Statistical Concepts in Research

Type 1 & 2 error

P value
Effect size
Power of a test
Mediation
Moderation
 Type 1 and 2 Error
• Relationship between 2 variables may or may not
exist.
• Research to explore this relationship may or may not
yield significant result.
• Thus four possibilities exist, two of which are errors.
• Finding a relationship which doesn’t exist is type 1
error. Not finding an existing relationship is type 2
error.
 Type 1 and 2 Error
• Traditionally type 1 error is considered to be more
critical than type 2 error, but consider the following
examples.
– Relationship between medicine and cure
– Relationship between O ring and fault.
• Alpha – Possibility of rejecting null when its true
• Beta – Possibility of accepting null when its false
• Why is the need for significance criteria.
 Effect Size
• The actual strength of relationship between two
variables based on entire population.
• Not possible to calculate exactly, but can be
estimated.
• As effect size increases, probability of finding a
significant relationship also increase.
• Example: Size of a needle
• Effect size is a characteristic of individual
relationships and not depends on external factors.
 p value
• Probability of getting different result than the
one achieved.
• A p value of 0.05 means that if the test is
repeated 100 times, we will get the same
results 95 of the times.
 Power of a test
• The probability of a test to reject a false null. OR the
probability of finding a relationship which actually
exists. Depends on:
– Beta, Effect Size and Sample.
• If three of these are known, the missing one can be
calculated.
• Useful to estimate the sample size to achieve
significant results.
• Non significant result not means non existing
relationship. It may occur due to low power.
 Mediation
• The mechanism through which two variables are
related.
• Mediator has no effect on the direction or strength
of relationship. It only shows the path which joins
the variables.
• Examples: JS TO
JS Relationship with Spouse

What are the potential mediators

 Checking Mediation

A M B
• Significant relationship between A and B
• Significant relationship between A and M
• Significant relationship between M and B
• Significance of relationship between A-B should
reduce significantly when M is added to the list of
independent variables in the regression equation.

• No, Partial and Full mediation.

 Moderation
• Moderation comes into play when the relationship
between two variables is not stable and it changes its
direction and / or strength because of an external
variable.
• Examples: Multi tasking Efficiency

?
Personality Job Performance
• In moderation, the combined effect of IV and Mod V
affects the DV. Thus IV X Mod V is a significant
predictor of DV.
 Checking Moderation.
• Enter control variables and independent variable in
the regression equation. Check the R square.
• Enter Mod X IV in the equation and check R square.
• If R square is significant, the moderation is
present.
• Complete moderation: Direction changes
• Partial moderation: Only strength changes