Week 4

Finding answers in the data

Statistical analysis of group differences

Testing causal relationships

On average breastfed babies are healthier. But
that does not mean breast milk causes better
health.
Women who breastfeed are more likely to do other
things that will make their babies healthier...
Therefore, if babies who are breastfed are less
likely to have ear infections, is it the benefit from
breast milk or the behaviour of the caretakers?
So the question is: what is beneficial, that I am
undertaking healthy behaviours or that I am
breastfeeding? We dont have an answer to that
question.
Interview with Joan Wolf, Macleans, 17 Jan 2011

Objectives for today

Review three levels of measurement

An intuitive look at analyzing
differences between groups
Develop coding skills
Practice using statistical software to
analyze group differences; provide
descriptive statistics

Levels of measurement

Nominal

Categories: Business Owner / Manager

Interval

Ratio

Ratings:

Unsuccessful 1 2 3 4 5 Successful

Count: # of years owning your own firm

Testing bivariate hypotheses:

Differences between groups

Use the t-test when:

Variable

1 = Nominal with 2 levels (2 groups)

Variable 2 = Interval or Ratio

Use one-way Analysis of Variance

(ANOVA) when
Variable

1 = Nominal with 3 or more levels

Variable 2 = Interval or Ratio