4.4 Multivariate Data Analysis - Literature Summary
Summary Applied Data Analyses
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Accountacy and Control, Fiscale economie
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Economics and Business Academic Year 2016-2017
Name Student number: Serial number:
Exam: Management Research Methods II (EPMS) 6612ZB016
Date and time of the exam: 2nd of June 2017, 9:00–12:00
Duration of the exam: 180 minutes
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The exam consists of 3 main questions (with subquestions) on 27 pages (front page included).
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You can assume a cut-off value for p of 0.05, i.e. a 95% confidence level.
Likert 5 and 7 point scales can be treated as quantitative data.
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PLEASE CIRCLE THE INSTRUCTOR YOU HAD FOR THIS COURSE:
Abhishek Nayak Joris Demmers Eugène Hoogstad Jonne Guyt
, Question 1. Factorial ANOVA (31 points)
A large retailer owns multiple retail chains, including two international sportswear chains: Sports
Global and Riders Gear. The firm just hired a new analyst. To get to know his new employer a
little better, the analyst decides to take a look at the revenues of both chains in three countries
that are of critical strategic importance to the firm: the UK, Germany, and the Netherlands. For
each country, he randomly selects 40 stores per sportswear chain, and calculates the average
weekly revenue. The analyst knows that overall, Sports Global generates somewhat higher
revenues than Riders Gear. In addition, he hypothesizes that average weekly revenues per store
will be higher in the UK as compared to the Netherlands and Germany, given that on average the
size of the stores is somewhat larger in the UK than in the other two countries.
His colleague tells him that the difference between the chains in terms of average weekly
revenue may also depend on the country in which a store is based, depending on the focus of the
two chains in the different countries. Specifically, whereas in the UK and the Netherlands both
chains more or less offer a similarly broad assortment, in Germany the two chains are positioned
quite differently. In Germany, Sports Global is a broad chain that caters to a large audience in
multiple sport disciplines, whereas Riders Gear focuses on the niche markets of cycling, skating,
and winter sports specifically. Based on this, the analyst expects that Sports Global generates the
majority of total revenues in Germany, whereas in the other two countries revenues are more
evenly spread out between the two chains.
A. Formulate a hypothesis that accurately reflects how this difference between Sports Global
and Riders Gear is expected to vary for the three countries. (5 points)
The difference between Sports Global and Riders Gear with regards to average weekly revenues
is moderated by country, such that in Germany Sports Global generates higher revenue than
Riders Gear, whereas in the Netherlands and the UK there is no difference between the two
chains.
Or…
The effect of chain on average weekly revenues is moderated by country, such that in Germany
Sports Global generates higher revenue than Riders Gear, whereas in the Netherlands and the
UK there is no difference between the two chains.
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