HYPOTHESIS TESTING

GROUP MEMBERS
HEMANT KAUSHIK SANDEEP KUMAR SINGH DEEPAK CHAUDHARY SATYAJEET BHATTACHARYA SUSHANT SHETTY DHARMENDRA MEHTA : : : : : : 011194 011195 011193 011189 011160 011171

HYPOTHESIS TESTING

Inductive Reasoning

Deductive Reasoning

18-3

STATISTICAL PROCEDURES

Inferential Statistics

Descriptive Statistics

18-4

APPROACHES TO HYPOTHESIS TESTING

CLASSICAL STATISTICS Objective view of probability Established hypothesis is rejected or fails to be rejected Analysis based on sample data

BAYESIAN STATISTICS Extension of classical approach Analysis based on sample data Also considers established subjective probability estimates

TYPES OF HYPOTHESES
Null

H0: = 50 mpg H0: < 50 mpg H0: > 50 mpg HA: = 50 mpg HA: > 50 mpg HA: < 50 mpg

Alternate

STATISTICAL TESTING PROCEDURES

State null hypothesis Interpret the test Choose statistical test

Stages

Obtain critical test value Compute difference value 18-7

Select level of significance

TESTS OF SIGNIFICANCE

Parametric

Nonparametric

18-8

ASSUMPTIONS FOR USING PARAMETRIC TESTS

Independent observations Normal distribution Equal variances

Interval or ratio scales

18-9

ADVANTAGES OF NONPARAMETRIC TESTS

Easy to understand and use Usable with nominal data

Appropriate for ordinal data

Appropriate for non-normal population distributions
18-10

HOW TO SELECT A TEST

How many samples are involved?

If two or more samples are involved, are the individual cases independent or related? Is the measurement scale nominal, ordinal, interval, or ratio?

18-11

PARAMETRIC TESTS

Z-test

t-test

18-12

TWO-SAMPLE PARAMETRIC TESTS

TWO-RELATED-SAMPLES TESTS

Parametric

Nonparametric

18-14

k-Related-Samples Tests
More than two levels in grouping factor Observations are matched

Data are interval or ratio

18-15

CLASSIFYING MULTIVARIATE TECHNIQUES

Dependency

Interdependency

20-16

DEPENDENCY TECHNIQUES
Multiple Regression Discriminant Analysis

MANOVA Structural Equation Modeling (SEM)

20-17

Conjoint Analysis

USES OF MULTIPLE REGRESSION

Develop self-weighting estimating equation to predict values for a DV

Control for confounding Variables

Test and explain causal theories

20-18

GENERALIZED REGRESSION EQUATION

CLUSTER ANALYSIS
Select sample to cluster Define variables

Compute similarities Select mutually exclusive clusters

Compare and validate cluster 20-20

REGRESSION ANALYSIS

Refers to statistical techniques for measuring the relationship between a dependent variable and one or more independent variables. The relationship between two variables is characterized by how they vary together.

CORRELATION ANALYSIS

Statistical techniques for measuring the closeness of the relationship between variables. It measures the degree to which changes in one variable are associated with changes in another. It can only indicate the degree of association or covariance between variables. Covariance is a measure of the extent to which two variables are related.

WHAT IS FACTOR ANALYSIS ?

FA and PCA (principal components analysis) are methods of data reduction

Take

many variables and explain them with a few factors or components Correlated variables are grouped together and separated from other variables with low or no correlation

Process of providing an operational definition for latent construct (through regression equation) FA and PCA are not much different than canonical correlation in terms of generating canonical variates from linear combinations of variables
Although

there are now no sides of the equation And your not necessarily correlating the factors, components, variates, etc.

GENERAL STEPS TO FACTOR ANALYSIS

Step 1: Selecting and Measuring a set of variables in a given domain Step 2: Data screening in order to prepare the correlation matrix Step 3: Factor Extraction Step 4: Factor Rotation to increase interpretability Step 5: Interpretation Further Steps: Validation and Reliability of the measures

WHAT IS SPSS?

A commercially produced statistical software package that is widely used in the fields of Education and Psychology Program functionality is broken into over a dozen different modules which are sold individually Most commonly used are Base, Regression Models, and Advanced Models Other modules can be installed to run more complex analyses SPSS data files include both the data and also variable information (variable and value labels, formats and missing values)

SPSS - STRENGTHS

Easily opens data from other programs such as Excel and SAS

Variable view screen allows for quick overview of file contents and allows for easy modifications of names, formats, labels, and variable order Having all data information in a single file allows sharing files on a project to be very easy Point-and-click menus do not require memorizing syntax for majority of procedures Many procedures can be expanded beyond the menu options in syntax Split-file command allows all output to be replicated for various groups through a single command

SPSS - WEAKNESSES

Ease of doing data manipulation can sometimes lead to mistakes as the program does not preclude inappropriate modifications to the data Matching feature requires exact match

Duplicate records generate warnings but can be marked in file

Error logs are hard to interpret at times Incompleteness of menus means some options are only available via syntax While the majority of output is saved as pivot tables allowing great flexibility in modifying tables

Output tables and graphs generally not done as well as Excel and are harder to manipulate