Bivariate Tests

Type of Measurement Differences between two independent groups Differences among three or more independent groups

Interval and ratio

Independent groups: t-test or Z-test

One-way ANOVA

Common Bivariate Tests

Differences among three or more independent groups

Type of Measurement

Differences between two independent groups

Ordinal

Mann-Whitney U-test Wilcoxon test

Kruskal-Wallis test

Common Bivariate Tests

Differences among three or more independent groups

Type of Measurement

Differences between two independent groups

Nominal

Chi-square test Z-test (Two Proportions)

Chi-square test

Type of Measurement

Differences between two independent groups

Nominal

Chi-square test

Chi-Square Test

(Oi Ei ) x = Ei
x = chi-square statistics Oi = observed frequency in the ith cell Ei = expected frequency on the ith cell

Awareness of Tire Manufacturers Brand

Men 50 15 65 Women 10 25 35 100

Total Aware Unaware 40

60

Null hypothesis- equal number of men and women are aware of the brand. Brand awareness is independent of the respondants gender.

Chi-Square Test

Eij =

Ri C j n

Ri = total observed frequency in the ith row Cj = total observed frequency in the jth column n = sample size

Degrees of Freedom d.f.=(R-1)(C-1)=(2-1)(2-1)=1

 Expected frequency can be calculated as follows: E11 = (60)(65)/100= 39 E12 = (60)(35)/100= 21 E21 = (40)(65)/100= 26 E22 = (40)(35)/100= 14

Awareness of Tire Manufacturers Brand

Men 50 (39) 15(26) 65 Women 10(21) 25(14) 35 Total 60 40 100

Aware Unaware

Chi-Square Test: Differences Among Groups Example

(50 39 ) (10 21) X = + 39 21 2 2 (15 26 ) ( 25 14 ) + + 26 14

2 2 2

 = 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

Critical value at the 0.05 probability level with 1 d.f. is 3.84. Thus null hypothesis is rejected, because 22.161 is much greater than 3.84. Brand awareness is dependent of the respondants gender.

Type of Measurement

Differences between two independent groups

Interval and ratio

t-test or Z-test

Differences Between Groups when Comparing Means

Ratio scaled dependent variables t-test
When groups are small

z-test
When groups are large

Null Hypothesis About Mean Differences Between Groups

= 1 2
O R

=0 1 2

t-Test for Difference of Means

1 2 t= S X1 X 2
X1 = mean for Group 1 X2 = mean for Group 2 SX1-X 2 = the combined standard error of difference between means.

Pooled Estimate of the Standard Error

t-test for the Difference of Means

S X1 X 2

2 ( n1 1) S12 + (n2 1) S 2 ) 1 1 + = n n n1 + n2 2 2 1

S 2 = the variance of Group 1 S 2 = the variance of Group 2 n1 = the sample size of Group 1 n2 = the sample size of Group 2
1 2

 A researchers wants to test the difference between sociology majors and business majors on scores on a scale measuring attitude towards business. Assume attitude scale is an interval scale. High score equals a favorable attitude toward business. The null hypothesis is that there is no difference in attitude toward business between the two groups.

Comparison of student attitudes toward business

Business Students
16.5 1 =

Sociology Students
= 2

12.2

S1 =2.1 n1= 21

S2 =2.6 n2= 14

t-Test for Difference of Means

( 20)( 2.1) + (13)( 2.6) = 33
2

S X1 X 2

1 1 + 21 14

= .797

16.5 12.2 4 .3 t= = .797 .797

= 5.395

Degrees of Freedom
d.f. = n - k
where:

n = n1 + n2 (number of samples) k = number of groups

d.f. =21+14-2 = 33 Tabulated t value is given t= 2.75.

The calculated t of 5.39 far exceeds the critical value of t for statistical significance. The null hypothesis is that there is no difference in attitude toward business between the two groups. FALSE Null hypothesis is rejected.

Type of Measurement

Differences between two independent groups

Nominal

Z-test (two proportions)

Comparing Two Groups when Comparing Proportions

A management firm wish to test a hypothesis that the proportions of engineers in a research laboratory who are exposed to a management-by-objectives (MBO) program differ from the proportions of accounting personnel exposed to an MBO program. NULL hypothesis- population proportion of group 1 (1) equals the population proportion of group 2 (2).

Z-Test for Differences of Proportions

Ho : 1 = 2
or

Ho : 1 2 = 0

Z-Test for Differences of Proportions

( p1 p2 ) (1 2 ) Z=
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 2 Sp1-p2 = combined estimate of the standard errors of difference of proportions

Z-Test for Differences of Proportions

S p1 p2 =

1 1 pq n n 2 1

Z-Test for Differences of Proportions

p p = combined estimate of proportion of success in a sample of both groups q = (1- p or a combined estimate of proportion p p) of failures in a sample of both groups n1= sample size for group 1 n2= sample size for group 2

Z-Test for Differences of Proportions

n1 p1 + n2 p2 p= n1 + n2

Survey data as follows:

Engineers Accountants

p1-=0.35

p2= 0.40

n1= 100

n2= 100

A Z-Test for Differences of Proportions

(100 )( .35) + (100 )( .4) p=

= .375

100 + 100

Z-Test for Differences of Proportions

S p1 p2

1 1 = ( .375)( .625) + 100 100

= .068

( .35 .40) ( 0) Z=
0.068
Z = - 0.73 Here, Null hypothesis will be accepted as calculated Zvalue is less than the absolute critical Z- value of 1.96.

Type of Measurement

Differences between three or more independent groups One-way ANOVA

Interval or ratio

Analysis of Variance
Hypothesis when comparing three groups

Analysis of Variance F-Ratio

Variance between groups F= Variance within groups

Analysis of Variance Sum of Squares

SStotal = SSwithin + SSbetween

Analysis of Variance Sum of SquaresTotal

SStotal = ( X ij X )
i = 1 j =1

Analysis of Variance Sum of Squares

p Xiij= individual scores, i.e., the ith observation or test unit in the jth group Xi = grand mean p n = number of all observations or test units in a group c = number of jth groups (or columns)

Analysis of Variance Sum of SquaresWithin

SSwithin = ( X ij X j )
i = 1 j =1

Analysis of Variance Sum of SquaresWithin

p Xi ij= individual scores, i.e., the ith observation or test unit in the jth group Xi = grand mean p 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

SSbetween = n j ( X j X )
j =1

Analysis of Variance Sum of squares Between

test unit in the jth group X = grand mean nj = number of all observations or test units in a group
X j= individual scores, i.e., the ith observation or

Analysis of Variance Mean Squares Between

MSbetween

SSbetween = c 1

Analysis of Variance Mean Square Within

MS within

SS within = cn c

Analysis of Variance F-Ratio

MSbetween F= MSwithin

A Test Market Experiment on pricing

Three pricing treatments are administered in four separate test markets (that is, 12 test areas, A-L, were required)
Sales in Units (thousands) Pricing Treatment 1
Test Market A, B, or C Test Market D, E, or F Test Market G, H, or I Test Market J, K, or L Mean Grand Mean

Pricing Treatment 2 145 143 120 131 X2=134.75

Pricing Treatment 3 153 129 96 99 X1=119.25

130 118 87 84 X1=104.75 X=119.58

Null Hypothesis- All the price treatment produces the same sales volume.

ANOVA Summary Table Source of Variation

Between groups Sum of squares
SSbetween

Degrees of freedom
c-1 where c=number of groups

Mean squared-MSbetween
SSbetween/c-1

ANOVA Summary Table Source of Variation

Within groups Sum of squares
SSwithin

Degrees of freedom
cn-c where c=number of groups, n= number of observations in a group

Mean squared-MSwithin
SSwithin/cn-c

ANOVA Summary Table Source of Variation

Total Sum of Squares
SStotal

Degrees of Freedom

MSBETWEEN F= MSWITHIN

cn-1 where c=number of groups, n= number of observations in a group