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Business Research Methods: Bivariate Analysis - Tests of Differences
Business Research Methods: Bivariate Analysis - Tests of Differences
Business Research Methods: Bivariate Analysis - Tests of Differences
Research Methods
William G. Zikmund
Chapter 22:
Bivariate Analysis -
Tests of Differences
Common Bivariate Tests
Differences among
Differences between
Type of Measurement three or more
two independent groups
independent groups
Differences among
Differences between
Type of Measurement three or more
two independent groups
independent groups
Mann-Whitney U-test
Ordinal Kruskal-Wallis test
Wilcoxon test
Common Bivariate Tests
Differences among
Differences between
Type of Measurement three or more
two independent groups
independent groups
(Oi Ei )²
x²
Ei
x² = chi-square statistics
Oi = observed frequency in the ith cell
Ei = expected frequency on the ith cell
Chi-Square Test
Ri C j
Eij
n
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
(50 39 ) 2
(10 21) 2
X
2
39 21
(15 26 ) 2
( 25 14 ) 2
26 14
3.102 5.762 4.654 8.643
2
22.161
2
d . f . ( R 1)(C 1)
d . f . ( 2 1)( 2 1) 1
1 2
OR
0
1 2
t-Test for Difference of Means
mean 1 - mean 2
t
Variabilit y of random means
t-Test for Difference of Means
1 2
t
S X1 X 2
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
1 2
t
S X1 X 2
t-Test for Difference of Means
n1 1 S ( n2 1) S
2 2
) 1 1
S X1 X 2 1 2
n1 n2 2 n1 n2
Pooled Estimate of the
Standard Error
n1 1 S12 ( n2 1) S 22 ) 1 1
S X1 X 2
n1 n2 2 n1 n2
Ho : 1 2
or
Ho : 1 2 0
Z-Test for Differences of
Proportions
Z
p1 p2 1 2
S p1 p2
Z-Test for Differences of
Proportions
p1 = sample portion of successes in Group 1
p2 = sample portion of successes in Group 2
1 1)= 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
1 1
S p1 p2 pq
n
1 n2
Z-Test for Differences of
Proportions
n1 p1 n2 p2
p
n1 n2
Z-Test for Differences of
Proportions
1 1
S p1 p2 .375 .625
100 100
.068
A Z-Test for Differences of
Proportions
p
100 .35 100 .4
100 100
.375
Differences between
Type of
three or more
Measurement
independent groups
n c
SS total ( X ij X ) 2
i 1 j 1
Analysis of Variance
Sum of Squares
n c
SS within ( X ij X j ) 2
i 1 j 1
Analysis of Variance
Sum of SquaresWithin
pi ij= individual scores, i.e., the ith observation or
X
test unit in the jth group
pi = grand mean
X
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
n
SS between n j ( X j X ) 2
j 1
Analysis of Variance
Sum of squares Between
X j= individual scores, i.e., the ith observation or
test unit in the jth group
X = grand mean
nj = number of all observations or test units in a
group
Analysis of Variance
Mean Squares Between
SS between
MS between
c 1
Analysis of Variance
Mean Square Within
SS within
MS within
cn c
Analysis of Variance
F-Ratio
MS between
F
MS within
A Test Market Experiment
on Pricing
Sales in Units (thousands)
Regular Price Reduced Price Cents-Off Coupon
$.99 $.89 Regular Price