Page 305 - DMGT404 RESEARCH_METHODOLOGY

Unit 13: Multivariate Analysis

 MDS as a set of multivariate statistical methods for estimating the parameters in and Notes
assessing the fit of various spatial distance models for proximity data.

 The output of MDS looks very similar to that of factor analysis and the determination of
the optimal number of dimensions is handled in much the same way.

13.8 Keywords

Cluster Analysis: Cluster Analysis is a technique used for classifying objects into groups.

Conjoint Analysis: Conjoint analysis is concerned with the measurement of the joint effect of
two or more attributes that are important from the customers’ point of view.
Discriminant Analysis: In this analysis, two or more groups are compared. In the final analysis,
we need to find out whether the groups differ one from another.
Factor Analysis: Factor Analysis is the analysis whose main purpose is to group large set of
variable factors into fewer factors.

Multivariate Analysis: In multi variate analysis, the number of variables to be tackled are
many.

13.9 Review Questions

1. Which technique would you use to measure the joint effect of various attributes while
designing an automobile loan and why?
2. Do you think that the conjoint analysis will be useful in any manner for an airline? If yes
how, if no, give an example where you think the technique is of immense help.
3. In your opinion, what are the main advantages of cluster analysis?
4. Which analysis would you use in a situation when the objective is to summarise information
from a large set of variables into fewer factors? What will be the steps you would follow?
5. Which analysis would answer if it is possible to estimate the size of different groups?
6. Which analysis would you use to compare a good, bad and a mediocre doctor and why?
7. Analyse the weakness of principle component factor analysis.

8. Which multivariate analysis would you apply to identify specific customer segment for a
company’s brand and why?
9. Critically evaluate multidimensional scaling.

10. In your opinion what will be the disadvantages of having too many independent variables
in an MR study?
11. The following constructs of intelligence measures of management students:

Variable Load
CGPA 0.60 x F
Problem Solving Skills 0.75 x F

Communication Skills 0.85 x F
This table tells us communication skill score loads highly on intelligence factor of
management students, followed by problem solving skills and CGPA. These loads or

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