research in business

Research in BusinessResearch in Business

Why Study Research?Why Study Research?

– Research provides you with the knowledge and skills needed for the fast-paced decision-making environment

– Search for knowledge through objective and systematic method of finding solution to the problem is research

– Systematic approach concerns generalization and formulation

Why managers need Better Why managers need Better InformationInformation

Global and domestic competitions is more vigorous– Organizations are increasingly practicing data mining

and data warehousing- data warehousing market consists of tools, technologies, and methodologies that allow for the construction, usage, management, and maintenance of the hardware and software used for a data warehouse, as well as the actual data itself. To discover patterns and trends in the data

The Value of Acquiring SkillsThe Value of Acquiring Skills

To gather more information before selecting a course of action

To do a high-level research studyTo understand research designTo evaluate and resolve a current

management dilemmaTo establish a career as a research specialist

Different Styles of ResearchDifferent Styles of Research

Applied Research( action)1. Improved agricultural production 2. Treat or cure a specific disease3. Improve energy efficiency of homes ,offices or modes of

transporation4. Global overpopulation

Pure Research(generations and formulations) Quantitative and qualitative research Descriptive and analytical research Conceptual and emperical reseach

What is Good Research?What is Good Research?

Following the standards of the scientific method:– Purpose clearly defined-problem involved and decision

made– Research process detailed-permit others– Research design thoroughly planned-yeild accurate

results– High ethical standards applied –standards and norms– Limitations frankly revealed

What is Good Research?What is Good Research?

Following the standards of the scientific method (cont.)– Adequate analysis for decision-maker’s needs– Findings presented unambiguously –clear

logical,executive summary – Conclusions justified-conclusions matched with

detailed finding– Researcher’s experience reflected

Role of buisness research in Role of buisness research in decision makingdecision making

Problem identification

Problem prioritization

Problem resolution

Implementing course of action

Factors affecting business Factors affecting business research research

Time constraint

Availability of resources

Nature of information sought

Benefit versus cost

Scientific ThinkingScientific Thinking

The Essential Tenets of The Essential Tenets of ScienceScience

Direct observation of phenomenaClearly defined variables, methods, and

proceduresEmpirically testable hypothesesAbility to rule out rival hypotheses-more

facts or greater variety or scopeStatistical justification of conclusionsSelf-correcting process

Ways to CommunicateWays to Communicate

Exposition– Descriptive statements that merely state and so

not give reason

Argument – Allows us to explain, interpret, defend,

challenge, and explore meaning

Important Arguments in Important Arguments in ResearchResearch

Deduction is a form of inference that purports to conclusive

Induction draws conclusions form one or more particular facts

The Building Blocks of TheoryThe Building Blocks of Theory

ConceptsConstructsDefinitionsVariablesPropositions and HypothesesTheoriesModels

Understanding ConceptsUnderstanding Concepts

A concept is a bundle of meanings or characteristics associated with certain events

Concepts have been developed over time through shared usage

The success of research hinges on:– How clearly we conceptualize and– How well others understand the concepts we

use

What is a Construct?What is a Construct?

An image or idea specifically invented for a given research purpose

Composed of conceptsTherotical level of concepts

Types of VariablesTypes of Variables

IndependentDependentModeratingExtraneous-infinite numberInterveningDichotomous Symbol to assign numerals and value

The Role of the HypothesesThe Role of the Hypotheses

Guides the direction of studyProvides a framework for organizing the

conclusions that resultIdentifies the fact that are relevant and those

that are notSuggest which form of research design is

likely to be most appropriate

What is a Good Hypotheses?What is a Good Hypotheses?

A good hypotheses should fulfill 3 conditions:– Must be adequate for its purpose– Must be testable– Must be better than its rivals

The Value of a Theory The Value of a Theory

Narrows the range of facts we need to studySummarizes what is know about an object

of studyUsed to predict further facts that should be

found Systematically interrelated

concepts,defination that are advanced to explain and predict phenomenon

The Research ProcessThe Research Process

Steps in Research ProcessSteps in Research Process

Identifing and defining problemPlanning the research designSelecting the research method Selecting a sampling procedureData collection Evaluating the dataPresenting the research project

The Management- Research The Management- Research Question HierarchyQuestion Hierarchy

Measurement Questions

Investigative Questions

Research Questions Management

Questions Management Dilemma

Level 5

Level 4

Level 3 Level 2

Level 1

Working with Hierarchy Working with Hierarchy

Management Dilemma– The symptoms of an actual problem– Not difficult to identify a dilemma, however

choosing one to focus on may be difficult

Working with the HierarchyWorking with the Hierarchy

Management Question Categories– Choice of purpose or objective– Generation and Evaluation of solutions– Troubleshooting or control situation


Fine tune the research question– Examine concepts and constructs– Break research question into specific second

and third level questions– Determine what evidence answers the various

questions and hypothesis– Set the scope of your study


Investigative Questions– Questions the researcher must answer to

satisfactorily arrive at a conclusion about the research question


Measurement Questions– The questions we actually ask or extract from

respondents

Other Process in the Other Process in the HierarchyHierarchy

Exploration– Recent developments– Predictions by informed figures about the

prospects of technology– Identification of those involved in the area– Accounts of successful ventures and failures by

others in the field

Research Process ProblemsResearch Process Problems

The Favored Technique SyndromeCompany Database Strip-MiningUnresearchable QuestionIll-Defined Management ProblemsPolitically Motivated Research

Designing the StudyDesigning the Study

– Select a research design from the large variety of methods, techniques, procedures, protocols and sampling plans

Resource Allocation and Resource Allocation and BudgetBudget

Guides to plan a budget– Project planning– Data gathering– Analysis, interpretation, and reporting

Types of budgeting– Rule of thumb– Departmental or functional area– Task

Evaluation MethodsEvaluation Methods

Ex Post Facto EvaluationPrior EvaluationOption AnalysisDecision Theory

Contents of a Research Contents of a Research ProposalProposal

A statement of the research questionA brief description of research methodologyData collectionData preparationData analysis and interpretationResearch reporting

Data CollectionData Collection

Characterized by – Abstractness– Verifiability– Elusiveness– Closeness to the phenomenon

Secondary DataPrimary Data

Final Steps in ResearchFinal Steps in Research

Data analysis – Reporting the results

Executive SummaryOverview of the research Implementation strategies for the

recommendationsTechnical appendix

The Research ProposalThe Research Proposal

Purpose of the Research Purpose of the Research Proposal Proposal

To present the question to be researched and its importance

To discuss the research efforts of others who have worked on related questions

To suggest the data necessary for solving the question

The Research SponsorThe Research Sponsor

All research has a sponsor in one form or another:

In a corporate setting, management sponsors research

In an academic environment, the student is responsible to the class instructor

What are the Benefits of the What are the Benefits of the Proposal to a Researcher?Proposal to a Researcher?

Allows the researcher to plan and review the project’s steps

Serves as a guide throughout the investigation

Forces time and budget estimates

Types of Research ProposalsTypes of Research Proposals

Internal

External

Proposal ComplexityProposal Complexity

3 Levels of Complexity– The Exploratory study is used for the most

simple proposals– The Small-scale study is more complex and

common in business– The Large-scale professional study is the most

complex, costing millions of dollars

How to Structure the How to Structure the Research Proposal?Research Proposal?

Create proposal modules

Put together various modules to tailor your proposal to the intended audience

Modules in a Research Modules in a Research ProposalProposal

Executive Summary Problem statement Research objectives Literature Reviews Importance of the Study Research Design Data Analysis Nature and Form of

Results

Qualifications of Researcher

Budget Schedule Facilities and Special

Resources Project Management Bibliography Appendixes

What to include in the What to include in the Appendixes?Appendixes?

A glossary of concepts, constructs, and definitions

Samples of the measurement instrumentOther materials that reinforce the body of

the proposal

Evaluating the Research Evaluating the Research ProposalProposal

Proposal must be neatly writtenMajor topic should be easily found and

logically organizedProposal must meet specific guidelines set

by the sponsorTechnical writing style must be clearly

understood and explained

Ethics in Business Research Ethics in Business Research

What are Research Ethics?What are Research Ethics?

Ethics are norms or standards of behavior that guide moral choices about our behavior and our relationships with others

The goal is to ensure that no one is harmed or suffers adverse consequences from research activities

Ethical Treatment of Ethical Treatment of Respondents and SubjectsRespondents and Subjects

Begin data collection by explaining to the respondent the benefits expected from the research

Explain to the respondent that their rights and well-being will be adequately protected, and say how this will be done

Be certain that interviews obtain the informed consent of the respondent

DeceptionDeception

The respondent is told only part of the truth when the truth is fully compromised– To prevent biasing the respondents before the

survey or experiment– To protect the confidentiality of a third party

Issues Related to Protecting Issues Related to Protecting RespondentsRespondents

Informed consentDebriefingConfidentialityRight to Privacy

Ethical Issues Related to the Ethical Issues Related to the ClientClient

Sponsor nondisclosurePurpose nondisclosureFindings nondisclosure

– Right to quality research

Ethical Issues Related to Ethical Issues Related to Researchers and Team Researchers and Team

MembersMembers

Safety

Ethical behavior of assistants

Protection of anonymity

Design StrategiesDesign Strategies

What is Research Design?What is Research Design?

A plan for selecting the sources and types of information used to answer research questions

A frame work for specifying the relationships among the study variables

A blueprint that outlines each procedure from the hypothesis to the analysis

Classifications of DesignsClassifications of Designs

Exploratory study is usually to develop hypotheses or questions for further research

Formal study is to test the hypotheses or answer the research question posed

Methods of Data CollectionMethods of Data Collection

Monitoring, which includes observational studies

Interrogation/ Communication mode

The Power of a ResearcherThe Power of a Researcher

In an experiment, the researcher attempts to control and/or manipulate the variables in the study

In an ex post facto design, the researcher has no control over the variables, they can only report what has happened

What type of Study to use?What type of Study to use?

Descriptive is how one variable produces changes in another

Causal tries to explain relationships among variables

The Time DimensionThe Time Dimension

Cross-sectional studies are carried out once and the represent a snapshot of one point and time

Longitudinal studies are repeated over an extended period

The Topical ScopeThe Topical Scope

Statistical studies attempt to capture a population’s characteristic’s by making inferences form a sample’s characteristics

Case studies place more emphasis on a full contextual analysis of fewer events or conditions and their interrelations

The Research EnvironmentThe Research Environment

Field Conditions

Laboratory Conditions

Simulations

A Subjects’ PerceptionsA Subjects’ Perceptions

Usefulness of a design may be reduced when people in the study perceive that research is being conducted

Subject’s perceptions influence the outcomes of the research

Why do Exploratory Studies?Why do Exploratory Studies?

Exploration is particularly useful when researchers lack a clear idea of the problems

Data Collection TechniquesData Collection Techniques

Qualitative TechniquesSecondary DataFocus GroupsTwo-stage Design

The Concept of a Causal The Concept of a Causal StudyStudy

The essential element of causation is that A “produces” B or A “forces” B to occur

Relationships that Occur with Relationships that Occur with a Causal Studya Causal Study

Symmetrical

Reciprocal

Asymmetrical

Types of Asymmetrical Types of Asymmetrical RelationshipsRelationships

Stimulus-ResponseProperty-DispositionDisposition-BehaviorProperty-Behavior

Achieving the Ideal Achieving the Ideal Experimental DesignExperimental Design

Random Assignment

Matching

– Manipulation and control of variables

MeasurementMeasurement

MeasurementMeasurement

Selecting observable empirical events

Using numbers or symbols to represent aspects of the events

Applying a mapping rule to connect the observation to the symbol

What is Measured?What is Measured?

Objects-things of ordinary experience and that are not that concrete

Properties-characteristics of objects

Characteristics of DataCharacteristics of Data

Order

Interval between numbers

Origin of number series

Data Types Data Types

Order Interval OriginNominal none - none - none

Ordinal yes - unequal - none

Interval yes - equal or unequal -none

Ratio yes - equal - zero

Sources of Measurement Sources of Measurement DifferencesDifferences

RespondentSituational factorsMeasurer or researcherInstrument

ValidityValidity

Content Validity

Criterion-Related Validity– Concurrent– Predictive

Construct Validity

ReliabilityReliability

Stability– Test-retest

Equivalence– Parallel forms

Internal Consistency– Split-half– KR20– Cronbach’s alpha

PracticalityPracticality

Economy

Convenience

Interpretability

Chapter 8Chapter 8Scaling Design Scaling Design

What is Scaling?What is Scaling?

Assigning numbers to indicants of the properties of objects

Types of Response ScalesTypes of Response Scales

Rating Scales

Ranking Scales

Types of Rating ScalesTypes of Rating Scales

Simple categoryMultiple choice,

multiple responseLikert scaleSemantic

differential

Numerical Multiple fixed

ratingFixed sumStapelGraphic rating

Rating Scales Problems to Rating Scales Problems to AvoidAvoid

LeniencyNegative LeniencyCentral Tendency Halo Effect

Types of Ranking ScalesTypes of Ranking Scales

Paired-comparison

Forced Ranking

Comparative

Dimensions of a ScaleDimensions of a Scale

Unidimensional

Multidimensional

Scale Design TechniquesScale Design Techniques

Arbitrary

Consensus

Item Analysis– Cumulative

Factor

Sampling DesignSampling Design

Selection of ElementsSelection of Elements

Sampling

Population Element

Population

Census

What is a Good Sample?What is a Good Sample?

Accurate

Precision of estimate

Types of Sampling DesignsTypes of Sampling Designs

Probability

Nonprobability

Steps in Sampling DesignSteps in Sampling Design

What is the relevant population?What are the parameters of interest?What is the sampling frame?What is the type of sample?What size sample is needed?How much will it cost?

Concepts to help understand Concepts to help understand Probability SamplingProbability Sampling

Standard error of the mean

Confidence interval

Central limit theorem

Probability Sampling DesignsProbability Sampling Designs

Simple RandomSystemicStratified

– Proportionate

ClusterDouble

Designing Cluster SamplesDesigning Cluster Samples

How homogeneous are the clusters?Shall we seek equal or unequal clusters?How large a cluster shall we take?Shall we use a single-stage or multistage

cluster?How large a sample is needed?

Nonprobability SamplingNonprobability Sampling

Reasons to use Nonprobability Sampling instead of Probability Sampling– The nonprobability procedure satisfactorily meets

the sampling objectives– Lower cost– Limited Time– Not as much human error as selecting a completely

random sample– Total list population not available

Nonprobability Sampling Nonprobability Sampling DesignsDesigns

Convenience SamplingPurposive Sampling

– Judgement Sampling– Quota Sampling

Snowball Sampling

Secondary Data SourcesSecondary Data Sources

Information is Classifies by Information is Classifies by Two Sources:Two Sources:

Primary Data

Secondary Data

Uses of Secondary DataUses of Secondary Data

Provides specific reference or citation on some point

Helps decide what further research needs to be done

Justifies bypassing the costs and benefits of doing primary research

May be used as the sole basis for a research study

Classifying Secondary DataClassifying Secondary Data

By SourceBy CategoryBy MediumBy Database format

Classifying Secondary Data Classifying Secondary Data by Sourceby Source

Internal

External

Classifying Secondary Data Classifying Secondary Data by Categoryby Category

DatabasePeriodicalsGovernment DocumentsSpecial Collections

Classifying Secondary DataClassifying Secondary Databy Medium by Medium

Hard copy

– Local-area on-line

– Internet

The Library’s Role in The Library’s Role in ResearchResearch

Resources may be acquired through interlibrary loans (ILL)

Certain Databases are available on a local-area network (LAN)

Access to the internet an commercial CD/ DVD-ROM

Strategy for Searching for Strategy for Searching for Secondary DataSecondary Data

Select and analyze a topic Explore the topic and state a hypothesisGet an overview and retrospective

informationGet more current and specific informationGet more in-depth informationEvaluate and close the library research

Using Search Engines and Using Search Engines and IndexesIndexes

The search engine consists of two elements:– Robot/Crawler– Indexer

How to Keep Track of How to Keep Track of Research?Research?

Be selective in what you record

Decide how to record what you will extract from the published material

Develop an orderly recording system

Survey Methods: Survey Methods: Communicating with Communicating with

RespondentsRespondents

Communication Approach Communication Approach Impacts the Research Impacts the Research

ProcessProcessCreation and selection of measurement questionsSampling issues, drive contact and callback

proceduresInstrument design, which incorporates attempts to

reduce error and create respondent-screening procedures

Data collection procedures and possible interviewer training

Personal InterviewPersonal Interview

Requirements for success– Availability of the needed information from the

respondent– An understanding by the respondent of his or

her role– Adequate motivation by the respondent to

cooperate

Personal InterviewPersonal Interview

To Increase Respondent’s Receptiveness they must– believe the experience will be pleasant and

satisfying– think answering the survey is an important and

worthwhile use of their time– have any mental reservations satisfied

The InterviewThe Interview

Introduction– Establish a good relationship

Gather the data – Probing

Record the Interview

Probing StylesProbing Styles

A brief assertion of understanding and interest

An expectant pauseRepeating the questionRepeating the respondent’s replyA neutral question or comment Question clarification

Interview ProblemsInterview Problems

Non-response error

Response error

Interviewer error– Cost

Telephone InterviewTelephone Interview

Types– Computer-assisted telephone interviewing– Computer-administered telephone survey

Problems– Non-contact rate– Refusal rate

Self-Administered Self-Administered

Types– Intercept study– Mail survey

Disadvantages– Large non-response error– Cannot obtain detailed or large amounts of

information

Concurrent Techniques to Concurrent Techniques to Improve Mail ResponseImprove Mail Response

Reduce Length Survey Sponsorship Return Envelopes Postage Personalization

Anonymity Size, color, and

reproduction Money Incentives Deadline Dates Cover Letters

Outsourcing Survey ServicesOutsourcing Survey Services

Research Firms Provide– Centralized-location interviewing– Focus group facilities– Trained staff with experience– Data-processing and statistical analysis

capabilities– Access to point of scale data

Panels

Instruments For Respondent Instruments For Respondent CommunicationCommunication

3 Phases of the Instrument 3 Phases of the Instrument Design ProcessDesign Process

Developing the instrument design process

Constructing and refining the measurement questions

Drafting and refining the instrument

Developing the Instrument Developing the Instrument Design StrategyDesign Strategy

You must go through four question levels:– The management question– Research question– Investigative questions– Measurement questions

Strategic Concerns of Strategic Concerns of Instrument DesignInstrument Design

What type of data is needed to answer the management question

What communication approach will be used – Should the question be structured, unstructured,

or some combination– Should the question be disguised or

undisguised

Ways to Interact with the Ways to Interact with the RespondentRespondent

Personal Interview TelephoneMail Computer

What are the Three Types of What are the Three Types of Measurement Questions?Measurement Questions?

TargetClassificationAdministrative

4 Questions for Selecting 4 Questions for Selecting Appropriate Question ContentAppropriate Question Content

Should this question be asked?Is the question of proper scope and

coverage?Can the respondent adequately answer this

question, as asked?Will the respondent willingly answer this

question, as asked?

How to test a Respondent’s How to test a Respondent’s KnowledgeKnowledge

Filter Questions

Screen Questions

Question Wording CriteriaQuestion Wording Criteria

Is the question stated in terms of a shared vocabulary?

Does the question contain vocabulary with a single meaning?

Does the question contain unsupported assumptions?

Is the question correctly personalized?Are adequate alternatives presented within the

question?

What Dictates Your Response What Dictates Your Response Strategy?Strategy?

Characteristics of respondentsNature of the topic being studiedType of data neededYour analysis plan

Types of Response QuestionsTypes of Response Questions

Free-responseDichotomousMultiple choiceRatingRanking

Guidelines to Refining the Guidelines to Refining the InstrumentInstrument

Awaken the respondent’s interests

Use buffer questions as a guide to request sensitive information

Use the funnel approach to move to more specific questions

Final Step Toward Improving Final Step Toward Improving Survey ResultsSurvey Results

Pre-testing is an established practice for discovering errors and useful for training the research team

Observational StudiesObservational Studies

ObservationObservation

Non-behavioral observation– Record analysis– Physical condition analysis– Physical process analysis

Behavioral observation– nonverbal analysis– Linguistic analysis– Extra-linguistic analysis– Spatial analysis

Advantages of the Advantages of the Observational MethodObservational Method

Only method available to collect certain types of data

Collect the original data at the time it occursSecure information that participants would

ignore because it’s so common it is not seen as relevant

Advantages of the Advantages of the Observational Method (cont..)Observational Method (cont..)

Capture the whole event as it occurs in its natural environment

Subjects seem to accept an observational intrusion better than they respond to questioning

Limitations of the Limitations of the Observational Method Observational Method

Observer or recording equipment must be at the scene of the event when it takes place

Slow processExpensive processMost reliable results are restricted to

information that can be learned by overt action or surface indicators

Limitations of the Limitations of the Observational Method (cont..)Observational Method (cont..)

Research environment is more likely suited to subjective assessment and recording of data than to quantification of events

Limited as a way to learn about the pastCannot observe rationale for actions, only

actions themselves

Relationship between Relationship between observer and subjectobserver and subject

Direct or indirect observationObserver’s presence known or unknown to

the subjectObserver’s involvement level with the

respondent

ObservationObservation

DirectIndirectParticipantSimpleSystematic

Guidelines for selecting Guidelines for selecting observersobservers

Ability to concentrate in a setting full of distractions

Ability to remember details of an experience

Ability to be unobtrusive in the observational situation

Data collectionData collection

Who?What?

– Event Sampling– Time Sampling

When?How?

ExperimentationExperimentation

Types of variables in Types of variables in ExperimentsExperiments

Independent Variables

Dependent Variables

What are the Advantages of What are the Advantages of an Experiment?an Experiment?

Researcher’s ability to manipulate the independent variable

Contamination from extraneous variables can be controlled more efficiently

Convenience and costReplication

What are the Disadvantages?What are the Disadvantages?

Artificiality of the laboratoryGeneralization from non-probability

samplesLarger budgets needed Restricted to problems of the present or

immediate futureEthical limits to manipulation of people

How to Conduct an How to Conduct an Experiment?Experiment?

Select relevant variablesSpecify the treatment levelsControl the experimental environmentChoose the experimental design Select and assign the subjectsPilot-test, revise, and testAnalyze the data

Ways to Assign Subjects?Ways to Assign Subjects?

Random Assignment

Matching Assignment

Quota Matrix

Does a Measure Accomplish Does a Measure Accomplish What it Claims?What it Claims?

Internal validity

External validity

Variations in Experimental Variations in Experimental DesignsDesigns

Pre-experimental designs

True experimental designs

Field experiments

Types of Pre-experimental Types of Pre-experimental Designs?Designs?

One-shot case study

One-group pretest-posttest design

Static group comparison

Types of True Experimental Types of True Experimental DesignsDesigns

Pretest-posttest control group design

Posttest only control group design

Operational Extensions of Operational Extensions of True DesignsTrue Designs

Completely randomized designsRandomized block designLatin squareFactorial designCovariance analysis

What are Field Experiments:What are Field Experiments:Quasi or Semi?Quasi or Semi?

Non equivalent control group design

Separate sample pretest-posttest design

Group time series design

Data preparation and Data preparation and Preliminary AnalysisPreliminary Analysis

EditingEditing

Detects errors and omissions, corrects them when possible, and certifies that minimum data quality standards are achieved

Editing (cont..)Editing (cont..)

Guarantees that data are– accurate– consistent with other information– uniformly entered– complete– arranged to simplify coding and tabulation

CodingCoding

Rules that guide the establishment of category sets– Appropriate to the research problem and

purpose– Exhaustive– Mutually exclusive – Derived from one classification principal

Content Analysis Content Analysis

Follows a systematic process with the selection of a unitization scheme– Syntactical unit– Referential unit – Propositional unit– Thematic unit

Data Entry OptionsData Entry Options

Optical ScanningSpreadsheetsData warehouse

– Transformation and cleaning– End-user access tools

Data marts

Descriptive StatisticsDescriptive Statistics

Distribution Standard normal

distribution Central tendency

– Mean– Median– Mode

Variability

Variance Standard deviation Range Interquartile range Skewness Kurtosis

Techniques to Display and Techniques to Display and Examine DistributionsExamine Distributions

Frequency tableHistograms

– Display all intervals in a distribution, even without observed values

– Examine the shape of the distribution for Skewness, kurtosis, and the modal pattern

Stem and leaf display

Techniques (cont.)Techniques (cont.)

Box and whisker-plot– Rectangular plot tat encompasses 50% of the

data values– A center line marking the median and going go

through the width of the box– The edges of the box (hinges)– Whiskers that extend from the right and left

hinges to the largest and smallest values

Techniques (cont.)Techniques (cont.)

Transformation– To improve interpretation and compatibility

with other data sets– To enhance symmetry and stabilize spread– To improve linear relationships between and

among variables

Data Mining TechniquesData Mining Techniques

Data visualization– Dimensions– Measurements– Hierarchies

ClusteringNeural networksTree ModelsClassification

Data Mining Techniques Data Mining Techniques (cont.)(cont.)

Market-Basket AnalysisSequence Based AnalysisFuzzy LogicGenetic Algorithms Fractal-base Transformation

Data Mining ProcessData Mining Process

Sample ExploreModify ModelAssess

Hypothesis TestingHypothesis Testing

Two Approaches to Two Approaches to Hypothesis TestingHypothesis Testing

Classical Statistics

Bayesian Statistics

Types of HypothesesTypes of Hypotheses

Null

Alternative

The Logic of HypothesisThe Logic of HypothesisTestingTesting

Two tailed test

One tailed test

Decision Errors in TestingDecision Errors in Testing

Type I error

Type II error

Testing for Statistical Testing for Statistical Significance Significance

State the null hypothesisChoose the statistical testSelect the desired level of significance Compute the calculated difference valueObtain the critical valueMake the decision

What are Significant Tests?What are Significant Tests?

Parametric tests

Non-parametric tests

How to Test the Null How to Test the Null HypothesisHypothesis

Analysis of variance (ANOVA)

How to select a testHow to select a test

Does the test involve one sample, two samples, or k samples?

If two samples or k samples are involved, are the individual cases independent or related?

Is the measurement scale nominal, ordinal, interval, or ratio?

When to use the K Related When to use the K Related Sample TestsSample Tests

The grouping factor has more than two levels

Observations or subjects are matched or the same subject is measured more than once

The data are at least interval

Measures of AssociationMeasures of Association

Bivariate Correlation vs.. Non-Bivariate Correlation vs.. Non-parametric Measures of parametric Measures of

Association Association Parametric correlation requires two

continuous variables measured on an interval or ratio scale

The coefficient does not distinguish between independent and dependent variables

Bivariate Correlation Analysis Bivariate Correlation Analysis

Pearson correlation coefficient – r symbolized the coefficient’s estimate of linear

association based on sampling data– Correlation Coefficients reveal the magnitude and

direction of relationships – Coefficient’s sign (+ or -) signifies the direction of the

relationship

Assumptions of r– Linearity– Bivariate normal distribution

Bivariate Correlation AnalysisBivariate Correlation Analysis

Scatterplots– Provide a means for visual inspection of data– Both direction and shape of a relationship are

conveyed

Interpretation of CoefficientsInterpretation of Coefficients

Coefficient of determinationCorrelation matrix

– used to display coefficients for more than two variables

Correlation coefficient does not imply causation

Interpretation of CoefficientsInterpretation of Coefficients

Suggests alternate explanations for correlation results– X causes Y, or Y causes X, or X&Y are

activated by one or more other variables, or X&Y influence each other reciprocally

Practical SignificanceStatistical Significance Artifact correlations

Bivariate Linear RegressionBivariate Linear Regression

Used to make simple and multiple predictions

Regression coefficients– Slope– Intercept

Error termMethod of least squares

Interpreting Linear RegressionInterpreting Linear Regression

Residuals

Prediction and confidence bands

Interpreting Linear RegressionInterpreting Linear Regression

Goodness of fit– Zero slopes come from

Y completely unrelated to X and no systematic pattern is evident

Constant values of Y for every value of X data are related, but represented by a nonlinear function

– Tests t test F test Coefficient of Determination

Non-parametric Measures of Non-parametric Measures of AssociationAssociation

Measures for nominal data – When there is no relationship at all, coefficient

should be 0– When there is a complete dependency, the

coefficient should display unity or 1

Non-parametric Measures of Non-parametric Measures of AssociationAssociation

Chi-square based measure– Phi– Cramer’s V– Contingency coefficient of C

Proportional reduction in error (PRE)– Lambda– Tau

Characteristics of Ordinal Characteristics of Ordinal DataData

Concordant- subject ranks higher on one variable also ranks higher on the other variable

Discordant- subject ranks higher on one variable is ranked lower on the other variable

Measures for Ordinal DataMeasures for Ordinal Data

GammaSomer’s dSpearman’s rhoKendall’s tau bKendall’s tau c

– No assumption of bivariate normal distribution – Values range from +1.0 to -1.0

Multivariate Analysis:Multivariate Analysis:An Overview An Overview

Selecting a Multivariate Selecting a Multivariate TechniqueTechnique

Dependency

Interdependency

What are Dependency What are Dependency Techniques?Techniques?

Multiple regressionDiscriminant analysisMultivariate analysis if variance, or

MANOVALinear structural relationships, or LISREL Conjoint analysis

What are Interdependency What are Interdependency Techniques?Techniques?

Factor analysis

Cluster analysis

Multidimensional scaling (MDS)

Use Multiple Regression as a Use Multiple Regression as a Descriptive ToolDescriptive Tool

Predict values for a criterion variable by developing a self-weighting estimating equation

Control for confounding variables to better evaluate the contribution other variables

Test and explain causal theories

Uses for Discriminant AnalysisUses for Discriminant Analysis

Classify persons or objects into various groups

Analyze known groups to determine the relative influence of specific factors

Why Use MANOVA?Why Use MANOVA?

In business research, MANOVA can be used to test differences among samples of employees, customers, manufactured items, and production parts.

The Two Models of LISRELThe Two Models of LISREL

Measurement

Structural equation

Applications for Conjoint Applications for Conjoint AnalysisAnalysis

Market Research

Product development

What is Factor Analysis?What is Factor Analysis?

Computational techniques that reduce variables to a manageable number

Measurement statistics

Five Basic Steps to the Five Basic Steps to the Application of Cluster StudiesApplication of Cluster Studies

Selection of the sample to be clustered Definition of the variables on which to

measure the objects, events, or peoplecomputation of similarities among the entities

through correlation, Euclidean distances, and other techniques

Selection of mutually exclusive clustersCluster comparison and validation

What does Multidimensional What does Multidimensional Scaling Do?Scaling Do?

Creates a special description of a respondent’s perception about a product, service, or other object of interest

Written and Oral ReportsWritten and Oral Reports

Written Research ReportWritten Research Report

Short report– Tell the reader why you are writing– If in response, remind reader the exact point, answer

it, and follow with details – Write in expository style with brevity and directness– Write report today and leave it for tomorrow to

review before sending it– Attach detailed material as appendices when needed

Written Research ReportWritten Research Report

Long report– Technical report– Management report

Research Report ComponentsResearch Report Components Prefatory Items

– Letter of transmittal– Title page– Authorization letter– Executive summary– Table of contents

Introduction– Problem Statement– Research objectives– Background

Methodology – Sampling design– Research design– Data collection– Data analysis– Limitations

Conclusions– Summary and conclusions– Recommendations– Appendices– Bibliography

Written Report ConsiderationsWritten Report Considerations

Order – Sentence outline– Topic outline

Readability indicesPaceTone

Presentation of StatisticsPresentation of Statistics

Text paragraphSemi-tabular formTablesGraphics

GraphicsGraphics

Line graphs Area charts Pie charts Bar charts Pictograph 3-D graphics

Control charts– Outliners- observations

that fall outside the control lines

– Runs- data points in a series above or below the central line

Pareto diagram

Oral PresentationsOral PresentationsPreparation

– Length– Content– Opening– Findings and conclusions– Recommendations

OutlineDelivery

– Vocal Characteristics– Physical Characteristics

AudiovisualsAudiovisuals

Chalkboard and whiteboardsHandout materialFlip chartsOverhead transparenciesSlidesComputer drawn visualsComputer animation