Marketing Research (Chapter-16, 17, 18)

1. Why the value of eta2 lies between 0 and 1?

Ans: The value of eta2 lies between 0 and 1 because it is based on two measures of variance: within groups (SSe) and between groups (SSx). Thus, it compares the Y variance estimates based on between-group and within-group variation.

Thus, 2.How does ANOVA differ from Regression in terms of data requirement? Ans: ANOVA must have a metric (interval or ratio scale) dependent variable and one or more categorical (nonmetric) independent variable. On the other hand, Regression must have a metric dependent variable and one or more metric independent variable. 3.In one-way ANOVA factor levels and treatment levels are equalExplain it. Ans: Factors are categorical independent variables. Treatment is a particular combination of factor levels or categories. One-way ANOVA involves only one categorical variable or a single factor. Therefore, there should be only one treatment level for a single factor in one way ANOVA. 4.What are the differences between ANOVA and Regression? ANOVA Regression 1. A statistical technique for examining the 1. A statistical procedure for analyzing differences among means for or more associative relationships between a populations. metric dependent variable and one or more independent variable. 2. ANOVA must have a metric (interval or 2. Regression must have a metric ratio scale) dependent variable and one dependent variable and one or more or more categorical (nonmetric) metric independent variable. independent variable. 3. It is used as a test of means for two or 3.It is concerned with the nature and more populations. degree of association between variables and does not imply any causation. 5. What are the steps in conducting one-way ANOVA? Ans: There are five steps in conducting one-way ANOVA i) Identify the dependent and independent variables ii) Decompose the total variation iii) Measure the effects iv) Test the significance v) Interpret the results 6.What are the steps of conducting exploratory research or identifying the problems? Ans: There are four steps i) Discussion with decision makers ii) Interviews with experts iii) Secondary data analysis iv) Qualitative research
MBA 12th Batch Dept. of Marketing

7.What is the null hypothesis in case of ANOVA? Ans: The null hypothesis is that all means are equal. 8. What is the null hypothesis in case of MANOVA? Ans: The null hypothesis is that the vectors of means on multiple dependent variables are equal across groups. 9. What is the null hypothesis in case of regression analysis? Ans: The null hypothesis is that there is no linear relationship between independent variable, X, and dependent variable, Y. 10. What is the null hypothesis in case of multiple regression analysis? Ans: The null hypothesis is that the coefficient of multiple determinations in the population, R2pop, is zero. H0: R2pop = 0. 11. What is the null hypothesis in case of discriminant analysis? Ans: The null hypothesis is that the means of all discriminant functions in all groups are equal. 12. What is the null hypothesis in case of Logit model/Wald statistics? Ans: The null hypothesis is that logistic regression coefficient is zero, ai = 0. 13. What is correlation? Ans: Correlation is a statistic summarizing the strength of association between two metric variables. It is an index used to determine whether a linear, or straight line, relationship, exist between X and Y. 14. Differentiate among Regression, Correlation, & Causality. Ans: Regression is a statistical procedure for analyzing associative relationships between a metric dependent variable and one or more independent variable. It is concerned with the nature and degree of association between variables and does not imply any causation. Correlation is a statistic summarizing the strength of association between two metric variables. It is an index used to determine whether a linear, or straight line, relationship, exist between X and Y. Causality means the occurrence of X increases the probability of the occurrence of Y. Before assuming causality three conditions must be satisfied: i) concomitant variation, ii) time order of occurrence, and iii) elimination of other possible causal factors. are the differences between standardized coefficient and unstandardized coefficient? Ans: Standardized coefficient, , is the slope obtained when the data are standardized that have a mean of 0 and a variance of 1. On the other hand, unstandardized coefficient, b, is calculated based on the raw data. It is the slope of the regression line and it indicates the change in Y when X is changed by 1 unit.
16. What is the meaning of rxy.pqr? 15. What

Ans: rxy.pqr is a third-order partial correlation coefficient. It means the partial correlation coefficient between X and Y, after controlling for the effect of p, q, & r.
17. What is indicated by R2 = 0 in product moment correlation?
MBA 12th Batch Dept. of Marketing

Ans: R2 = 0 indicates that there is no linear relationship between X and Y.

18. If r2 = 0.87, How the will scatter diagram be plotted?

Ans: The dots will be very close to the straight line. 19. What is correlation matrix? What is the use of correlation matrix? Ans: Correlation matrix indicates the simple correlation between each pair of variables. Correlation matrix is used to identify high correlation between predictor variables or multicollinearity problems. This is useful to formulate a model. 20. When does the suppressor effect & the spurious effect reveal in correlation? Ans: When a partial correlation is larger than its respective zero-order correlation involves a suppressor effect. On the other hand, when the partial correlation is smaller than the its respective zero-order correlation involves a spurious effect.
21. What is standardized coefficient/standardized regression coefficient? Ans: This is the slope obtained by the regression of Y on X when the data are standardized; the intercept assumes a value of 0.

22. What is the use of multivariate correlation? Ans: It is useful to examine the simple correlation between each pair of variables 23. What is the Method of least square? What is the use of it? Ans: Least square procedure is a technique for fitting a straight line to a scatter diagram by minimizing the square of the vertical distances of all the points from the line. It is used to best fitting the line in a scatter diagram by minimizing the vertical distances.
24.

What is partial F-test? Why is partial F-test used for? Ans: The significance of a partial regression coefficient, i of Xi may be tested using an international F statistics. The incremental F statistic is based on the increment in the explained sum of squares resulting from the addition of the independent variable X to the regression equation after all the other independent variables have been included. Partial F-test is used to identify one or more population partial regression coefficients have a value different from 0 when the null hypothesis is rejected. It helps to determine which, i, are nonzero.

25.

What is the meaning of ? Ans: means standardized regression coefficient and it is the slope obtained by the regression of Y on X when the data are standardized. It indicates the expected change in Y when X is changed by 1 unit.
26. Why is R2pop = 0 is equivalent to 1 = 2 = 3 = .. = k = 0?

Ans: R2 determines the strength of association that is stipulated by regression equation. Thus, R2pop = 0 means there is no association between X and Y. On the other hand, i, the partial regression coefficient denotes the change in the predicted value, , per unit change in X1 when the other independent variables, X2 to Xk are held constant. Thus, 1 = 2 = 3 = . = k = 0 means there is no change in the
MBA 12th Batch Dept. of Marketing

predicted value, , per unit change in X1 when the other independent variables, X2 to Xk are held constant. Therefore, R2pop = 0 is equivalent to 1 = 2 = 3 = . = k = 0. 27. What are the conditions of standardization? Ans: The conditions of standardization are: i) a mean of zero, and ii) a standard deviation of 1.

28. Show the similarities and dissimilarities among ANOVA, Regression,

and Discriminate analysis. ANOVA Similarities Number of dependent variables Number of independent variables Dissimilarities Nature of the dependent variables Nature of the independent variables One Multiple Metric Categorical Regression One Multiple Metric Metric DIscriminant/ Logit Analysis One Multiple Categorical/Binar y Metric

29. What are the properties of Z? Ans: The properties of Z are: i) it has a mean of 0 i.e. = 0, and ii) a standard deviation of 1 i.e. = 1. 30. What is discriminant function? Ans: The linear combination of independent variables developed by discriminant analysis that will best discriminant between the categories of the dependent variables. 31. What is unstandardized coefficient? Ans: Unstandardized coefficient, b, is calculated based on the raw data. It is the slope of the regression line and it indicates the change in Y when X is changed by 1 unit.
32.

Differentiate between two-group discriminant analysis and multiple discrimant analysis. Ans: Tow-group discriminant analysis is a discriminant analysis technique where the criterion variable has two categories. Multiple discriminant is discriminant analysis technique where the criterion variable involves three or more categories. The main distinction is that, in the two-group case, it is possible to derive only one discriminant function. In multiple discriminant analysis, more than one function may be computed.
33. What is the model estimation in discriminant analysis? / How is model

estimated in case of discriminant analysis?

MBA 12th Batch Dept. of Marketing

Ans: The coefficients, or weights (b), are estimated so that the groups differ as much as possible on the values of the discriminant function. This occurs when the ratio between-group sum of squares to within-group sum of squares for the discriminant score is at a maximum.
34. How is model/parameter estimated in case of logit model? Ans: In binary logit model, the model is estimated by the maximum likelihood method. It estimates the likelihood or probability of observing the actual data. 35. How is model / parameter estimated in case of regression analysis? Ans: The regression model is fit by the least squares procedure. Least squares procedure determines the best-fitting line by minimizing the square of the vertical distances of all the points from the line. 36.

What condition is implied to estimate discriminant model/parameter? Ans: The groups difference should be maximum on the values of the discriminant function.
37. What is classification matrix? What is hit ratio? What is the use of hit

ratio? Ans: The classification matrix contains the number of correctly classified and misclassified cases. The correctly classified cases appear on the diagonal, because the predicted and actual groups are the same. Hit ratio is the percentage of cases correctly classified by the discrimant analysis. Hit ratio is used for assessing the validation of the model estimation in discriminant analysis. Hit ratio is also used to compare the percentage of cases correctly classified by discriminant analysis to the percentage that would be obtained by chance. Distinguish between analysis sample and validation sample. Analysis sample Validation sample i) Analysis sample is the part of i) Validation sample is that part of the total the total sample that is used for sample used to check the results of the estimation of the discriminant estimation sample. function. ii) It is used for estimating the ii) It is used for developing the classification matrix. discriminating function.
39. What condition is implied to estimate multiple discriminant model /

38.

Parameter? Ans: The coefficients, or weights (b), are estimated so that the groups differ as much as possible on the values of the discriminant function. This occurs when the ratio between-group sum of squares to within-group sum of squares for the discriminant score is at a maximum. 40. What are the assumptions of classical/bivariate regression model? Ans: i) The error term is normally distributed. ii) The means of all these normal distributions of Y, given X, lies on a straight line with slopw b. iii) The mean of the error term is 0. iv) The variance of the error term is constant. This variance does not depend on the values assumed by X. v) The error terms are uncorrelated.
MBA 12th Batch Dept. of Marketing

41. In case of regression analysis error term is normally distributed. Is it applicable for logit model? Ans: No, it is not applicable in case of logit model. Because each error term in the binary logit model can assume only two values 0 and 1. 42. How model fit is tested in case of logit model/regression analysis/discriminant analysis? Ans: In binary logit model, model fit is tested by the likelihood functions, and Cox & Snell R square and Nagelkerke R square. In regression analysis model fit is tested by the square of the coefficient of determination, r2 or R2. In discriminant analysis model fit is tested by determining the proportion of correct prediction (Hit ratio). 43. If it is replace by P then what will be the problem? Ans: P will not be constrained to lie between 0 and 1; it is possible to obtain estimated values of P that are less than 0 or greater than 1. These values are conceptually and intuitively unappealing. Differentiate between cluster analysis and factor analysis. Factor Analysis Cluster Analysis i) Factor analysis is a general name ii) Cluster Analysis is a class of techniques used denoting a class of procedure to classify objects or cases into relatively primarily used for data reduction and homogeneous groups called clusters. summarization. iii) It is used to examine and ii) It is concerned with classification of objects represent the relationships among or cases. There is no a priori information about sets of many interrelated variables the group or cluster membership for any of the in terms of a few underlying factors. objects. 44.

MBA 12th Batch Dept. of Marketing