Final Exam Spring-2021

Department of Business Administration

Subject: Quantitative Research Methods Submission Day: Monday (18:30-21:30)

Instructor: Dr. Muhammad Azam/ Submission Date: May 31, 2021
Mr. Abdul Samad
Program: MBA Max. Marks: 40

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Q1. [04+06]
The study used an online structured questionnaire to collect data from Pakistani tourists. This study
aimed to examine the variables that influence the consumer buying behavior of hospitality services. The
output of the regression analysis is presented below. (250 words)

Table: Coefficients
Model Unstandardized coefficient Sig.
(B)
Constant 0.637 0.154

Social Network Sites Use 0.251 0.032

Social Identity -0.008 0.918

Word-of-Mouth 0.371 0.014

Dependent Variable: Consumer buying behavior

a) You are required to write the multiple regression equation.
b) How would you interpret the above ‘Output’ of a regression analysis performed in SPSS?

Q2. [05+05]
Let’s suppose that you have a set of time-series variables, and you want to model the relationship
between them. Read the situations given below and answer the questions. (200 words)
a) Explain the statistical test if the linear combination (of time-series variables) is I(0).
b) Which statistical test can be applied if all the series are integrated of the same order I(1).
Justify your answer

Q3. [10]
How would you interpret the given output? (200 words)

Discriminant validity
Cronbach’s
Physical Online Hybrid Physical
Alpha
Variables mobility education education
campus life
Physical mobility 0.784 0.858
Online education 0.773 0.405 0.923
Hybrid education 0.810 0.210 0.183 0.852
Physical campus life 0.756 0.145 0.360 0.198 0.810
Purpose: This study aims to address the issue of business student mobility and the Covid-19
pandemic.
Q4. [10]
Based on the following output tables, write all the panel data regression models. Which is a better
model, FEM or REM? Justify your answer. (300 words)

Table # 1
Dependent Variable: PAYOUT
Method: Panel Least Squares
Periods included: 10
Cross-sections included: 30
Total panel (unbalanced) observations: 297

Variable Coefficient Std. Error t-Statistic Prob.

GROWTH_OPPORTUNITIES 1.981526 0.831735 2.382401 0.0179

LIQUIDITY 9.887486 2.345236 4.215987 0.0000
LEVERAGE -0.125635 0.120092 -1.046157 0.2964
C 25.61491 4.783087 5.355308 0.0000

Effects Specification

Cross-section fixed (dummy variables)

R-squared 0.575624 Mean dependent var 43.87011

Adjusted R-squared 0.524184 S.D. dependent var 36.90611
S.E. of regression 25.45762 Akaike info criterion 9.416346
Sum squared resid 171095.9 Schwarz criterion 9.826761
Log likelihood -1365.327 Hannan-Quinn criter. 9.580650
F-statistic 11.19029 Durbin-Watson stat 1.921420
Prob(F-statistic) 0.000000

Table # 2
Dependent Variable: PAYOUT
Method: Panel EGLS (Cross-section random effects)
Periods included: 10
Cross-sections included: 30
Total panel (unbalanced) observations: 297

Variable Coefficient Std. Error t-Statistic Prob.

GROWTH_OPPORTUNITIES 2.489234 0.803970 3.096176 0.0022

LIQUIDITY 8.607386 2.111391 4.076643 0.0001
LEVERAGE -0.131408 0.116707 -1.125957 0.2611
C 26.55794 6.134726 4.329116 0.0000

Effects Specification
S.D. Rho
Cross-section random 23.14597 0.4525
Idiosyncratic random 25.45762 0.5475

Weighted Statistics

R-squared 0.089013 Mean dependent var 14.43565

Adjusted R-squared 0.079685 S.D. dependent var 26.69547
S.E. of regression 25.62932 Sum squared resid 192460.5
F-statistic 9.543004 Durbin-Watson stat 1.175268
Prob(F-statistic) 0.000005

Table # 3
Correlated Random Effects - Hausman Test
Equation: Untitled
Test cross-section random effects

Test Summary Chi-Sq. Statistic Chi-Sq. d.f. Prob.

Cross-section random 7.091813 3 0.0061

Cross-section random effects test comparisons:

Variable Fixed Random Var(Diff.) Prob.

GROWTH_OPPORTUNITIES 1.981526 2.489234 0.045414 0.0172

LIQUIDITY 9.887486 8.607386 1.042162 0.2099
LEVERAGE -0.125635 -0.131408 0.000801 0.8384