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QUANTITATIVE METHODS

CORRELATION and REGRESSION


Mrs. Sahar Afshan

Correlation

Correlation
refers to Linear relationships
implying singular association

Strong linear relationship


When the points lie close to a straight
line, and weak if they are widely
scattered

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Correlation (r)
Purpose:
Measures the direction and
strength of the linear relationship
between two quantitative variables

Represented by r.
There is no assumption of causality
Assumes a linear association between
two variables.

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Correlation

The r-value. Indicates strength and direction


() of the correlation.
Bigger is better.
The * means we can reject the null
hypothesis (Ho).

The p-value: aim is to reject null hypothesis


(Ho)
Smaller is better.
Reject Ho if p is less than.05
[e.g., .046 is less .05, so Reject Ho.]

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Regression Analysis
Regression analysis examines the causal
relationships between a metric dependent variable
(henceforth DV) and one or more independent
variables (henceforth IV) in the following ways:

Whether a relationship exists.

Strength of the relationship.

The mathematical equation relating the

independent and
dependent variables.

Predict the values of the dependent variable.

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Major Types of Regression


1) Linear Regression:
One DV and one IV
Regression Equation:

Y=c+X+e

Where Y = DV of the study


X = IV of the study
2) Multiple Regression:
One DV but more than one IV
Regression Equation: Y = c + X1 + X2 + x3 + e
Where Y = DV of the study
X1, X2, X3 = IVs of the study
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Statistics Associated with


Multiple Regression

Adjusted R2. R2, coefficient of multiple


determination, explains the percentage of variance in
dependent variable that is caused by the independent
variable.

Coefficient (Beta Values).


How much unit change is brought in DV when IV is
changed by one unit.
The sign of beta reflects the direction of a relationship

P-value. The p-value refers to the test of significance


of the studied hypothesis.
For accepting the studied hypothesis, we are required
to reject null hypothesis. Thus p-values should be less
than 0.05 for rejecting the null hypothesis.

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Conducting Multiple Regression


Analysis
Examination
of Residuals

A residual (e) is the difference between


the actual value of (Ya ) and the value
predicted by the regression equation
(Yr)

A constant (C) is the value of Yr when


all other values (of IVs) are zero.

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Hypothesized Model
Our Studied Model
PEP
OID
POS
Where,
PEP = perceived employ performance
POS = perceived organizational support
OID = organizational development

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Hypotheses
H1: There is a positive significant effect of
PEP on OID

H2: There is a positive significant effect of


POS on OID

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