1.

FACTOR ANALYSIS

Factor analysis is a statistical method used to describe variability among observed,
correlated variables in terms of a potentially lower number of unobserved variables called
factors.

1. People have rated their opinion on why they prefer kallada travels upon other bus service to
Kerala on the basis of seven ratings given to them by the manager.1 is completely agree,7 is
completely disagree.
On time Service
Comfortable Seats
Easy Bookings
New Multiaxle Bus
Economic Pricing of Ticket
Shortest Travel time when compared to other Service
Carry out factor Analysis
Ans.
1















2

INTERPRETATION











COMFORT
Ontime Bus
New Volvo Multiaxle
CONVINIENCE
Shortest travelling Time
Easy Booking
ECONOMIC
Pricing
Comfortable Seat











ONTIME BUS FACTOR 1 (.976)
COMFORTABLE SEATS FACTOR 3 (.780)
SHORTEST TRAVEL TIME FACTOR 2 (.861)
EASY BOOKING FACTOR 2 (.775)
ECONOMIC TICKET PRICING FACTOR 3 ( .813)
NEW MULTIAXLE VOLVO FACTOR 1 (.949)
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2. TWO WAY ANOVA
In statistics, the two-way analysis of variance (ANOVA) test is an extension of the one-way ANOVA
test that examines the influence of different categorical independent variables on one dependent
variable.
The two-way ANOVA can not only determine the main effect of contributions of each independent
variable but also identifies if there is a significant interaction effect between the independent
variables.
A professor in physical education conducts an experiment to compare the effects on sleep of different
amounts of exercise and the time of day when the exercise is done. The experiment uses a fixed
effects, 3 2 factorial design with independent groups. There are three levels of exercise (light,
moderate, and heavy) and two times of day (morning and evening).Thirty-six college students in good
physical condition are randomly assigned to the six cells such that there are six subjects per cell. The
subjects who do heavy exercise jog for 3 miles; the subjects who do moderate exercise jog for 1 mile;
and the subjects in the light exercise condition jog for only mile. Morning exercise is done at 7:30
A.M., whereas evening exercise is done at 7:00 P.M. Each subject exercises once, and the number of
hours slept that night is recorded.





















TIME OF THE
DAY

EXERCISE

LIGHT
(1)

MODERATE
(2)

HEAVY
(3)



MORNING
(1)

6.5
7.4
7.3
7.2
6.6
6.8

7.4
7.3
6.8
7.6
6.7
7.4


8.0
7.6
7.7
6.6
7.1
7.2




EVENING
(2)

7.1
7.7
7.9
7.5
8.2
7.6


7.4
8.0
8.1
7.6
8.2
8.0


7.4
8.0
8.1
7.6
8.2
8.0

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Row, 1 = Morning and 2 = Evening
Column, 1 = Light, 2 = Moderate, and 3 = Heavy

Using SPSS, what do you conclude regarding the main effect for the column variable Exercise, the main
effect for the row variable Time of Day, and the interaction effect between the row and column
variables Exercise and Time of Day? Use = 0.05.

Ans.
Thus, for each sleep score, we need to enter two grouping values, the row and column numbers
associated with that sleep score. In all, there are three variables, the row variable, the column variable,
and the sleep score variable. Lets name these variables, Row, Column, and Sleep.
SPSS outputs three tables, the Between-Subjects Factors table, the Descriptive Statistics table, and
the Tests of Between-Subjects Effects table.







The Between-Subjects Factors tells us that there were two independent variables, the row variable
with two levels and the column variable with three levels. It also tells us the number of scores at each
of the levels of the two variables.

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The Descriptive Statistics table gives us the cell and marginal mean values and standard deviations.

The Tests of Between-Subjects Effects table gives us information about the main and interaction
effects.

This table shows that for the Row main effect, Fobt = 48.416 and has an obtained probability
of .000. Since .000 < .05, Hence reject H0.

There is a significant row main effect. Since the row independent variable is Time of Day, this means
that there is a significant Time of Day main effect. This table also shows that for the Column main
effect, Fobt = 12.787, with an obtained probability of .000. Since .000 < .05, reject H0. There is a
significant column main effect. Since the column independent variable is Exercise, this means that
there is a significant Exercise main effect.

Finally, the table shows that for the Row X Column interaction, Fobt = 4.604, with an obtained
probability of .018. Since .0180 < .05, we reject H0.There is a significant Time of Day X Exercise
interaction.






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3. T-TEST
T-test (or Z-test) tests whether theres a significant difference in dependent variable between two
groups (categorized by independent variable).

To see whether the average sales of Garment Retailer A are different between weekends and
weekdays. Data: Given sales of Retailer A during Weekends (During =1) and Weekdays (during = 2).

Weekends Sales Weekdays Sales
1 75 2 51
1 87 2 70
1 83 2 37
1 45 2 62
1 95 2 90
1 89 2 72
1 74 2 45
1 110 2 78
1 75 2 45
1 84 2 76
Dependent variable: Sales
Grouping variable: Day of the Week (1 =Weekend, 2 =Weekdays)

Answer
Null Hypothesis: There is no significant difference between the average sales during weekdays and
weekends
Alternate Hypothesis: There is Significant Difference between the average sales during weekdays and
weekends


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INTERPRETATION
From the first table, the mean sales under the promotion and non-promotion are 81.7 and 62.6,
respectively.
The test statistic, t, for this observed difference is 2.49(t= 2.493). The p-value for this t-statistic is
0.023(Sig. (2-tailed) =0.023). Since p-value (0.023) is less than 0.05, we reject the null hypothesis and
conclude that theres a significant difference in average sales between when firms offer price
promotion and when they offer just regular prices.
















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4. CORRELATION
From the data of 70 employees of an organisation in respect to their DOB, Gender, Education level,
employment category, Previous Experience, Salary, Job time.
Is there any relationship between the educational levels and current salary?


Answer






There is a positive, medium-strong and significant (Sig. =0.000) relationship between the Educational
Level & and current Salary.


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5. LI NEAR REGRESSI ON
To see whether Sales Promotions affects the sales of a Shirt Brand
















SALES (Y)

SALES PROMOTION (x1)
$97000 45
$95000 47
$94000 40
$92000 36
$90000 35
$85000 37
$83000 32
$76000 30
$73000 25
$71000 27
10












11




















12


INTERPRETATION


(1) From the last table, estimated regression coefficients are: Bo (Constant) = 42509 and B1
(coefficient for X1) = 1217.262.

(2) The p-value for testing Ho: b1 = 0 is 0.000. Therefore, we reject the null hypothesis and we
conclude that sales(Y) is significantly affected by Sales Promotion Techniques(X1). Based on
the estimated regression equation Y=42509.5+1217.262*X1, we expect that the sales(Y) will
increase by 1217.262 units if we increase Promotion(X1) by one unit.































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6. CROSS TABULATION & CHI-SQUARE

To see whether the preferred brands (brand A, brand B, and brand C) are associated with the
locations (Denver and Salt Lake City); Is there any difference in brand preference between the two
locations?

The selected 40 people in each city and measured what their preferred brands were.

If the preferred brand is A, the favourite brand =1.
If the preferred brand is B, the favourite brand =2.
If the preferred brand is C, the favourite brand =3.



Null Hypothesis: There is no difference in brand preference between the two locations.

Alternate Hypothesis: There is significant difference in brand preference between the two locations.






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CROSS TABULATION


From the second table, it is found that among 40 people in Denver (location=1), 10, 7, and
23 people prefer the brand A, B, and C, respectively.
On the other hand, 19, 16, and 5 out of 40 people in Salt Lake City (location=2) like brand
A, B, and C, respectively.

From the third table, the chi-square value is 17.89(Chi-Square = 17.886) and the associated p-
value for this chi-square value is 0.00(Sig. = 0.000) , which is less than 0.05. Therefore, we
conclude that people in different city prefer the different brand or that consumers favorite
brand is associated with where they live in.

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