Quantitative Techniques

Learning Quantitative Techniques

Through SPSS & PLS-SEM
Theory and Practice
• Outlines:

• Understanding Sampling & Questionnaire Design

• Using SPSS
• Using PLS-SEM
• Grading:
1. Class participation 10 Marks

2. Presentation 05 Marks

3. Assignment 30 Marks

4. Mid-term 20 Marks

5. Final Exam 40 Marks

• Recommended Books:

• Hair, Mary, Money, Samouel, Page (2016). Essentials of Business Research

Methods (3rd Ed.). Routledge.
• Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. . (2010). Multivariate data
analysis (7th ed.). Upper Saddle River: NJ: Prentice Hall.
• Pallant, Julie. (2011). Spss survival manaul: A step by step guide to data
analysis using spss for windows 4rth edition. Berkshire, UK: Open University
Press: McGraw-Hill Education.
• Field, (2013) Discovering Statistics Using IBM SPSS Statistics (4th Ed.). Sage
• Tabachnick, B.G., & Fidell, L.S. (2007). Using multivariate statistics (5 ed.).
Boston: Pearson Education.
• Hair, Hult, Ringle, Sarstedt. (2016) A premier on partial least squares structural
equation modeling (PLS-SEM) (2nd Ed.). Sage
1. Sampling approaches and considerations
2. Methods of collecting primary data
3. Measurement and scaling
4. Questionnaire design
• Census
• Researchers prefer to collect data from all members of a population
under investigation
Sample

• Is a relatively small subset of the population.

• It is drawn using either probability or non-

probability procedures.
 Whether a probability of non-probability is used

But careful consideration of sampling

design issues is necessary in selecting the
sample.
• Probability Sampling is typically used in quantitative
research

• Selection of representative sample from the population using a random

procedure to ensure objectivity in selecting the sample.

• The findings from the sample data then can be generalized to the
population with a specified degree of accuracy.
• Non-probability sampling is typically used in
qualitative research

• Judgment is used to select the sample in qualitative research.

• Findings from the sample can be used to describe, discover, and
develop theory.
• While the findings can be used to generalize to the population, it
cannot be done with a specified degree of accuracy.
• Sample size is an important consideration in both
qualitative and quantitative research

• To generalize to the population a sufficiently large

sample is required.

• In contrast, when using a qualitative approach to

develop theory on organizational behavior a small
number of cases may be sufficient.
Sampling
• Is part of basic research process. It involves answering
following questions:

1) Should a sample or a census be used?

2) If a sample, then which sampling approach is best?
3) And, how large a sample is necessary?

Objective is to minimize sampling error

• We collect information for decision making therefore
we need to involve those people who are
knowledgeable.

• We refer to the group of knowledgeable people as Population or

universe.

• A population is thus a total of all the elements that share a common

characteristics.
• E.g people, supermarkets, hospitals
• In probability sampling researchers are able at a
minimum to calculate the error associated with a
particular sampling design and can make decisions
with this knowledge in hand.
• In non-probability sampling researchers are not able to
calculate the error but have made informed judgments
in an effort to obtain usable sample information.
 Remember, a sample must be representative of the
population from which it is drawn.

Only, use of an appropriate sampling design can achieve

this objective.
The sampling process
1. Defining the target population
2. Choosing the sampling frame
3. Selecting the sampling method
4. Implementing the sampling plan
1. Defining the target population

The research objectives and scope of the study are critical in defining the
target population.

Target population is complete group of objects or elements relevant to

the research project.

Elements or objects available for selection during the sampling process

are known as sampling unit (people, households, businesses, or any
logically unit relevant to the study’s objectives).
• Element Employees with incentive pay
• Sampling unit customer service representatives and branch managers
• Extent All branch locations in Sindh province
• Time March 2011
2. Choosing the sampling frame

Provides a working definition of the target population.

Sampling frame is a comprehensive list of the elements from

which the sample is drawn.
Eg. Yellow pages listing of restaurants, a telephone directory,
company’s internal database, electronic directories.
Ideally, a sampling frame is an accurate, complete listing
of all the elements in the population targeted by the
research.
In reality, sampling frame is often flawed
in a number of ways:
1. It may not be up-to-date
2. It may include elements that do not belong to the
target population
3. It may not include elements that do belong to the
target population
4. It may have been compiled from multiple lists and
contain duplicate elements as a result of the manner in
which the list was constructed.
 What’s the point!
Before drawing a sample from the sampling frame list,
the researcher must therefore confirm the list’s accuracy
irrespective of its origin.
3. Selecting sampling method
• Depends on number of theoretical and practical issues.
They include:
• Considering the nature of the study
• The objectives of the study
• And the time and budget availability
 Sampling Methods
Probability Non-probability
• Simple random Convenience
• Systematic Judgment
• Stratified Snowball/Referral
• Cluster Quota
• Multistage
1) Simple random:
 is a straightforward
 Assigns each element of target population an equal probability of being
selected.
 Drawing names from a hat
 Easy (drawing names from hat) with a small population
 Large target population; other approaches are necessary

 One example of simple random sampling is random digital dialing in a

telephone survey
 Issues: nonworking numbers, refusal to answer a telephone, lack of
time/interest etc
Procedure for drawing large samples
1. Sequentially assign a unique identification number to
each element in the sampling frame
2. Use a random number generator to identify the
appropriate elements to be selected in the sample
3. Ensure that no element is selected more than once.
2) Systematic sampling

Involves selecting an initial starting point on a list, and

thereafter every nth element in the sampling frame is
selected.

Suppose, you have a list of 10,000 students attending a

particular university and you want a sample of 500
students.
• Your sampling objective is a representative cross-
section of the student body.

• To draw the sample you must determine the sample

size and then calculate the sampling interval.

• Sampling interval is the number of population

elements between each unit selected for your sample.
• In this case, the sampling interval is 20
(10,000 students / sample of 500 = 20)

7, 27,47,67 and so on.

Systematic sampling produces representative data if
executed properly.
• To work properly, the sampling interval must divide
the sampling frame into relatively homogeneous
groups, if there is a cyclic sequence to the sampling
frame instead of a random sequence, systematic
sampling will not work.
• For instance, Alphabetical listings are considered
random not cyclic.

• In contrast, if we wanted to do weekly interviews with

our customers and our interval was 7, the sample
would produce biased information, because we would
always interview on the same day of the week. To be
truly random, we must conduct interviews across at
least several different days of the week.
• Lets say, if our list of customers is 1030 arranged according
to frequency of dinning, and the first 100 names on the list
eat at our restaurant at least once a week and the remaining
930 eat at our restaurant an average of four times a year, we
would have a problem using systematic sampling.
• If the sampling interval is 10 and our sample size is 103,
then our sample may underrepresent the frequent
customers (only 10 frequent customers) and overrepresent
the less frequent customers (93 nonfrequent customers)
 Thus, we must know ahead of time if there are
underlying systematic patterns in the data so we can
account for them in our sampling plan.
 3) Stratified sampling
Requires the research to partition the sampling frame
into relatively homogeneous subgroups that are distinct
and nonoverlapping, called strata.
• The researcher usually does the stratification on the basis of
some predetermined criteria that may be the result of
his/her past experience, or stratification could even be
specified by the client.

• In restaurant example, the researcher may wish to stratify

customers on the basis of characteristics such as age,
marital status, family size, income level, frequency of eating
out, level of satisfaction, who selected the restaurant, or a
combination of these.
• The researcher determines the total sample size as well
as the required sample sizes for each of individual
strata.
• For example, total sample size might be 400 and the
four individual strata might each have a sample size of
100.
• The stratified sample is the composite of the samples
taken from the strata.
• Elements for the stratified sample are usually selected
either by drawing simple random or systematic
samples of the specified size from the strata of the
target population.
• With stratified sampling, elements must be selected
from all the strata of the total sample.
• Practically, stratified sample is selected
in one of two ways; Proportionately or
disproportionately.
• In Proportionately stratified sampling, the overall
sample size will be the total of all the elements from
each of the strata.
• The number of elements chosen from each stratum is
proportionate to the size of a particular stratum relative
to the overall sample size.
• So if we have a stratum that is 25 percent of the target
population, then the size of the sample for that stratum
will be 25 percent of the total sample.
• For example, if we use proportionately stratified
sampling to select a sample of males and females at IBA
with 10,000 student, and 6,000 students are females and
4,000 students are males, then the overall sample would
include 60 percent females and 40 percent males.
• In disproportionately stratified sampling the sample
elements are chosen in one of the two ways;
• One approach involves choosing the elements from
each stratum according to its relative importance.
• Relative importance is usually based on practical
considerations such as economic importance of the
various strata.
• For example, if that restaurant is located in an area
dominated by older individuals who dine out less
frequently, then sampling a high proportion of younger
customers that dine out more often would be viewed as
more important to him.
• With disproportionately stratified sampling based on
economic or other reasons, the sample size from each
stratum is determined independently without
considering the size of the stratum relative to the
overall sample size.
• The more important a particular stratum is considered,
the higher will be the proportion of the sample
elements from the stratum.
• Another approach to selecting a disproportionately
stratified sample considers the variability of the data
within each stratum.
• Elements from each stratum are selected based on the
relative variability of the elements.
• Strata with high relative variability will contribute a
higher proportion of elements to the sample. Similarly,
lower the variability of a stratum the lower will be its
proportional representation in the total sample.
• For example, assume IBA with 10,000 students has 50 percent male students
and 50 percent female students. We know that almost all the male drink
beer, and there is wide variation in beer drinking habits, with some
drinking beer every day and a very small number not drinking beer at all.
• On the other hand, only a small proportion of the female students drink
beer and not very often (they prefer fresh juices), so there is not much
variation in their beer consumption patterns.
• In this example, we would sample a larger number of male students in our
survey so we could more accurately represent male beer consumption
patterns, Since female students do not vary much in their beer consumption
habits, the smaller sample of females should still accurately represent their
behavior.
4) Cluster sampling
• In cluster sampling, the target population is viewed as
being made up of heterogeneous groups,
• Examples of cluster are ethnic groups, companies,
households, business units, and geographic areas.
• the most frequently used type of cluster sampling is geographic
area sampling.
• For example, assume you want to interview managers of banks in
Sindh province.
• The research could obtain a list of zip codes in which banks are
located: each area is then a cluster.
• The cluster to be sampled would be randomly selected, and then all
bank managers or a random sample of managers of banks would be
interviewed in each of the selected clusters.
• This process generally works well with and produces
representative data.
Cluster sampling procedure
1. Define the cluster characteristics in a way that ensures clusters are
unambiguously identified in the target population. In this manner, the
total number of clusters in the population will be known ahead of time.
2. Decide on how many clusters to sample.
3. Choose the cluster(s) in a random manner
4. Obtain a sampling frame for the chosen clusters
5. Decide whether to conduct a census on the chosen cluster(s) or whether
to take a probability sample from the cluster(s).
6. If a probability sample is desired, determine the total sample size. If
more than one cluster will be used, then the sample size should be
allocated appropriately. This is generally done on proportionate
sampling basis.
5) Multistage sampling
• Involves a sequence of stages.
• These stages are illustrated by the following example.
• The problem is to investigate the views of medical practitioners in
the US concerning the use of medical software to assist in patient
diagnosis. The first stage is to select a random sample of regions in
the US. The regions are clusters. The Second stage is to select a
random sample of hospitals from the selected regions, and then
either collect information from all medical practitioners from the
chosen hospitals or a random sample from within each of the
chosen hospitals.
• Even more complex multistage sampling is possible.
 Determining sample size

Efficient sample sizes can be drawn from either large (infinite) populations or small (finite) populations.
Sampling from a large population
Researchers often need to estimate characteristics of
large populations. To achieve this in an efficient manner,
it is necessary to determine the appropriate sample size
prior to data collection.
• Determining sample size is complex because of many
factors that need to be taken into account simultaneously.
• Challenge is to obtain acceptable balance among several of
these factors. These factors include:
• the variability of elements in the target population,
• The type of sample required,
• Time availability,
• Budget
• Required estimation precision,
• And whether the findings are to be generalized and, if so, with what degree
of confidence.
Independent & Dependent Variables
• Independent variable: A variable thought to be the cause of some
effect. Used in experimental research to denote a variable that the
experimenter manipulated.
• Dependent variable: A variable thought to be affected by changes in
the independent variable. This is the outcome variable.
• Predictor variable: A variable thought to predict an outcome variable.
Basically an independent variable.
• Outcome variable: A variable thought to change as a function of
change in a predictor variable.
Identify Independent & Dependent Variables
• The purpose of this experiment was to determine the effects of
exercise on body fat.
• The purpose of this experiment was to determine the effects of
power training on vertical jump.
• The purpose of this experiment was to determine the relationship
between diet and body composition.
From your initial observation you generate explanations, or theories, of
those observations, from which you can make predictions (hypotheses).

Scientific statements are ones that can be verified (tested) using

empirical evidence.
Levels of Measurement
• Categorical
• Binary variable: Only 2 categories (male, female)
• Nominal variable: More than two categories: young, middle age, elderly.
• Ordinal variable: The variable is ordered by some attribute, such as pain.
(each interval does not represent and EQUAL distance). Ex: RPE & Pain ratings
• Continuous
• Interval variable: Equal intervals on the variable represent an equal
difference. Temperature is an interval variable.
• Ratio variable: Equal intervals represent equal difference. Zero is an absence
of the variable, ratio values are meaningful.
Measurement Error

• Measurement error is the discrepancy between a variables actual value and its
measured value.
• Some variables more prone to errors than others: attitude, pain, volume of gas
expired, blood pressure, height and weight.
• Factors that can influence measurement error:
• Accuracy of instruments
• Random variation in the variable
• Adherence to sound measurement principles
Validity and Reliability
• Validity refers to whether an instrument actually measures what it
is designed to measure.
• DEXA, hydrostatic, and skinfolds can all measure the percent body fat.
DEXA has the highest validity of the three.
• Reliability refers to the consistency of the instrument.
• The easiest way to test reliability is to measure the same people
twice (test-retest reliability).
Correlational vs Experimental Research

• In correlational research we observe what goes on without directly

interfering with it.
• Ex: what is the relationship between anxiety and performance?
• In experimental research we manipulate one variable to see its
effects on another.
• Ex: What is the effect of caffeine on reaction time?