Tuesday, 4 September 2012

Business Analytics_Group_C


Business Analytics:


Statistical package for social sciences (SPSS) is a widely used program for data entry, statistical analysis, to create tables and graphs. It can perform analysis and handles a large amount of data. One can find two files in the SPSS tool, namely Data file, a spread sheet like system for defining, entering, editing, and displaying data whose extension of the saved file will be in “.sav” format  and Output file, which displays output and errors whose extension of the saved file will be in  “.spv” format.

In the initial class we have got familiar with the SPSS software by entering a sample data problem and analyzing the same. While entering the data, we had known how to use the data view tab, variable view tab and description of the data in the variable view like, Name, Type, Width, Decimals, Label, Values, Missing, Columns, Align, and Measure.

The name in the first character of the variable name must be alphabetic, unique, and have to be less than 64 characters.

The type enables to specify the type of variable. The two basic types of variables that we use are numeric and string.

In the next class we came to know about the ‘Classification of techniques into level-1 and level-2 depending on the number of variables we use. We also came to know about the different types of variables such as, ‘Continuous or Quantitative and Discrete or Qualitative variables.

After knowing how to use or operate the software, we worked on the pre-loaded data file namely, ‘GSS93 subset.sav. With the help of data available, we analyzed on a null hypothesis that, “There is no relation between number of siblings and the age when married”

What exactly is degrees of freedom?
The mathematical answer is a single phrase, "The rank of a quadratic form." It is one thing to say that degrees of freedom is an index and to describe how to calculate it for certain situations, but none of these pieces of information tells what degrees of freedom means

A data set contains a number of observations, n’. They constitute n’ individual pieces of information. These pieces of information can be used either to estimate parameters or variability. In general, each item being estimated costs one degree of freedom. The remaining degrees of freedom are used to estimate variability. All we have to do is count properly.

A single sample: There are n observations. There's one parameter (the mean) that needs to be estimated. That leaves n-1 degrees of freedom for estimating variability.
Two samples: There are n1+n2 observations. There are two means to be estimated. That leaves n1+n2-2 degrees of freedom for estimating variability.

One-way ANOVA with g groups: There are n1+..+ng observations. There are g means to be estimated. That leaves n1+..+ng-g degrees of freedom for estimating variability. This accounts for the denominator degrees of freedom for the F statistic.

The primary null hypothesis being tested by one-way ANOVA is that the g population means are equal. The null hypothesis is that there is a single mean. The alternative hypothesis is that there are g individual means. Therefore, there are g-1--that is g (H1) minus 1 (H0)--degrees of freedom for testing the null hypothesis. This accounts for the numerator degrees of freedom for the F ratio.

There is another way of viewing the numerator degrees of freedom for the F ratio. The null hypothesis says there is no variability in the g population means. There are g sample means. Therefore, there are g-1 degrees of freedom for assessing variability among the g means.

By:
Telikepalli V Santosh Phani
Group C
Roll No: 14116,

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