Business Research Methods
William G. Zikmund
Chapter 24 Multivariate Analysis
Multivariate Statistical Analysis
Statistical methods that allow the simultaneous investigation of more than two variables
A Classification of Selected Multivariate Methods
All multivariate methods
Are some of the variables dependent on others? No
Yes
Dependence methods
Interdependence methods
Dependence Methods
A category of multivariate statistical techniques; dependence methods explain or predict a dependent variable(s) on the basis of two or more independent variables
Dependence Methods
How many variables are dependent
One dependent variable
Several dependent variables
Multiple independent and dependent variables
Dependence Methods
How many variables are dependent
One dependent variable
Metric Nonmetric
Multiple regression analysis
Multiple discriminant analysis
Dependence Methods
How many variables are dependent
Metric
Several dependent variables
Nonmetric
Multivariate analysis of variance
Conjoint analysis
Dependence Methods
How many variables are dependent
Multiple independent and dependent variables
Metric or nonmetric
Canonical correlation analysis
Interdependence Methods
A category of multivariate statistical techniques; interdependence methods give meaning to a set of variables or seek to group things together
Interdependence methods
Are inputs metric?
Metric
Nonmetric
Interdependence methods
Are inputs metric?
Metric
Factor analysis
Cluster analysis
Metric multidimensional scaling
Interdependence methods
Are inputs metric?
Nonmetric
Nonmetric
Multiple Regression
An extension of bivariate regression Allows for the simultaneous investigation
two or more independent variables a single interval-scaled dependent variable
Multiple Regression Equation
Y= a +b1X1 +b2X2+b3X3...+bnXn
Multiple Regression Analysis
Y a + b1 X 1 + b 2 X 2
+ b 3 X 3 + ..... + b n X n
Coefficients of Partial Regression
b1 Independent variables correlated with one another The % of the variance in the dependent variable that is explained by a single independent variable, holding other independent variables constant
Coefficient of Multiple Determination
R2 The % of the variance in the dependent variable that is explained by the variation in the independent variables.
Statistical Results of a Multiple Regression
Y = 102.18 + .387X1 + 115.2X2 + 6.73X3 Coefficient of multiple determination (R2) .845 F-value 14.6
F-Test
SSr / k SSe / n k 1
Degrees of Freedom (d.f.) are Calculated as Follows:
d.f. for the numerator = k for the denominator = n - k - 1
Degrees of Freedom
k = number of independent variables n = number of observations or respondents
F-test
( SSr ) / k F ( SSe ) /( n k 1)
where k = number of independent variables n = number of observations
Multiple Discriminant Analysis
A statistical technique for predicting the probability of objects belonging in two or more mutually exclusive categories (dependent variable) based on several independent variables
Zi = b1X1i + b2X2i + . . . + bnXni
where Zi = ith applicants discriminant score bn = discriminant coefficient for the nth variable Xni = applicants value on the nth independent variable
Discriminant Analysis
Zi b1 X 1i + b2 X 2i + ........ + bn X ni
Discriminant Analysis
X ji = applicants value on the jth independent
variable
bj
Zi
= discriminant coefficient for the jth variable
= ith applicants discriminant score
Canonical Correlation
Two or more criterion variables (dependent variables) Multiple predictor variables (independent variables) An extension of multiple regression Linear association between two sets of variables
Canonical Correlation
Z = a1X1 + a2X2 + . . . + anXn W = b1Y1 + b2Y2 + . . . + bnYn
Factor Analysis
Summarize the information in a large number of variables Into a smaller number of factors Several factor-analytical techniques
Factor Analysis
A type of analysis used to discern the underlying dimensions or regularity in phenomena. Its general purpose is to summarize the information contained in a large number of variables into a smaller number of factors.
Factor Analysis
Height
Size
Weight
Occupation
Education
Social Status
Source of Income
Copyright 2000 Harcourt, Inc. All rights reserved.
Cluster Analysis
A body of techniques with the purpose of classifying individuals or objects into a small number of mutually exclusive groups, ensuring that there will be as much likeness within groups and as much difference among groups as possible
Multidimensional Scaling
A statistical technique that measures objects in multidimensional space on the basis of respondents judgments of the similarity of objects
Multivariate Analysis of Variance (MANOVA)
A statistical technique that provides a simultaneous significance test of mean difference between groups for two or more dependent variables
