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Research Methodology

Unit IV
Measures of Association

Measures
Measures of
of Association
Association
Measures of Association
Bivariate Correlation Analysis,
Simple Linear Regression

Non-Parametric measures of Association


Measures for Nominal Data &
Measures for Ordinal Data

Measures
Measures of
of Association
Association
Measures of association provide a means of
summarizing the size of the association between
two variables.
Management questions frequently involve
relationships between two or more variables.
Various objectives are served with correlation
analysis. The strength, direction, shape, and other
features of the relationship may be discovered.

Measures
Measures of
of Association
Association
Lets look at some typical management
questions:

Measures
Measures of
of Association
Association
All these questions may be evaluated by means
of measures of association.
And all call for different techniques based on the
level at which the variables were measured or
the intent of the question.
The first three use nominal, ordinal, and interval
data, respectively. The last one is answered
through simple linear regression.

Measures
Measures of
of Association
Association
With correlation, one calculates an index to
measure the nature of the relationship between
variables.
With regression, an equation is developed to
predict the values of a dependent variable.
Both are affected by the assumptions of
measurement level and the distributions that
underlie the data.

Measures
Measures of
of Association
Association
Bivariate correlation analysis differs from
nonparametric measures of association and
regression analysis in two important ways.
First, parametric correlation requires two continuous
variables measured on an interval or ratio scale.
Second, the coefficient does not distinguish
between independent and dependent variables.
It treats the variables symmetrically since the
coefficient rxy has the same interpretation as ryx .

Measures
Measures of
of Association
Association

Measures
Measures of
of Association
Association
Simple Linear Regression

In the previous section, we focused on relationships between variables.


The product moment correlation was found to represent an index of the
magnitude of the relationship, the sign governed the direction, and
explained the common variance.
Relationships also serve as a basis for estimation and prediction.
When we take the observed values of X to estimate or predict
corresponding Y values, the process is called simple prediction.
When more than one X variable is used, the outcome is a function of
multiple predictors.
Simple and multiple predictions are made with a technique called
regression analysis.

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