Linear Regression:

If 1 dependent variable and 1 independent variable is considered for regression it is termed

as linear regression.

Commands for SPSS:

1. Click on Analyze, then regression and then linear
2. Choose the dependent and independent variables
3. Click on statistics and select estimates and model fit and click on continue
4. Click on ok to get the result

Interpretation:
From the variable entered removed box the variable entered is the impact of graduates and
the method used is enter method.
Here the dependent variable is murder rate
From the model summary box we will check the value of Arc. The value of arc will determine
the degree of correlation.
Since the value is 26.286, we can conclude that the correlation is very low.
The value of R2 and adjusted R2 will determine the change in the degree of correlation. If
any variable is added or deleted from the model.
From the anova table we will check the significant value. If the significant value is less than
or equal to 0.05, we conclude that model is fit. Here our value is 0.42 so we say that the
regression model is fit.
From the coefficient box, we will first check the significant value, whenever the significant
value is less than or equal to 0.05, we say that the independent variable is significantly
effecting the dependent variable.
In our case the value of significance is less than 0.05 for both constant & impact of on
graduates.
From the unstandardized coefficient & value we formed equation i.e.
Murder Rate = 50.519 + (impact of graduate X -0.548)
Which implies if there is no graduate 50.519 will be the murder rate.
If even 1 graduate is there, the murder rate will decrease by 0.548 times.
And if there are 10 graduates, it will decrease by 0.548 times.

Multiple Regression:
Multiple regression is conducted when there is 1 dependent variable & 2 or more
independent variables. In other words we try to check the impact of independent variables
on the dependent variables. In multiple regression there is multiplicity of effect on the
dependent variables. For example miles per gallon can depend on no. of CC, horse power,
country of origin etc. So the equation will be
Miles per gallon = constant + (CC) (B1 value) + (HP) (B2 value) + (COO) (B3 value)

Commands for SPSS:

Commands for regression are similar to that of the linear regression but in the independent
box we can add more than 2 independent variable.

Interpretation:
Same as linear regression

One Way ANOVA:

Also known an as analysis of variance one way which implies the variance will be analyzed
one way. In other words one way anova checks impact of an independent variable on the
dependent variable. The prerequisite condition is there should be 2 or more independent
variable to conduct one way anova. One way anova can also be called an extension of
independent T - test. In independent T - test there are 2 independent variables but if there
are more than 2 independent variables we conduct one way anova.
The hypothesis statement will be there is a significant difference between the mean scores
of all the independent groups.

Commands for SPSS:

1. Click on analyze, compare means, one way anova
2. One way anova box will open, transfer the testing variable in the independent list and
transfer the grouping variable in the factor box and click on ok to get the result

Interpretation:
From the anova box we will check the sum of the squares. If we divide the sum of the
squares with degree of freedom we will get the value of the mean scores, then we will check
the significant relationship. If the significant value is less than or equal to 0.05 we accept the
hypothesis that there is a significant relationship between mean scores of independent
groups at 95% confidence level.

Independent T - test:
It is conducted between 2 mutually exclusive groups along with the testing variable. In other
words, there are 2 types who have been asked the same question.
For example - perception about a product can be asked to males and females or perception
towards ray ban glasses to Mumbai and Delhi residents.

Commands:
1. Click on analyze, Compare means, independent sample T - test, independent T - test box
will open.
2. Transfer the testing variables in the test variables box and transfer the grouping variable
box in the group variable box.
3. Click on defined groups. Under defined groups, specify the vale for both the groups and
click on continue and click on ok.
*Before conducting One Sample T - test, Independent T - test, we check the normality of
data. If the data is normally distributed then go for independent t-test.

Rules:
1. Any of these condition has to be satisfied
a. Mean, Median, Mode should be equal/same.
b. Value of skewness and kurtosis should be between +1 and -1.
c. According to the theorem of central tendency, the value of n should be equal to 20 for
each group.

Interpretation:
Conduct the commands for test of normality and check whether the data is normally
distributed or not.
From the 1st group statistics box the no. Of item in both the groups mean and standard
deviation. For both the groups can be known.
In the 2nd box, independent sample test box, we will check the significant value of leaning
test of equality of variance assumed.
If significant value is less than or equal to 0.05, we will go with equality of variance not
assumed line (means that data is homogenous).
If the significant value is more than 0.05, we will go with equality of variance assumed line
(heterogeneous data).
After choosing the equality of variance or equality of variance not assumed line, we will
check the significant value.

If the significant value is less than or equal to 0.05 will accept the hypothesis that there is a
significant difference between test variable and grouping variable.

Factor Analysis:
Factor analysis is a data reduction technique where the co related items forms various
factors. In this technique the latent items or uncorrelated items are deleted from the
analysis. This technique enables the managers to find out the key factors of any given
research problem. For example: if a manger wants to know why a consumer is not buying a
product or what factors are making him to buy a product he can employ factor analysis.

Factor analysis can be of 2 types:

1. EFA (Exploratory Factor Analysis): In this analysis the researcher tries to explore the
various factors without a pre-determined construct, this method can also be employed
when a researcher has chosen an exploratory research design. In this technique non
probability sampling technique can be employed.
2. CFA (Confirmatory Factor Analysis): In this technique the researcher has a pre-determined
construct and is clear of how many factors can be extracted from the analysis. In this
technique the researcher has to follow probability sampling and the research design is
descriptive or causal research design.

Method:
Two methods are followed while conducting factor analysis on SPSS:
1. Extraction (In which no. of factors are extracted)
2. Rotation (Various factors are iterated to form a factor)

Commands for SPSS:

1. Click on Analyze, dimension reduction, factor.
2. Factor analysis box will open, highlight and transfer the statements to be used in factor
analysis and transfer it to the variable box.
3. Click on descriptive, in factor analysis descriptive box under co-relation matrix tick on
KMO and Bartlett's test of Spercity, click on continue
4. Click on extraction, in factor analysis extraction box tick on scree plot and the method
used will be Principal components.
5. Under extraction, the extraction will be based on Eigen value, click on continue.

Rotation:
6. Click on rotation, factor analysis rotation box will open
7. Under factor analysis rotation box method used will be varimax, click on continue
8. Click on options, under factor analysis option box, under coefficient display format tick on
sorted by size and tick on suppress small coefficients.
9. In absolute value below change the value to 0.50 (Hair et.al) and click on continue and
click on ok to get the result.

Interpretation:
From the KMO Bartlett's test box, the value of KMO and sample adequacy will determine
the degree of correlation. Here the value is 0.618. So we can say that it is more than
moderately co-related and it is significant at 95% confidence level since the significant value
is 0.000. From commonality box will check how many values in extraction column are nearer
to 1, in our case we have 3 values which are nearer to 1 (0.955, 0.950 & 0.945). We will
cross check the same with the help of total variance explained box. From this box we can
see that 80% of the data is used since the cumulative % is 80.346. So we can say nearly 20%
of the data is lost while conducting factor analysis and this is confirmed from the Scree Plot.
From the rotation component matrix we will give the names to the factors.

1st Factor:
Prestige: The 1st factor prestige has got "I feel good whenever I see the ad, a two wheeler is essentially a man's vehicle and feel powerful when I am on my two - wheeler
some of my friends are jealous, with the Eigen value 0.0971, 0.970, 0.964 and 0.945
respectively. With a total variation of 38.409%.

2nd Factor:
Safety & Economical: The second factor has a variation of 24.294% variation with the
following statements. "I think two wheelers are safe (0.881), my vehicle gives me a safe way
to travel (0.848), it gives a sense of freedom (-0.639), low maintenance cost (0.604).

3rd Factor:
Affordability: For the 3rd factor, affordability are (0.594, 0.874, 0.780), with the following
statements: low maintenance cost, 3 people can be allowed and it is affordable with the
variance of 17.643%.