Chapter 15

Data Analysis:

Basic Questions
Choosing a Statistical Test

Univariate
Analysis

One

Number of
Variables

Two
or More

Multivariate
Analysis
 Figure 1: Chart for Choosing Among Statistical Tests

1 I/R Level Meas Predictor(s)?

Level Meas
#Dep Vars? N/O: t-test or z-test,
Prediction Dep Var? ANOVA
I/R: Regression,
0 N/O Conjoint

Level Meas Predictor(s)?

N: Contingency Coef,
Total# Vars? Index Pred. Assoc,
1 Logit, z-test proportion
O: Spearman Rank Corr
Level of Measurement? (w ordinal dep var)
N: Frequencies, %’s, 2
I: Discriminant Analysis
Chi-square 3+
O: Kolmogorov-Smirnov
I/R: means Interdependence
Level of Measurement? Level of Measurement?
N/O: Cross-tabs N: Cluster analysis
Chi-square O: Kendall’s Coef of
I/R: Correlation Concordance
I: Factor analysis,
Cluster analysis,
MDS
 Appendix 15

Quick Stats Review

Research Realities: Typical Hypothesis Testing Procedure
1) Specify Null and Alternative Hypotheses
after analyzing the research problem

2) Choose appropriate statistical test, considering research

design, and sampling distribution for the test statistic

3) Specify the significance level (alpha) for the problem

being investigated

4) Collect the data, compute the value of the test statistic

appropriate for the sampling distribution

5) Determine probability of the test statistic under the null

Hypothesis using the sampling distribution in step 2

6) Compare the obtained probability with the specified

significance level, reject or do not reject the null
hypothesis on the basis of the comparison
Judicial Analogy Illustrating Decision Errors

True Situation: Defendent

Verdict Innocent Guilty

Innocent Correct Decision Error

Probability: 1- Probability: 

Guilty Error Correct Decision

Probability:  Probability: 1-
Types of Errors in Hypothesis Testing

True Situation: Null Hypothesis

Research
Conclusions True False

Do Not Correct Decision Error: Type II

Confidence Level
Reject H0
Probability: 1- Probability: 

Error: Type I Correct Decision

Reject H0 Significance Level Power of Test
Probability:  Probability: 1-
Figure 1: Probability of z = 1.50 with a one-tailed test

Area covered
by arrow
= 0.9332

z=1.50
Figure 2: Computation Panel A: Critical Proportion
under Null Hypothesis
of β error and power
for several assumed
true population area = .05
proportions for p=.2263
π =.20
the hypothesis, π<.20 Panel B: Probability of realizing critical
proportion when π =.22, which means null
Probability = β error = .648 hypothesis is false. .2263  .22
z  .38
Power = .352 .0166

π =.22
Panel C: Probability of realizing critical
proportion when π =.21, which means null
Probability = β error = .8413 hypothesis is false. .2263  .21
z  1.00
Power = .1587 .0163
π =.21 Panel D: Probability of realizing critical
proportion when π =.25, which means null
hypothesis is false.
Probability = β error = .0856 .2263  .25
z  1.368
Power = .9144 .0173
π =.25
 Figure 3: Power Function for Data in Table 3

Power = 1-β
Probability of Rejecting Ho: π < .20

1
KEY:
0.9 A: Type 1 error; true null
0.8 hypothesis is rejected;
F significance level
E 0.7 B: Type I error; true null
0.6 hypothesis is rejected
C: No error, false null
0.5 hypothesis is rejected
0.4 D: No error, true null hypothesis
D C is not rejected
0.3 E: No error, true null hypothesis
0.2 is not rejected, confidence level
F: Type II error; fall null
0.1 hypothesis is not rejected
B A 0
0.2 0.21 0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29 0.3
Error and Power for Different Assumed True Values of  and the Hypothesis H0:<.20 HA:>.20

Probability of Power of
Type II the Test
Value of 
or  Error 1-

.20 (.950)=1- (.05)=

.21 .8413 .1587
.22 .6480 .3520
.23 .4133 .5867
.24 .2133 .7867
.25 .0856 .9144
.26 .0273 .9727
.27 .0069 .9931
.28 .0014 .9986
.29 .0005 .9995
.30 .0000 1.0000
Common Misinterpretations of What “Statistically Significant” Means

* Viewing p values as if they represent the probability that the

results occurred because of sampling error, e.g., p=.05 implies
there is only a .05 probability that the results were caused by
chance.

* Equating statistical significance with practical significance.

* Viewing the  or p levels as in some way related to the

probability that the research hypothesis captured in the
alternative hypothesis is true, e.g., a p value such as p<.001 is
“highly significant” and therefore more valid than p<.05.