Tests of Differences

STATISTICAL TOOLS &

TECHNIQUES
06.05.2020
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 When to do such analyses?

To find out the difference of opinion among two or more

groups;
To compare two or more groups;
T-Test for two groups (e.g. gender, sector etc. );
ANOVA for more than two groups (e.g. Age groups,
departments, educational background, cities etc.);
MANOVA for more than two types of groups and
variables simultaneously (e.g. to find out the difference of
opinion on supervisor subordinate relationship and job
satisfaction for age groups and departments
simultaneously). It helps finding interaction effect.
 One sample t-test
The one sample t-test is a statistical procedure used to
determine whether a sample of observations could
have been generated by a process with a specific
mean.
Example:
 Suppose you are interested in determining whether an
assembly line produces laptop computers that weigh 3.5
Pounds.
 To test this hypothesis, you could collect a sample of laptop
computers from the assembly line, measure their weights,
and compare the sample with a value of five using a one-
sample t-test.
 Assumptions for single sample t-test

The dependent variable must be continuous

(interval/ratio).
The observations are independent of one another.
The dependent variable should be approximately
normally distributed.
The dependent variable should not contain any
outliers.
 Interpretation of the results

One Sample Statistics

  N Mean Std.Dev Std. Err
Weight of
100 4.2 0.3864 0.0386
laptop

The results given in above table indicate that the mean weight of laptops is
4.2, which is seemingly different from the reference value i.e. 3.5. However
to check the significance of the difference (4.2-3.5=0.7), we need to check
the t value, given in the next table.
 One-Sample Test

Test Value = 3.5

95% Confidence
Interval of the
Sig. (2- Mean Difference
t df tailed) Difference Lower Upper
Weight 19.664 99 .000 .76000 .6833 .8367

The above table indicates the value of ‘t’ statistics for the difference between
mean weight of laptops and reference value. The results confirm that the
average weight of laptops being assembled in assembly line is significantly
different (t=19.664; p=.000<.05) from the required value. Therefore the
process needs re-consideration.
 Paired Sample t-test

Paired Samples Statistics

Std. Std. Error
Mean N Deviation Mean
Pair 1 EMPR1 3.9738 100 0.86407 0.08641
EMPR2 4.26 100 0.38649 0.03865
Paired sample t-test is conducted in pre-post or similar research designs to
compare two values of a same variable at different timings. In above table the
mean of two values of employee performance are given for comparison.. is. As
evident the performance has increased after the intervention, however to check
if this increase is significant, next table is checked.
 Paired Sample t-test
Paired Samples Test
Paired Differences
95% Confidence
Interval of the
Std. Std. Error Difference Sig. (2-
Mean Deviation Mean Lower Upper t df tailed)
Pair 1 EMPR1 - -.28625 .73905 .07391 -.43289 -.13961 -3.873 99 .000
EMPR2

This table indicates the mean difference between two values (-.28625) i.e.
pre and post intervention performance of employees. Same table reflects
the t statistics as -3.873 which are significant with p value (0.000) less then
0.05. The results indicate that there is significant difference between pre
and post intervention performance of employees. In other words the
performance has significantly improved after the intervention.
 Independent Samples Test
Levene's Test
for Equality of
Variances t-test for Equality of Means
Std. 95% Confidence
Error Interval of the
Sig. Mean Differe Difference
F Sig. t df (2-tailed) Difference nce Lower Upper
JS Equal variances 2.006 .160 -.968 98 .336 -.16991 .17560 -.51838 .17856
assumed
Equal variances not -.972 97.833 .333 -.16991 .17475 -.51671 .17688
assumed
OJ Equal variances .856 .357 .574 98 .567 .09874 .17208 -.24274 .44022
assumed
Equal variances not .570 92.590 .570 .09874 .17335 -.24551 .44299
assumed
EMPR1 Equal variances .851 .359 .292 98 .771 .05083 .17393 -.29433 .39599
assumed
Equal variances not .288 86.367 .774 .05083 .17658 -.30018 .40185
   
assumed

Independent sample t test was applied to check the difference between male and female respondents in
terms of their perception about JS, OJ and EMP. To test the assumption for equality of variance among
responses, Levene test was applied. The f statistics for each variable were insignificant with p value as
greater then 0.05 in each case. This confirmed the assumption that the variance is homogeneous across
the groups therefore the independent sample t-test can be applied. The t statistics were also found
insignificant with p value greater then 0.05 for all the three variables. The results indicated that there is no
significant difference between males and females in terms of their perception about JS, OJ and EMPR1.
 Multivariate Analysis of Variance (MANOVA)

Box's Test of Equality of

Covariance Matricesa
Box's M 61.473
F 1.699
df1 33
df2 9659.744
Sig. .007

MANOVA is applied to test the difference as well as the interaction effect of more
than two grouping variables (Fixed factors) for more than one dependent variables
simultaneously. All the assumptions required for regression are tested before
MANOVA. Homogeneity of variance is tested through Box’s test of equality of co-
variance which is required to be insignificant to satisfy the assumption. However
this test is very sensitive therefore it is interpreted against 0.001 level of
significance. In other words if the p value is greater than 0.001 we reject the null
hypothesis that the co-variances among the variables are different across the
groups. In table above the p value (0.007) is greater than 0.001 we may say that
the difference among the groups is insignificant therefore, the assumption for
homogeneity of covariance is satisfied.
 Multivariate Analysis of Variance (MANOVA)
Hypothesis Partial Eta
Effect Value F df Error df Sig. Squared
Intercept Pillai's Trace .936 1031.878 2.000 141.000 .000 .936
Wilks' Lambda .064 1031.878 2.000 141.000 .000 .936
Hotelling's Trace 14.637 1031.878 2.000 141.000 .000 .936
Roy's Largest Root 14.637 1031.878 2.000 141.000 .000 .936
Org Pillai's Trace .109 2.726 6.000 284.000 .014 .054
Wilks' Lambda .894 2.709 6.000 282.000 .014 .055
Hotelling's Trace .115 2.692 6.000 280.000 .015 .055
Roy's Largest Root .068 3.211 3.000 142.000 .025 .064
Age Pillai's Trace .106 3.992 4.000 284.000 .004 .053
Wilks' Lambda .895 4.011 4.000 282.000 .004 .054
Hotelling's Trace .115 4.030 4.000 280.000 .003 .054
Roy's Largest Root .095 6.774 2.000 142.000 .002 .087
Org * Pillai's Trace .167 2.159 12.000 284.000 .014 .084
Age Wilks' Lambda .836 2.197 12.000 282.000 .012 .085
Hotelling's Trace .191 2.234 12.000 280.000 .011 .087
Roy's Largest Root .166 3.929 6.000 142.000 .001 .142

This is the main table of multivariate analysis where several models are given. Generally Pillai’s Trace and Wilk’s
Lamda values are considered for evaluation, especially when data is not normally distributed. As evident, there are
significant differences among the organizations on perception of LWHs and ABS collectively (f (6, 282)=2.709,
p=0.014<0.05, η2= .055). Similarly, the Wilk’s Lamda value for two dependent variables (LWHs, ABS) also differ
significantly (f(4, 282)=4.011, p=0.004; η 2= .054) for different age groups. The interaction effect of both age and
organization is also significant (f(12, 282)=2.197; p=0.012<0.05; η 2= .085). The value of η2 indicates the overall effect
size of difference, which is interpreted in terms of percentages as indicated by Cohen (1977).
 Multivariate Analysis of Variance (MANOVA)

Levene's Test of Equality of Error Variances

F df1 df2 Sig.

ABS 2.252 11 142 .015
LWH 2.304 11 142 .013

From here onwards, simple univariate ANOVA is applied for further

differentiation. First step towards this analysis is Levene’s test of equality of
variance, which needs to be insignificant with p value greater than 0.05. However,
in case of the current study, the f values are significant that violates the
assumption of homogeneity of error variance.
 Multivariate Analysis of Variance (MANOVA)
Tests of Between-Subjects Effects

Dependent Partial Eta

Source Variable Type III Sum of Squares df Mean Square F Sig. Squared
Corrected ABS 36.069 11 3.279 3.708 .000 .223
Model
LWH 28.325 11 2.575 3.728 .000 .224
Intercept ABS 1199.728 1 1199.728 1356.685 .000 .905
LWH 1337.401 1 1337.401 1936.142 .000 .932
Org ABS 7.417 3 2.472 2.796 .042 .056
LWH 6.418 3 2.139 3.097 .029 .061
Age ABS 9.303 2 4.652 5.260 .006 .069
LWH 4.625 2 2.312 3.348 .038 .045
Org * Age ABS 17.915 6 2.986 3.376 .004 .125
LWH 16.242 6 2.707 3.919 .001 .142
Error ABS 125.572 142 .884      
LWH 98.087 142 .691      
Total ABS 1714.375 154
LWH 1813.167 154
Corrected Total ABS 161.641 153        
LWH 126.413 153        

The table indicates significant f statistics (p < 0.05) for difference in the
perception of various groups about ABS and LWH separately. This indicates that
the organizations and age groups included in the sample, differ significantly for
their perception about ABS and LWHs. (We can describe the statistics here).
 Multivariate Analysis of Variance (MANOVA)

95% Confidence
Interval
Dependent Std. Lower Upper
Variable Org Age Mean Error Bound Bound
ABS Mobilink 20-30 2.966 .200 2.570 3.362
31-40 1.833 .313 1.214 2.453 This table indicates various mean values
41-50 3.500 .297 2.912 4.088 for comparison in terms of each variable
Telenor 20-30 3.357 .205 2.951 3.763
31-40 2.583 .313 1.964 3.203 as to which group is different from other
41-50 2.925 .297 2.337 3.513 and to what extent, e.g. in terms of
UFone 20-30 3.566 .216 3.139 3.992
31-40 3.500 .421 2.669 4.331
perception about ABS the age group
41-50 2.821 .355 2.119 3.524 between 31-40 (Mean=1.833) has a
Zong 20-30 3.779 .228 3.329 4.230 greater difference with employees in the
31-40 3.453 .235 2.988 3.918
41-50 2.750 .313 2.130 3.370 age bracket between 41-50 years
LWH Mobilink 20-30 3.076 .177 2.725 3.426 (Mean=3.5) in Mobilink. Similar
31-40 2.037 .277 1.489 2.585 comparisons can be done for age groups
41-50 3.667 .263 3.147 4.186
Telenor 20-30 3.452 .181 3.094 3.811 across the organizations.
31-40 2.815 .277 2.267 3.362
41-50 3.283 .263 2.764 3.803
UFone 20-30 3.614 .191 3.237 3.991
31-40 3.733 .372 2.999 4.468
41-50 3.286 .314 2.665 3.907
Zong 20-30 3.745 .202 3.347 4.144
31-40 3.542 .208 3.131 3.952
41-50 2.852 .277 2.304 3.400
Thanks