9thth Edition

William G. Zikmund
Barry J. Babin

Hypothesis testing
Univariate & Bivariate
Statistical Analysis
 Univariate Statistics
• Test of statistical significance
• Hypothesis testing one variable at a time

Hypothesis
• Unproven proposition
• Supposition that tentatively explains certain facts or
phenomena
• Assumption about nature of the world

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–2
Types of hypotheses
 Null hypothesis
 Statement about the status quo
 No difference

 Alternative hypothesis
 Statement that indicates the opposite of the null hypothesis

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Significance Level
• Critical probability in choosing between the null
hypothesis and the alternative hypothesis

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 Linear Transformation of Any Normal Variable
Into a Standardized Normal Variable

-3SD -2SD -1SD x 1SD 2SD 3SD

Sometimes the
Sometimes the scale is shrunk
scale is stretched
 

  X

x
z


-2 -1 0 1 2
MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–5
Standardized Normal Distribution

34.13% 34.13%

13.59% 13.59%

2.14%
2.14%

-3 -2 -1 0 1 2 3 Z

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 Region of Rejection

LOWER LIMIT UPPER LIMIT

95%

 x

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–7
Hypothesis Test: an example
X = 3.28, SD=0.1,

95% Confident level


2.804  3.196 X = 3.28

P-value

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–8
Hypothesis Test: an example
X = 3.18, SD=0.1,

95% Confident level


P-value is exceeding 0.05, Null hypothesis is failed to reject.

The measurement score is not statistical difference from 3.00.

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–9
Hypothesis Test: an example
X = 3.78, SD=0.1,

95% Confident level


2.804  3.196 X = 3.78

P-value is less than 0.05, Null hypothesis can be rejected. Population parameter is statistically
different from 3.00

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–10
Type I and Type II Errors

Accept null Reject null

Null is true Correct- Type I

no error error

Null is false Type II Correct-

error no error

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–11
Choosing the Appropriate Statistical Technique
• Type of question to be answered
• Number of variables
 Univariate
 Bivariate
 Multivariate
• Scale of measurement

PARAMETRIC NONPARAMETRIC
STATISTICS STATISTICS

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 Questionnaire: An Example

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–13
 Questionnaire: An Example

Personal Data
7. Gender
 Male  Female
8. Age
 Less than 20 years old.  20-25 years old.
 26-30 years old.  31-35 years old.
 36-40 years old.  41-45 years old.
 46-50 years old.  51-55 years old.
 Over 55 years old.
9. Education
 Primary school.  Secondary/high school.
 Bachelor.  Master/ Ph.D.
10. Occupation
 Student.  Employee.
 Housewife.  Governor.
 Business Owner.  Other, specify _________.
11. Income_____________ Baht.
 Less than 10,000  10,000-20,000
 20,001-30000  More than 30,000

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 Hypothesis Test Using the t-Distribution
3. How would you rate the quality of the following attributes of Starbucks?
1. Reputation High __: __: __: __: __: __: Low
2. Rational Price High __: __: __: __: __: __: Low
3. Atmosphere High __: __: __: __: __: __: Low
4. Service High __: __: __: __: __: __: Low
5. Accessibility High __: __: __: __: __: __: Low
6. Sales promotion High __: __: __: __: __: __: Low
7. Advertisement High __: __: __: __: __: __: Low
8. Taste High __: __: __: __: __: __: Low
9. Quality of products High __: __: __: __: __: __: Low
10. Variety of products High __: __: __: __: __: __: Low

HYPOTHESIS:
Consumers perceive the quality of Starbucks as high

H0: μ = 3.5
Ha: μ ≠ 3.5
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MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–17
T-Test One-Sample Statistics
From the table, t-values of
Std. Error atmosphere, services,
N Mean Std. Deviation Mean
Reputation 80 3.30 1.036 .116 place, sales promotion,
Price
Atmosphere
80
80
3.46
3.78
.993
1.006
.111
.112
advertisement, taste, and
Services
Place
80
80
3.90
3.75
.922
.834
.103
.093
quality of products are
Sales promotion 80 3.09 .697 .078 exceeding 1.96, with p-
Advertisement 80 3.91 .679 .076
Taste 80 4.24 .716 .080 values of less than 0.05,
Quality of products
Variety of products
80
80
4.35
3.70
.929
1.107
.104
.124 therefore, those null
One-Sample Test
hypotheses could be
Test Value = 3.5
rejected. Thus, consumers
95% perceive Starbucks’
Confidence
Interval of the atmosphere, services,
Difference
t df Sig. (2-tailed)
Mean
Difference Lower Upper
place, sales promotion,
Reputation -1.727 79 .088 -.200 -.43 .03 advertisement, taste, and
Price -.338 79 .736 -.038 -.26 .18
Atmosphere 2.445 79 .017 .275 .05 .50
quality of products as
Services 3.879 79 .000 .400 .19 .61 significantly high while
Place 2.680 79 .009 .250 .06 .44
Sales promotion -5.293 79 .000 -.413 -.57 -.26
consumers’ perception on
Advertisement 5.436 79 .000 .413 .26 .56 reputation, price, and
Taste 9.214 79 .000 .738 .58 .90
Quality of products 8.182 79 .000 .850 .64 1.06
variety of product are not
Variety of products 1.616 79 .110 .200 -.05 .45 high.
MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–18
Differences Between Groups when Comparing Means
• Ratio/Interval scaled dependent variables
• t-test for comparing means
 When groups are small
 When population standard deviation is unknown
• Null Hypothesis About Mean Differences Between
Groups
1   2
t
S X1  X 2
X1 = mean for Group 1
X2 = mean for Group 2
SX1-X2 = the pooled or combined standard error
of difference between means.

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S.

Hypothesis: Frequent and non frequent customers perceive the quality of Starbucks
differently.
MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S.
 Group Statistics

Std. Error
Type of customer N Mean Std. Deviation Mean Hypothesis:
Reputation Non-frequent customers 37 2.81 1.023 .168
Frequent customers 43 3.72 .854 .130 Ho: μ1 = μ2
Price Non-frequent customers 37 3.38 1.163 .191
Frequent customers 43 3.53 .827 .126 Ha: μ1 ≠ μ2
Atmosphere Non-frequent customers 37 3.38 1.037 .170
Frequent customers 43 4.12 .851 .130 Conclusion:…..
Services Non-frequent customers 37 3.78 1.109 .182
Frequent customers 43 4.00 .724 .110 Independent Samples Test
Place Non-frequent customers 37 3.62 .681 .112
Levene's Test
Frequent customers 43 3.86 .941 .143
for Equality of
Sales promotion Non-frequent customers 37 3.05 .664 .109 Variances t-test for Equality
Frequent customers 43 3.12 .731 .111
Advertisement Non-frequent customers 37 3.68 .626 .103 F Sig. t df Sig. (2-tailed)
Frequent customers 43 4.12 Reputatio.662 Equal variances
.101 assumed 2.171 .145 -4.337 78 .000
Taste Non-frequent customers 37 4.38 n .758 Equal variances
.125 not assumed -4.278 70.429 .000
Frequent customers 43 4.12 Price .662 Equal variances
.101 assumed 4.508 .037 -.701 78 .486
Quality of products Non-frequent customers 37 4.08 1.140 Equal variances
.187 not assumed -.683 63.767 .497
Frequent customers 43 4.58 Atmosphe .626 Equal variances
.095 assumed 2.811 .098 -3.496 78 .001
Variety of products Non-frequent customers 37 3.54 re 1.216 Equal variances
.200 not assumed -3.444 69.745 .001
Frequent customers 43 3.84 Services.998 Equal variances
.152 assumed 10.703 .002 -1.046 78 .299
Equal variances not assumed -1.015 60.284 .314
Place Equal variances assumed 3.737 .057 -1.282 78 .204
Equal variances not assumed -1.312 75.901 .193
Sales Equal variances assumed .469 .496 -.396 78 .693
promotion Equal variances not assumed -.399 77.745 .691
Advertise Equal variances assumed .168 .683 -3.043 78 .003
ment Equal variances not assumed -3.056 77.286 .003
Taste Equal variances assumed 2.408 .125 1.650 78 .103
Equal variances not assumed 1.634 72.126 .107
Quality of Equal variances assumed 5.774 .019 -2.478 78 .015
products Equal variances not assumed -2.379 54.006 .021
Variety of Equal variances assumed 3.415 .068 -1.198 78 .234
products Equal variances not assumed -1.181 69.772 .242

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–21
Differences among groups when comparing means

• Ratio/interval scaled dependent variables

• Analysis of Variance
• Hypothesis when comparing three groups
 1
 t least one group is different from others.

Variance  between  groups

F
Variance  within  groups

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MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–23
MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–24
 Descriptives

Discount coupon
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
Less than 10,000 Baht 41 4.98 1.332 .208 4.56 5.40 1 6
10,000 - 20,000 Baht 25 4.64 1.150 .230 4.17 5.11 2 6
More than 20,000 Baht 14 1.64 .842 .225 1.16 2.13 1 4
Total 80 4.29 1.715 .192 3.91 4.67 1 6

ANOVA

Discount coupon

Sum of
Squares df Mean Square F Sig.
Between Groups 120.438 2 60.219 41.419 .000
Within Groups 111.950 77 1.454
Total
232.388 79

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MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–26
 ANOVA

Discount coupon
Sum of
Squares df Mean Square F Sig.
Between Groups 121.080 3 40.360 27.558 .000
Within Groups 111.307 76 1.465
Total 232.388 79 Homogeneous
Subsets
Discount coupon
a,b
Scheffe
Subset for
alpha = .05
Income N 1 2
More than 30,000 Baht 7 1.43
20,001 - 30,000 Baht 7 1.86
10,000 - 20,000 Baht 25 4.64
Ho: μ1 = μ2 = μ3= μ4 Less than 10,000 Baht 41 4.98
Ha: At least one μ is not equal Sig. .869 .932
Means for groups in homogeneous subsets are displayed.
a. Uses Harmonic Mean Sample Size = 11.425.
Conclusions: ….
b. The group sizes are unequal. The harmonic mean
of the group sizes is used. Type I error levels are
not guaranteed.
MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–27
 Measures of Association
• A general term that refers to a number of
bivariate statistical techniques used to
measure the strength of a relationship
between two variables.
• Relationships Among Variables
– Correlation analysis
– Bivariate regression analysis

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–28
Correlation Coefficient

 is a statistical measure of the covariation or

association between two variables.
 The Correlation coefficient for two variables, X and Y is r

Regression analysis
• is a measure of linear association that
investigates a straight line relationship
• Useful in forecasting

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Bivariate Linear Regression
• A measure of linear association that investigates a straight-line
relationship
• Y = a + bX or Y = β0 + βX + ε
where
Y is the dependent variable
X is the independent variable
a and b (β0 + β) are two constants to be estimated (unstandardized β)
• a = Y intercept
 which is an intercepted segment of a line
 The point at which a regression line intercepts the Y-axis
• b Slope
 The inclination of a regression line as compared to a base line
 Rise over run
 Can be positive or negative direction

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–30
 Simple Regression Analysis
Variables Entered/Removedb Model Summary
Variables Variables Adjusted Std. Error of
Model Entered Removed Method Model R R Square R Square the Estimate
1 Reputation a . Enter 1 .540a .292 .283 .420
a. All requested variables entered. a. Predictors: (Constant), Reputation
b. Dependent Variable: Purchare Intention

ANOVAb

Sum of
Model Squares df Mean Square F Sig.
1 Regression 5.656 1 5.656 32.126 .000a
Residual 13.732 78 .176
Total 19.388 79
a. Predictors: (Constant), Reputation
b. Dependent Variable: Purchare Intention

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.735 .158 11.017 .000
Reputation .258 .046 .540 5.668 .000
a. Dependent Variable: Purchare Intention

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–31
 Model Summary
Multiple Regression
ANOVA
Analysis b
Adjusted Std. Error of
Model R R Square R Square the Estimate Sum of
1 .797a .635 .583 Model
.320 Squares df Mean Square F Sig.
1 Regression 12.318 10 1.232 12.023 .000a
a. Predictors: (Constant), Variety of products, Residual 7.069 69 .102
Advertisement, Taste, Services, Sales promotion, Total 19.388 79
Place, Reputation, Price, Atmosphere, Quality of
a. Predictors: (Constant), Variety of products, Advertisement, Taste,
products
Services, Sales promotion, Place, Reputation, Price, Atmosphere,
Quality of products
b. Dependent Variable: Purchare Intention
Coefficientsa

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.712 .442 3.877 .000
Reputation .137 .040 .287 3.398 .001
Price -.021 .044 -.043 -.482 .631
Atmosphere .138 .044 .280 3.166 .002
Services -.127 .049 -.237 -2.597 .011
Place -.093 .052 -.156 -1.790 .078
Sales promotion .078 .056 .110 1.407 .164
Advertisement .145 .057 .199 2.537 .013
Taste -.236 .056 -.340 -4.239 .000
Quality of products .179 .049 .335 3.631 .001
Variety of products .062 .038 .139 1.624 .109
a. Dependent Variable: Purchare
MGT 3940 Business Intention
Research Methods: Asst. Prof Dr. Nucharee S. 1–32
 Non-parametric Test
Testing a Hypothesis about a Distribution
• Chi-Square test
• Test for significance in the analysis of frequency
distributions
• Compare observed frequencies with expected
frequencies
• “Goodness of Fit”

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–33
 Chi-Square Test: an example
Starbucks Survey
2.How many times did you go to Starbucks last month ?
 Less than 1 time.  1-2 times.
 3-4 times.  More than 4 times

HYPOTHESIS:
The numbers of customers who went to Starbucks in the last month with
different frequency are different.
Ho: The numbers of customers who went to Starbucks in the last month with
different frequency are equal.
Ha: The numbers of customers who went to Starbucks in the last month with
different frequency are different.

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–34
Chi-square test

Less than 1 time. Expected counts Observed counts

1-2 times. Expected counts Observed counts

3-4 times. Expected counts Observed counts

More than 4 times Expected counts Observed counts

(Oi  Ei )²
x²  
Ei x² = chi-square statistics
Oi = observed frequency in the ith cell
Ei = expected frequency on the ith cell

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MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–37
Chi-Square Test: an example

How many times did you go to Starbucks in the last month?

Test Statistics
Cumulative
Frequency Percent Valid Percent Percent How many times did you go to
Valid Less than 1 time Starbucks in the last month?
37 46.3 46.3 46.3
per week Chi-Square a 20.900
1 time per week 18 22.5 22.5 68.8 df 3
2 - 3 times per week 10 12.5 12.5 81.3 Asymp. Sig. .000
More than 3 times
15 18.8 18.8 100.0 a. 0 cells (.0%) have expected frequencies less than
per week
5. The minimum expected cell frequency is 20.0.
Total 80 100.0 100.0

From the table, chi-square value is

How many times did you go to Starbucks in the last month?
20.9 with a p-value of less than 0.05,
therefore, the null hypothesis could
Observed N Expected N Residual
Less than 1 time per week 37 20.0 17.0 be rejected and alternative
1 time per week 18 20.0 -2.0 hypothesis is accepted. Thus, the
2 - 3 times per week 10 20.0 -10.0
More than 3 times per week
numbers of customers who went to
15 20.0 -5.0
Starbucks in the last month with
Total 80
different frequency are significantly
differentใ

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–38
Differences Between Groups
• Contingency Tables
• Cross-Tabulation
• Chi-Square allows testing for significant differences between
groups
• “Goodness of Fit”
(Oi  Ei )²
x²  
Ei x² = chi-square statistics
Oi = observed frequency in the ith cell
Ei = expected frequency on the ith cell

Ri C j d.f. = (R-1)(C-1)
Eij 
n
Ri = total observed frequency in the ith row
Cj = total observed frequency in the jth column
n = sample size

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S.

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S.
Hypothesis: The frequency to visit Starbucks is different among
various income groups.
MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–41
 How many times did you go to Starbucks in the last month? * Income Crosstabulation

Income
Less than 10,000 - 20,001 - More than
10,000 Baht 20,000 Baht 30,000 Baht 30,000 Baht Total
How many Less than 1 time Count 22 13 2 0 37
times did you per week % within Income 53.7% 52.0% 28.6% .0% 46.3%
go to Starbucks 1 time per week Count 11 4 2 1 18
in the last
% within Income 26.8% 16.0% 28.6% 14.3% 22.5%
month?
2 - 3 times per week Count 6 3 0 1 10
% within Income 14.6% 12.0% .0% 14.3% 12.5%
More than 3 times Count 2 5 3 5 15
per week % within Income 4.9% 20.0% 42.9% 71.4% 18.8%
Total Count 41 25 7 7 80
% within Income 100.0% 100.0% 100.0% 100.0% 100.0%

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 23.317a 9 .006
Likelihood Ratio 24.357 9 .004
Linear-by-Linear
Association
15.631 1 .000 Error collapse scale
N of Valid Cases 80
a. 10 cells (62.5%) have expected count less than
5. The minimum expected count is .88.

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–42
To transform data by
collapsing the scale,
recode command
would be used

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–43
Hypothesis: The frequency to visit Starbucks is different among the
group of customers with different income levels.

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S.

 Frequency of going to starbucks * Income Crosstabulation

Income
Less than 10,000 - More than
10,000 Baht 20,000 Baht 20,000 Baht Total
Frequency Less than or equal one Count 22 13 2 37
of going to time/ week % within Income 53.7% 52.0% 14.3% 46.3%
starbucks More than one time/week Count 19 12 12 43
% within Income 46.3% 48.0% 85.7% 53.8%
Total Count 41 25 14 80
% within Income 100.0% 100.0% 100.0% 100.0%

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 6.992a 2 .030
Likelihood Ratio 7.734 2 .021
Linear-by-Linear
Association
4.886 1 .027 Chi-square of 6.992 with 2 degree of freedom
N of Valid Cases 80
yields a p-value of .030 which is less than 0.05.
Thus Null hypothesis can be rejected, the
a. 0 cells (.0%) have expected count less than 5.
frequency to visit Starbucks is different among
The minimum expected count is 6.48.
the group of customers with different income
levels.

MGT 3940 Business Research Methods: Asst. Prof Dr. Nucharee S. 1–45
 Do you have to perform any other
data analyses?

Ranking
Multiple response analysis (for the checklist)
Etc.

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