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Statistical Analysis Process

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Statistical Analysis Process:

Generally, all of the business courses that you take are focused on answering a single question - “What can managers do to improve the performance of their organizations?” It is not sufficient to theorize that a particular business strategy will lead to improved performance. You must test the theory. The statistical analysis process is a standardized methodology for testing theories. Generally, you identify a strategy that you believe may work, you ask experts what they think about the strategy, you analyze the data collected from the experts, you interpret the results from the analysis, and you draw conclusions about how well the strategy works based on the interpretations.

All remaining assignments require that you follow this process.

1. State the research question.

This is general question related to our area of concern. For example: “What can managers do to improve the performance of their organizations?” That’s probably stated a little too generally. More specific examples include: “Will implementation of a market orientation strategy improve my organization’s performance?” and “Will implementation of JIT and TQM improvement programs combine to improve my organization’s performance?”

2. State the hypotheses.

Hypotheses are formulated from the research question. They must be stated in a form that is statistically testable. For example, “Market orientation is positively associated with operational performance.” Another example is: “JIT and TQM are positively associated with organizational performance.” These statements are statistically testable using correlation and regression analyses. Correlation analysis gives the type, strength, and significance level of the association, and regression analysis provides information necessary to predict OP based on given levels of market orientation, JIT,

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