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(Final) Assignment 5 (Methodology - Data Processing (Part 2) )
(Final) Assignment 5 (Methodology - Data Processing (Part 2) )
GROUP ASSIGNMENT 5
EBQ2054
RESEARCH METHODOLOGY ECONOMICS & BUSINESS
SUBMITTED BY:
No. Group Members Name Matric No.
1 CHRISTINUS NG KA HING 40922
2 DALJEET KAUR A/P GAG JIT SINGH 40983
3 MOHD SYAFIQ BIN WAHID 42285
4 NUR DJUITA BINTI JAMALUDDIN 43089
5 NURUL NATASYA BINTI AZLY 43603
6 SULAIMAN BIN MOHD FAISAL 44274
References ........................................................................................................................................... 13
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1.0 Data level of measurement
In this study, we have chosen two levels of measurement for 4 of our independent
variables which are nominal and interval. The following section will explain each level of
measurement thoroughly. Also, measurement for the other 2 of our independent variables will be
explained at the end of this section. These levels of measurement can be seen in the sample of
questionnaire that had been attached in Methodology: Part A.
1.0.1 Nominal
The purpose of numerical values in nominal measurement is just to name the attribute
accordingly regardless of rank or ordering. In conjunction with this research, nominal
measurement is used in Section A: Demographic Information (refer the image below) of the
questionnaire to indicate the personal information of the respondents without revealing who they
are. Nominal scale is used in labelling symbols without any quantitative value. Nominal scale is
mutually exclusive and does not have any numerical significance. This level of measure will be
used in both Section A and Section B of the questionnaire. Some information is required in this
section such as gender, year of study, faculty and age. This kind of information helps researchers
to classify respondents according to their demographic information and ensure that the result is
not biased. Refer to Table 1.
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1.0.2 Interval
As for the other 2 variables which are unavoidable expenses and lifestyle, the data are
obtained by using open ended questions. Hence, the 4 levels of measurement are not applicable
and another detailed analysis throughout the responses will have to be done as well as coding the
information into the system to find the exact finding.
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2.0 Data Processing
The data collection from the questionnaires distribution will be processed using
Microsoft Excel. The objectives of data analysis include measuring central of tendency and
variability, testing reliability and the hypotheses developed for the study (R. Coe, 2002). It is
important to prevent error that may invalidate the findings or conclusions.
Reliability analysis is tested by using Cronbachs Alpha to verify the precise and upright
results out of scale. It is most commonly used to see if questionnaires with multiple Likert scale
questions are reliable. Alpha coefficient ranges in value from 0 to 1 and may be used to describe
the reliability of factors extracted from dichotomous and/or Likert scale questions. In general, a
score of more than 0.7 is considered acceptable.
Data analysis enables describing and comparing variables numerically which enhances
the statistical analysis and data interpretation (R. Coe, 2002). Mean, median and mode are used
to measure the central tendency while standard deviation, variance and skewness are used to
measure variability of the data. According to Zikmund (2003), all data from the questionnaires
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could be interpreted and summarized in average, frequency distribution and percentages
distribution. Univariate analysis is conducted which involves the examination across cases of one
variable at a time.
R. Coe (2002) uses descriptive statistics to provide data descriptions of the population,
either through numerical calculations or graphs or tables. Descriptive statistics is a generic term
for statistics that can be used to describe variables and quantitatively described or summarized
features of collection of information or data. Together with simple graphic analysis, they form
the basis of virtually every quantitative analysis of data. Descriptive statistics help in simplifying
large amounts of data whereby each statistic reduces bigger data into a simpler summary.
Characteristics of a single variable examination include the distribution, central tendency of
distribution, such as mean, median and mode averages, and the dispersion which commonly
measured by the range and standard deviation.
The data collections from the questionnaires distribution are used to measure frequency
distribution for each independent variable on this research. Information on demographic and
social characteristics are obtained using descriptive statistics, means, medians and standard
deviations for continuous variables and frequencies for categorical variables. Cross tabulations
are conducted among variables. Demographic profile of sample and factors contributing to
students distress are depicted as tables below. Frequencies and their percentage are defined in
the tables to make a clearer view of findings.
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Table 3: Respondents demographic characteristics
Frequency
.Description Categories %
(n=405)
Gender Male
Female
Year of study Year 1
Year 2
Year 3
Year 4
Year 5
Faculty FEP
FK
FSGK
FSKPM
FPSK
FSS
FSTS
FSKTM
FPBPK
Age 18 - 20
21 - 23
24 - 26
27 - 29
30 - 32
33 - 35
Table 4: Descriptive for peer pressure
Strongly Strongly
Disagree Moderate Agree
Peer Pressure Disagree Agree
F % F % F % F % F %
I tend to emo on buying
decision
I tend to spend a lot in the
presence peer
I spend more than the
peer
I was not influenced by
peer pressure
I was influenced by peer
decision making
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2.5.2 Measures of Central Tendency
The data collections from the questionnaires distribution are used to measure mean,
median, and mode. These measures of central tendency are measures of the location of the
middle center of a distribution.
In analyzing Likert response items, researcher must understand the measurement scale
represented by each. Likert scale data are analyzed at the interval measurement scale.
Descriptive statistics recommended for interval scale items include the mean for central tendency
and standard deviations for variability. The mean score on each item is used to determine the
highest and lowest factors contributing to students stress level. Additional data analysis
procedures appropriate for interval scale items would include the Pearsons r, t-test, ANOVA,
and regression procedures. Independent sample t-test is to determine if any differences existed,
and the t-value to determine if any significance existed between the independent variables at the
p5% confidence level (alpha=0.5). Pearson coefficient is used to examine the relationship
between two variables, but both variables being continuous in nature. The Pearson correlation
can range from -1 to 1. A positive correlation is present if variables change in the same directions,
while negative correlation is present if variables change in opposite directions. Table 3 provides
examples of data analysis procedures for Likert scale data.
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2.5.3 Measures of Dispersion or Variation
The dispersion or variation gives information about the spread of the scores in each
distribution. It is especially helpful when data are normally distributed. The common measures
of dispersion are variance, standard deviation, coefficient of variation, range, percentiles and
quartiles. Standard deviation is a more accurate and detailed estimate of dispersion because an
outlier can greatly exaggerate the range. It shows the relation that set of scores has related to the
mean of the sample.
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3.0 Inferential Statistics
Inferential statistics use a random sample of data taken from a population to describe and
make inferences about the population. Inferential statistics are valuable when it is not convenient
or possible to examine each member of an entire population. Its also to determine probability of
characteristics of population based on the characteristics of the sample and help to assess
strength of the relationship between independent variables and dependent variables. Inferential
analysis is used to test the hypotheses developed for the research by investigating the
relationships between the six independent variables (unavoidable expenses, lifestyle, peer
pressure, tuition fees, debt loans, financial planning and awareness). The inferential analyses
included are Pearson Correlation, Multi-collinearity and Multiple Linear Regression.
Pearson correlation is a statistical test for finding the linear relationship between two or
more quantitative variables (Subhani, Osman, Saad, & Mir, 2013). Therefore, the relationship of
independent variables and dependent variable is measured via Pearson Correlation. The
significance level is 0.05 in the Pearson Correlation test, which means there is 95% if confidence
level. Therefore, the hypotheses only can be accepted if the significant p-value is less than 0.05
(Zeng & Gu, 2017).
3.0.2 Multicollinearity
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multi-collinearity and partial multicollinearity. Accordings (Berry and Feldman (1985), 38).
Otherwise, in generally result shown that some kind of simple error in the data handling or
model specification, one of that thing is easy to diagnose and painless to address. The Partial
Multicollinearity is use of overlapping variable that still exhibit independent variation. In other
words, multicollinearity is a matter of degree and it is not a problem that does or does not appear
(Harvey 1977).
a) Small changes in the data produce wide swings in the parameter estimates;
b) Coefficients may have very high standard errors and low significance levels even though
they are jointly significant and the R2 for the regression is quite high;
c) Coefficients may have the wrong sign or implausible magnitude (Greene 2000: 256).
a) Variance (SEE) of the model and variances of coefficients are inflated. As a result, any
inference is not reliable and the confidence interval becomes wide.
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The strength of the relationship between independent variables and dependents is determined by
the coefficient of determination (r) as it measures the proportion of the variation in a dependent
variable that can be explained by the independent variables. In other words, how well the
financial distress among UNIMAS students (dependent variable) can be explained by the
unavoidable expenses, lifestyle, peer pressure, tuition fees, debt loans, financial planning and
awareness.
There is a hypothesis technique that called ANOVA was used by the researches to test whether
there is significant variance in means occurs between three or more groups. In other words, it
evaluates if there is a difference among the means of the group. This test must have dependent
variable in metric which financial distress in this case. The following formula is known as F-test
which is used to determine the degree of variability in the scores of one sample to the score of
another sample.
The following equation is formed to determine the statistical significance of each independent
variable on the dependent variable.
Equation Y = a + bX + bX + bX + bX + bX + bX
Where,
Y = Financial distress among UNIMAS students
A = Fixed: equal to Y when b, b, b, b, b, b=0
b, b, b, b, b, b = Slope of regression line
X = Unavoidable expenses
X = Lifestyle
X = Peer pressure
X = Tuition fees
X = Debt loans
X = Financial planning and awareness
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4.0 Justification of Analysis
Hence, under this method also, the researcher could us the results of the research based
on the various measurements to conduct a decision making and examining whether the research
objectives been achieved or not. Therefore, it could help the researchers to have a better
explanation on the research hypothesis as well.
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References
Berry, William D., and Stanley Feldman. 1985. Multiple Regression in Practice. Newbury
Park, CA: Sage.
Boone, H. N., & Boone, D. A. (2012). Analyzing Likert Data. Journal of Extension, 50(2).
Greene, William H. 2000. Econometric Analysis (Fourth edition). Upper Saddle River, NJ:
Prentice-Hall.
Jaccard, J., Guilamo, R., Johansson, M., & Bouris, A. (2006). Multiple Regression Analyses in
Clinical Child and Adolescent Psychology. Journal of Clinical Child & Adolescent
Psychology., 456-479.
Khan, K. U., Gulzar, S., & Yahya, F. (2013). Crucial Factors Affecting Stress: A Study Among
Undergraduates in Pakistan. International Journal of Asian Social Science, 3(2), 428-442.
Subhani, M. I., Osman, A., Saad, M., & Mir, S. (2013). Formulation of Advanced H-Index: The
S-Index. South Asian Journal of Management Sciences, 60-67.
Zeng, W., & Gu, M. (2017). Relationship Between Mindfulness And Positive Affect Of Chinese
Older Adults: Optimism As Mediator. Social Behavior & Personality: an international
journal., 155-162.
Zikmund, W. G. (2003). Business Research Methods (7th ed.). Thomson South Western, Ohio:
South-Western Publishing.
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