Research Methodology
PGDM (2024-2026)
Prof. Nikita Dhankar
Unit- 4:
T-test of Means, Chi-square Test, and
Regression Analysis (ANOVA)
Types of Statistical Analysis
Univariate Statistical Analysis
Tests of hypotheses involving only one variable.
Testing of statistical significance
Bivariate Statistical Analysis
Tests of hypotheses involving two variables.
Multivariate Statistical Analysis
Statistical analysis involving three or more
variables or sets of variables.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Hypothesis Testing
Hypothesis
An assumption about nature of the world.
Null Hypothesis
Statement about the status quo.
No difference in sample and population.
Alternative Hypothesis
Statement that indicates the opposite of the null
hypothesis.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
The Hypothesis-Testing Procedure
Process
1. The specifically stated hypothesis is derived from
the research objectives.
2. A sample is obtained and the relevant variable is
measured.
3. The measured sample value is compared to the
value either stated explicitly or implied in the
hypothesis.
• If the value is consistent with the hypothesis,
the hypothesis is supported.
• If the value is not consistent with the
hypothesis, the hypothesis is not supported.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Significance Levels and p-values
• Significance Level
• A critical probability associated with a statistical
hypothesis test that indicates how likely an
inference supporting a difference between an
observed value and some statistical expectation is
true.
• p-value
• Probability value, or the observed or computed
significance level.
• p-values are compared to significance levels to test
hypotheses.
• Higher p-values equal more support for an hypothesis.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
p-Values and Statistical Tests
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
An Example of Hypothesis Testing
The null hypothesis: the mean is equal to 3.0:
The alternative hypothesis: the mean does not equal to 3.0:
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Type I and Type II Errors
• Type I Error
– An error caused by rejecting the null hypothesis
when it is true.
– Has a probability of alpha (α).
– Practically, a Type I error occurs when the
researcher concludes that a relationship or
difference exists in the population when in
reality it does not exist.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Type I and Type II Errors (cont’d)
• Type II Error
– An error caused by failing to reject the null
hypothesis when the alternative hypothesis is
true.
– Has a probability of beta (β).
– Practically, a Type II error occurs when a
researcher concludes that no relationship or
difference exists when in fact one does exist.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Choosing the Appropriate Statistical
Technique
Choosing the correct statistical technique
requires considering:
Type of question to be answered
Number of variables involved
Level of scale measurement
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Parametric versus Nonparametric Tests
Parametric Statistics
– Involve numbers with known, continuous
distributions.
– Appropriate when:
• Data are interval or ratio scaled.
• Sample size is large.
Nonparametric Statistics
– Appropriate when the variables being
analyzed do not conform to any known or
continuous distribution.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Univariate Statistical Choice Made Easy
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
The t-Distribution
Definition: A statistical test used to compare the means of
two groups.
Types:
Independent Samples T-Test: Compares means of
two independent groups.
Paired Samples T-Test: Compares means of the same
group before and after an event.
Assumptions:
Normal distribution
Equal variances (for independent samples)
Continuous dependent variable
Example: Comparing average customer spending on
Amazon before and after a major sale event.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
The t-Distribution
Real-Life Example of T-Test
Example: Analyzing the impact of a sale on customer
spending.
• Pre-sale vs. Post-sale average purchase value on
Flipkart (Paired T-test).
• Comparison of average purchase values between
Amazon and Flipkart during a sale event (Independent
T-test).
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
The t-Distribution for Various Degrees
of Freedom
Definition: The t-distribution is a probability distribution
used in T-tests when sample size is small, and population
standard deviation is unknown.
Degrees of Freedom (df): Represents the number of
independent values in a dataset that are free to vary.
Key Characteristics:
As degrees of freedom increase, the t-distribution
approaches the normal distribution.
For small sample sizes, the t-distribution is wider,
indicating more variability.
Used in hypothesis testing to determine critical
values for confidence intervals.
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
The t-Distribution for Various Degrees
of Freedom
Example: Analyzing customer spending before and
after a sale on Flipkart with different sample sizes:
df = 5 (Small sample size, wider t-distribution)
df = 30 (Larger sample, closer to normal distribution)
df = 100 (Very large sample, t-distribution nearly
normal)
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
The t-Distribution for Various Degrees
of Freedom
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Calculating a Confidence Interval Estimate
Using the t-Distribution
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
Calculating a Confidence Interval Estimate
Using the t-Distribution (Continue….)
X t c .l . S X X 3.89 S 2.81 n 18
2.81
3.89 2.12( ) 2.49
18
2.81
3.89 2.12( ) 5.28
18
Prof. Nikita Dhankar, Apeejay School of Management, New Delhi
BITS Pilani
Pilani Campus
Thank You
