Research Methods For Commerce Lab Practical File "BRM Lab" BBA (M1) - BBA 213

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RESEARCH METHODS FOR COMMERCE LAB

PRACTICAL FILE
“BRM LAB”
BBA (M1) – BBA 213

INSTITUTE OF INFORMATION TECHNOLOGY AND

MANAGEMENT NEW DELHI 110058

BATCH (2021-2024)

SUBMITTED TO SUBMITTED BY

1. DR. UMA GULATI NAME- MANKEERAT SINGH


PROFESSOR ENROLLMENT NO.-02713701721
2. MR. RAGHAV JAIN BATCH- 2021-2024
ASSITANT PROFESSOR SEMESTER (III)
(M1)
INDEX
S.NO TOPIC PAGE SIGNATURE
NO.
1 1-5
RESEARCH PRACTICAL
1- BASICS OF

2 6-8
EXCEL PRACTICAL 2-
ADVANCE

3 9-12
T-TEST PRACTICAL 3-
ONE SAMPLE

4 PRACTICAL 4- 13-17

INDEPENDENT T-TEST
5 18-22
PRACTICAL 5-
PAIRED T-TEST
6 23-31
ANOVA PRACTICAL 6-
ONE WAY

7 32-42
ANOVA PRACTICAL 7-
TWO WAY

8 43-48
PRACTICAL 8-
CORRELATION

9 PRACTICAL 9- REGRESSION 49-56

10 PRACTICAL 10- CHI SQUARE 57-62


Mankeerat BRM Lab File BBA 3 M1

Practical-1
Question 1: What is Business Research?
Answer 1: Business research is a systematic and objective inquiry that provides information
to guide managerial decisions, which are arrived at through planning, acquiring, analyzing,
and disseminating relevant data to decision-makers to mobilize the organization to take
appropriate actions to maximize business performance.
According to Zikmund W.G: Business research is the application of scientific method in
searching for the truth about business phenomena.”
According to John W. Best: “Business research as systematic & objective analysis of
controlled observations that may use to the development of organizational, principles and
possibility of ultimate control of events.”

Question 2: Difference between Pure Research and Applied Research?


Answer 2:
Basis Pure Research Applied Research

Meaning Pure Research refers to the study Applied Research is the research that
that is aimed at expanding the is designed to solve specific practical
existing base of scientific problems or answer certain questions.
knowledge.
Nature Pure Research is Theoretical in Applied Research is Practical in Nature.
Nature.

Utility Its utility is Universal. Its utility is Limited.

Concerned Developing scientific knowledge and Development of technology and


with predictions. technique.

Goals To add some knowledge to the To find out solution for the problem at
existing one. hand.

Q3. Give an example of business research in the form of a research topic, which is
meaningful and purposeful. Explain with your consideration.

Answer- It took us a little longer to find out a good research topic, but after researching few
weeks we selected our topic as-

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i. Research Topic- Comparative analysis of customer satisfaction for Samsung and


Nokia mobile phones.

In the smartphone industry, a year is very long as well as short. This means that a lot can
happen within a year and also nothing can happen within a year. Time for smartphone brands
is like a torrent, if you don’t advance, you will retreat. This is true for most smartphone
brands, especially for manufacturers in a fiercely competitive environment. Recently,
Chnbrand, China’s leading brand rating and brand consulting agency, released the 2022
China Customer Satisfaction Index – Mobile Phone Satisfaction Ranking. Mobile China
found that users’ satisfaction with Chinese mobile phone manufacturers has changed a lot.
However, the significant changes have been on for only the past two years

Q4. Write down the Research objectives for this

topic. Answer: Objectives are: -

• To talk about the relationship of consumer loyalty with the offer of portable.

• To discuss the relationship of customer satisfaction with the sale of mobile.

• To analyze the elements of Samsung and Nokia mobiles.

• To assess the purposes behind decrease in the offer of Nokia portable.

Q5. Write down the variables you will use in this study and their nature (like which one
is dependent, which one is independent and intervening variables if any).

Answer- Variables that are used in this study: -

1. Independent variable - An independent variable is the variable you manipulate or vary


in an experimental study to explore its effects. It’s called “independent” because it’s
not influenced by any other variables in the study.

Independent Variable in this Study-

Change in technology over the past years and their availability to the customers

o Independent variable is cause of the study.

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o Its Value is independent of other variables in our study.

2. Dependent variable- A dependent variable is the variable that changes as a result of


the independent variable manipulation. It’s the outcome you’re interested in
measuring, and it “depends” on your independent variable.

Dependent Variable in this study–

How companies adapted itself to change in technology and introduced new innovation

o Dependent Variable is effect on the study.

o Its value depends on changes in the independent variable.

Q6. What is a unit of analysis? Write down the unit for your research.

Answer- The unit of analysis refers to the main parameter that you’re investigating in your
research project or study. Example of the different types of unit analysis that may be used in a
project include:

 Change in technology

 Availability of mobile phones to masses

 Increase in income of consumers

 Inflation and increase in cost of making mobile phone chips.

 Social parameters such as rich and medium class category phones according to
income group of consumers

Unit of Analysis used in this study is – Goup Unit

Q7. What is Research Hypothesis? What are the different types of hypotheses you do
know? Write down the hypothesis for your research topic.

Answer- A research hypothesis is an assumption or a tentative explanation for a specific


process observed during research. The sole purpose of a hypothesis is to predict your paper's
findings, data, and conclusion. It comes from a place of curiosity and intuition. When you
write a hypothesis, you're essentially making an educated guess based on scientific prejudices
and evidence, which is further proven or disproven through the scientific method.

 Types of Research Hypothesis

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1. Null Hypothesis - The null hypothesis is a characteristic arithmetic theory suggesting


that no statistical relationship and significance exists in a set of given, single,
observed variables between two sets of observed data and measured phenomena. This
hypothesis is only created to be rejected. It is represented by H0.

2. Alternate Hypothesis- The alternative hypothesis is a statement used in statistical


inference experiment. It is contradictory to the null hypothesis. It is one of the two
mutually exclusive statements in statistical hypothesis testing. In other words, it is the
hypothesis opposing the null hypothesis. In simple terms, it points to the hypothesis
that gets proved if there is enough evidence to defy the null hypothesis. This
hypothesis is Denoted by H1.

In this study both Null and alternate Hypothesis are formed-

1. Null Hypothesis – There is significant difference in customer satisfaction towards


Samsung mobile and Nokia mobile brand.

2. Alternate Hypothesis- There is no significant difference in customer satisfaction


towards Samsung mobile and Nokia mobile brand.

Q8. Write differences between Exploratory Research, Descriptive Research, and


Experimental Research.

Answer-

Basis Exploratory Research Descriptive Research Experimental Research


Meaning Exploratory research is Descriptive research is Exploratory research is
defined as research used defined as a research defined as research used to
to investigate a problem method that describes the investigate a problem which
which is not clearly characteristics of the is not clearly defined. It is
defined. It is conducted population or phenomenon conducted to have a better
to have a better studied. In other words, it understanding of the
understanding of the “describes” the subject of existing problem, but will
existing problem, but the research, without not provide conclusive
will not provide covering “why” it happens. results.
conclusive
results.
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Objective Discovery of ideas and Describe Market Determine cause and effect
insights. characteristics or functions. relationship.
Characteristic  Flexible  Marked by the prior  Manipulation of one
s formulation of or more independent
 Versatile
specific hypothesis. variable.
 Often the front
 Pre-planned,  Control of other
end of total
structured design mediating variables.
research design.

Degree Very Little High High


of Structure
Cost Cost of research is low Cost of research is medium Cost of research is high
Methods  Expert Surveys  Secondary Data  Experiments

 Pilot Surveys  Surveys

 Case Studies  Panels

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Practical-2

Q1 Calculate Average salary of Organisation


Q2 Calculate total salary Paid to all Employees
Q3 Calculate Median
Q4 Calculate Mode
Q5 Count Number of Employees Gender/ Job Profile/Job type
Q6 Total Salary Paid to Employees According to job Type

Solution:

Employee Table

1. Average salary

2. Total Salary

3. Mode

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4. Median

Result Table

5. Count Number of Employees Gender/job Profile/Job Type

6.Total Salary Paid to Employees According to Job Type

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INDEPENDENT T TEST

The independent-samples t-test (or independent t-test, for short) compares the means between
two unrelated groups on the same continuous, dependent variable. For example, we could use
an independent t-test to understand whether first-year graduate salaries differed based on
gender (i.e., the dependent variable would be "first-year graduate salaries" and the
independent variable would be "gender", which has two groups: "male" and "female").
Alternately, we could use an independent t-test to understand whether there is a difference in
test anxiety based on educational level (i.e., the dependent variable would be "test anxiety"
and the independent variable would be "educational level", which has two groups:
"undergraduates" and "postgraduates").

Assumption #1: dependent variable should be measured on a continuous scale (i.e., it is


measured at the interval or ratio level). Examples of variables that meet this criterion include
revision time (measured in hours), intelligence (measured using IQ score), exam performance
(measured from 0 to 100), weight (measured in kg), and so forth.

Assumption #2: Independent variable should consist of two categorical, independent groups.
Example independent variables that meet this criterion include gender (2 groups: male or
female), employment status (2 groups: employed or unemployed), smoker (2 groups: yes or
no), and so forth.

Assumption #3: We should have independence of observations, which means that there is no
relationship between the observations in each group or between the groups themselves. For
example, there must be different participants in each group with no participant being in more
than one group.

Assumption #4: There should be no significant outliers. Outliers are simply single data
points within our data that do not follow the usual pattern (e.g., in a study of 100 students' IQ
scores, where the mean score was 108 with only a small variation between students, one
student had a score of 156, which is very unusual, and may even put her in the top 1% of IQ
scores globally). The problem with outliers is that they can have a negative effect on the
independent t-test, reducing the validity of our results.

Assumption #5: Dependent variable should be approximately normally distributed for each
group of the independent variable. We talk about the independent t-test only requiring
approximately normal data because it is quite "robust" to violations of normality, meaning
that this assumption can be a little violated and still provide valid results.

Assumption #6: There needs to be homogeneity of variances. We can test this assumption in
SPSS Statistics using Levene’s test for homogeneity of variances

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Practical-3

Q1. Suppose you will test the height of 20 high school students. Based on literature and
health journals, the average height of an average middle school student is 175cm.

With a confidence level of 95 percent, test whether the sample we have has an average
difference in height that is significant with a hypothesis or not.

S.NO Height (in cm)


1 160.00
2 161.00
3 160.00
4 164.00
5 163.00
6 174.00
7 172.00
8 169.00
9 167.00
10 169.00
11 167.00
12 172.00
13 165.00
14 173.00
15 166.00
16 180.00
17 176.00
18 176.00
19 178.00
20 177.00

Hypotheses:

Null Hypothesis(H0): The Mean height of the group is equal to 175cm. (Height=175)

Alternative Hypothesis (H1): The Mean height of the group is not equal to 175cm. (Height ≠
175)

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Solution:

Step 1: Enter the variable Height (in cm) in variable view.

Step 2: Enter the given data in the Data View.

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Step 3: Go to analyse, compare means and then select one sample t-test.

Step 4: Then put height in test variable and put test value as 175(given).

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Output:

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean

Height_cm 20 169.4500 6.23635 1.39449

One-Sample Test
Test Value = 0
t df Significance Mean 95% Confidence Interval
Difference of the Difference
One- Two- Lower Upper
Sided p Sided p
Height 121.5 19 <.001 <.001 169.45000 166.5313 172.3687
_cm 14

One-Sample Effect Sizes


Standardizer Point 95% Confidence
a Estimate Interval
Lower Upper
Height_c Cohen's d 6.23635 27.171 18.591 35.739
m Hedges' 6.49681 26.082 17.846 34.306
correction
a. The denominator used in estimating the effect sizes.
Cohen's d uses the sample standard deviation.
Hedges' correction uses the sample standard deviation, plus a correction factor.

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Interpretation

Table 1 shows that the mean value calculated statistically is 169.4500 which is less than the
assumed mean height value of 175. Table 2 consists of the significance value of .001 which is
less than 5% of level of significance (LOS)- 0.05, hence we will not accept our null
hypothesis which states that the mean height of the group is equal to 175cm.

Result
The significance value against T Test is .001 which is less than .05, P<.05. Therefore, we will
accept the alternative hypothesis. Hence, we conclude that the mean height of the group is not
equal to 175cm. (Height ≠ 175)

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Practical-4

Q1. We are comparing scores from two teaching methods. We drew two random
samples of students. Group 1 uses different method and Group 2 uses different. These
samples contain entirely separate students. we want to determine whether the two
means are different.

Group 1 Group 2

72.4 71.1

72.1 89.8

69.7 98.0

61.2 84.4

76.5 80.5

81.2 84.8

75.8 70.8

71.6 90.8

82.0 73.11

52.7 93.7

Hypothesis:

HO – There is statistically no significant difference between the mean of group 1 and

2. H1 – There is statistically significant difference between the mean of group 1 and 2.

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Solution:

Step 1: Enter both variables (method1 and method2) in variable view.

Step 2: Put the data in both variables in data view.

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Step 3: Go to analyse, compare means and then select independent t-test.

Step 4: Then put score in test variable and groups in grouping Variable.

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Step 5: Define both the group and click on ok.

Output:

Group Statistics
Group N Mean Std. Deviation Std. Error Mean
Score 1 10 71.5200 8.89304 2.81223
2 10 83.8860 9.66902 3.05761

Independent Samples Test


Levene's Test for
Equality of
Variances t-test for Equality of Means
Std. 95% Confidence
Mean Error Interval of the
Sig. (2- Differen Differen Difference
F Sig. t df tailed) ce ce Lower Upper

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Sco Equal variances .420 .525 - 18 .008 - 4.15423 - -3.63829


re assumed 2.977 12.3660 21.0937
0 1
Equal variances - 17.87 .008 - 4.15423 - -3.63393
not assumed 2.977 5 12.3660 21.0980
0 7

Interpretation:

Table 1 Group statistics

Table 1 reveals The mean for Method used by group 1 and 2 is 71.52 & 83.8860 respectively
whereas the standard deviation for Teens and Adults is 8.89302 & 9.66902 respectively.
There is a difference in the mean of Group 1 and 2 but to find out whether the difference is
statistically significant independent t-test was applied.

Table 2 Independent sample test

Levene’s test indicates that variances are equal across the groups as p(sig) value 0.525 is
greater than the chosen significance level of 0.05. Therefore results of the Independent t-test
would be interpreted from the first row of output which is equal variances assumed only. The
result shows that the p (sig.) value is 0.008 which is less than 0.05 or 5% level of
significance. Hence we will accept our null hypothesis and conclude that there is a
statistically significant difference between score of Group 1 and Group 2.

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Practical-5
Q1. A company wants to investigate whether dietary herbal medicine produced leads to
weight loss. In a sample of 10 people, the medicine was studied before and after the diet
of herbal medicine.

Weights Before Use Weights After Use


67.7 56.9
79.6 67.9
82.4 59.9
60.4 590.2
91.4 60.6
77.5 58.7
66.5 55.5
68.5 50.6
70.5 60.4
60.5 50.6

Hypothesis

H0 – There is no significant difference between the weight before and after the usage of
medicine.

H1 – There is significant difference between the weight before and after the usage of medicine.

Solution:
Step 1: Put both variables, Weight Before and Weight After in Variable view.

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Step 2: Enter the given data in both the variables in the Data View.

Step 3: Go to Analyse, compare means and then select paired t-test.

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Step 4: Then, we have to put both the variables.

Step 5: Put, Weight before in variable 1 and Weight after in variable 2 and then press OK.

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Output:

Paired Samples Statistics


Mean N Std. Std. Error Mean
Deviation
Pair 1 Weight_Befor 72.5000 10 10.00044 3.16242
e
Weight_After 57.1300 10 5.62614 1.77914

Paired Samples Correlations


N Correlatio Significance
n One-Sided Two-Sided
p p
Pair Weight_Before & 10 .731 .008 .016
1 Weight_After

Paired Samples Test

Paired Differences t df Significance

Me Std. Std. 95% Confidence One- Two-


an Devia Error Interval of the Sided Sided
tion Mean Difference p p

Lower Upper

P Weight_Befor 15. 7.031 2.2235 10.340 20.399 6.9 9 <.00 <.00


ai e - 370 37 1 06 94 12 1 1
r Weight_After 00
1

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Interpretation:

Table 1

Table 1 shows that the mean weight of the group before the use of the medicine is 72.5 and
after the usage of the medicine is 57.13. This shows that since the mean of the weights of the
group after use is greater than the mean of the weights of the group before the use of
medicine, it proved to be affective.

Table 2

Table 2 depicts the correlation between the weights of the group before and after the use of
the medicine.

Table 3

Table 3 shows 95% of confidence level which signifies that the test is reliable. The
significance value from the table is .000 which is less than 5% level of significance (.05).
Therefore, we will not accept our null hypothesis which stated that there is statistically no
significant difference in the mean weight of the group before and after the use of the herbal
medicine produced for weight loss.

Result:

The significance value against T Test is .000 which is less than .05, the chosen level of
significance. (p<.05) Therefore, the alternative hypothesis is accepted. Hence, we will
conclude that there is a statistically significant difference in the mean weight of the group
before and after the use of the herbal medicine produced for weight loss.

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Practical – 6

Q1 A manager wants to raise the productivity at his company by increasing the speed at
which his employees can use a particular spreadsheet program. As he does not have the
skills in-house, he employs an external agency which provides training in this
spreadsheet program. They offer 3 courses: a beginner, intermediate and advanced
course. He is unsure which course is needed for the type of work they do at his
company, so he sends 5 employees on the beginner course, 5 on the intermediate and 5
on the advanced course. When they all return from the training, he gives them a
problem to solve using the spreadsheet program, and times how long it takes them to
complete the problem. He then compares the three courses (beginner, intermediate,
advanced) to see if there are any differences in the average time it took to complete the
problem.

Course Time

Beginner 22.00
Beginner 25.00
Beginner 24.00
Beginner 28.00
Beginner 27.00
Intermediate 18.00
Intermediate 21.00
Intermediate 20.00
Intermediate 26.00
Intermediate 23.00
Advance 19.00
Advance 20.00
Advance 21.00
Advance 18.00
Advance 20.50

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Hypothesis:

H0 – There is no significant difference in the mean length of time to complete the spreadsheet
problem between the different courses taken.

H1 – There is significant difference in the mean length of time to complete the spreadsheet
problem between the different courses taken.

Solution-

Step 1: Enter the variables in variable view and assign the values to each variable (course).

Step 2: Enter the values in each variable.

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Step 3: Go to analyse, compare means and select one way ANOVA.

Step 4: Put variable time on dependent list and course on factor.

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Step 5: Click on post hoc and select Tukey.

Step 6: Click on options and select descriptive statistics.

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Step 7: Click Ok to have output.

Output:

Descriptive Time

95% Confidence Interval


for Mean
Std. Std. Lower Upper Minimu Maxim
N Mean Deviation Error Bound Bound m um
Beginner 5 25.2000 2.38747 1.06771 22.2356 28.1644 22.00 28.00
Intermedi 5 21.6000 3.04959 1.36382 17.8134 25.3866 18.00 26.00
ate
Advance 5 19.7000 1.20416 .53852 18.2048 21.1952 18.00 21.00
Total 15 22.1667 3.20528 .82760 20.3916 23.9417 18.00 28.00

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ANOVA
Time
Sum of Squares df Mean Square F Sig.
Between Groups 78.033 2 39.017 7.116 .009
Within Groups 65.800 12 5.483
Total 143.833 14

Multiple Comparisons Dependent


Variable: Time Tukey HSD

Mean 95% Confidence Interval


Difference (I- Lower
(I) Course (J) Course J) Std. Error Sig. Bound Upper Bound
Beginner Intermediate 3.60000 1.48099 .076 -.3511 7.5511
Advance 5.50000* 1.48099 .008 1.5489 9.4511
Intermediate Beginner -3.60000 1.48099 .076 -7.5511 .3511
Advance 1.90000 1.48099 .431 -2.0511 5.8511
Advance Beginner -5.50000* 1.48099 .008 -9.4511 -1.5489
Intermediate -1.90000 1.48099 .431 -5.8511 2.0511
*. The mean difference is significant at the 0.05 level.

Time
Tukey HSDa
Subset for alpha = 0.05
Course N 1 2
Advance 5 19.7000
Intermediate 5 21.6000 21.6000
Beginner 5 25.2000
Sig. .431 .076
Means for groups in homogeneous subsets are
displayed.
a. Uses Harmonic Mean Sample Size = 5.000.

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Interpretations:

ANOVA Table

This is the table that shows the output of the ANOVA analysis and whether there is a
statistically significant difference between our group means. We can see that the significance
value is 0.009 (i.e., p = 0.009), which is below 0.05 chosen level of significance. Hence null
hypothesis is accepted. therefore, there is a statistically significant difference in the mean
length of time to complete the spreadsheet problem between the different courses taken.

Multiple Comparisons Table

From the results so far, we know that there are statistically significant differences between
the groups as a whole. The table below, Multiple Comparisons, shows which groups
differed from each other. The Tukey post hoc test is generally the preferred test for
conducting post hoc tests on a one-way ANOVA, but there are many others. We can see from
the table below that there is a statistically no significant difference in time to complete the
problem between the group that took the beginner course and the intermediate course (p =
0.076), as well as between the intermediate course and advanced course (p = 0.431).
However, there were significant differences between the groups that took the beginner and
advance course (p = 0.008).

Result:

Hence, we conclude that there is statistically significant difference in the mean length of time
to complete the spreadsheet problem between the different courses taken.

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Two-Way ANOVA

The two-way ANOVA compares the mean differences between groups that have been split on
two independent variables (called factors). The primary purpose of a two-way ANOVA is to
understand if there is an interaction between the two independent variables on the dependent
variable. For example, you could use a two-way ANOVA to understand whether there is an
interaction between gender and educational level on test anxiety amongst university students,
where gender (males/females) and education level (undergraduate/postgraduate) are your
independent variables, and test anxiety is your dependent variable. Alternately, you may want
to determine whether there is an interaction between physical activity level and gender on
blood cholesterol concentration in children, where physical activity (low/moderate/high) and
gender (male/female) are your independent variables, and cholesterol concentration is your
dependent variable.

Assumptions

a. Assumption #1: Your dependent variable should be measured at the continuous level
(i.e., they are interval or ratio variables). Examples of continuous variables include
revision time (measured in hours), intelligence (measured using IQ score), exam
performance (measured from 0 to 100), weight (measured in kg), and so forth. You
can learn more about interval and ratio variables in our article: Types of Variables.

b. Assumption #2: Your two independent variables should each consist of two or more
categorical, independent groups. Example independent variables that meet this
criterion include gender (2 groups: male or female), ethnicity (3 groups: Caucasian,
African American and Hispanic), profession (5 groups: surgeon, doctor, nurse,
dentist, therapist), and so forth.

c. Assumption #3: You should have independence of observations, which means that
there is no relationship between the observations in each group or between the groups
themselves. For example, there must be different participants in each group with no
participant being in more than one group. This is more of a study design issue than
something you would test for, but it is an important assumption of the two-way
ANOVA. If your study fails this assumption, you will need to use another statistical
test instead of the two-way ANOVA (e.g., a repeated measure design). If you are
unsure whether your study meets this assumption, you can use our Statistical Test
Selector, which is part of our enhanced guides.

d. Assumption #4: There should be no significant outliers. Outliers are data points
within your data that do not follow the usual pattern (e.g., in a study of 100 students'
IQ scores, where the mean score was 108 with only a small variation between
students, one student had a score of 156, which is very unusual, and may even put her
in the top 1% of IQ scores globally). The problem with outliers is that they can have a
negative effect on the two-way ANOVA, reducing the accuracy of your results.
Fortunately, when using SPSS Statistics to run a two-way ANOVA on your data, you
can easily detect possible outliers. In our enhanced two-way ANOVA guide, we: (a)
show you how to detect outliers using SPSS Statistics; and (b) discuss some of the
options you have in order to deal with outliers.

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e. Assumption #5: Your dependent variable should be approximately normally


distributed for each combination of the groups of the two independent variables.
Whilst this sounds a little tricky, it is easily tested for using SPSS Statistics. Also,
when we talk about the two-way ANOVA only requiring approximately normal data,
this is because it is quite "robust" to violations of normality, meaning the assumption
can be a little violated and still provide valid results. You can test for normality using
the Shapiro-Wilk test for normality, which is easily tested for using SPSS Statistics. In
addition to showing, you how to do this in our enhanced two-way ANOVA guide, we
also explain what you can do if your data fails this assumption (i.e., if it fails it more
than a little bit).

f. Assumption #6: There needs to be homogeneity of variances for each combination of


the groups of the two independent variables. Again, whilst this sounds a little tricky,
you can easily test this assumption in SPSS Statistics using Levene’s test for
homogeneity of variances. In our enhanced two-way ANOVA guide, we (a) show you
how to perform Levene’s test for homogeneity of variances in SPSS Statistics, (b)
explain some of the things you will need to consider when interpreting your data, and
(c) present possible ways to continue with your analysis if your data fails to meet this
assumption.

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Practical-7

Question 1: Suppose we want to explore how a detergent and a particular water


temperature affect the dirt removal of laundry. We also want to check if the combined
effect of detergent and water temperature can affect the dirt removal. Here, we have
two types of detergents, namely x and y. We also use three types of water temperatures,
the levels of which are cold, warm, and hot. Here the detergent and the water
temperature are independent variables, while the amount of dirt removed (D) is the
dependent variable. We are using a two-way ANOVA instead of one-way ANOVA
because we have two factors with multiple levels in hand, i.e., detergent and water
temperature.

With each combination, one would wash five loads, which shall be replicates. Suppose
we record the information as:

Water Temperature
Detergent Cold Warm Hot
4 7 10
Detergent X 5 8 11
5 9 12
6 12 19
5 3 15
4 12 10
Detergent Y 4 12 12
6 13 13
6 15 13
5 13 12

H0: There is no significant difference between the impact of both detergents in different water
temperatures on dirt removal.
H1: There is significant difference between the impact of both detergents in different water
temperatures on dirt removal

Solution:

Step 1: Enter the Variable names in the Variable View and specify the values in the Values
column and the required measure for each variable accordingly.

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Step 2: The Table so formed of the data will be displayed in the Data View as shown below.

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Step 3: Go to Analyse, General Linear Model and from the drop-down list click on Univariate.

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Step 4: In the Univariate pop-up window, the variables will be displayed on the left hand side.

Step 5: Shift the dependant variable (Dirt_Removal) to the dependant variable box and the
other remaining variables to the fixed factor box.

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Step 6: Go to plots and plot the factors in the respective axes. Detergent goes on the
horizontal axis while water_temperate will be displayed by separate line depicting all the
three different kinds of water temperature.

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Step 7: Click on Add. Under the plots section, the interaction of both the variables will be
formed and displayed.

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Step 8: Next, click on Options and drag all the three variables under “Display Means for” and
under the Display section select Descriptive statistics and click on Continue.

Step 9: Lastly, go to Post Hoc and drag Water_Temperature to testify the three levels of
variability of the temperature on dirt removal. Under the Equal Variances Assumed, select
the Turkey test and click on Continue. Then, click Ok.

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Output:

Between-Subjects Factors
Value N
Label
Detergent 1 X 15
2 Y 15
water_temperatur COL COLD 10
e D
HOT HOT 10
WA WARM 10
RM

Descriptive Statistics
Dependent Variable: Dirt_removal
Deterge water_temperatur Mean Std. N
nt e Deviation
X COLD 5.0000 .70711 5
HOT 13.4000 3.64692 5
WARM 7.8000 3.27109 5
Total 8.7333 4.47958 15
Y COLD 5.0000 1.00000 5
HOT 12.0000 1.22474 5
WARM 13.0000 1.22474 5
Total 10.0000 3.83592 15
Total COLD 5.0000 .81650 10
HOT 12.7000 2.66875 10
WARM 10.4000 3.59629 10
Total 9.3667 4.14798 30

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Tests of Between-Subjects Effects


Dependent Variable: Dirt_removal
Source Type III Sum df Mean F Sig.
of Squares Square
Corrected Model 384.967a 5 76.993 16.209 <.001
Intercept 2632.033 1 2632.033 554.112 <.001
Detergent 12.033 1 12.033 2.533 .125
water_temperature 312.467 2 156.233 32.891 <.001
Detergent * 60.467 2 30.233 6.365 .006
water_temperature
Error 114.000 24 4.750
Total 3131.000 30
Corrected Total 498.967 29
a. R Squared = .772 (Adjusted R Squared = .724)

Multiple Comparisons
Dependent Variable: Dirt_removal
Tukey HSD
(I) (J) Mean Std. Sig. 95% Confidence
water_temperat water_temperat Difference Error Interval
ure ure (I-J)
Lower Upper
Bound Bound

COLD HOT -7.7000* .9746 <.001 -10.1341 -5.2659


8
WARM -5.4000* .9746 <.001 -7.8341 -2.9659
8
HOT COLD 7.7000* .9746 <.001 5.2659 10.1341
8
WARM 2.3000 .9746 .067 -.1341 4.7341
8
WARM COLD 5.4000* .9746 <.001 2.9659 7.8341
8
HOT -2.3000 .9746 .067 -4.7341 .1341
8

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Based on observed means.


The error term is Mean Square(Error) = 4.750.

*. The mean difference is significant at the .05 level.

Homogeneous Subsets

Dirt_removal
Tukey HSDa,b
water_temperatur N Subset
e 1 2
COLD 10 5.0000
WARM 10 10.4000
HOT 10 12.7000
Sig. 1.000 .067
Means for groups in homogeneous subsets are
displayed.
Based on observed means.
The error term is Mean Square(Error) = 4.750.
a. Uses Harmonic Mean Sample Size = 10.000.
b. Alpha = .05.

Profile Plots

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Interpretations:

In the table above, the p-value of interaction between detergent and water temperature is
0.006, which is less than the level of significance 0.05. This means that one can ignore the
interaction effect between the two factors.

Detergent – Since the p value is 0.125>0.05 chosen level of significance, which means there
is statistically no significant difference between detergent x and detergent y on dirt removal.

Water Temperature – Since the p value is 0.00<0.05 chosen level of significance, which
concludes that there is significant impact of three categories of water temperature on dirt
removal.

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CORRELATION

Correlation is a statistical measure of the relationship between two variables. The measure is
best used in variables that demonstrate a linear relationship between each other.

Correlation measures the degree of association between two or more sets of variables.

The correlation coefficient is a value that indicates the strength of the relationship between
variables. The coefficient can take any value from -1 to 1. The interpretations of the values
are:

 -1: Perfect negative correlation. The variables tend to move in opposite directions
(i.e., when one variable increases, the other variable decreases).
 0: No correlation. The variables do not have a relationship with each other.
 1: Perfect positive correlation. The variables tend to move in the same direction (i.e.,
when one variable increases, the other variable also increases).

Degree of correlation

1. Perfect correlation: When both the variables change in the same ratio, then it is
called perfect correlation.

2. High degree of correlation: When the correlation coefficient range is above .75, it is called
a high degree of correlation.

3. Moderate correlation: When the correlation coefficient range is between .50 to .75, it is
called in a moderate degree of correlation.

4. Low degree of correlation: When the correlation coefficient range is between .25 to .50, it
is called a low degree of correlation.

5. Absence of correlation: When the correlation coefficient is between. 0 to .25, it shows that
there is no correlation.

Hypotheses

Null hypothesis: In the Null hypothesis, we assume that there is no correlation between the
two variables.

Alternative hypothesis: In the alternative hypothesis we assume that there is a correlation


between variables.

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Practical-8

Question 1: Consider the data on the quantity demanded and the price of a commodity
over a ten-year period as given in the following table:
Year Demand price
1996 100 5
1997 75 7
1998 80 6
1999 70 6
2000 50 8
2001 65 7
2002 90 5
2003 100 4
2004 110 3
2005 60 9

Questions
1. Estimate the correlation coefficient between the quantity demanded and price and
interpret the same.
2. Test the statistical significance of the correlation coefficient at a 5 percent level.

Hypothesis
Ho: there is statistically no significant relationship between quantity demanded and price
Ha: there is a statistically significant relationship between quantity demanded and price

Solution:
Steps of doing correlation in SPSS

1. First enter all the variables (Year, Demand, Price) in variable view, then enter all the
given data.

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The data displayed in the Data view will be as follows:

2. Go to analyze and correlate the data at bivariate.

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3. A pop-up window of Bivariate Correlations displays all the variable names

4. Then shift all the variables (Price, Demand) on variable side.

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5. Then go to options and select mean and standard deviation, the click on continues.

Output:
Correlations

Descriptive Statistics
Mean Std. N
Deviation
Dema 80.000 19.57890 10
nd 0
Price 6.0000 1.82574 10

Correlations
Deman Price
d
Dema Pearson 1 -
nd Correlation .933**
Sig. (2-tailed) <.001
N 10 10

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Price Pearson - 1
Correlation .933**
Sig. (2-tailed) <.001
N 10 10
**. Correlation is significant at the 0.01 level (2-
tailed).

Interpretation
The value of the correlation coefficient between the quantity demanded and the price is –
0.9325, which is negative and very high. The p-value for the correlation coefficient is 0.000,
which is less than 0.05, the chosen level of significance. This implies that the correlation
coefficient between the quantity demanded and the price is negative, high, and statistically
significant.
Result
There is a statistically significant relationship between quantity demanded and price.

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REGRESSION

Linear regression is the next step up after correlation. It is used when we want to predict the
value of a variable based on the value of another variable. The variable we want to predict is
called the dependent variable (or sometimes, the outcome variable). The variable we are
using to predict the other variable's value is called the independent variable (or sometimes,
the predictor variable). For example, you could use linear regression to understand whether
exam performance can be predicted based on revision time
In regression analysis, it is assumed that there is a variable that is influencing another
variable. For example, we may write, Y = f (X) This indicates that the values of Y depend
upon the values of. Further, there is a one-way causation between X and Y in the sense that it
is X that influences the values of  Y and not the other way around. The variable Y is called a
dependent variable or an effect variable, whereas the variable X is called an independent
variable, explanatory variable, causal variable or regressor. The relationship between Y and
X may be assumed to be linear and we may write the following expression as Y = α + β X

Goodness of Fit of Regression Equation

A researcher would be interested in knowing how good the estimated regression equation is.
To answer this question, there is a measure r2 which, in the case of the simple linear
regression model, is simply the square of the correlation coefficient. This measure is also
called the coefficient of determination of a regression equation and it takes values between 0
and 1 (both values inclusive). It indicates the explanatory power of the regression model. If
for a particular regression model, r2 is equal to 0.86, it means that 86 percent of the variations
in the dependent variable Y are explained by the variations in the independent variable X.

Assumptions

Assumption 1: Dependent variable should be measured at the continuous level (i.e., it is


either an interval or ratio variable). Examples of continuous variables include revision time
(measured in hours), intelligence (measured using IQ score), exam performance (measured
from 0 to 100), weight (measured in kg), and so forth

Assumption 2: Independent variable should also be measured at the continuous level (i.e., it
is either an interval or ratio variable).

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Assumption 3: There needs to be a linear relationship between the two variables. Whilst there
are a number of ways to check whether a linear relationship exists between two variables, we
can create a scatterplot using SPSS Statistics where we can plot the dependent variable
against our independent variable and then visually inspect the scatterplot to check for
linearity. Your scatterplot may look something like one of the following:

Assumption 4: There should be no significant outliers. An outlier is an observed data point


that has a dependent variable value that is very different from the value predicted by the
regression equation.

Assumption 5: Another critical assumption of linear regression is that there should not be
much multicollinearity in the data. Such a situation can arise when the independent variables
are too highly correlated with each other.

Assumption 6: Data needs to show homoscedasticity, which is where the variances along the
line of best fit remain similar as you move along the line. The next assumption of linear
regression is that the residuals have constant variance at every level of x. This is known
as homoscedasticity. When this is not the case, the residuals are said to suffer
from heteroscedasticity.

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Practical-9
Question 1: Consider the data on the quantity demanded and the price of a commodity
over a ten-year period as given in the following table:
Year Demand price
1996 100 5
1997 75 7
1998 80 6
1999 70 6
2000 50 8
2001 65 7
2002 90 5
2003 100 4
2004 110 3
2005 60 9

Questions
1. Estimate the linear regression equation of demand on price and interpret the
same. Use the estimated equation to compute the average point price elasticity of
demand.
2. Test the statistical significance of the slope coefficient of the estimated regression
equation.
3. Compute r2 and interpret the same.
4. Test the significance of r2 at a 5 percent level.
5. Find a 95 percent approximate prediction interval for demand when price (X)
equals 8

Hypothesis
Ho: there is statistically no significant relationship between quantity demanded and price
Ha: there is a statistically significant relationship between quantity demanded and price

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Solution:
1. First enter all the variables (Year, Demand, Price) in variable view, then enter all the
given data. The data entered will be displayed in Data View as shown below:

2. Go to analyze and regression the data at linear.

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3. A pop-up window of Linear Regression displays all the listed variables.

4. Shift the Dependent Variable (Demand) on Dependent Cell and Independent Variable
(Prices) on independent cell.

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5. Then define the criteria of method and click to include the constant in equation.

Output:
Regression

Variables Entered/Removed a
Model Variables Variables Method
Entered Removed
1 Price b . Enter
a. Dependent Variable: Demand
b. All requested variables entered.

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Model Summary
Mod R R Adjusted R Std. Error of
el Square Square the Estimate
1 .933a .870 .853 7.50000
a. Predictors: (Constant), Price

ANOVA a
Model Sum of df Mean F Sig.
Squares Square
1 Regressio 3000.000 1 3000.000 53.333 <.001b
n
Residual 450.000 8 56.250
Total 3450.000 9
a. Dependent Variable: Demand
b. Predictors: (Constant), Price

Coefficients a
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constan 140.000 8.551 16.372 <.001
t)
Price -10.000 1.369 -.933 -7.303 <.001
a. Dependent Variable: Demand

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Interpretation:
Table 1: Model Summary.
This table provides the R and R2 values. The R-value represents the simple correlation and is
0.933 (the "R" Column), which indicates a high degree of correlation. The R2 value (the "R
Square" column) indicates how much of the total variation in the dependent variable,
demand, can be explained by the independent variable, price in this case, 87.0 % can be
explained, which is a very large.
The next table is the ANOVA table, which reports how well the regression equation fits the
data (i.e., predicts the dependent variable) and is shown below:

Table 2: ANOVA
Interpretation: This table indicates that the regression model predicts the dependent variable
significantly well. How do we know this? We look at the "Regression" row and go to the
"Sig." column. This indicates the statistical significance of the regression model that was run.
Here, p is 0.000, (p< 0.05) which is less than 0.05, and indicates that, overall, the regression
model statistically significantly predicts the outcome variable (i.e., it is a good fit for the data)
Table 3: Coefficients
Interpretation: The Coefficients table provides us with the necessary information to predict
demand from price, as well as determine whether price contributes statistically significantly
to the model (by looking at the "Sig." column). Furthermore, we can use the values in the "B"
column under the "Unstandardized Coefficients" column, as shown above

The regression equation as:

Demand = 140.000 + (-10)

(Price)

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Practical-10

Q.1 A random sample of 395 people is surveyed and each person was asked to report
the highest education level. They obtain the data resulted from the survey is
summarized in the following table: -

High School Bachelor Master P.H.D Total


Male 40 44 53 57 194
Female 60 54 46 41 201
Total 100 98 99 98 395

Hypothesis:

H0 – There is no significant association between the gender of individual and level of education.

H1 - There is significant association between the gender of individual and level of education.

Solution: -

Step 1- First enter all the variables (Education level, Gender, Sample Score) and data in data

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Step 2- Then go to analyse and go to descriptive statistics and go to crossable.

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Step 3- Then add eduaction level in rows, genders in column and sample score in layer 1

Step 4- Then click on statistics and click on chi square and press continue.

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Step 5- Then go to cells and tick on observed and expected and press continue

Step 6- Then click on OK

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Output:

Crosstabs

Case Processing Summary


Cases
Valid Missing Total
N Percent N Percent N Percent
Education_Level * Gender 8 100.0% 0 0.0% 8 100.0%
* Sample_Space

Education_Level * Gender * Sample_Space Crosstabulation


Gender
Sample_Space Male Female Total
40.00 Education_Level High School Count 1 1
Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0
41.00 Education_Level P.H.D Count 1 1
Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0
44.00 Education_Level Bachelor Count 1 1
Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0
46.00 Education_Level Master Count 1 1
Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0
53.00 Education_Level Master Count 1 1
Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0
54.00 Education_Level Bachelor Count 1 1
Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0

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57.00 Education_Level P.H.D Count 1 1


Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0
60.00 Education_Level High School Count 1 1
Expected Count 1.0 1.0
Total Count 1 1
Expected Count 1.0 1.0
Total Education_Level High School Count 1 1 2
Expected Count 1.0 1.0 2.0
Bachelor Count 1 1 2
Expected Count 1.0 1.0 2.0
Master Count 1 1 2
Expected Count 1.0 1.0 2.0
P.H.D Count 1 1 2
Expected Count 1.0 1.0 2.0
Total Count 4 4 8
Expected Count 4.0 4.0 8.0

Chi-Square Tests
Asymptotic
Significance (2-
Sample_Space Value df sided)
40.00 Pearson Chi-Square .b
N of Valid Cases 1
41.00 Pearson Chi-Square .b
N of Valid Cases 1
44.00 Pearson Chi-Square .b
N of Valid Cases 1
46.00 Pearson Chi-Square .b
N of Valid Cases 1
53.00 Pearson Chi-Square .b
N of Valid Cases 1
54.00 Pearson Chi-Square .b
N of Valid Cases 1
57.00 Pearson Chi-Square .b
N of Valid Cases 1
60.00 Pearson Chi-Square .b
N of Valid Cases 1
Total Pearson Chi-Square .000a 3 1.000

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Likelihood Ratio .000 3 1.000


Linear-by-Linear .000 1 1.000
Association
N of Valid Cases 8
a. 8 cells (100.0%) have expected count less than 5. The minimum expected
count is 1.00.
b. No statistics are computed because Education_Level and Gender are constants.

Interpretations:

The above table indicates that the p value (calculated value) 0.000 which is less than the
chosen level of significance of 0.05. Hence, the null hypothesis is not accepted and the
alternative hypothesis is accepted, therefore we can conclude that there is a statistically
significant association between the gender of an individual and the level of education.

Result:

Since the p value is less than 0.05 (.000<.05) we can state that there is a statistically
significant association between the gender of an individual and the level of education.

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