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Business Research Methods: Bivariate Analysis - Tests of Differences

1) The document discusses different statistical tests that can be used to analyze differences between groups, including t-tests, z-tests, ANOVA, and chi-square tests. 2) It provides formulas and explanations for how to calculate statistics for these tests such as pooled standard errors, test statistics, and degrees of freedom. 3) Examples are given of how to set up and perform chi-square, t-test, z-test, and ANOVA analyses to test for differences between groups.

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Nishat Tasnim
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84 views56 pages

Business Research Methods: Bivariate Analysis - Tests of Differences

1) The document discusses different statistical tests that can be used to analyze differences between groups, including t-tests, z-tests, ANOVA, and chi-square tests. 2) It provides formulas and explanations for how to calculate statistics for these tests such as pooled standard errors, test statistics, and degrees of freedom. 3) Examples are given of how to set up and perform chi-square, t-test, z-test, and ANOVA analyses to test for differences between groups.

Uploaded by

Nishat Tasnim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business

Research Methods

William G. Zikmund

Chapter 22:
Bivariate Analysis -
Tests of Differences
Common Bivariate Tests

Differences between Differences among


Type of Measurement two independent three or more
groups independent groups

Independent groups: One-way


Interval and ratio
t-test or Z-test ANOVA
Common Bivariate Tests

Differences between Differences among


Type of Measurement two independent three or more
groups independent groups

Mann-Whitney U-test
Ordinal Kruskal-Wallis test
Wilcoxon test
Common Bivariate Tests

Differences between Differences among


Type of Measurement two independent three or more
groups independent groups

Z-test (two
Nominal proportions) Chi-square test
Chi-square test
Type of Differences between
Measurement two independent groups

Nominal Chi-square test


Differences Between Groups
• Contingency Tables
• Cross-Tabulation
• Chi-Square allows testing for significant
differences between groups
• “Goodness of Fit”
Chi-Square Test

x² = chi-square statistics
Oi = observed frequency in the ith cell
Ei = expected frequency on the ith cell
Chi-Square Test

Ri = total observed frequency in the ith row


Cj = total observed frequency in the jth column
n = sample size
Degrees of Freedom

(R-1)(C-1)=(2-1)(2-1)=1

*
Degrees of Freedom

d.f.=(R-1)(C-1)
Awareness of Tire
Manufacturer’s Brand

Men Women Total


Aware 50 10 60

Unaware 15 25 40
65 35 100
Chi-Square Test: Differences
Among Groups Example
2
X =3.84 with 1 d.f.
Type of Differences between
Measurement two independent groups

Interval and t-test or


ratio Z-test
Differences Between Groups
when Comparing Means
• Ratio scaled dependent variables
• t-test
– When groups are small
– When population standard deviation is
unknown
• z-test
– When groups are large
Null Hypothesis About Mean
Differences Between Groups
t-Test for Difference of Means
t-Test for Difference of Means

X1 = mean for Group 1


X2 = mean for Group 2
SX1-X2 = the pooled or combined standard error
of difference between means.
t-Test for Difference of Means
t-Test for Difference of Means

X1 = mean for Group 1


X2 = mean for Group 2
SX1-X2 = the pooled or combined standard error
of difference between means.
Pooled Estimate of the
Standard Error
Pooled Estimate of the
Standard Error

S12 = the variance of Group 1


S22 = the variance of Group 2
n1 = the sample size of Group 1
n2 = the sample size of Group 2
Pooled Estimate of the Standard Error
t-test for the Difference of Means

S12 = the variance of Group 1


S22 = the variance of Group 2
n1 = the sample size of Group 1
n2 = the sample size of Group 2
Degrees of Freedom

• d.f. = n - k
• where:
– n = n 1 + n2
– k = number of groups
t-Test for Difference of Means
Example
Type of Differences between
Measurement two independent groups

Nominal Z-test (two proportions)


Comparing Two Groups when
Comparing Proportions
• Percentage Comparisons
• Sample Proportion - P
• Population Proportion -
Differences Between Two Groups
when Comparing Proportions
The hypothesis is:
Ho: Π1 = Π2

may be restated as:


Ho: Π1 − Π2 = 0
Z-Test for Differences of
Proportions

or
Z-Test for Differences of
Proportions
Z-Test for Differences of
Proportions
p1 = sample portion of successes in Group 1
p2 = sample portion of successes in Group 2
(π1 − π1) = hypothesized population proportion 1
minus hypothesized population
proportion 1 minus
Sp1-p2 = pooled estimate of the standard errors of
difference of proportions
Z-Test for Differences of
Proportions
Z-Test for Differences of
Proportions

p = pooled estimate of proportion of success in a


sample of both groups
p = (1- p) or a pooled estimate of proportion of
failures in a sample of both groups
n1= sample size for group 1
n2= sample size for group 2
Z-Test for Differences of
Proportions
Z-Test for Differences of
Proportions
A Z-Test for Differences of
Proportions
Type of Differences between
Measurement three or more
independent groups

Interval or ratio One-way


ANOVA
Analysis of Variance

Hypothesis when comparing three groups


μ1 = μ2 = μ3
Analysis of Variance
F-Ratio
Analysis of Variance
Sum of Squares
Analysis of Variance
Sum of SquaresTotal
Analysis of Variance
Sum of Squares

pi = individual scores, i.e., the ith observation or


test unit in the jth group
pi = grand mean
n = number of all observations or test units in a
group
c = number of jth groups (or columns)
Analysis of Variance
Sum of SquaresWithin
Analysis of Variance
Sum of SquaresWithin
pi = individual scores, i.e., the ith observation or
test unit in the jth group
pi = grand mean
n = number of all observations or test units in a
group
c = number of jth groups (or columns)
Analysis of Variance
Sum of Squares Between
Analysis of Variance
Sum of squares Between
= individual scores, i.e., the ith observation or
test unit in the jth group
= grand mean
nj = number of all observations or test units in a
group
Analysis of Variance
Mean Squares Between
Analysis of Variance
Mean Square Within
Analysis of Variance
F-Ratio
A Test Market Experiment
on Pricing
Sales in Units (thousands)
Regular Price Reduced Price Cents-Off Coupon
$.99 $.89 Regular Price

Test Market A, B, or C 130 145 153


Test Market D, E, or F 118 143 129
Test Market G, H, or I 87 120 96
Test Market J, K, or L 84 131 99
Mean
X1=104.75 X2=134.75 X1=119.25
Grand Mean
X=119.58
ANOVA Summary Table
Source of Variation
• Between groups
• Sum of squares
– SSbetween
• Degrees of freedom
– c-1 where c=number of groups
• Mean squared-MSbetween
– SSbetween/c-1
ANOVA Summary Table
Source of Variation
• Within groups
• Sum of squares
– SSwithin
• Degrees of freedom
– cn-c where c=number of groups, n= number of
observations in a group
• Mean squared-MSwithin
– SSwithin/cn-c
ANOVA Summary Table
Source of Variation
• Total
• Sum of Squares
– SStotal
• Degrees of Freedom
– cn-1 where c=number of groups, n= number of
observations in a group

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