without giving any consideration to the interference some other variables might cause to the relationship between the two variables being tested. Eor e6ample, while testing the correlation between the -urrent and Beginning salary of the employees, bivariate correlation will not consider the impact of some other variables like :ducational Level and !revious :xperience of the employees. 7n such cases, a bivariate analysis may show us a strong relationship between urrent and !eginning salary? but in reality, this strong relationship could be the result of some other e6traneous factors like -ducational Level and ,revious -6perience etc.

Data Source:
*+',''-./L+-mployee data

Hypothesis:
15* 1/* There is no orrelation between .ariables 5r =36 There is some orrelation between .ariables 5r 36

Variables:

1ere we are interested to analy&e three numerical variables i.e. urrent salary !eginning salary -ducational Level 2years4 23umerical4 23umerical4 23umerical4

Technically correlation analysis can be run with any kind of data, but the output will be of no use if a correlation is run on a categorical variable with more than two categories. Eor e6ample, in a data set, if the respondents are categori&ed according to nationalities and religions, correlation between these variables is meaningless.

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SPSS Need:
','' need two or more numerical variables to perform orrelation /nalysis.

Method:
Eirstly the data is entered in the data editor and the variables are labeled as $urrent salary, "eginning salary, Educational Le el, and )re ious E3perience. lick on Analyze which will produce a drop down menu, choose $orrelate from that and click on "i ariate, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the bi ariate correlation, choose the variables for which the correlation is to be studied from the left%hand side bo6 and move them to the right%hand side bo6 labeled 4ariables. 8nce any two variables transferred to the variables bo6, the *+ button becomes active. 7n our case we will transfer four numerical variables i.e. $urrent salary, "eginning salary, Educational Le el, and )re ious E3perience, to the right%hand side bo6 labeled as 4ariables. There are some default selections at the bottom of the window? that can be change by clicking on the appropriate bo6es. Eor our purpose, we will use the most commonly used )earson5s $oe&&icient. 3e6t, while choosing between one%tailed and two%tailed test of significance, we have to see if we are making any directional prediction. The one%tailed test is appropriate if we are making predictions about a positive or negative relationship between the variables? however the two%tailed test should be used if there is no prediction about the direction of relationship between the variables to be tested. Einally !lag Signi&icant $orrelations asks ','' to print an asterisk ne6t to each correlation that is significant at the 5.5: significance level and two asterisks ne6t to each correlation that is significant at the 5.5) significant level, so that the output can be read easily. The default selections will serve the purpose for the problem at hand. "e may choose Means and Standard De iations from the *ptions button if we wish to compute these figures for the given data. /fter making appropriate selections, click on *+ to run the analysis.

/naly&e 0efine .ariables

Pictorial Representation

orrelate !ivariate hoose appropriate options 8I

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OUTPUT
Correlations Current Salary 1 0e)innin) &du,ati(nal Salary Le3el #year*% . 0"" .661"" .000 .000 474 474 474 . 0"" 1 .633"" .000 .000 474 474 474 .661"" .633"" 1 .000 .000 474 474 474

Current Salary

0e)innin) Salary

&du,ati(nal Le3el #year*%

=ear*(n C(rrelati(n Si). #2-tailed% ? =ear*(n C(rrelati(n Si). #2-tailed% ? =ear*(n C(rrelati(n Si). #2-tailed% ?

"". C(rrelati(n i* *i)ni.i,ant at t5e 0.01 le3el #2-tailed%. The above table gives the correlation for all pairs of variables and each correlation is produced twice in the matri6. 'o here we get following D correlations for the given data. urrent salary and !eginning salary urrent salary and -ducational level !eginning salary and -ducational level

The value of correlation coefficient is . in the cells where ','' compare two same variables 2-urrent salary and -urrent salary and so on4. This means that there is a perfect positive correlation between the variables. 7n each cell of the correlation matri6, we get ,earsonJs correlation coefficient, p%value for two%tailed test of significance and the sample si&e. Erom the output we can see that the correlation coefficient between -urrent salary and Beginning salary is 3211 and the p% value for two%tailed test of significance is less than 323A. Erom these figures we can conclude that there is a strong positive correlation between urrent salary and beginning salary and that this correlation is significant at the significance level of 5.5). 'imilarly, the correlation coefficient for -urrent salary and :ducational level is 3244.. 'o there is a moderate positive correlation between these variables. The correlation coefficient for Beginning salary and :ducational level is 324;; and its p% value is given by 5.555, so we can re<ect our null hypothesis and conclude this as there is some correlation between these two variables. -onclusion< /t ); level of significance all variables are significantly correlated with each other. 7n this case our null hypothesis is re<ected that there is no correlation between the variables for all pairs of variables. "e can conclude this as there is some correlation present between all variables in the given data.

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Partial Correlation
!artial correlation allows us to e6amine the correlation between two variables while controlling for the effects of one or more of the additional variables without throwing out any of the data. 7n other words, it is the degree of relation between the dependent variable and one of the independent variable by controlling the effect of other independent variables, because we know that, in a multiple regression model, one dependent variable depends on two or more independent variables.

Data Source:
*+',''-./L+-mployee data

Hypothesis:
15* 1/* There is no orrelation between .ariables 5r =36 There is some orrelation between .ariables 5r 36

Variables:

1ere we are interested to analy&e two numerical variables, while controlling one additional variable. urrent salary !eginning salary -ducational level

2 ontrol variable4

SPSS Need:
','' need two or more numerical variables to perform partial orrelation.

Method:
-nter the data in the data editor and labeled them. lick on Analyze which will produce a drop down menu, choose $orrelate from that and click on )artial, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the partial correlation, transfer the variables for which you want to know the correlation between them in the bo6 labeled 4ariables, while controlling the effect of one or more additional variables by transferring them to the bo6 labeled $ontrolling &or.

7n our case, we want to find the correlation between $urrent salary and beginning salary of the employees, so these variables should be transferred to the bo6 labeled 4ariables, while controlling for the effect of Educational le el and )re ious e3perience of the employees by transferring them to the bo6 labeled $ontrolling &or. 3ow click on *+ to run the analysis.

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Pictorial Representation
/naly&e 0rag .ariables 0rag orrelate ontrolling .ariables ,artial 8I

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OUTPUT
Correlations C(ntr(l Variable* &du,ati(nal Le3el #year*% Current Salary 1.000 . 0 .79! .000 471 0e)innin) Salary .79! .000 471 1.000 . 0

Current Salary

0e)innin) Salary

C(rrelati(n Si)ni.i,an,e #2-tailed% d. C(rrelati(n Si)ni.i,an,e #2-tailed% d.

The above table shows the test results for the partial correlation between -urrent salary and beginning salary of the employees. The variable we are controlling for in the analysis is :ducational level, and it is shown in the left%hand side of the table. "e can see that the correlation coefficient between -urrent salary and Beginning salary is 32B/A, which is considerably smaller as compared to 3211 in case of Bivariate. This means that both the variables are still have positive correlation, but the value of correlation coefficient decreased if we control for the :ducational level of the employees and the variables are no longer strongly correlated with each other. -onclusion< The test results are significant at :; level of significance and the data provide sufficient evidence to conclude that there is some correlation present between the urrent salary and !eginning salary of the employees, but it is considerably smaller in the case of partial correlation than in case of bivariate correlation. Quantitative Techniques in Analysis Page 63

Logistic Regression
Logistic regression starts in )955. 7f a categorical variable depends on any numerical or categorical variable then their dependency may called the logistic regression. 7t is used to predict a discrete outcome based on variables may be discrete, continuous, or mi6ed. Thus when the dependent variable is categorical with two or more than two discrete outcomes, logistic regression is a commonly used technique. 7t has the following two types* !inary logistic regression / Logit Multinomial logistic regression

Coefficient of Logistic Regression


Logistic regression computes the log odds for a particular outcome. The odds of an outcome is given by the ratio of the probability of it happening and not happening as E! F 5.-!6G, where ! is the probability of an event. There are some mathematical problems in reporting these odds, so natural logarithms of these odds are calculated. / positive value indicates that odds are in favor of the event and the event is likely to occur while a negative value indicates that odds are against the events and the event is not likely to occur. The formula to do so may be written either

'inary Logistic Regression


7f a categorical variable having only two levels -.g. Male and Eemale, Pes or 3o, Good and !ad etc, and it is depending on different categorical or numerical independent variables then their relation can be referred as Binary logistic regression2 The e6pression for binary logistic regression may be given as H = b3 + b.I. + b0I0 + JJJ22b#I#

Data Source: Hypothesis:


15* 1/*

*+',''-./L+/ML 'urvival

#egression coefficients are &ero #egression coefficients are not &ero

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Variables:

1ere we are interested to analy&e three 0ifferent variables i.e. 'tatus Time hemotherapy 2 ategorical4 23umerical4 2 ategorical4

1ere )tatus is our dependent variable depending on "i%e and -8e%ot8erapy. /s in this case our dependent variable is categorical having only two levels i.e. -ensored and Relapsed, so we use binary logistic regression to analy&e the dependency between the variables.

SPSS Need:
','' need one dependent variable and it must be variables can be categorical as well as numerical. ategorical, while the independent

Method:
Eirstly the data is entered in the data editor and the variables are labeled as Status, 6ime, and $hemotherapy. lick on Analyze which will produce a drop down menu, choose Regression from that and click on "inary Logistics, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the "inary Logistics Regression, transfer the dependent variable in the bo6 labeled Dependent and the independent variables in the bo6 labeled $o ariates. 7n our case, Status is an only dependent variable and should be transfer to the bo6 labeled Dependent. 6ime and $hemotherapy are independent variables and should be transfer to the bo6 labeled $o ariates. 3e6t we have to select the method of for analysis in the bo6 labeled Method. ','' gives seven options, of which the Enter method is most commonly used. Eor common purpose one does not need to use the Sa e and *ptions buttons. /dvance users may e6periment with these. The Sa e button can be used to save statistics like predicted values, residuals, and distances. The options button can be used to specify the criteria for stepwise regression. /fter making appropriate selections, click on *+ to run the analysis.

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Pictorial Representation
/naly&e 0rag 0ependent #egression 0rag ovariates !inary Logistic 8I

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OUTPUT
Case Processin% Summar! 1n/ei)5ted Ca*e* Sele,ted Ca*e*
a

? -n,luded in :naly*i* +i**in) Ca*e* 4(tal 23 0 23 0 23

1n*ele,ted Ca*e* 4(tal

=er,ent 100.0 .0 100.0 .0 100.0

a. -. /ei)5t i* in e..e,t, *ee ,la**i.i,ati(n table .(r t5e t(tal nu'ber (. ,a*e*.

The above table gives the description of cases selected for the analysis. "e have totaled (D cases included in the analysis with no missing and unselected cases.

+epen#ent Variable Enco#in% Bri)inal Value Cen*(red <elap*ed -nternal Value 0 1

The above table shows that how the two outcomes or two levels of )tatus i.e. -ensored and Relapsed have been coded by ',''.

Block 0: Beginning Block

a2b Classification Table

=redi,ted Statu* Cen*(red <elap*ed 0 ! 0 1 =er,enta)e C(rre,t .0 100.0 7 .3

Step 0

Bb*er3ed Statu* B3erall =er,enta)e

Cen*(red <elap*ed

a. C(n*tant i* in,luded in t5e '(del. b. 45e ,ut 3alue i* .!00

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The above table shows the observed or actual number of cases fall in each category of the dependent variable. The last column labeled !ercentage -orrect shows that our model can predict 5; status of the censored patients and )55; status for the relapsed patients. 8verall, our model can predict 9>.D; status of the patients.

Block 1: Method = Enter


Omnibus Tests of Mo#el Coefficients Step 1 Step 0l(,> +(del C5i-*8uare 4.609 4.609 4.609 d. 2 2 2 Si). .100 .100 .100

The above table reports significance levels by the traditional chi%square method. 7t tests if the model with the predictors is significantly different from the model. The omnibus test may be interpreted as a test of the capability of all predictors in the model <ointly to predict the response 2dependent4 variable. / finding of significance, as in the illustration above, corresponds to the a research conclusion that there is adequate fit of the data to the model, meaning that at least one of the predictors is significantly related to the response variable. 7n the illustration above, the -nter method is used 2all model terms are entered in one step4, so there is no difference for )tep, Bloc#, or 9odel, but in a stepwise procedure one would see results for each step.
Mo#el Summar! Step 1 -2 L() C(C I Snell li>eli5((d < S8uare 19.476a .1 2 ?a)el>er>e < S8uare .2 0

a. &*ti'ati(n ter'inated at iterati(n nu'ber ! be,au*e para'eter e*ti'ate* ,5an)ed by le** t5an .001.

The above table gives the -ox & )nell R-)*uare value, which gives an appro6imation about how much variance in the dependent variable can be e6plained with the hypothesi&ed model. 7n this case "i%e and -8e%ot8erapy can e6plain .120K of the patientJs current )tatus.
a Classification Table

=redi,ted Statu* Cen*(red <elap*ed 1 4 0 1 =er,enta)e C(rre,t 20.0 100.0 2.6

Step 1

Bb*er3ed Statu* B3erall =er,enta)e

Cen*(red <elap*ed

a. 45e ,ut 3alue i* .!00

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The above lassification table summari&es the results of our predictions about patientJs 'tatus based on Time and hemotherapy. "e can see that our model can correctly predict (5; status of censored patients and )55; status of the relapsed patients. 8verall, our model predicts >(.=; status of the patients.
Variables in t&e E uation Step a 1 ,5e'( ti'e C(n*tant 0 -1.49 -.024 2.962 S.&. 1.262 .024 1.207 7ald 1.409 1.0!! 6.02! d. 1 1 1 Si). .23! .304 .014 &Cp#0% .224 .976 19.332

a. Variable#*% entered (n *tep 1: ,5e'(, ti'e.

The above table gives the !eta coefficients for the independent variables along with their significance. 3egative beta coefficients for time and chemotherapy mean that with increasing chemotherapy and time of the treatment, it chances for the patient of having a relapsed status. 'ame as Multiple linear regression models, we can construct an 8L' equation for the status of the patient by the help of above regression constant and coefficients. The e6pression for status of the patient is given by* )tatus = 02/40 + 5-.2?/16 5-8e%ot8erapy6 + 5-3230?6 5"i%e6

The last column labeled :xp5B6 takes a value of more than one, if the beta coefficients are positive and less than one, if it is negative. 7n our case, the beta coefficients for hemotherapy and time are negative, so coefficients are having the values of less than one in column labeled :xp5B62 / value of 32/B4 for Time indicates that for . >ee# increase in the treatment, the odds of a patient having a relapsed status increases by a factor of 32/B4. These values can also use to construct an equation for the odds of a patient, and it is given by*

,@

) ) B e-5./2;;0 + 3200? - + 32/B4 "6

Non(Para)etric &ests
&on-!ara%etric tests are used to test the hypothesis regarding the population parameters of non%normal data with small sample si&e 2less than D54. These tests are sometimes also referred as QDistribution-,ree testsQ

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'ino)ial &est
Bino%ial tests are used to test the hypothesis regarding the population proportion. 7t runs on a categorical variable having two levels only.

Data Source:
*+',''-./L+ arpet

Hypothesis:
15* 1/* , @ 5.: , 5.:

Variables:
1ere we are interested to analy&e a categorical variable i.e. $ouse #eeping )eal. 7n our case a superstore owner claims that :5; of their customers got house keeping seal on the purchase of the product.

SPSS Need:
','' need one categorical variable 2( levels only4.

Method:
Eirstly the data is entered in the data editor and the variable is labeled as -ouse #eeping seal. lick on Analyze which will produce a drop down menu, choose .on')arametric 6ests from that and click on "inomial, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the "inomial test, transfer the test variable in the bo6 labeled 6est ariable list. 7n our case -ouse #eeping seal is a test variable, so it should be transferred to the bo6 labeled Test variable list by clicking on the arrow between the two bo6es. 3ow give the test value in the bo6 below labeled as 6est )roportion. 7n our case the test value is 32A3.

/fter making appropriate selections, click on *+ to run the analysis.

Pictorial Representation
/naly&e 0rag test .ariable 3on%,arametric tests Give test ,roportion !inomial 8I

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OUTPUT NPar Tests


Binomial Test Cate)(ry Je* ?( ? 14 22 Bb*er3ed =r(p. .36 .64 1.00 4e*t =r(p. .!0 &Ca,t Si). #2-tailed% .2 6

6((d E(u*e>eepin) *eal

6r(up 1 6r(up 2 4(tal

The above table gives the test results for the !inomial 3on%parametric test.

The first column labeled -ategory gives the two categories 2Pes or 3o4 of the test variable i.e. Good 1ouse keeping seal.

The second column labeled as & gives the total number cases analy&ed, and also the number of cases fall in each category of our test variable. 7n this case we have selected the sample of (( persons out of which > persons say Hes they got the house keeping seal and the remaining says &o.

The third column labeled as 'bserved !roportion gives the percentage of the persons saying Pes or 3o. D=; individuals says Pes they got the house keeping seal while =C; individuals says 3o.

The last column gives the p-value for the (%tailed test and it is given by 32014, which is greater than 323A, so we can accept our null hypothesis and conclude that the claim of the superstore owner is correct, the proportion is 5.:5.

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Runs &est
Runs test is used to test the randomness of the data. This test is best run, if the test variable is numerical. The word RL&) refer the number of time sign is changed.

Data Source:
*+',''-./L+ arpet

Hypothesis:
15* 1/* 0ata is random 0ata is not random

Variables:
1ere we are interested to analy&e a numerical variable i.e. !reference.

SPSS Need:
','' need a numerical variable with small sample si&e.

Method:
Eirstly the data is entered in the data editor and the variable is labeled as )re&erence. lick on Analyze which will produce a drop down menu, choose .on')arametric 6ests from that and click on Runs, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the Run test, transfer the test variable in the bo6 labeled 6est ariable list. 7n our case )re&erence is a test variable, so it should be transferred to the bo6 labeled Test variable list by clicking on the arrow between the two bo6es. 3ow in our case the test variable i.e. ,reference is a numerical variable, so in the 'ection labeled $ut )oint, we tick the bo6 Median, but if the test variable is categorical, it is appropriate to calculate its Mean by ticking its corresponding bo6.

/fter making appropriate selections, click on *+ to run the analysis. Quantitative Techniques in Analysis Page 73

Pictorial Representation
/naly&e 0rag test .ariable 3on%,arametric tests Tick !o6 2Median4 #uns 8I

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OUTPUT
(uns Test 4e*t Valuea Ca*e* K 4e*t Value Ca*e* L@ 4e*t Value 4(tal Ca*e* ?u'ber (. <un* M :*y'p. Si). #2-tailed% a. +edian =re.eren,e 11.!0 11 11 22 13 .21 . 27

The above table gives the test results for #uns Test. The first row labeled as "est Value gives the 9edian of the data. 7n this case out of 00 observations .. values is less than our median or in other words those values having a negative sign, while the remaining values having a positive sign. The row labeled &u%ber of Runs gives a value .;? this means in the given data )D times a sign is changed. The last row gives the p%value for the #uns test and it is given by 3210B M 323A, so we can accept our null hypothesis and conclude that the 0ata is #andom.

Representation of Runs:

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*ne Sa)ple +(S &est


'ne sa%ple (-) "est is used to test the goodness of fit of any specific distribution for the given data. This distribution is called QIolmogrov%'mirnov RQ commonly known as Q3on% parametric hi%squareQ.

Data Source:
*+',''-./L+ arpet

Hypothesis:
15* 1/* Eit is Good 20ata follows the fitted distribution4 Eit is not Good 20ata does not follow the fitted distribution4

Variables:
Quantitative Techniques in Analysis Page 76

1ere we are interested to analy&e a numerical variable i.e. !rice.

SPSS Need:
','' need a numerical variable with small sample si&e.

Method:
Eirstly the data is entered in the data editor and the variable is labeled as )rice. lick on Analyze which will produce a drop down menu, choose .on')arametric 6ests from that and click on 1'sample +'S, a dialogue bo6 appears, in which all the input variables appear in the left%hand side of that bo6. To perform the +'S test, transfer the test variable in the bo6 labeled 6est ariable list. 7n our case )rice is a test variable, so it should be transferred to the bo6 labeled Test variable list by clicking on the arrow between the two bo6es. 3ow tick the bo6 in the section labeled 6est Distribution at the bottom of the dialogue bo6. 7n our case the fitted distribution is )oisson, so we tick the corresponding bo6 labeled ,oisson. /fter making appropriate selections, click on *+ to run the analysis.

Pictorial Representation
/naly&e 0rag test .ariable 3on%,arametric tests Tick !o6 2Median4 #uns 8I

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OUTPUT
One-Sample 3olmo%oro)-Smirno) Test =ri,e ? =(i**(n =ara'etera,b +(*t &Ctre'e Di..eren,e* +ean :b*(lute =(*iti3e ?e)ati3e 22 2.0000 .143 .143 -.13! .670 .760

;(l'()(r(3-S'irn(3 M :*y'p. Si). #2-tailed% a. 4e*t di*tributi(n i* =(i**(n. b. Cal,ulated .r(' data.

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The above table gives the test results for the one sa%ple (-) test. "e have taken (( observations for the analysis. The mean of ,oisson distribution calculated from data is given by 0. The row labeled Absolute gives the difference between e6treme values i.e. e6tremely high values and -6tremely Low values and it given by 32.?;.

The row labeled !ositive gives the difference between the Ma6imum and Minimum values, when we subtract Minimum value from ma6imum value and it is 32.?;.

The row labeled &egative also gives the same as row labeled ,ositive, but here we subtract Ma6imum value from the Minimum value, so the resulted value is given by 5-32.;A6.

The (ol%ogrov-)%irnov N value is given by 324B, which calculated from the formula.

The last row gives the p-value for the analysis. 7n our case the p%value is given by 32B4, and it is greater than 323A. 'o we can accept our null hypothesis and conclude this test as the Eit is Good and the data follows the ,oisson distribution.

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QTIA Non Parametric Test

TA8DE !& C!NTENTS

Non Parametric Test ^^^^^^^^^^^^^^^^^^^^^^^^^^^R !ne ;ay Chi SAuare Test^^&&^^^^^^^^^^^^^&^^^^^^^^^&Q The 4e"ian Test^^^^^^&&^^^^^^^^^^^^^^^^^^^&^^^&T The 4ann-;hitney / Test&&.^^^^^^&&^^^^^^^^^^^^^^^^^&') 7rus>al-;allis !ne-;ay Analysis of ,ariance^&^^^^^^^^^^^^^^&'H

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4atri1 of Nonparametric Statistics^^^^^^&&^&^^^^^^^^^^^^^^&'8

Nonparametric Tests

'& )& R& Q& H& S& :& T& 8& '3& ''& ')& 'R& 'Q&

@ne7Bay Chi7/2uare test and its assumptions @+served and expe ted fre2uen ies ;e#rees of freedom in a @ne7Bay Chi7/2uare test "%o7Bay Chi7/2uare test ,xpe ted fre2uen ies and the rule of independent pro+a+ilities ;e#rees of freedom in a "%o7Bay Chi7/2uare test Chi7/2uare and the pro+lem of small expe ted fre2uen ies Femedies for small expe ted fre2uen ies \atesPs Corre tion for Continuity FisherPs ,xa t Pro+a+ility "est Assumptions of the "%o7Bay Chi7/2uare test "he Median "est ;ealin# %ith tied ran!s in the Median "est ;e#rees of freedom in the Median "est Page 81

Quantitative Techniques in Analysis

'H& 'S& ':& 'T& '8& )3& )'& ))&

Assumption of the Median "est "he Mann7Bhitney U "est "he normal distri+ution and the Mann7Bhitney U "est %ith lar#e samples Assumptions of the Mann7Bhitney U "est Drus!al7Ballis @ne7Bay AO@<A ;ealin# %ith tied ran!s in a Drus!al7Ballis @ne7Bay AO@<A Assumptions of the Drus!al7Ballis @ne7Bay AO@<A Matrix of nonparametri statisti al tests

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Nonparametric Statistic:A group of statistical procedures that have two things in co


;esi#ned to +e used %ith nominal and[or ordinal varia+les Ma!e fe% or no assumptions a+out population parameters

on !

Statistical Po#er:All other thin#s +ein# e2ual* nonparametri te hni2ues are less po%erful tests of si#nifi an e than their parametri ounterparts& Assumin# that the null hypothesis is false* Oonparametri tests have less po%er to dis over si#nifi ant relationships than parametri tests&

The follo#ing are "escri$e" some non-parametric test:1) !ne-;ay Chi-SAuare Test:A test that co pares the o"served fre#uenc$ of a varia"le in a single group with what would "e the e%pected "$ chance& '%a ple (elon$ cases are assigned at rando to four district cri inal courts& )he annual o"served fre#uenc$ of drug cases is given "elow& *ince the nu "er of cases in each court is not the sa e+ is the case assign ent s$ste not rando , District -ourt 1.2nd 222 )otal nu "er of cases = /03 5f the assign ent process is trul$ rando + we would e%pect that 6/03 7 48 = 224 cases would "e assigned to each court "$ chance& 9ow uch do the o"served fre#uencies 6fo8 differ fro the e%pected fre#uencies 6f e = 2248, 1/0th 234 212th 211 234th 103

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-alculating a :ne-Wa$ -hi-*#uare District -ourt (re#uencies :"served '%pected 1.2nd 222 224 1/0th 234 224 212th 211 224 234th 103 224

2 = ; 6fo < fe82 7 fe =

2 = 6222 < 22482 7 224 + 6234 < 22482 7 224 + 6211 < 22482 7 224 + 6103 < 22482 7 224 2 = 61&1142 + >&1420 + 1&>242 + .&218 2 = 11&41

3nterpretation o, C4i-SBuareD-hi-s#uare is a fa il$ of pro"a"ilit$ distri"utions that var$ with degrees of freedo &

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A one-wa$ chi-s#uare has df = 6? < 18& (or the court e%a ple+ df = 64 < 18 = . 6? = @ courts8 )he critical value of 2 for . df at = 1&12 is >&/12& *ince 11&41 > >&/12+ the null h$pothesis is reAected and it is concluded that the assign ent s$ste rando & is not

Analysis t4rou-4 S<SSD(re#uenc$ of >1 (elon$ -ases B$ Cretrial *tatus 5n Dail .2 :n Bail 21 E:E 1>

5f the null h$pothesis assu es e#ual nu "ers of cases in each status ! Do the o"served fre#uencies differ significantl$ fro this assu ption,

S<SS OutputD'%pected fre#uencies under the null h$pothesis&


NPar Tests Chi-SAuare Test &reAuencies
P(E4STAT 1.00 2.00 3.00 4(tal Bb*er3ed ? 32 21 17 70 &Cpe,ted ? 23.3 23.3 23.3 <e*idual .7 -2.3 -6.3

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Chi7s2uare 4 H&':'* df 4 (! 7 ') 4 (R7') 4 ) p 4 3&3:H

Test Statistics C5i-S8uare a d. :*y'p. Si). =<&FS4:4 !.171 2 .07!

a. 0 ,ell* #.02% 5a3e eCpe,ted .re8uen,ie* le** t5an !. 45e 'ini'u' eCpe,ted ,ell .re8uen,y i* 23.3.

3nterpretationD )he distri"ution of cases "$ status is not significantl$ different than the assu ption of e#ual nu "ers of cases in each pretrial status categor$& )he differences "etween the o"served and e%pected fre#uencies are due to sa pling error&

Quantitative Techniques in Analysis

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/0 )4e Median )estDFsed to deter ine whether two rando sa ples co e fro populations with the sa e edians&

Assess ent -enter Eating "$ )wo )ea sG :fficer -andidates Eando l$ Assigned to Assess ent )ea s )ea *u"Aect Holdin Desani Critchard Birdwell -haveI :JNeal Dohnson )ate Bird Luni -o pton Mewis A Eating >2 3> /> 43 2/ 3. /4 2. 32 >> /2 /0 *u"Aect :lsen * ither )rantha Hordon Hraha Andel 9utton Caul KcHuire -osto Eaines Battan MitI ann )ea B Eating 0> >3 /. 30 23 3/ 02 // >4 >. 32 24 4.

Step #D- Deter ine the edian rating for the two assess ent groups co "ined
Kidpoint = 6N + 18 7 2 = 622 + 18 7 2 = 1. Ean?ing of the co "ined ratings of the two groups 0> 02 /0 // /> /4 /. /2 >> >3 >4 >. >2 30 3/ 3> 32 3. 32 2/ 23 24 2. 43 4. edian of co "ined groups

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Step /D- Deter ine the nu "er of officers in either group whose ratings were e#ual to or a"ove the
edian+ and the nu "er not a"ove the edian& )ea A"ove Kdn Below Kdn 3 3 A )ea > 3 B

Step !

Eun a two-wa$ chi-s#uare to deter ine whether there is an association "etween assess ent tea and the ratings& 6'%pected fre#uencies are in parentheses8 Cosition A"ove Kdn Below Kdn )otal )ea A )ea B )otal 1. 12 22

3 63&248 3 62&>38 12

> 63&>38 3 63&248 1.

2 = 63 < 3&2482 7 3&24 + 6> < 3&>382 7 3&>3 + 63 < 2&>382 7 2&>3 + 63 < 3&2482 7 3&24 2 = 1&1.3>

3nterpretationD)he critical value of 2 for 1 df at = 1&12 is .&/41& *ince 1&1.3> < .&/41+ the null h$pothesis is accepted& 5t is concluded that there is no significant difference in the two assess ent tea s& edian ratings given "$ the

Quantitative Techniques in Analysis

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Analysis t4rou-4 S<SSD5s gender related to the seriousness of the offenses charged "$ the prosecutor, -ri e seriousness was graded on a >-point Mi?ert scale where 1= ver$ cri e& inor cri e and > = ver$ serious

S<SS OutputD-odes for gender 1 = ale 1 = fe ale


Fre uencies 6&?D&< 1.00 1! 11 20 24

.00 S&<F-?DN L +edian K@ +edian

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Chi7s2uare 4 3&8:8* df 4 '* p 4 3&R))

Eates? correcte" chi-sAuare F -.GG1


df 4 ' P 4 3&QHT

Test Statisticsa ? +edian C5i-S8uare d. :*y'p. Si). Jate*H C(ntinuity C(rre,ti(n S&<F-?DN 70 4.0000 .979 1 .322 .!!1 1 .4!

C5i-S8uare d. :*y'p. Si).

a. 6r(upin) Variable: 6&?D&<

3nterpretationDKale and fe ale offenders do not differ significantl$ in the the$ have "een charged& edian seriousness of the cri e with which

Quantitative Techniques in Analysis

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!0 )4e Mann-=4itney 7 )estDFsed to co pare the ran?s of two independent groups+ co para"le to the purpose of the t test& 5t is ore powerful than the edian test since the latter onl$ considers the nu "er of cases a"ove N "elow the edian+ not the ran? order of the cases& F = N1N2 + ;N16N1 + 18 7 2= - E1 and F = N1N2 + ; N26N2 + 18 7 2 = - E2

E1 = su E2 = su

of the ran?s for the s aller group of the ran?s for the larger group

N1 = siIe of the s aller group N2 = siIe of the larger group

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Cal1ulatin- a Mann-=4itney 7DAssess ent -enter Eating B$ )wo )ea sG :fficers Eando l$ Assigned to )ea s )ea *core >2 3> /> 43 2/ 3. /4 2. 32 >> /2 /0 A Ean? 6E18 1. 11 21 2 3 / 21 . > 1> 1/ 2. *core 0> >3 /. 30 23 3/ 02 // >4 >. 32 24 4. )ea B Ean? 6E28 22 13 10 12 2 11 24 22 12 14 0 4 1

Step #D- Ean? the ratings fro lowest to highest regardless of assess ent tea & Step /D *u the ran?s in either group
6E18 = 14/ 6E28 = 1>2

Step !D- -alculate F


F = N1N2 + ;N16N1 + 18 7 2= - E1 F = 6128 61.8 + ;12 612 + 18 7 2 = - 14/ F = 123 + >/ < 14/ = /3 F = N1N2 + ;N26N2 + 18 7 2= - E2 F = 6128 61.8 + ;1.61. + 18 7 2= - 1>2 F = 123 + 01 < 1>2 = >2

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Step 4D- Deter ine the significance of F


Decide whether $ou are a?ing a one- or a two-tailed decision

-o pare the s aller value of F to the appropriate critical ta"le value for N 1 and N2 5f the o"served F is s aller than the ta"le value+ the result is significant at the 1&12 level

3nterpretationD- )he critical value of F for N1 = 12 and N2 = 1.+ two-tailed = 1&12+ is 41&
*ince the s aller o"tained value of F 6F = >28 is larger than the ta"le value+ )he null h$pothesis is acceptedG there is no difference in the ratings given "$ the two assess ent tea s&

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40 Krus?al-=allis One-=ay Analysis o, *arian1eDFsed to co pare three or ore independent sa ples with respect to an ordinal varia"le& 9 = ; 12 7 N 6N+18 = ; 66E82 7 n8 = < .6N + 18

N = the total nu "er of cases n = the nu "er of cases in a given group 6E82 = the su of the ran?s s#uared for a given group of su"Aects

An EAampleDA state court ad inistrator as?ed the 24 court coordinators in the stateJs three largest counties to rate their relative need for training in case- flow anage ent on a Mi?ert scale 61 to >8& 1 = no training need > = critical training need )raining Need of -ourt -oordinators -ount$ A . 1 . 1 2 4 4 2 -ount$ B > 3 2 > . 1 3 4 4 2 -ount$ 4 2 2 1 3 >

Step #D- Ean? order the total groupsO Mi?ert scores fro lowest to highest&
Quantitative Techniques in Analysis Page 94

5f tied scores are encountered+ su the tied positions and divide "$ the nu "er of tied scores& Assign this ran? to each of the tied scores& Krus?al-=allis One-=ay Analysis o, *arian1e .1ont. *cores N Ean?s Across the )hree -ounties Eatings 1 1 1 1 2 2 . . . 4 4 4 Ean?s 2&2 2&2 2&2 2&2 2&2 2&2 / / / 12 12 12 Eatings 4 4 2 2 2 2 3 3 3 > > > Ean?s 12 12 13&2 13&2 13&2 13&2 21 21 21 2. 2. 2.

Cal1ulatin- t4e ran?s o, tied s1ores EAampleD- )hree court ad inistrators rated their need for training as a .& )hese three scores
occup$ the ran? positions >+ /+ N 0& 6> + / + 08 7 . = /

Step / *u the ran?s for each group and s#uare the su s


-ount$ A Eating . 1 . 1 2 4 Ean? / 2&2 / 2&2 13&2 12 Eating > 3 2 > . 1 -ount$ B Ean? 2. 21 13&2 2. / 2&2 Eating 4 2 2 1 3 > -ount$ Ean? 12 2&2 13&2 2&2 21 2.

Quantitative Techniques in Analysis

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4 2

12 2&2

3 4 4 2

21 12 12 13&2 12.&2 2.232&22 >0&2 3.21&22

E 6 E82

3>&1 44/0

Step !D- -alculate 9


9 = ; 12 7 N 6N+18 = ; 66E82 7 n8 = < .6N + 18 9 = ; 12 7 24 624+18 = ;44/0 7 / + 2.232&22 7 11 + 3.21&22 7 3= < . 624 + 18 9 = 61&128 6.0>1&>228 < 6>28 9 = 4&42 df = 6? < 18 = 6. < 18 = 2

3nterpretationD)he critical chi-s#uare ta"le value of 9 for = 1&12+ and df = 2+ is 2&001 *ince 4&42 < 2&001+ the null h$pothesis is accepted& )here is no difference in the training needs of the court coordinators in the three counties

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S<SS OutputDKrus?al-=allis One-=ay ANO*A


5s race related to the seriousness of the offence charged in a rando sa ple of >1 offenders,

S<SS Cesults
White = 1+ African A erican = 2+ 9ispanic = .
NPar Tests 7rus>al-;allis Test
(an5s S&<F-?DN <:C& 1.00 2.00 3.00 4(tal ? 2! 22 23 70 +ean <an> 31. 6 41.4 33.74

Chi-sAuare F 2.H:G< "f F 2< p F -.2:

Test Statisticsa2b C5i-S8uare d. :*y'p. Si). S&<F-?DN 2.93! 2 .230

a. ;ru*>al 7alli* 4e*t b. 6r(upin) Variable: <:C&

3nterpretation
No significant relationship found "etween race and cri e seriousness&

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MatriA o, Nonparametri1 Statisti1s 5evel o, Measurement One Sample Nominal


Bino ial )est -hi-*#uare )est

Nonparametri1 )est )6o Samples Celated 7nrelated


KcNe a r -hange )est (isher '%act )est for 2%2 )a"les -hi-*#uare )est for r%2 )a"les

Nonparametri1 Correlation K Samples Celated 7nrelated


-ochran P )est -hi-*#uare )est for r%? )a"les -ra er -oefficient Chi -oefficient Qappa -oefficient As$ (ried an )woWa$ AN:RA "$ Ean?s Cage )est for :rdered Alternati ves '%tension of the Kedian )est Qrus?alWallis :ne-Wa$ AN:RA Donc?heere )est for :rdered Alternative s etrical Ma "da *tatistic

Ordinal

Qol ogorov* irnov :ne*a ple )est :ne-*a ple Euns )est -hange-Coint )est

*ign )est Wilco%o n *igned Ean?s )est

Kedian )est KannWhitne$ F )est Eo"ust Ean?:rder )est Qol ogoro v* irnov )wo*a ple )est *iegel)u?e$ )est for *cale Differences

*pear an Ean?-:rder -oefficient Qendall Ean?-:rder -oefficient Qendall Cartial Ean?-:rder -oefficient Qendall -oefficient of -oncordance Qendall -oefficient of Agree ent -orrelation Between ? Dudges and a -riterion )est Ha a *tatistic etric

*o erJs 5nde% of As$ Association

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