Exploratory Data Analysis in Business and Economics: An Introduction Using SPSS, Stata, and Excel

234 Pages·2014·10.06 MB·English

by  Thomas Cleff (auth.)

Thomas Cleff
Exploratory
Data Analysis
in Business
and Economics
An Introduction Using SPSS,
Stata, and Excel
Exploratory Data Analysis in Business
and Economics
ThiSisaFMBlankPage
Thomas Cleff
Exploratory Data Analysis
in Business and Economics
An Introduction Using SPSS, Stata,
and Excel
ThomasCleff
PforzheimUniversity
Pforzheim,Germany
Chapters1–6translatedfromtheGermanoriginal,Cleff,T.(2011).DeskriptiveStatistikund
moderneDatenanalyse: Einecomputergest€utzteEinf€uhrungmitExcel,PASW(SPSS)und
Stata.2.u¨berarb.u.erw.Auflage2011#GablerVerlag,SpringerFachmedienWiesbaden
GmbH,2011
ISBN978-3-319-01516-3 ISBN978-3-319-01517-0(eBook)
DOI10.1007/978-3-319-01517-0
SpringerChamHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2013951433
#SpringerInternationalPublishingSwitzerland2014
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Preface
Thistextbook,ExploratoryDataAnalysisinBusinessandEconomics:AnIntroduction
UsingSPSS,Stata,andExcel,aimstofamiliarizestudentsofeconomicsandbusiness
aswellaspractitionersinfirmswiththebasicprinciples,techniques,andapplications
ofdescriptivestatisticsanddataanalysis.Drawingonpracticalexamplesfrombusiness
settings, it demonstrates the basic descriptive methods of univariate and bivariate
analyses. The textbook covers a range of subject matter, from data collection and
scalingtothepresentationandunivariateanalysisofquantitativedata,andalsoincludes
analyticproceduresforassessingbivariaterelationships.Inthisway,itaddressesallof
thetopicstypicallycoveredinauniversitycourseondescriptivestatistics.
Inwritingthisbook,Ihaveconsistentlyendeavouredtoprovidereaderswithan
understandingofthethinkingprocessesunderlyingdescriptivestatistics. Ibelieve
this approach will be particularly valuable to those who might otherwise have
difficulty with the formal method of presentation used by many textbooks. In
numerousinstances,Ihavetriedtoavoidunnecessaryformulas,attemptinginstead
to provide the reader with an intuitive grasp of a concept before deriving or
introducing the associated mathematics. Nevertheless, a book about statistics and
data analysis that omits formulaswould be neither possible nordesirable. Indeed,
whenever ordinary language reaches its limits, the mathematical formula has
always been the best tool to express meaning. To provide further depth, I have
included practice problems and solutions at the end of each chapter, which are
intendedtomakeiteasierforstudentstopursueeffectiveself-study.
Thebroadavailabilityofcomputersnowmakesitpossibletoteachstatisticsinnew
ways.Indeed,studentsnowhaveaccesstoarangeofpowerfulcomputerapplications,
from Excel to various statistics programmes. Accordingly, this textbook does not
confine itself to presenting descriptive statistics, but also addresses the use of
programmes such as Excel, SPSS, and Stata. To aid the learning process, datasets
havebeenmadeavailableatspringer.com,alongwithothersupplementalmaterials,
allowingalloftheexamplesandpracticeproblemstoberecalculatedandreviewed.
I want to take this opportunity to thank all those who have collaborated in
makingthisbookpossible.Firstandforemost,IwouldliketothankLucaisSewell
([email protected]) for translating this work from German into English.
Itisnosmallfeattorenderanacademictextsuchasthisintoprecisebutreadable
English. Well-deserved gratitude for their critical review of the manuscript and
valuablesuggestionsgoestoBirgitAschhoff,ChristophGrimpe,BerndKuppinger,
v
vi Preface
BettinaM€uller,BettinaPeters,WolfgangSch€afer,KatjaSpecht,FritzWegner,and
Kirsten W€ust, as well as many other unnamed individuals. Any errors or
shortcomings that remain are entirely my own. I would also like to express my
thanks to Alice Blanck at Springer Science + Business Media for her assistance
with this project. Finally, this book could not have been possible without the
ongoingsupportofmyfamily.Theydeservemyveryspecialgratitude.
Please do not hesitate to contact me directly with feedback or any suggestions
youmayhaveforimprovements([email protected]).
Pforzheim ThomasCleff
March2013
Contents
1 StatisticsandEmpiricalResearch . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 DoStatisticsLie? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 TwoTypesofStatistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 TheGenerationofKnowledgeThroughStatistics . . . . . . . . . . . . 4
1.4 ThePhasesofEmpiricalResearch . . . . . . . . . . . . . . . . . . . . . . . 6
1.4.1 FromExplorationtoTheory . . . . . . . . . . . . . . . . . . . . . . 6
1.4.2 FromTheoriestoModels . . . . . . . . . . . . . . . . . . . . . . . . 7
1.4.3 FromModelstoBusinessIntelligence . . . . . . . . . . . . . . . 11
2 DisarraytoDataset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.1 DataCollection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2 LevelofMeasurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.3 ScalingandCoding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.4 MissingValues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.5 OutliersandObviouslyIncorrectValues . . . . . . . . . . . . . . . . . . . 21
2.6 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3 UnivariateDataAnalysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.1 FirstStepsinDataAnalysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.2 MeasuresofCentralTendency . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.2.1 ModeorModalValue . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.2.2 Mean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.2.3 GeometricMean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3.2.4 HarmonicMean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3.2.5 TheMedian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
3.2.6 QuartileandPercentile . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.3 TheBoxplot:AFirstLookatDistributions . . . . . . . . . . . . . . . . 42
3.4 DispersionParameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.4.1 StandardDeviationandVariance . . . . . . . . . . . . . . . . . . 46
3.4.2 TheCoefficientofVariation . . . . . . . . . . . . . . . . . . . . . . 48
3.5 SkewnessandKurtosis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
3.6 RobustnessofParameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.7 MeasuresofConcentration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
vii
viii Contents
3.8 UsingtheComputertoCalculateUnivariateParameters . . . . . . . 55
3.8.1 CalculatingUnivariateParameterswithSPSS . . . . . . . . . 55
3.8.2 CalculatingUnivariateParameterswithStata . . . . . . . . . . 56
3.8.3 CalculatingUnivariateParameterswithExcel2010 . . . . . 57
3.9 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
4 BivariateAssociation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.1 BivariateScaleCombinations . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.2 AssociationBetweenTwoNominalVariables . . . . . . . . . . . . . . . 61
4.2.1 ContingencyTables . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.2.2 Chi-SquareCalculations . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2.3 ThePhiCoefficient . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
4.2.4 TheContingencyCoefficient . . . . . . . . . . . . . . . . . . . . . . 70
4.2.5 Cramer’sV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
4.2.6 NominalAssociationswithSPSS . . . . . . . . . . . . . . . . . . 72
4.2.7 NominalAssociationswithStata . . . . . . . . . . . . . . . . . . . 75
4.2.8 NominalAssociationswithExcel . . . . . . . . . . . . . . . . . . 76
4.2.9 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
4.3 AssociationBetweenTwoMetricVariables . . . . . . . . . . . . . . . . 80
4.3.1 TheScatterplot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
4.3.2 TheBravais-PearsonCorrelationCoefficient . . . . . . . . . . 83
4.4 RelationshipsBetweenOrdinalVariables . . . . . . . . . . . . . . . . . . 86
4.4.1 Spearman’sRankCorrelationCoefficient
(Spearman’srho) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
4.4.2 Kendall’sTau(t) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
4.5 MeasuringtheAssociationBetweenTwoVariables
withDifferentScales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
4.5.1 MeasuringtheAssociationBetweenNominalandMetric
Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
4.5.2 MeasuringtheAssociationBetweenNominalandOrdinal
Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
4.5.3 AssociationBetweenOrdinalandMetricVariables . . . . . 100
4.6 CalculatingCorrelationwithaComputer . . . . . . . . . . . . . . . . . . 101
4.6.1 CalculatingCorrelationwithSPSS . . . . . . . . . . . . . . . . . 101
4.6.2 CalculatingCorrelationwithStata . . . . . . . . . . . . . . . . . . 102
4.6.3 CalculatingCorrelationwithExcel . . . . . . . . . . . . . . . . . 104
4.7 SpuriousCorrelations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
4.7.1 PartialCorrelation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
4.7.2 PartialCorrelationswithSPSS . . . . . . . . . . . . . . . . . . . . 109
4.7.3 PartialCorrelationswithStata . . . . . . . . . . . . . . . . . . . . . 109
4.7.4 PartialCorrelationwithExcel . . . . . . . . . . . . . . . . . . . . . 110
4.8 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
5 RegressionAnalysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
5.1 FirstStepsinRegressionAnalysis . . . . . . . . . . . . . . . . . . . . . . 115
5.2 CoefficientsofBivariateRegression . . . . . . . . . . . . . . . . . . . . . 116
Contents ix
5.3 MultivariateRegressionCoefficients . . . . . . . . . . . . . . . . . . . . 122
5.4 TheGoodnessofFitofRegressionLines . . . . . . . . . . . . . . . . . 123
5.5 RegressionCalculationswiththeComputer . . . . . . . . . . . . . . . 125
5.5.1 RegressionCalculationswithExcel . . . . . . . . . . . . . . . . 125
5.5.2 RegressionCalculationswithSPSSandStata . . . . . . . . . 126
5.6 GoodnessofFitofMultivariateRegressions . . . . . . . . . . . . . . . 128
5.7 RegressionwithanIndependentDummyVariable . . . . . . . . . . . 129
5.8 LeverageEffectsofDataPoints . . . . . . . . . . . . . . . . . . . . . . . . 131
5.9 NonlinearRegressions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
5.10 ApproachestoRegressionDiagnostics . . . . . . . . . . . . . . . . . . . 135
5.11 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
6 TimeSeriesandIndices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
6.1 PriceIndices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
6.2 QuantityIndices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
6.3 ValueIndices(SalesIndices) . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
6.4 DeflatingTimeSeriesbyPriceIndices . . . . . . . . . . . . . . . . . . . . 158
6.5 ShiftingBasesandChainingIndices . . . . . . . . . . . . . . . . . . . . . . 159
6.6 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
7 ClusterAnalysis . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
7.1 HierarchicalClusterAnalysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
7.2 K-MeansClusterAnalysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
7.3 ClusterAnalysiswithSPSSandStata . . . . . . . . . . . . . . . . . . . . . 177
7.4 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
8 FactorAnalysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
8.1 FactorAnalysis:Foundations,Methods,Interpretations . . . . . . . . 183
8.2 FactorAnalysiswithSPSSandStata . . . . . . . . . . . . . . . . . . . . . 191
8.3 ChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
9 SolutionstoChapterExercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213