Data Analysis and

Interpretation
RESEARCH FOR MANAGERIAL
DECISION - 20MBA112
Module 4

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Topics
• Univariate, bivariate and multivariate analysis
• Descriptive and inferential analysis

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Data Analysis

• Data collected Meaningful information

• Logical inference

• Analysis can be :
• Univariate

• Bivariate

• Multivariate

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Univariate Analysis
• Studies only one variable at a time
• Can be classified on the basis of whether data is
• Metric
• Non – metric
• Metric Data – measured on interval or ratio scale
• Non – matric data – nominal or ordinal scale
• Further classified on the basis of sample
• One sample
• Two or more

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Bivariate Analysis

• Two variables are studies together

• Examines the possible association

• Eg :
• Scatter plot diagram

• Correlation

• Regression

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Multivariate Analysis

• More than 2 variables are analysed together

• Classified into;
• Dependence method

• Interdependence Techniques

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Dependence Technique

• When one or more variables are identified as dependent variable and

the remaining as independent variables.

• Two Types;
• One dependent variable

• More than 2 dependent variables

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Interdependence Technique

• Variables are not classified as dependent or independent

• Interdependence of the whole set of variables is examined

• The technique focuses on

• Variable interdependence

• Inter object similarity

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Descriptive and Inferential Analysis
Descriptive Analysis

• Data to information

• Easy to understand and interpret

• Summary measures pertaining to the data

• Methods:
• Average, range, Standard Deviation

• Frequency and percentage distribution

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Descriptive and Inferential Analysis cont..
• The type of descriptive analysis – the type of scale used

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Descriptive and Inferential Analysis cont..

Inferential Analysis

• Inferences are drawn on the population parameter – based on

sample results

• Analysis is based on probability theory

• Sample should be drawn at random

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Parametric Test

• If the information about the population is completely known by

means of its parameters then statistical test is called parametric test

• Parameter – population mean, Standard Deviation, Proportion

• Normal distribution of data

• Large sample size

• Eg: t- test, f-test, z-test, ANOVA

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Non-parametric test

• If there is no knowledge about the population or paramters, but still it

is required to test the hypothesis of the population.

• Distribution free

• No application of sampling theory

• Eg: Mann-Whitney, rank sum test, Kruskal-Wallis test

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Hypothesis Testing

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Hypothesis Testing
1. Formulate the null and alternative hypothesis
2. Choose appropriate test
3. Choose level of significance
4. Collect data and calculate the test statistic
5. Table value
6. Compare the calculated value and table value
7. Take decision – calculated > table value – Null Rejected

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1. Formulate the null and alternative
hypothesis
Null Hypothesis
• H0
• Proposed with the intention – Rejection
• Hypothesize the opposite of desirable
• Hypothesis that is tested
• Reject null hypothesis or could not be rejected
Alternative hypothesis
• H1
• Rejection of null + acceptance of alternative
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1. Formulate the null and alternative
hypothesis
• One tailed test – Test of null hypothesis where the alternative
hypothesis is expressed directionally

Eg:- Average age of the class is greater than 20

• Two tail test – Alternative hypothesis is not expressed directionally

Eg:- Average age of the class is 20

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3. Choose level of significance
• 2 type of errors in drawing conclusion about hypothesis testing
• Type I error – rejection of true null hypothesis
• Type II error – Not rejecting the null hypothesis when it is in fact false

• Type I error – rejection of true null hypothesis

• Probability of type I error – significance level
• α – Level of significance
• Type II error – Not rejecting the null hypothesis when it is in fact false
• Probability of type II error – β
• (1- β) – power of statistical test
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Hypothesis Testing
1. Formulate the null and alternative hypothesis
2. Choose appropriate test
3. Choose level of significance
4. Collect data and calculate the test statistic
5. Table value
6. Compare the calculated value and table value
7. Take decision – calculated > table value – Null Rejected

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