OL22-WEEK 12

Chapter 11
Continue:
One-Way Anova

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 One Way ANOVA (Analysis of Variance)
• Helps to examine the significant
mean differences among more
than two groups on an interval or
ratio-scaled dependent variable.

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One-Way ANOVA

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One-Way ANOVA

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One-Way ANOVA

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One-Way ANOVA

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One-Way ANOVA

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One-Way ANOVA

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HO: Satisfaction not differs among countries
H1: Satisfaction differs among countries

1. Compare: P (0.000) < α (0.05)

2. Decide: Reject H0
3. Conclude: Satisfaction differs
significantly among countries
4. Post-Hoc: Significant pairs are
found between:
• Singapore & China (P=0.022)
• Singapore & India (P=0.037
• Korea & China (P=0.045)

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 APA Style Interpretation

A one-way ANOVA between-groups analysis of variance was performed to investigate the

mean difference of satisfaction among countries. Based on the table, the result shows a
significant difference of customer satisfaction among countries (p=0.000 < α). The result
indicates that the level of satisfaction is differs among customers from Singapore, China, India
and Korea. This finding is consistent with previous studies (e.g., Hanson, 2013; Md Noor &
Rizuan, 1999; Aimi et al., 2014) that highlighted the role of countries in determining the
customer satisfaction. Based on Post-hoc Multiple Comparison analysis, a significant difference
are found between Singapore & China (P=0.022), Singapore & India (P=0.037) and between
Korea & China (P=0.045).

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OL23-WEEK 12

Chapter 11
Continue:
Correlation

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 Correlation Analysis
• Correlation is a bivariate analysis that measures the strength of association between
two variables and the direction of the relationship.
• In terms of the strength of relationship, the value of the correlation coefficient varies
between +1 and -1.

Strength of Correlation - interpreting 0.1 to 0.29 Weak correlation

Pearson correlation coefficient (r) 0.3 to 0.49 Moderate correlation
0.5 to 0.99 Strong correlation
Cohen’s rule of thumb (Cohen, 1981)

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 H0: Stress has no relationship with OC
H1: Stress has relationship with OC

1. Compare: P (0.008) < α (0.05)

2. Decide: Reject H0
3. Conclude: Stress has negative and
weak relationship with OC

APA Style Interpretation

Pearson correlation was performed to determine the association between stress and organization
commitment. Based on the Table , the result shows a negative and weak correlation between stress and OC
(p=0.008, r=-0.265). The result indicates that the higher the level of stress, the lower the level of
organizational commitment. This finding is consistent with previous studies (e.g., Hanson, 2013; Md Noor &
Rizuan, 1999; Aimi et al., 2014).

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OL24-WEEK 12

Chapter 11
Continue:
Regression

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 Regression Analysis
• Simple Linear Regression analysis is
used in a situation where one
metric independent variable is
hypothesized to affect one metric
dependent variable.

• Multiple Linear Regression analysis

is used in a situation where more
than one metric independent
variable is hypothesized to affect
one metric dependent variable

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 Multiple Regression Analysis
• Next to test the hypotheses developed for this study, we used a
linear multiple regression analysis. As the norm in multiple
regression analysis, there are 7 seven assumptions that need to be
tested before we can interpret the results (Hair et al., 2018).

• The 7 assumptions tested are normality, normality of the error

terms, constant variance, linearity, multicollinearity, autocorrelation
and finally outliers.

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 Assumptions

1. Normality
2. Normality of error term
3. Constant Variance
4. Linearity
5. Multicollinearity
6. Outliers
7. Autocorrelation

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1. Normality
Multivariate Normality

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 2. Normality of Error Term
• You need to check that the residuals
(errors) are approximately normally
distributed.

• This can be done (a) a histogram

(with a superimposed normal curve)
and (b) a Normal P-P Plot;

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 3. Linearity
• Types of Relationships
• There needs to be a linear
relationship between (a)
the dependent variable and
each of your independent
variables, and (b) the
dependent variable and the
independent variables
collectively.

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Linearity

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4. Constant Variance
• Homoscedasticity

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5. Multicollinearity

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Collinearity Check

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 6. Outliers
• There should be no significant
outliers, high leverage points or
highly influential points. Outliers,
leverage and influential points are
different terms used to represent
observations in your data set that
are in some way unusual when
you wish to perform a multiple
regression analysis.
• Detect outliers using (a)
"casewise diagnostics" and
"studentized deleted residuals",
(b) check for leverage points and
(c) check for influential points
using a measure of influence
known as Cook's Distance,
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 Outliers
• • Outliers in regression are
observations that fall far from the
“cloud” of points. These points are
especially important because they
can have a strong influence on the
least squares line. Normally outside
± 3 can be considered as outliers

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Outliers

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7. Autocorrelation

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Setting up the Analysis

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Setting up the Analysis

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Setting up the Analysis

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Setting up the Analysis

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Outputs

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Outputs

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1. Normality

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2. Normality of the Error Term

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3. Constant Variance (Homoscedasticity)

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4. Linearity

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4. Linearity

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4. Linearity

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5. Multicollinearity

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6. Autocorrelations

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7. Outliers

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Removing Outliers

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Removing Outliers

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After removing Outliers

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Run the Analysis again – New Results

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New Results

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Reporting your Results

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 Multiple Regression Analysis
• Table 4.5 presents the results of multiple regression analysis to test
the hypotheses generated. All the 3 independent variables together
explained an R2 of 0.788 indicating that 78.8% of the variance in
intention to share can be explained by the 3 independent variables.

• Attitude (β = 0.757, p < 0.01), Perceived behavioral control (β =

0.120, p < 0.01) were positively related to intention to share
knowledge while Subjective norm (β = 0.065, p > 0.05) was not
significant. Thus, H1 and H2 of this study are supported while
H3 is not supported.
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Summary of Findings

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H0: Sales not influenced by price, promotion, quality, and brand
H1: Sales influenced by price, promotion, quality, and brand
1. Compare: P (0.000) < α (0.05)
2. Decide: Reject H0
3. Conclude: Sales significantly influenced by
price, promotion, quality, and brand
4. Model Summary: The model is good since
48.4% (R2=0.484) variation in Sales is explained
by predictors (price, promotion, quality, brand)
5. Individual result:
• Price influence negatively on Sales
(P=0.000, t=-4.318)
• Promotion influence positively on Sales
(P=0.009, t=2.721)
• Quality does not influence significantly on
Sales (P=1.99, > 0.05)
• Brand influence positively on Sales
(P=0.019, t=2.012)
6. Contribution: Highest = Price (Beta=-8.42)
Lowest = Brand (Beta=0.371)
7. Equation: Sales = 42.690 – 5.234 price + 4.561
promotion + 1.358 brand + e
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 Price DV

Promotion
Sales
Quality

Brand

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 APA Style Interpretation
• Multiple Linear Regression was performed to determine the best set of predictor variable in predicting sales. The
ANOVA table revealed that the F-statistics (17.066) is large and the corresponding p-value is highly significant
(0.000) or lower than the alpha value of 0.05. This indicates that the slope of the estimated linear regression
model line is not equal to zero confirming that there is linear relationship between sales and the four predictor
variables (price, promotion, quality, brand). This finding is consistent with previous studies (e.g., Hanson, 2013, Md
Noor & Rizuan, 1999; Aimi et al., 2014).

• Based on Model Summary table, the R-squared of 0.484 implies that the four predictor variables explain about
48.4% of the variation in the sales. This is a quite a good and respectable model.

• Based on Coefficient table, three predictor variables which are price (p=0.000 < alpha), promotion (p=0.009) and
brand (p= 0.019 < alpha) were found to be of significance in explaining sales. Meanwhile, quality is not able to
show any significant result (p=0.199 > alpha). The largest beta coefficient is found in price (beta=-4.318) and
followed by promotion (beta=0.448) and brand (beta=0.371. This means that price makes the strongest
contribution to explain the sales.

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