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# QUANTITATIVE METHODS

## CORRELATION and REGRESSION

Mrs. Sahar Afshan

Correlation

Correlation
refers to Linear relationships
implying singular association

## Strong linear relationship

When the points lie close to a straight
line, and weak if they are widely
scattered

## 2007 Prentice Hall

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Correlation (r)
Purpose:
Measures the direction and
strength of the linear relationship
between two quantitative variables

Represented by r.
There is no assumption of causality
Assumes a linear association between
two variables.

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Correlation

## The r-value. Indicates strength and direction

() of the correlation.
Bigger is better.
The * means we can reject the null
hypothesis (Ho).

## The p-value: aim is to reject null hypothesis

(Ho)
Smaller is better.
Reject Ho if p is less than.05
[e.g., .046 is less .05, so Reject Ho.]

## 2007 Prentice Hall

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Regression Analysis
Regression analysis examines the causal
relationships between a metric dependent variable
(henceforth DV) and one or more independent
variables (henceforth IV) in the following ways:

## The mathematical equation relating the

independent and
dependent variables.

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## Major Types of Regression

1) Linear Regression:
One DV and one IV
Regression Equation:

Y=c+X+e

## Where Y = DV of the study

X = IV of the study
2) Multiple Regression:
One DV but more than one IV
Regression Equation: Y = c + X1 + X2 + x3 + e
Where Y = DV of the study
X1, X2, X3 = IVs of the study
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## Statistics Associated with

Multiple Regression

## Adjusted R2. R2, coefficient of multiple

determination, explains the percentage of variance in
dependent variable that is caused by the independent
variable.

## Coefficient (Beta Values).

How much unit change is brought in DV when IV is
changed by one unit.
The sign of beta reflects the direction of a relationship

## P-value. The p-value refers to the test of significance

of the studied hypothesis.
For accepting the studied hypothesis, we are required
to reject null hypothesis. Thus p-values should be less
than 0.05 for rejecting the null hypothesis.

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Analysis
Examination
of Residuals

## A residual (e) is the difference between

the actual value of (Ya ) and the value
predicted by the regression equation
(Yr)

## A constant (C) is the value of Yr when

all other values (of IVs) are zero.

## 2007 Prentice Hall

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Hypothesized Model
Our Studied Model
PEP
OID
POS
Where,
PEP = perceived employ performance
POS = perceived organizational support
OID = organizational development

## 2007 Prentice Hall

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Hypotheses
H1: There is a positive significant effect of
PEP on OID

POS on OID

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