Chapter 11

CHAPTER
11:
BASIC DATA
A N A LY S I S
SUBTOPICS
Stages of data analysis
Editing and coding of data
Tabulation
Cross -tabulation
Data transformation
Descriptive statistics
Inferential statistics
Stages
of data
analysis
Editing and coding of data
• Editing: the process of checking and adjusting data for omissions,
consistency, and legibility to get the data ready for analysis
• Coding: the process of assigning a numerical score or other character
symbol to previously edited data
• Coding in qualitative research: the codes are usually words or phrases
that represent themes
• Coding in quantitative research: the codes usually numbers that
represent the responses
• In most studies with large sample sizes, a computer is used for data
processing
Descriptive statistics
• Descriptive
analysis is the
elementary
transformation of
data in a way that
describes the basic
characteristics
such as central
tendency,
distribution, and
variability.
Presenting descriptive statistics: Tabulation
• Tabulation: the orderly arrangement of data in a table or other
summary format.
• Frequency table: A table showing the different ways respondents
answered a question
Presenting descriptive statistics: Cross
-tabulation
• Cross-tabulation: The
appropriate technique for
addressing research questions
involving relationships among
multiple less-than interval
variables; results in a
combined frequency table
displaying one variable in
rows and another in columns
Data transformation
• Data transformation (also called data conversion): the process of
changing the data from their original form to a format suitable for
performing a data analysis that will achieve research objectives.
• Basic data transformations include reverse coding, summating scales,
creating index numbers, and collapsing a variable based on a median
split
Computer Programs for Analysis
• Excel, SAS, and SPSS account for most of the statistical analysis
conducted in business research.
Interpretation
• Interpretation is drawing inferences from the analysis results.
Inferences drawn from interpretations lead to managerial implications.
Inferential statistics: Univariate, Bivariate &
Multivariate statistical analysis
• Univariate statistical analysis tests hypotheses involving only one
variable.
• Bivariate statistical analysis tests hypotheses involving two variables.
• Multivariate statistical analysis tests hypotheses and models involving
multiple (three or more) variables or sets of variables.
Inferential statistics: Univariate statistical
analysis
• Tests hypotheses involving only one variable
• Hypotheses about differences from some standard—examine how
some variable differs from some preconceived standard.
• Significance level: A critical probability associated with a statistical
hypothesis test that indicates how likely an inference supporting a
difference between an observed value and some statistical expectation
is true.
• p-value: Probability value, or the observed or computed significance
level; p-values are compared to significance levels to test hypotheses
Inferential statistics: Univariate statistical
analysis (Example)
The Pizza-In restaurant is concerned about store image before deciding
whether to expand. Pizza-In managers are most interested in how
friendly customers perceive the service to be. A sample of 225
customers was obtained and asked to indicate their perceptions of
service on a five-point scale, where 1 indicates “very unfriendly”
service and 5 indicates “very friendly” service.
Inferential statistics: Univariate
statistical analysis (Type I & II error)
• The researcher using sampling runs the risk of committing two types
of errors.
Inferential statistics: Univariate statistical analysis
(Parametric vs Nonparametric statistics)
• Parametric statistics
- Involve numbers with known, continuous distributions; when the
data are interval or ratio scaled and the sample size is large,
parametric statistical procedures are appropriate
- assume that the data in the study are drawn from a
population with a normal (bell-shaped) distribution and/or
normal sampling distribution
- Possible statistical tests might include product-moment
correlation analysis, analysis of variance, regression, or a t- test for
a hypothesis about a mean.
(Parametric vs Nonparametric statistics)
• Nonparametric statistics
- appropriate when the numbers do not conform to a known
distribution when data are nominal and ordinal scales
(Choosing the Appropriate Statistical Technique)
Inferential statistics: Bivariate statistical
analysis
• tests hypotheses involving two variables.
• Cross-tabulations and the Chi-square test are appropriate when both
variables are less-than interval level
• Independent samples t-test: A test for hypotheses stating that the mean
scores for some interval- or ratio-scaled variable grouped based on
some less-than interval classificatory variable.
• Paired-samples t-test: comparing the scores of two interval variables
drawn from related populations
Inferential statistics: Bivariate statistical
analysis
• Z-test for differences of proportions: test the hypothesis that
proportions are significantly different for two independent samples or
groups
• analysis of variance (ANOVA): investigation of the effects of one
treatment variable on an interval-scaled dependent variable—to
determine whether statistically significant differences in means occur
between two or more groups.
• F-test: to determine whether there is more variability in the scores of
one sample than in the scores of another sample
Inferential statistics: Multivariate statistical
analysis
• Research that involves three or more variables, or that is concerned
with underlying dimensions among multiple variables
• The variate is a mathematical way in which a set of variables can be
represented with one equation.
• A variate is formed as a linear combination of variables, each
contributing to the overall meaning of the variate based upon an
empirically derived weight.
• Mathematically, the variate is a function of the measured variables
involved in an analysis
V = variate
L = parameter estimates /weight
X = variable
analysis (Dependence vs Interpendence)
analysis (Dependence vs Interpendence)
• Dependence techniques: Multivariate statistical techniques that
explain or predict one or more dependent variables.
• Interdependence techniques: Multivariate statistical techniques that
give meaning to a set of variables or seek to group things together; no
distinction is made between dependent and independent variables.
analysis (Dependence Techniques)
analysis (Dependence Techniques)
analysis (Interdependence Techniques)
analysis (Interdependence Techniques)

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