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How do we know if the characteristics of a sample we take match the characteristics of the population we are sampling? The short answer is we don·t. We can, however, take steps that make it as likely as possible that the sample will be representative of the population. Two simple and effective methods of doing this are making sure the sample size is large and making sure it is randomly selected. A large sample size is more likely to be representative of a population than a small one. Think of extreme cases. If we want to know the average height of the population and we select just one person and measure their height it is unlikely to be close the population average. If we took 1,000,000 people, measured their heights and took the average, this figure would be likely to be close to the population average.

Types of Sampling

The type of enquiry you want to have and the nature of data that you want to collect fundamentally determines the technique or method of selecting a sample. The procedure of selecting a sample may be broadly classified under the following three heads:

yNon-Probability

Sampling Methods: Subjective or

Judgement Sampling

yProbability yMixed

Sampling

Sampling

Now let us discuss these in detail. We will start with the non probability sampling then we will move on to probability sampling.

**Non-Probability Sampling Methods
**

The common feature in non probability sampling methods is that subjective judgments are used to determine the population that are contained in the sample .We classify non-probability sampling into four groups: 1. Convenience Samples 2. Judgement Samples 3. Quota Samples 4. Snowball samples A. Convenience Samples

yThese yIt yIt

types of samples are used primarily for reasons of convenience.

is used for exploratory research and speedy situations. is often used for new product formulations or to provide

Convenience sampling is extensively used in marketing studies and otherwise. Judgement sampling is used in a number of cases. Judgement Samples yIt is that sample in which the selection criteria are based upon your (researcher·s) personal judgment that the members of the sample are representative of the population under study. While conducting marketing tests for new products.If personal biases are avoided.) it is presently manufacturing with a view to modify it to suit customers need. What the investigator does is to visit 150 Pan shops near his place of office as it is very convenient to him and observe whether a Pan shop stores Maaza or not. The other example where convenience sampling is often used is in test marketing. students. A ball pen manufacturing company is interested in knowing the opinions about the ball pen (like smooth flow of ink. from the panel. the chairman of the panel may suggest the name of another . which store a particular drink Maaza. It is only those Pan shops which were near the office of the investigator has a chance of being selected 2. some of which are: 1. It is decided to take a sample of size 150. yIt is used for most test markets and many product tests conducted in shopping malls. as most Pan shops in Delhi had no chance of being selected. B. 3. This is definitely not a representative sample. peers. There might be some cities whose demographic make-ups are approximately the same as national average. resistance to· breakage of the cover etc. Suppose we have a panel of experts to decide about the launching of a new product in the next year. the researcher may take samples of consumers from such cities and obtain consumer evaluations about these products as these are supposed to represent ´nationalµ tastes. a member drops out. As another example a researcher might visit a few shops to observe what brand of vegetable oil people are buying so as to make inference about the share of a particular brand he is interested in. If for some reason or the other. then the relevant experience and the acquaintance of the investigator with the population may help to choose a relatively representative sample from the population. 4.gross-sensory evaluations by using employees. The job is given to a marketing researcher who visits a college near his place of residence and asks a few students (a convenient sample) their opinion about the ¶ball penµ in question. This would be clear from the following examples 1. etc. It is not possible to make an estimate of sampling error as we cannot determine how precise our sample estimates are. Suppose a marketing research study aims at estimating the proportion of Pan (Beetle leaf) shops in Delhi.

For example. samples of size 40. Needless to mention this is a biased method. The method could be used in a study involving the performance of salesmen. Suppose we are conducting a survey to study the buying behavior of a product and it is believed that the buying behaviour is greatly influenced by the income level of the consumers. hardto. 2. Advantages of Non-probability Samples yIt yIt is much cheaper to probability samples. Snowball Sampling yIt is that samples in which the selection of additional respondents (after the first small group of respondents is selected) is based upon referrals from the initial set of respondents. Therefore. middle-income group and low-income group. C. middle income and low income groups respectively. 70 and 90 should come from high income. Suppose it is decided to select a sample of size 200 from the population. The Investigators or field workers are instructed to choose a sample that conforms to these parameters. the first field ySelection is done by non-probability means and are based upon the researcher·s judgement of appropriate demographics. Quota Samples This is a very commonly used sampling method in marketing research studies. one might have to resort to this type of sampling.a case of Judgment sampling. However in the absence of any objective data. Now the various field workers are assigned quotas to select the sample from each group in such a way that a total sample of 200 is selected in the same proportion as mentioned above. Further it is known that 20% of the population is in high income group. is acceptable when the level of accuracy of the research results is not of utmost importance.person whom he thinks has the same expertise and experience to be a member of the said panel. The salesmen could be grouped into top-grade and low-grade performer according to certain specified qualities. income and occupation that describe the nature a population so as to make of it representative of the population.find members of the sample. before collecting data on these units the investigators are supposed to verify that the units qualify these characteristics. 35% in the middle-income group and 45% in the low-income group. However. research time is required than probability samples. We assume that it is possible to divide our population into three income strata such as high-income group. sex. yLess . yIt yIt is used to sample low incidence or rare populations is done for the efficiency of finding the additional. Here the sample is selected on the basis of certain basic parameters such as age. D. This new member was chosen deliberately . the sales manager may indicate who in his opinion. Having done so. would fall into which category.The field workers are assigned quotas of the number of units satisfying the required characteristics on which data should be collected.

Random selection is best for two reasons . Probability Sampling Probability sampling is the scientific method of selecting samples according to some laws of chance in which each unit in the population has some definite pre-assigned probability of being selected in the sample. Selection of a Simple Random Sample As we all know Simple Random Sample refers to that method of selecting a sample in which each and every unit of population is given independent and equal chance to be included in the sample. research results cannot be projected (generalized) to the total population of interest with any degree of confidence.yIt often produces samples quite similar to the population of interest when conducted properly. Although human bias is inherent in any sampling scheme administered by human beings. But. the method of selecting a sample must be independent of the properties of sampled population. where each unit has an equal chance of being selected. The different types of probability sampling are : 1. Probability of selection of a unit is proportional to the sample size.The probability of drawing a second unit in the second draw is 1/N. Thus in simple random sample from a population of size N. Simple Random Sampling It is the technique of drawing a sample in such a way that each unit of the population has an equal and independent chance of being included in the sample. Thus. Proper precautions should be taken to ensure that your selected sample is random. the minimum required sample size cannot be calculated which suggests that the you (researcher) may sample too few or too many members of the population of interest. Random Sample does not depend only upon selection of units but also on the size and nature of the population. In this method an equal probability of selection is assigned to each unit of population at the first draw. 2. Thus. The probability of selecting a specified unit of population at any given draw is equal to the probability of its being selected at the first draw. the probability of drawing any unit in the first draw is 1/N. yYou yThe do not know the degree to which the sample is representative of the population from which it was drawn.1 . computerized random number generator or lottery method . the three methods of drawing simple random sample are: .It also implies an equal probability of selecting in the subsequent draws. Disadvantages of Nonprobability Samples yYou cannot calulate Sampling error.it eliminates bias and statistical theory is based on the idea of random sampling. One procedure may be good and simple for a small sample but it may not be good for the large population. We can select a simple random sample through use of tables of random numbers . Sampling units have different probabilities of being selected 3. Generally.

Generally in place of slips you can use cards also.5. we want to select ´rµ candidates out of ´nµ. I will tell you about the different sets of random numbers commonly used in practice. which has been constructed that each of the digits 0.yMechanical ysealed method and using tables of random numbers. These numbers are then written on n slips which are made as homogeneous as possible in shape.8. so does each of the pairs 00 to 99 or triplets from 000 to 999 or quadruplets 0000 to 9999 and so on .7.4. Since each of the digits 0.1. Select at random. We will illustrate it by means of example for better understanding: Suppose. The population units corresponding to the number of unit selected in step (ii) comprise the random sample. etc. Mechanical Randomisation or Random Numbers Method The explained method of lottery is very time consuming and cumbersome to use if population is very large.4.3. Thus. then combining the digits three by three ( or four by four and so on ). Lottery Method This is the simplest method of selecting a random sample. . The pack of cards is a miniature of population for sampling purposes.8.1. the method of drawing the random sample consists in the following steps: i. Therefore the most practical and inexpensive method of selecting a random sample consists in the use of Random Numbers Tables. Identify the N units in the population with the numbers from 1 to N ii. Similarly if Ndµ999 or Ndµ9999 and so on. envelopes (lottery system) etc. The ´rµ candidates corresponding to numbers on the slips drawn will constitute a random sample.e to each and every candidate we assign only one exclusive number. size. These slips are then put in a bag and thoroughly shuffled and then ´rµ slips are drawn one by one.5. colour. The cards are shuffled a number of times and then a card is drawn at random from them.6.2. The numbers in these tables have been subjected to various statistical tests for randomness of a series and their randomness has been well established for all practical purposes. we get numbers from 000 to 999 or (0000 to 9999) and so on.6. We assign the numbers from 1 to n i. If we have to select a simple random sample from a population of size N(dµ99) then the numbers can be combined two by two to give pairs from 00 to 99.2.3.9 appear with approximately the same frequency and independently of each other. We make one card corresponding to one unit of population by writing on it the number assigned to that particular unit of population.9 appear with approximately the same frequency and independently of each other. This is one of the most reliable methods of selecting a random sample. iii.7. any page of the random number tables and pick up the numbers in any row or column or diagonal at random. This method of selecting a simple random sample is independent of the properties of population.

2. 15 Cambridge University Press) Tippet number tables consist of 10. and S is the minimum number. not 10. then you can generate them using the following formule N=B-A+1 int (N*rand+A) Notice it is B-A+1 not B-A. Merits and Limitations of Simple Random Sampling Merits 1. Therefore.400 four digited numbers. Since the calculator remembers the last formula put in.e.41600 digits selected at random from the British Census Report. if you take 10-1.000 sets of 4 digited random numbers (Tracts for computers No. Illinois) random number tables consist of one million random digits consisting of 5 digits each. Agricultural and Medical Research) comprise 15. Also. 2. The selection of simple random sample requires an up. But. . the element of subjectivity or personal bias is completely eliminated. 24 Cambridge University Press) 4. you get 9. you will get another random number. TI-82: Generating Random Numbers You can generate random numbers on the TI-82 calculator using the following sequence. Sample mean becomes an unbiased mean of population mean or a more efficient estimate of population mean as sample size increases. 3.S.Thomson·s 20. N is the number of different values. Everyone agrees there are 10 numbers between 1 and 10 (inclusive). Fisher and Yates (1938) Tables (in statistical tables for biological. Each time you hit enter. which could be. int (N*rand+S) If you have two values (A and B) that you need random numbers between.400 x 4 . which are widely spread geographically and in such a case the administrative cost of collecting the data may be high in terms of time and money. Rand Corporation (1955) (free oress.00. Although it is impossible to have knowledge about each and every unit of population if population happens to be very large.1. 5.. You can ascertain the efficiency of the estimates of the parameters by considering the sampling distribution of the statistic (estimates) For example:One measure of calculating precision is sample size. Since samples units are selected at random providing equal chance to each and every unit of population to be selected . in the formula above. to generate more random numbers. This restricts the use of simple random sample. i. replace the N by the actual number of different values. A simple random sample may result in the selection of the sampling units. Fisher and Yates obtained these tables by drawing numbers at random from 10th to 19th digits of A.date frame of population from which samples are to be drawn. Kendall and Babington Smith·s (1939) random tables consist of 1. Limitations 1. 2. just hit enter again.000 digits grouped into 25. we can say that simple random sample is more representative of population than purposive or judgement sampling.to . giving in all 10. and evaluates it when you hit enter. Tippets (1927) Random Number Table: (Tracts for computers No.000 digits arranged in twos.figure logarithmic tables.

3. This is not a problem if we are conducting a large study. Inversely proportional to the sample size. Therefore as sample size increases precision increases. More Representative . and suitable sample size from each stratum. A and B then one way I could allocate patients to treatment groups would be by using a table of random numbers. This would not be a very good basis for comparing the two treatments. There are two points which you have to keep in mind while drawing a stratified random sample. We also know that the precision is defined as reciprocal of its sampling variance. like long runs of the same number. This type of problem can be eliminated by use of Stratified Random Sampling. Therefore. everything evens out over time. This would result in successive patients being allocated in the sequence: BABBBAABBABBBBBBBBBB Randomly selected numbers often seem to have patterns in them. we will move into details of stratified random sampling. Now. Principle advantages of Stratified Random Sampling 1. which I will explain with the help of an illustration next. Sometime. the only way of increasing the precision of sample mean is to devise a sampling technique which will effectively reduce variance. yProper yA classification of the population into various strata. a simple random sample might give most nonrandom looking results. The limitations of simple random sample will be clear from the example. in which the population is divided into different strata. simple random sample usually requires larger sample size as compared to stratified random sampling which we will be studying next. and b. One such technique is Stratified Sampling. For a given precision. Both these points are important to be considered because if your stratification is faulty. it cannot be compensated by taking large samples. Apart from increasing the sample size or sampling fraction n/N. The following set of random numbers came from a popular statistics tables (most statistics textbooks have them): 65246356854282020026 I could allocate patients to treatment A if the number were odd and B if it were even. the variance of the sample estimate of the population is a. some of the randomly allocated sample prove very non-random. But if the above study had stopped after recruiting 20 patients then we would have had four patients on treatment A and sixteen on B. Directly proportional to the variability of the sampling units in the population. Stratified Random Sampling We have understood that in simple random sampling. If I were conducting a study looking at two treatments. 4. the population heterogeneity.

e. the rest being automatically selected according to some predetermined pattern involving regular spacing of units. Moreover. the stratified random samples are more concentrated geographically. For example yLiterates and Illiterate . Stratified sampling ensures any desired representation in the sample of the various strata in the population. others may be under-represented while some may be excluded altogether. Stratified sampling thus provides a more representative cross section of the population and is frequently regarded as the most efficient system of sampling. Sometimes you will notice that sampling problems may differ markedly in different parts of population. n1 = n2 = . (ii) fixed cost 2. Minimise the variance (i.. Optimum allocation In proportional allocation. 2. hospitals etc. Note: You can allocate the sample sizes for different strata can be done in two ways: 1.. allocation of ni . Proportional allocation 2. In such cases we will deal with the problem through stratified sampling by regarding the different parts of the population as stratum and tackling the problems of the survey within each stratum independently. 4.. We number all the sampling units from 1 to N in some order and a sample of size n is drawn in such a way that N = nk i. which is known as systematic sampling. the sample size of each strata is called proportional if the sample fraction is constant for each stratum i. It over-rules the possibility of any essential group of the population being completely excluded in the sample.. stratified sampling enables us to obtain the results of known precision for each stratum.People living in ordinary homes and people living in institutions.. Greater Accuracy Stratified sampling provides estimates with increased precision .In an non-stratified random sample some strata may be over represented. Accordingly. the time and money involved in collecting the data and interviewing the individuals may be considerably reduced and the supervision of the field work could be allocated with greater ease and convenience.... hostels... k = N/n . Now let us assume that the population size is N. maximize the variance) of the estimate for (i) fixed sample size. In systematic sampling you select the first unit at random..= nk N1 N2 Nk Optimum Allocation is another guiding principle in the determination of the ni is to choose them so as to : 1.. Minimise the total cost for fixed desired precision Systematic Random Sampling If you have the complete and up-to-date list of sampling units is available you can also employ a common technique of selection of sample .e.e. Administrative Convenience As compared with simple random sample. 3.

. I.Systematic sampling is operationally more convenient than simple random sampling or stratified random sampling. into some recognizable sub-divisions which are termed as clusters and a simple random sample of n blocks is drawn. instead of enumerating all the sampling units in the selected cluster. depending upon the problem under study. till we ultimately reach a stage where desired sampling units are obtained. This technique can be generalized to multistage sampling. If N is not a multiple of n. The main disadvantage of systematic sampling is that systematic sampling is that systematic samples are not in general random samples since the requirement in merit two is rarely fulfilled. In multi-stage sampling each stage reduces the sample size. is an integer. ySample III.. II. if the frame (list) has a periodic feature and k is equal to or a multiple of the period.Systematic sampling may yield highly biased estimates if there are periodic features associated with the sampling interval. This technique is called two-stage sampling. then yThe actual sample size is different from that required. II. The individuals which you have selected from the blocks constitute the sample.It does not provide the sampling error IV.Where k. This sampling is more efficient to simple random sample. It saves your time and work involved. . We regard population as a number of primary units each of which is further composed of secondary stage units and so on . provided the frame (the list from which you have drawn the sample units ) is arranged wholly at random Demerits I. and mean is not an unbiased estimate of the population mean.e. Cluster Sampling In this type of sampling you divide the total population . Merits and Demerits of Systematic Random Sampling Now students we will discuss the merits and demerits of systematic random sampling Merits I. Multistage Sampling One better way of selecting a sample is to resort to sub-sampling within the clusters . usually called the sampling interval. clusters being termed as primary units and the units within the clusters being termed as primary units and the units within the clusters as secondary units.

yIn contrast -nonprobability selection is not random. When each sample element is drawn individually from the population at large.stage sampling of the same size. . ii.It is simple to carry out and results in administrative convenience by permitting the field work to be concentrated and yet covering large area. Points to Ponder ySampling is based on two premises. good sample has both accuracy & precision. others overestimate the value. An accurate sample is one which there is little or no bias or systematic variance. iii. A sample with adequate precision is one that has a sampling error that is within acceptable limits. Multistage sampling is more flexible as compared to other methods . Thus in the nutshell we can say that Non probabilistic sampling such as Convenience sampling. yThe yA results of these tendencies are that a sample mean is generally a good estimate of population mean. of which probability sampling is based on random selection ² a controlled procedure that ensures that each population element is given a known nonzero chance of selecion. Whereas a probabilistic sampling to each unit of the population to be included in the sample and in this sense it is a representative sample of the population. It saves a lot of operational cost as we need the second stage frame only for those units which are selected in the first stage sample . One is that there is enough similarity among the elements in a population that a few of these elements will adequately represent the characteristic of the total population.Merits and Limitations i. It is generally less efficient than a suitable single. yThe second premises is that while some elements in a sample underestimate th population value. yA variety of sampling technique is available. it is unrestricted sampling.This brings an end on today·s discussion on sampling techniques. Judgement Sampling and Quota sampling are sometimes used although representativeness of such a sample cannot be ensured.

Those that move together are considered a single thing and are labeled a factor. most likely her child. so the mother concludes that what is under the blanket is a single thing. factor analysis takes as input a number of measures and tests which are analogous to the bumps and shapes. If correlation is spurious for some reason. be included in the analysis. When one shape moves toward the top of the bed. It reduces attribute space from a larger number of variables to a smaller number of factors and as such is a ´nondependentµ procedure (that is. Typical Problem Studied Using Factor Analysis .Factor Analysis What is Factor Analysis? The main objective of Factor analysis is to summarize a large number of underlying factors into a smaller number of variables or factors which represent the basic factors underlying the data. so it is important when conducting factor analysis that possible variables which might introduce spuriousness. of course. it does not assume a dependent variable is specified). That is. WE can best explain factor analysis with a non technical analogy: A mother sees various bumps and shapes under a blanket at the bottom of a bed. Similarly. in factor analysis the researcher is assuming that there is a ´childµ out there in the form of an underlying factor. this inference will be mistaken. and he or she takes simultaneous movement (correlation) as evidence of its existence. Factor analysis is used to uncover the latent structure (dimensions) of a set of variables. all the other bumps and shapes move toward the top also. such as anteceding causes.

identify clusters of cases and/or outliers. For e. based on which original variables have the highest correlations with the principal component factors. However there is a need to find out what are the key drivers. As such. yTo create a set of factors to be treated as uncorrelated variables as one approach to handling multicollinearity in such procedures as multiple regression yTo validate a scale or index by demonstrating that its constituent items load on the same factor. discussed below) Applications The main applications of factor analysis are in marketing research. yTo yTo yTo determine network groups by determining which sets of people cluster together (using Q-mode factor analysis. However. family entertainment. 2. thereby giving justification for administering fewer tests. sin . 2. Developing perceptual maps.Factor analysis is used to study a complex product or service to identify the major characteristics considered important by consumers. factor analysis can be and is often used on a stand-alone basis for similar purposes. establish that multiple tests measure the same factor. Determining the underlying dimensions of the data. adventure plots. Uses of Factor Analysis To reduce a large number of variables to a smaller number of factors for modeling purposes. and to drop proposed scale items which cross-load on more than one factor. To identify the underlying structure of the data in which a very large number of variables may really be measuring a small number of basic characteristics or constructs of our sample. The two major uses of factor analysis 1. helping create the latent variables modeled by Sem. Factor analysis identifies latent or underlying factors from an array of seemingly imp variables. Factor analysis is often used to determine the dimensions or critieria by which consumers evaluate brands and how each brand is seen on each dimension. where the large number of variables precludes modeling all the measures individually.g a survey may throw up bet 15-20 attributes which a consumer considers when buying a product.: A factor analysis of data on TV viewing indicates that there are seven different types of programmes that are independent of the network offering as perceived by the viewers: movies. Some of the application are as follows: 1. factor analysis is integrated in structural equation modeling (Sem). adult entertainment. To simplify a set of data by reducing a large number of measures (which in some way may be interrelated and causing multicollinearity) for a set of respondents to a smaller more manageable set which are not interrelated and still retain most of the original information . unrealistic events. yTo select a subset of variables from a larger set. westerns.

. yLack of high multicollinearity. Identifying market segments. 3. It can be used for condensing or simplifying data: An example of this : In a study of consumer involvement across a number of product categories. 4. or near-interval data. An example of this is a factor analysis of data on desires sought on the last vacation taken by 1750 respondents revealed six benefit segements for vacationers: yThose y2. and positioning of products. Basic Principles of Factor Analysis Factor analysis is part of the multiple general linear hypothesis (MLGH) family of procedures and makes many of the same assumptions as multiple regression: yLinear relationships. Sightseeing. Subjective probability of a mispurchase 3. and not sight seeing.3. extraneous ones excluded). Factor Analysis-The Theory . However. Outdoor vacations 5 vacationing yResort y6. principal axis factoring (PAF). Foreign Vacationing. y3. Visiting friends and relatives and plus sight seeing. The value of the product as a cue to the type of person who owns it Each of these factors was independent and there was no multicollinearity. y4. and yAssumption of multivariate normality for purposes of significance testing. Testing of hypotheses about the structure of a data set. Confirmatory factor analysis can be used to test whether the variables in a data set come from a specifies number of factors. is preferred for purposes of confirmatory factory analysis. Pleasure of owing/using product. who vacation for the purpose of visiting friends and relatives. There are several different types of factor analysis. Perceived product importance/ perceived importance s of negative consequences of a mispurchase 2. with the most common being principal components analysis (PCA). yInterval yProper specification (relevant variables included. 19 items were reduced to four factors of : 1. also called common factor analysis.

10. Thus it looks at interdependencies or interrelationships among data. of factors / statements or attributes. Then from the groups of factors or statements we choose an overall factorwhich appears to represent what all the factors in the group appear to mean. The statements are as: 1.The Process We now take the case of a marketing research study where factor analysis is most popularly used. 2. Factor analysis is best illustrated with the help of an example: Example A two wheeler manufacturer is interested in determining which variables his customers think of as being imp when they consider his product.Three people should be allowed to travel on a 2 wheeler. 6. I use a two-wheeler because it·s affordable. Low maintenance costs make it very economical in long run 4. 9. it is thought that these statements measure some factor common to all of them. It gives me a sense of freedom to own a two wheeler 3. What the factor analysis does statistically is to group together those variables whose responses are highly correlated. For each such the researchers have to use their judgment to determine what a particular factor represents. It analyzes correlations between variables. I feel good whenever I see ads for my two wheeler on TV ormagazines 8.Factor analysis is a complex statistical technique which works on the basis of consumer responses to identify similarities or associations across factors. Some of my friend·s who don·t have one are jealous of me. reduces their numbers by grouping them in to fewer factors. . How it Works Factor analysis applies an advanced form of correlation analysis to a no. A typical study will throw up many such factors. 5. Factor analysis can only be applied to continuous or intervally scaled variables. Factor analysis would then aim to reduce 10 factors to a few core factors. The respondents were asked indicate on a 7 pt scale(1: completely agree. Factor Analysis . The answers given by 20 resp is inputed into the computer. My vehicle gives me a comfortable ride. I think two wheelers are a safe way to travel. A two-wheeler is essentially a man·s vehicle. We begin by administering a questionnaire to all consumers. I feel very powerful when I am on my two-wheeler. What factor analysis does is it identifies two or more questions that result in responses that are highly correlated. 7 : completely disgree) with a set of 10 statements relating to their perceptions and some attributes about two wheelers. If several of the statements are highly correlated. 7.The analysis begins by observing the correlation and determining whether there are significant correlations between them.

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