Research in Business

Why Study Research?

– Research provides you with the knowledge and
skills needed for the fast-paced decision-
making environment
– Search for knowledge through objective and
systematic method of finding solution to the
problem is research
– Systematic approach concerns generalization
and formulation
 Why managers need Better
Information
 Global and domestic competitions is more
vigorous
– Organizations are increasingly practicing data mining
and data warehousing- data warehousing market
consists of tools, technologies, and methodologies that
allow for the construction, usage, management, and
maintenance of the hardware and software used for a
data warehouse, as well as the actual data itself. To
discover patterns and trends in the data
 The Value of Acquiring Skills
 To gather more information before selecting
a course of action
 To do a high-level research study
 To understand research design
 To evaluate and resolve a current
management dilemma
 To establish a career as a research specialist
 Different Styles of Research

 Applied Research( action)

2. Improved agricultural production
3. Treat or cure a specific disease
4. Improve energy efficiency of homes ,offices or modes of
transporation
5. Global overpopulation

 Pure Research(generations and formulations)

 Quantitative and qualitative research
 Descriptive and analytical research
 Conceptual and emperical reseach
 What is Good Research?
 Following the standards of the scientific method:
– Purpose clearly defined-problem involved and decision
made
– Research process detailed-permit others
– Research design thoroughly planned-yeild accurate
results
– High ethical standards applied –standards and norms
– Limitations frankly revealed
 What is Good Research?
 Followingthe standards of the scientific
method (cont.)
– Adequate analysis for decision-maker’s needs
– Findings presented unambiguously –clear
logical,executive summary
– Conclusions justified-conclusions matched with
detailed finding
– Researcher’s experience reflected
 Role of buisness research in
decision making
 Problem identification

 Problem prioritization

 Problem resolution

 Implementing course of action

 Factors affecting business
research
 Time constraint

 Availability of resources

 Nature of information sought

 Benefit versus cost

Scientific Thinking
 The Essential Tenets of
Science
 Direct observation of phenomena
 Clearly defined variables, methods, and
procedures
 Empirically testable hypotheses
 Ability to rule out rival hypotheses-more
facts or greater variety or scope
 Statistical justification of conclusions
 Self-correcting process
 Ways to Communicate
 Exposition
– Descriptive statements that merely state and so
not give reason
 Argument
– Allows us to explain, interpret, defend,
challenge, and explore meaning
 Important Arguments in
Research
 Deduction is a form of inference that
purports to conclusive
 Induction draws conclusions form one or
more particular facts
The Building Blocks of Theory
 Concepts
 Constructs
 Definitions
 Variables
 Propositions and Hypotheses
 Theories
 Models
 Understanding Concepts
A concept is a bundle of meanings or
characteristics associated with certain
events
 Concepts have been developed over time
through shared usage
 The success of research hinges on:
– How clearly we conceptualize and
– How well others understand the concepts we
use
 What is a Construct?
 An image or idea specifically invented for a
given research purpose
 Composed of concepts
 Therotical level of concepts
 Types of Variables
 Independent
 Dependent
 Moderating
 Extraneous-infinite number
 Intervening
 Dichotomous
 Symbol to assign numerals and value
 The Role of the Hypotheses
 Guides the direction of study
 Provides a framework for organizing the
conclusions that result
 Identifies the fact that are relevant and those
that are not
 Suggest which form of research design is
likely to be most appropriate
What is a Good Hypotheses?
A good hypotheses should fulfill 3
conditions:
– Must be adequate for its purpose
– Must be testable
– Must be better than its rivals
 The Value of a Theory
 Narrows the range of facts we need to study
 Summarizes what is know about an object
of study
 Used to predict further facts that should be
found
 Systematically interrelated
concepts,defination that are advanced to
explain and predict phenomenon
The Research Process
 Steps in Research Process
 Identifing and defining problem
 Planning the research design
 Selecting the research method
 Selecting a sampling procedure
 Data collection
 Evaluating the data
 Presenting the research project
 The Management- Research
Question Hierarchy
 Measurement  Level 5
Questions
 Investigative  Level 4
Questions
 Research Questions
 Level 3
 Management
 Level 2
Questions
 Management Dilemma
 Level 1
 Working with Hierarchy
 Management Dilemma
– The symptoms of an actual problem
– Not difficult to identify a dilemma, however
choosing one to focus on may be difficult
 Working with the Hierarchy
 Management Question Categories
– Choice of purpose or objective
– Generation and Evaluation of solutions
– Troubleshooting or control situation
 Working with the Hierarchy
 Fine tune the research question
– Examine concepts and constructs
– Break research question into specific second
and third level questions
– Determine what evidence answers the various
questions and hypothesis
– Set the scope of your study
 Working with the Hierarchy
 Investigative Questions
– Questions the researcher must answer to
satisfactorily arrive at a conclusion about the
research question
 Working with the Hierarchy
 Measurement Questions
– The questions we actually ask or extract from
respondents
 Other Process in the
Hierarchy
 Exploration
– Recent developments
– Predictions by informed figures about the
prospects of technology
– Identification of those involved in the area
– Accounts of successful ventures and failures by
others in the field
 Research Process Problems
 The Favored Technique Syndrome
 Company Database Strip-Mining
 Unresearchable Question
 Ill-Defined Management Problems
 Politically Motivated Research
 Designing the Study
– Select a research design from the large variety
of methods, techniques, procedures, protocols
and sampling plans
 Resource Allocation and
Budget
 Guides to plan a budget
– Project planning
– Data gathering
– Analysis, interpretation, and reporting
 Types of budgeting
– Rule of thumb
– Departmental or functional area
– Task
 Evaluation Methods
 Ex Post Facto Evaluation
 Prior Evaluation
 Option Analysis
 Decision Theory
 Contents of a Research
Proposal
A statement of the research question
 A brief description of research methodology
 Data collection
 Data preparation
 Data analysis and interpretation
 Research reporting
 Data Collection
 Characterized by
– Abstractness
– Verifiability
– Elusiveness
– Closeness to the phenomenon
 Secondary Data
 Primary Data
 Final Steps in Research
Data analysis
– Reporting the results
 Executive Summary
 Overview of the research

 Implementation strategies for the

recommendations
 Technical appendix
The Research Proposal
 Purpose of the Research
Proposal
 To present the question to be researched
and its importance
 To discuss the research efforts of others
who have worked on related questions
 To suggest the data necessary for solving
the question
 The Research Sponsor
All research has a sponsor in one form or
another:
In a corporate setting, management
sponsors research
In an academic environment, the student
is responsible to the class instructor
 What are the Benefits of the
Proposal to a Researcher?
 Allows the researcher to plan and review
the project’s steps
 Serves as a guide throughout the
investigation
 Forces time and budget estimates
Types of Research Proposals
 Internal

 External
 Proposal Complexity
3 Levels of Complexity
– The Exploratory study is used for the most
simple proposals
– The Small-scale study is more complex and
common in business
– The Large-scale professional study is the most
complex, costing millions of dollars
 How to Structure the
Research Proposal?
 Create proposal modules

 Puttogether various modules to tailor your

proposal to the intended audience
 Modules in a Research
Proposal
 Executive Summary  Qualifications of
 Problem statement Researcher
 Research objectives  Budget
 Literature Reviews  Schedule
 Importance of the  Facilities and Special
Study Resources
 Research Design  Project Management
 Data Analysis  Bibliography
 Nature and Form of  Appendixes
Results
 What to include in the
Appendixes?
A glossary of concepts, constructs, and
definitions
 Samples of the measurement instrument
 Other materials that reinforce the body of
the proposal
 Evaluating the Research
Proposal
 Proposal must be neatly written
 Major topic should be easily found and
logically organized
 Proposal must meet specific guidelines set
by the sponsor
 Technical writing style must be clearly
understood and explained
Ethics in Business Research
 What are Research Ethics?
 Ethics are norms or standards of behavior
that guide moral choices about our behavior
and our relationships with others

 The goal is to ensure that no one is harmed

or suffers adverse consequences from
research activities
 Ethical Treatment of
Respondents and Subjects
 Begin data collection by explaining to the
respondent the benefits expected from the
research
 Explain to the respondent that their rights
and well-being will be adequately
protected, and say how this will be done
 Be certain that interviews obtain the
informed consent of the respondent
 Deception
 The
respondent is told only part of the truth
when the truth is fully compromised
– To prevent biasing the respondents before the
survey or experiment
– To protect the confidentiality of a third party
 Issues Related to Protecting
Respondents
 Informed consent
 Debriefing
 Confidentiality
 Right to Privacy
 Ethical Issues Related to the
Client
 Sponsor nondisclosure
 Purpose nondisclosure
 Findings nondisclosure
– Right to quality research
 Ethical Issues Related to
Researchers and Team
Members
 Safety

 Ethical behavior of assistants

 Protection of anonymity
Design Strategies
 What is Research Design?
A plan for selecting the sources and types of
information used to answer research
questions
 A frame work for specifying the
relationships among the study variables
 A blueprint that outlines each procedure
from the hypothesis to the analysis
 Classifications of Designs
 Exploratorystudy is usually to develop
hypotheses or questions for further research

 Formalstudy is to test the hypotheses or

answer the research question posed
 Methods of Data Collection
 Monitoring, which includes observational
studies
 Interrogation/ Communication mode
 The Power of a Researcher
 In an experiment, the researcher attempts to
control and/or manipulate the variables in
the study
 In an ex post facto design, the researcher
has no control over the variables, they can
only report what has happened
 What type of Study to use?
 Descriptive is how one variable produces
changes in another
 Causal tries to explain relationships among
variables
 The Time Dimension
 Cross-sectional studies are carried out once
and the represent a snapshot of one point
and time
 Longitudinal studies are repeated over an
extended period
 The Topical Scope
 Statistical
studies attempt to capture a
population’s characteristic’s by making
inferences form a sample’s characteristics
 Case studies place more emphasis on a full
contextual analysis of fewer events or
conditions and their interrelations
 The Research Environment
 Field Conditions

 Laboratory Conditions

 Simulations
 A Subjects’ Perceptions
 Usefulness of a design may be reduced
when people in the study perceive that
research is being conducted

 Subject’sperceptions influence the

outcomes of the research
 Why do Exploratory Studies?

 Exploration is particularly useful when

researchers lack a clear idea of the problems
 Data Collection Techniques
 Qualitative
Techniques
 Secondary Data
 Focus Groups
 Two-stage Design
 The Concept of a Causal
Study
 Theessential element of causation is that A
“produces” B or A “forces” B to occur
Relationships that Occur with
a Causal Study
 Symmetrical

 Reciprocal

 Asymmetrical
 Types of Asymmetrical
Relationships
 Stimulus-Response
 Property-Disposition
 Disposition-Behavior
 Property-Behavior
 Achieving the Ideal
Experimental Design
 Random Assignment

 Matching

– Manipulation and control of variables

Measurement
 Measurement
 Selecting observable empirical events

 Using numbers or symbols to represent

aspects of the events

 Applying a mapping rule to connect the

observation to the symbol
 What is Measured?
 Objects-things of ordinary experience and
that are not that concrete

 Properties-characteristics of objects
 Characteristics of Data
 Order

 Interval between numbers

 Origin of number series

 Data Types
 Order Interval Origin
 Nominal none - none - none

 Ordinal yes - unequal - none

 Interval yes - equal or unequal -none

 Ratio yes - equal - zero

 Sources of Measurement
Differences
 Respondent
 Situationalfactors
 Measurer or researcher
 Instrument
 Validity
 Content Validity

 Criterion-Related Validity
– Concurrent
– Predictive

 Construct Validity
 Reliability
 Stability
– Test-retest
 Equivalence
– Parallel forms
 Internal Consistency
– Split-half
– KR20
– Cronbach’s alpha
 Practicality
 Economy

 Convenience

 Interpretability
 Chapter 8
Scaling Design
 What is Scaling?
 Assigning numbers to indicants of the
properties of objects
 Types of Response Scales
 Rating Scales

 Ranking Scales
 Types of Rating Scales
 Simple category  Numerical
 Multiple choice,  Multiple fixed
multiple response rating
 Likert scale  Fixed sum
 Semantic  Stapel
differential  Graphic rating
 Rating Scales Problems to
Avoid
 Leniency
 Negative Leniency
 Central Tendency
 Halo Effect
 Types of Ranking Scales
 Paired-comparison

 Forced Ranking

 Comparative
 Dimensions of a Scale

Unidimensional

Multidimensional
 Scale Design Techniques
 Arbitrary

 Consensus

 Item Analysis
– Cumulative

 Factor
Sampling Design
 Selection of Elements
 Sampling

 Population Element

 Population

 Census
 What is a Good Sample?

 Accurate

 Precision of estimate
 Types of Sampling Designs
 Probability

 Nonprobability
 Steps in Sampling Design
 What is the relevant population?
 What are the parameters of interest?
 What is the sampling frame?
 What is the type of sample?
 What size sample is needed?
 How much will it cost?
 Concepts to help understand
Probability Sampling
 Standard error of the mean

 Confidence interval

 Central limit theorem

Probability Sampling Designs
 Simple Random
 Systemic
 Stratified
– Proportionate
 Cluster
 Double
 Designing Cluster Samples
 How homogeneous are the clusters?
 Shall we seek equal or unequal clusters?
 How large a cluster shall we take?
 Shall we use a single-stage or multistage
cluster?
 How large a sample is needed?
 Nonprobability Sampling
 Reasons to use Nonprobability Sampling
instead of Probability Sampling
– The nonprobability procedure satisfactorily
meets the sampling objectives
– Lower cost
– Limited Time
– Not as much human error as selecting a
completely random sample
– Total list population not available
 Nonprobability Sampling
Designs
 Convenience Sampling
 Purposive Sampling
– Judgement Sampling
– Quota Sampling
 Snowball Sampling
Secondary Data Sources
 Information is Classifies by
Two Sources:

 Primary Data

 Secondary Data
 Uses of Secondary Data
 Provides specific reference or citation on
some point
 Helps decide what further research needs to
be done
 Justifies bypassing the costs and benefits of
doing primary research
 May be used as the sole basis for a research
study
 Classifying Secondary Data
 By Source
 By Category
 By Medium
 By Database format
 Classifying Secondary Data
by Source

Internal

External
 Classifying Secondary Data
by Category
 Database
 Periodicals
 Government Documents
 Special Collections
 Classifying Secondary Data
by Medium
 Hard copy

– Local-area on-line

– Internet
 The Library’s Role in
Research
 Resources may be acquired through
interlibrary loans (ILL)
 Certain Databases are available on a local-
area network (LAN)
 Access to the internet an commercial CD/
DVD-ROM
 Strategy for Searching for
Secondary Data
 Selectand analyze a topic
 Explore the topic and state a hypothesis
 Get an overview and retrospective
information
 Get more current and specific information
 Get more in-depth information
 Evaluate and close the library research
 Using Search Engines and
Indexes
 The search engine consists of two elements:
– Robot/Crawler
– Indexer
 How to Keep Track of
Research?
 Be selective in what you record

 Decidehow to record what you will extract

from the published material

 Develop an orderly recording system

 Survey Methods:
Communicating with
Respondents
 Communication Approach
Impacts the Research
Process
 Creation and selection of measurement
questions
 Sampling issues, drive contact and callback
procedures
 Instrument design, which incorporates
attempts to reduce error and create
respondent-screening procedures
 Data collection procedures and possible
interviewer training
 Personal Interview
 Requirements for success
– Availability of the needed information from the
respondent
– An understanding by the respondent of his or
her role
– Adequate motivation by the respondent to
cooperate
 Personal Interview
 ToIncrease Respondent’s Receptiveness
they must
– believe the experience will be pleasant and
satisfying
– think answering the survey is an important and
worthwhile use of their time
– have any mental reservations satisfied
 The Interview
 Introduction
– Establish a good relationship

 Gather the data

– Probing

 Record the Interview

 Probing Styles
A brief assertion of understanding and
interest
 An expectant pause
 Repeating the question
 Repeating the respondent’s reply
 A neutral question or comment
 Question clarification
 Interview Problems
 Non-response error

 Response error

 Interviewer error
– Cost
 Telephone Interview
 Types
– Computer-assisted telephone interviewing
– Computer-administered telephone survey

 Problems
– Non-contact rate
– Refusal rate
 Self-Administered
 Types
– Intercept study
– Mail survey

 Disadvantages
– Large non-response error
– Cannot obtain detailed or large amounts of
information
 Concurrent Techniques to
Improve Mail Response
 Reduce Length  Anonymity
 Survey Sponsorship  Size,color, and
 Return Envelopes reproduction
 Postage  Money Incentives

 Personalization  Deadline Dates

 Cover Letters
 Outsourcing Survey Services
 Research Firms Provide
– Centralized-location interviewing
– Focus group facilities
– Trained staff with experience
– Data-processing and statistical analysis
capabilities
– Access to point of scale data
 Panels
Instruments For Respondent
Communication
 3 Phases of the Instrument
Design Process
 Developing the instrument design process

 Constructing and refining the measurement

questions

 Drafting and refining the instrument

 Developing the Instrument
Design Strategy
 You must go through four question levels:
– The management question
– Research question
– Investigative questions
– Measurement questions
 Strategic Concerns of
Instrument Design
 What type of data is needed to answer the
management question
 What communication approach will be used
– Should the question be structured, unstructured,
or some combination
– Should the question be disguised or
undisguised
 Ways to Interact with the
Respondent
 PersonalInterview
 Telephone
 Mail
 Computer
 What are the Three Types of
Measurement Questions?
 Target
 Classification
 Administrative
 4 Questions for Selecting
Appropriate Question Content
 Should this question be asked?
 Is the question of proper scope and
coverage?
 Can the respondent adequately answer this
question, as asked?
 Will the respondent willingly answer this
question, as asked?
 How to test a Respondent’s
Knowledge
 Filter Questions

 Screen Questions
 Question Wording Criteria
 Is the question stated in terms of a shared
vocabulary?
 Does the question contain vocabulary with
a single meaning?
 Does the question contain unsupported
assumptions?
 Is the question correctly personalized?
 Are adequate alternatives presented within
the question?
What Dictates Your Response
Strategy?
 Characteristics of respondents
 Nature of the topic being studied
 Type of data needed
 Your analysis plan
Types of Response Questions
 Free-response
 Dichotomous
 Multiple choice
 Rating
 Ranking
 Guidelines to Refining the
Instrument
 Awaken the respondent’s interests

 Usebuffer questions as a guide to request

sensitive information

 Usethe funnel approach to move to more

specific questions
 Final Step Toward Improving
Survey Results
 Pre-testing is an established practice for
discovering errors and useful for training
the research team
Observational Studies
 Observation
 Non-behavioral observation
– Record analysis
– Physical condition analysis
– Physical process analysis
 Behavioral observation
– nonverbal analysis
– Linguistic analysis
– Extra-linguistic analysis
– Spatial analysis
 Advantages of the
Observational Method
 Only method available to collect certain
types of data
 Collect the original data at the time it occurs
 Secure information that participants would
ignore because it’s so common it is not seen
as relevant
 Advantages of the
Observational Method (cont..)
 Capture the whole event as it occurs in its
natural environment
 Subjects seem to accept an observational
intrusion better than they respond to
questioning
 Limitations of the
Observational Method
 Observer or recording equipment must be at
the scene of the event when it takes place
 Slow process
 Expensive process
 Most reliable results are restricted to
information that can be learned by overt
action or surface indicators
 Limitations of the
Observational Method (cont..)
 Research environment is more likely suited
to subjective assessment and recording of
data than to quantification of events
 Limited as a way to learn about the past
 Cannot observe rationale for actions, only
actions themselves
 Relationship between
observer and subject
 Direct or indirect observation
 Observer’s presence known or unknown to
the subject
 Observer’s involvement level with the
respondent
 Observation
 Direct
 Indirect
 Participant
 Simple
 Systematic
 Guidelines for selecting
observers
 Ability to concentrate in a setting full of
distractions
 Ability to remember details of an
experience
 Ability to be unobtrusive in the
observational situation
 Data collection
 Who?
 What?
– Event Sampling
– Time Sampling
 When?
 How?
Experimentation
 Types of variables in
Experiments

 Independent Variables

 Dependent Variables
 What are the Advantages of
an Experiment?
 Researcher’s ability to manipulate the
independent variable
 Contamination from extraneous variables
can be controlled more efficiently
 Convenience and cost
 Replication
What are the Disadvantages?
 Artificialityof the laboratory
 Generalization from non-probability
samples
 Larger budgets needed
 Restricted to problems of the present or
immediate future
 Ethical limits to manipulation of people
 How to Conduct an
Experiment?
 Select relevant variables
 Specify the treatment levels
 Control the experimental environment
 Choose the experimental design
 Select and assign the subjects
 Pilot-test, revise, and test
 Analyze the data
 Ways to Assign Subjects?
 Random Assignment

 Matching Assignment

 Quota Matrix
 Does a Measure Accomplish
What it Claims?
 Internal validity

 External validity
 Variations in Experimental
Designs
 Pre-experimental designs

 True experimental designs

 Field experiments
 Types of Pre-experimental
Designs?
 One-shot case study

 One-group pretest-posttest design

 Static group comparison

 Types of True Experimental
Designs

 Pretest-posttest control group design

 Posttest only control group design

 Operational Extensions of
True Designs
 Completely randomized designs
 Randomized block design
 Latin square
 Factorial design
 Covariance analysis
 What are Field Experiments:
Quasi or Semi?
 Non equivalent control group design

 Separate sample pretest-posttest design

 Group time series design

Data preparation and
Preliminary Analysis
 Editing
 Detectserrors and omissions, corrects them
when possible, and certifies that minimum
data quality standards are achieved
 Editing (cont..)
 Guarantees that data are
– accurate
– consistent with other information
– uniformly entered
– complete
– arranged to simplify coding and tabulation
 Coding
 Rulesthat guide the establishment of
category sets
– Appropriate to the research problem and
purpose
– Exhaustive
– Mutually exclusive
– Derived from one classification principal
 Content Analysis
 Follows a systematic process with the
selection of a unitization scheme
– Syntactical unit
– Referential unit
– Propositional unit
– Thematic unit
 Data Entry Options
 OpticalScanning
 Spreadsheets
 Data warehouse
– Transformation and cleaning
– End-user access tools
 Data marts
 Descriptive Statistics
 Distribution  Variance
 Standard normal  Standard deviation
distribution  Range
 Central tendency  Interquartile range
– Mean  Skewness
– Median
 Kurtosis
– Mode
 Variability
 Techniques to Display and
Examine Distributions
 Frequency table
 Histograms
– Display all intervals in a distribution, even
without observed values
– Examine the shape of the distribution for
Skewness, kurtosis, and the modal pattern
 Stem and leaf display
 Techniques (cont.)
 Box and whisker-plot
– Rectangular plot tat encompasses 50% of the
data values
– A center line marking the median and going go
through the width of the box
– The edges of the box (hinges)
– Whiskers that extend from the right and left
hinges to the largest and smallest values
 Techniques (cont.)
 Transformation
– To improve interpretation and compatibility
with other data sets
– To enhance symmetry and stabilize spread
– To improve linear relationships between and
among variables
 Data Mining Techniques
 Data visualization
– Dimensions
– Measurements
– Hierarchies
 Clustering
 Neural networks
 Tree Models
 Classification
 Data Mining Techniques
(cont.)
 Market-Basket Analysis
 Sequence Based Analysis
 Fuzzy Logic
 Genetic Algorithms
 Fractal-base Transformation
 Data Mining Process
 Sample
 Explore
 Modify
 Model
 Assess
Hypothesis Testing
 Two Approaches to
Hypothesis Testing

 Classical Statistics

 Bayesian Statistics
 Types of Hypotheses

 Null

 Alternative
 The Logic of Hypothesis
Testing
 Two tailed test

 One tailed test

 Decision Errors in Testing
 Type I error

 Type II error
 Testing for Statistical
Significance
 Statethe null hypothesis
 Choose the statistical test
 Select the desired level of significance
 Compute the calculated difference value
 Obtain the critical value
 Make the decision
 What are Significant Tests?

 Parametric tests

 Non-parametric tests
 How to Test the Null
Hypothesis

 Analysis of variance (ANOVA)

 How to select a test
 Does the test involve one sample, two
samples, or k samples?
 If two samples or k samples are involved,
are the individual cases independent or
related?
 Is the measurement scale nominal, ordinal,
interval, or ratio?
 When to use the K Related
Sample Tests
 The grouping factor has more than two
levels
 Observations or subjects are matched or the
same subject is measured more than once
 The data are at least interval
Measures of Association
Bivariate Correlation vs.. Non-
parametric Measures of
Association
 Parametric correlation requires two
continuous variables measured on an
interval or ratio scale
 The coefficient does not distinguish
between independent and dependent
variables
Bivariate Correlation Analysis
 Pearson correlation coefficient
– r symbolized the coefficient’s estimate of linear
association based on sampling data
– Correlation Coefficients reveal the magnitude
and direction of relationships
– Coefficient’s sign (+ or -) signifies the direction
of the relationship
 Assumptions of r
– Linearity
–
Bivariate Correlation Analysis
 Scatterplots
– Provide a means for visual inspection of data
– Both direction and shape of a relationship are
conveyed
 Interpretation of Coefficients
 Coefficient of determination
 Correlation matrix
– used to display coefficients for more than two
variables
 Correlation coefficient does not imply
causation
 Interpretation of Coefficients
 Suggests alternate explanations for
correlation results
– X causes Y, or Y causes X, or X&Y are
activated by one or more other variables, or
X&Y influence each other reciprocally
 Practical Significance
 Statistical Significance
 Artifact correlations
 Bivariate Linear Regression
 Used to make simple and multiple
predictions
 Regression coefficients
– Slope
– Intercept
 Error
term
 Method of least squares
Interpreting Linear Regression
 Residuals

 Prediction and confidence bands

Interpreting Linear Regression
 Goodness of fit
– Zero slopes come from
 Y completely unrelated to X and no systematic

pattern is evident
 Constant values of Y for every value of X

 data are related, but represented by a nonlinear

function
– Tests
 t test
 F test


 Non-parametric Measures of
Association
 Measures for nominal data
– When there is no relationship at all, coefficient
should be 0
– When there is a complete dependency, the
coefficient should display unity or 1
 Non-parametric Measures of
Association
 Chi-square based measure
– Phi
– Cramer’s V
– Contingency coefficient of C
 Proportional reduction in error (PRE)
– Lambda
– Tau
 Characteristics of Ordinal
Data
 Concordant- subject ranks higher on one
variable also ranks higher on the other
variable
 Discordant- subject ranks higher on one
variable is ranked lower on the other
variable
 Measures for Ordinal Data
 Gamma
 Somer’s d
 Spearman’s rho
 Kendall’s tau b
 Kendall’s tau c
– No assumption of bivariate normal distribution
– Values range from +1.0 to -1.0
Multivariate Analysis:
An Overview
 Selecting a Multivariate
Technique

 Dependency

 Interdependency
 What are Dependency
Techniques?
 Multiple regression
 Discriminant analysis
 Multivariate analysis if variance, or
MANOVA
 Linear structural relationships, or LISREL
 Conjoint analysis
 What are Interdependency
Techniques?
 Factor analysis

 Cluster analysis

 Multidimensional scaling (MDS)

Use Multiple Regression as a
Descriptive Tool
 Predictvalues for a criterion variable by
developing a self-weighting estimating
equation
 Control for confounding variables to better
evaluate the contribution other variables
 Test and explain causal theories
Uses for Discriminant Analysis
 Classify persons or objects into various
groups
 Analyze known groups to determine the
relative influence of specific factors
 Why Use MANOVA?
 Inbusiness research, MANOVA can be
used to test differences among samples of
employees, customers, manufactured items,
and production parts.
 The Two Models of LISREL
 Measurement

 Structural equation
 Applications for Conjoint
Analysis
 Market Research

 Product development
 What is Factor Analysis?
 Computational techniques that reduce
variables to a manageable number

 Measurement statistics
 Five Basic Steps to the
Application of Cluster Studies
 Selection of the sample to be clustered
 Definition of the variables on which to
measure the objects, events, or people
 computation of similarities among the
entities through correlation, Euclidean
distances, and other techniques
 Selection of mutually exclusive clusters
 Cluster comparison and validation
 What does Multidimensional
Scaling Do?
 Creates a special description of a
respondent’s perception about a product,
service, or other object of interest
Written and Oral Reports
 Written Research Report
 Short report
– Tell the reader why you are writing
– If in response, remind reader the exact point,
answer it, and follow with details
– Write in expository style with brevity and
directness
– Write report today and leave it for tomorrow to
review before sending it
– Attach detailed material as appendices when
needed
 Written Research Report
 Long report
– Technical report
– Management report
Research Report Components
 Methodology
 Prefatory Items
– Sampling design
– Letter of transmittal
– Research design
– Title page
– Data collection
– Authorization letter
– Data analysis
– Executive summary
– Limitations
– Table of contents
 Conclusions
 Introduction
– Summary and
– Problem Statement
conclusions
– Research objectives
– Recommendations
– Background
– Appendices
– Bibliography
Written Report Considerations
 Order
– Sentence outline
– Topic outline
 Readability indices
 Pace
 Tone
 Presentation of Statistics
 Text paragraph
 Semi-tabular form
 Tables
 Graphics
 Graphics
 Line graphs  Control charts
 Area charts – Outliners- observations
that fall outside the
 Pie charts
control lines
 Bar charts – Runs- data points in a
 Pictograph series above or below
the central line
 3-D graphics
 Pareto diagram
 Oral Presentations
 Preparation
– Length
– Content
– Opening
– Findings and conclusions
– Recommendations
 Outline
 Delivery
– Vocal Characteristics
– Physical Characteristics
 Audiovisuals
 Chalkboard and whiteboards
 Handout material
 Flip charts
 Overhead transparencies
 Slides
 Computer drawn visuals
 Computer animation