Chapter 12 Quantitative Data Analysis: Hypothesis Testing © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 1 Type I Errors, Type II Errors and Statistical Power Type I error (): the probability of rejecting the null hypothesis when it is actually true. Type II error (): the probability of failing to reject the null hypothesis given that the alternative hypothesis is actually true. Statistical power (1 - ): the probability of correctly rejecting the null hypothesis. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 2 Choosing the Appropriate Statistical Technique © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 3 Testing Hypotheses on a Single Mean One sample t-test: statistical technique that is used to test the hypothesis that the mean of the population from which a sample is drawn is equal to a comparison standard. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 4 Testing Hypotheses about Two Related Means Paired samples t-test: examines differences in same group before and after a treatment. The Wilcoxon signed-rank test: a non-parametric test for examining significant differences between two related samples or repeated measurements on a single sample. Used as an alternative for a paired samples ttest when the population cannot be assumed to be normally distributed. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 5 Testing Hypotheses about Two Related Means - 2 McNemar's test: non-parametric method used on nominal data. It assesses the significance of the difference between two dependent samples when the variable of interest is dichotomous. It is used primarily in before-after studies to test for an experimental effect. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 6 Testing Hypotheses about Two Unrelated Means Independent samples t-test: is done to see if there are any significant differences in the means for two groups in the variable of interest. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 7 Testing Hypotheses about Several Means ANalysis Of VAriance (ANOVA) helps to examine the significant mean differences among more than two groups on an interval or ratio-scaled dependent variable. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 8 Regression Analysis Simple regression analysis is used in a situation where one metric independent variable is hypothesized to affect one metric dependent variable. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 9 Scatter plot 100 LKLHD_DATE 80 60 40 20 30 40 50 60 70 80 90 PHYS_ATTR © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 10 Simple Linear Regression Yi 0 1 X i i Y ˆ0 ˆ1 ? `0 1 ˆ0 X © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 11 Ordinary Least Squares Estimation n Minimize e 2 i i 1 Yi Yˆi © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran ei Xi 12 SPSS Analyze Regression Linear Model Summary Model 1 R .841 R Square .707 Adjusted R Square .704 Std. Error of the Estimate 5.919 ANOVA Model 1 Regression Residual Total © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran Sum of Squares 8195.319 3398.640 11593.960 df 1 97 98 Mean Square 8195.319 35.038 F 233.901 Sig. .000 13 SPSS cont’d Coefficients Model 1 (Constant) PHYS_ATTR Unstandardized Coefficients B Std. Error 34.738 2.065 .520 .034 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran Standardized Coefficients Beta .841 t 16.822 15.294 Sig. .000 .000 14 Model validation 1. 2. Face validity: signs and magnitudes make sense Statistical validity: – – – – – 3. Model fit: R2 Model significance: F-test Parameter significance: t-test Strength of effects: beta-coefficients Discussion of multicollinearity: correlation matrix Predictive validity: how well the model predicts – Out-of-sample forecast errors © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 15 SPSS Model Summary Model 1 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran R .841 R Square .707 Adjusted R Square .704 Std. Error of the Estimate 5.919 16 Measure of Overall Fit: R2 R2 measures the proportion of the variation in y that is explained by the variation in x. R2 = total variation – unexplained variation total variation R2 takes on any value between zero and one: – R2 = 1: Perfect match between the line and the data points. – R2 = 0: There is no linear relationship between x and y. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 17 SPSS Model Summary Model 1 R .841 R Square .707 Adjusted R Square .704 Std. Error of the Estimate 5.919 = r(Likelihood to Date, Physical Attractiveness) © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 18 Model Significance H0: 0 = 1 = ... = m = 0 (all parameters are zero) H1: Not H0 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 19 Model Significance H0: 0 = 1 = ... = m = 0 H1: Not H0 (all parameters are zero) Test statistic (k = # of variables excl. intercept) F = (SSReg/k) (SSe/(n – 1 – k) ~ Fk, n-1-k SSReg = explained variation by regression SSe = unexplained variation by regression © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 20 SPSS ANOVA Model 1 Regression Residual Total Sum of Squares 8195.319 3398.640 11593.960 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran df 1 97 98 Mean Square 8195.319 35.038 F 233.901 Sig. .000 21 Parameter significance Testing that a specific parameter is significant (i.e., j 0) H0 : j = 0 H1 : j 0 Test-statistic: t = bj/SEj ~ tn-k-1 with bj = the estimated coefficient for j SEj = the standard error of bj © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 22 SPSS cont’d Coefficients Model 1 (Constant) PHYS_ATTR Unstandardized Coefficients B Std. Error 34.738 2.065 .520 .034 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran Standardized Coefficients Beta .841 t 16.822 15.294 Sig. .000 .000 23 Conceptual Model Physical Attractiveness © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran + Likelihood to Date 24 Multiple Regression Analysis We use more than one (metric or non-metric) independent variable to explain variance in a (metric) dependent variable. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 25 Conceptual Model Perceived Intelligence Physical Attractiveness © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran + + Likelihood to Date 26 Model Summary Model 1 R .844 R Square .712 Adjusted R Square .706 Std. Error of the Estimate 5.895 ANOVA Model 1 Regression Residual Total Sum of Squares 8257.731 3336.228 11593.960 df 2 96 98 Mean Square 4128.866 34.752 F 118.808 Sig. .000 Coefficients Model 1 (Constant) PERC_INTGCE PHYS_ATTR © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran Unstandardized Coefficients B Std. Error 31.575 3.130 .050 .037 .523 .034 Standardized Coefficients Beta .074 .846 t 10.088 1.340 15.413 Sig. .000 .183 .000 27 Conceptual Model Gender Perceived Intelligence Physical Attractiveness © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran + + + Likelihood to Date 28 Moderators Moderator is qualitative (e.g., gender, race, class) or quantitative (e.g., level of reward) that affects the direction and/or strength of the relation between dependent and independent variable Analytical representation Y = ß0 + ß1X1 + ß2X2 + ß3X1X2 with © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran Y = DV X1 = IV X2 = Moderator 29 Moderators Model Summary Model 1 R .910 R Square .828 Adjusted R Square .821 Std. Error of the Estimate 4.601 ANOVA Model 1 Regression Residual Total Sum of Squares 9603.938 1990.022 11593.960 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran df 4 94 98 Mean Square 2400.984 21.170 F 113.412 Sig. .000 30 Moderators Coefficients Model 1 (Constant) PERC_INTGCE PHYS_ATTR GENDER PI_GENDER Unstandardized Coefficients B Std. Error 32.603 3.163 .000 .043 .496 .027 -.420 3.624 .127 .058 Standardized Coefficients Beta .000 .802 -.019 .369 t 10.306 .004 18.540 -.116 2.177 Sig. .000 .997 .000 .908 .032 interaction significant effect on dep. var. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 31 Conceptual Model Gender Perceived Intelligence + + + Physical Attractiveness Likelihood to Date + Communality of Interests © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran + Perceived Fit 32 Mediating/intervening variable Accounts for the relation between the independent and dependent variable Analytical representation 1. Y = ß0 + ß1 X => ß1 is significant 2. M = ß2 + ß3 X => ß3 is significant 3. Y = ß4 + ß5X + ß6M => ß5 is not significant => ß6 is significant With © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran Y = DV X = IV M = mediator 33 Step 1 Mode l Summary Model 1 R .963 R Square .927 Adjus ted R Square .923 Std. Error of the Estimate 3.020 ANOVA Model 1 Regression Residual Total Sum of Squares 10745.603 848.357 11593.960 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran df 5 93 98 Mean Square 2149.121 9.122 F 235.595 Sig. .000 34 Step 1 cont’d Coefficients Model 1 (Cons tant) PERC_INTGCE PHYS_ATTR GENDER PI_GENDER COMM_INTER Unstandardized Coefficients B Std. Error 17.094 2.497 .030 .029 .517 .018 -.783 2.379 .122 .038 .212 .019 Standardized Coefficients Beta .044 .836 -.036 .356 .319 t 6.846 1.039 29.269 -.329 3.201 11.187 Sig. .000 .301 .000 .743 .002 .000 significant effect on dep. var. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 35 Step 2 Mode l Summary Model 1 R .977 Adjus ted R Square .955 R Square .955 Std. Error of the Estimate 2.927 ANOVA Model 1 Regression Residual Total © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran Sum of Squares 17720.881 831.079 18551.960 df 1 97 98 Mean Square 17720.881 8.568 F 2068.307 Sig. .000 36 Step 2 cont’d Coefficients Model 1 (Cons tant) COMM_INTER Unstandardized Coefficients B Std. Error 8.474 1.132 .820 .018 Standardized Coefficients Beta .977 t 7.484 45.479 Sig. .000 .000 significant effect on mediator © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 37 Step 3 Mode l Summary Model 1 R .966 R Square .934 Adjus ted R Square .930 Std. Error of the Estimate 2.885 ANOVA Model 1 Regression Residual Total Sum of Squares 10828.336 765.624 11593.960 © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran df 6 92 98 Mean Square 1804.723 8.322 F 216.862 Sig. .000 38 Step 3 cont’d Coefficients Model 1 (Cons tant) PERC_INTGCE PHYS_ATTR GENDER PI_GENDER COMM_INTER PERC_FIT Unstandardized Coefficients B Std. Error 14.969 2.478 .019 .028 .518 .017 -2.040 2.307 .142 .037 -.051 .085 .320 .102 Standardized Coefficients Beta .028 .839 -.094 .412 -.077 .405 t 6.041 .688 30.733 -.884 3.825 -.596 3.153 Sig. .000 .493 .000 .379 .000 .553 .002 insignificant effect of indep. var on dep. Var. significant effect of mediator on dep. var. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 39