In: Statistics and Probability
What method( ANOVA, Regression, Cluster, Factor, etc.) should be
used and why? Independent and Dependent variables?
A researcher wants to investigate the effect of gender (coded 0 male and 1 female) and job satisfaction (coded 0 satisfied and 1 not satisfied) on employee income ($1000s) and years of education (years). A sample of 125 participants was included in the study.
The method that should be used here is Two-way MANOVA.
Explanation:
The two-way multivariate analysis of variance (two-way MANOVA) is an extension of the two-way ANOVA.
The two-way analysis of variance (ANOVA) is an extension of the one-way ANOVA and it examines the influence of two different categorical independent variables on one continuous dependent variable whereas in case of one way ANOVA, there is only one independent variable. (Note: An independent variable can have any number of categories).
While the two way MANOVA is used for those cases where there are two or more dependent variables. The primary purpose of this method (two-way MANOVA) is to find out if there is an interaction between the two independent variables on two or more dependent variables.
Two way MANOVA requires that the independent variables to be categorical and dependent variables to be ratio or interval measures.
Here, the two independent variables are gender and job satisfaction which are categorical variables. The two dependent variables are employee income and years of education which are ratio and interval measures respectively. And 125 participants is a sufficient sample size.
Thus, two way MANOVA is the appropriate method to consider. However, like any other method, before conducting two way MANOVA, its assumptions must be checked from the given data that are possible to be checked and others must be assumed to be true(which cannot be checked) so that the results of such method would be valid.
Summary:
One way ANOVA:
1 independent variable and 1 dependent variable.
Two way ANOVA:
2 independent variables and 1 dependent variable.
Two way MANOVA:
2 independent variables and 2 dependent variables.
Independent variables are categorical(nominal measures) and dependent variables are ratio or interval measures.
An independent variables can have any number of categories.