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Unformatted text preview: arman tests for correlation were carried out and the results are presented in
table 7.3. Inspection of this data indicates that 4 of the 7 criteria provide statistically
significant relationships, at a level of 5% or less. Highly significant positive correlations are produced between the performance criteria TBV and PR, and use of
decision analysis tools and ideas. There is also a strong significant positive correlation between MC and PSR, and the use of decision analysis techniques and
concepts. There are only weak positive correlations between the categorisation of
decision analysis and the rankings of ROE and PE and neither is significant at any
level. Therefore, the null hypotheses (H1 0) for MC, TBV, PR and PSR can be
rejected and the alternative hypotheses (H11) accepted. For PE and ROE, it is not
possible to reject the null hypotheses (H10).
SPEARMAN
VARIABLE CORRELATION LEVEL OF PR
MC
TBV
NOE
ROE
PE COEFFICIENT
R=0.701, n=14
R=0.538, n=13
R=0.655, n=16
R=0.3823, n=17
R=0.252, n=17
R=0.296, n=13 SIGNIFICANCE
P<0.005
P<0.05
P<0.005
P<0.1
N/A
N/A PSR R=0.6, n=9 P<0.05 Table 7.3: Spearman correlation coefficients between performance variables and use of decision
analysis For the Kruskal Wallis test for PR the test statistic K is calculated to be 8.1428. There
are 2 degrees of freedom and hence this is significant at the 5% level. The null
hypothesis (H20) for PR can then be rejected and, by implication, the alternative
hypothesis (H21), that there are differences between the samples, accepted. To determine the locus of this difference, multiple comparisons are made using the
Wilcoxon Rank Sum test, with the null hypothesis each time being that the samples
were from the same population, and the alternative hypothesis being that the samples
177 were from several populations that differ in location. The Wilcoxon Rank Sum test
indicates that those companies that are ranked in the top ten in the sophistication of
decision analysis ranking all have similar PRs. However, their PRs are significantly
bigger than those companies that were placed between 11 and 14 in the decision
analysis sophistication ranking. (All calculations are shown in Appendix 4).
Carrying out the Kruskal Wallis test for TBV in exactly the same way produces
similar results. The test statistic K is equal to 7.37. There are 2 degrees of freedom
and therefore this is significant at the 5% level. The null hypothesis (H2 0) can then be
rejected and, by implication, the alternative hypothesis (H2 1), that there are
differences between the samples, accepted. To determine the locus of this difference,
multiple comparisons are made using the Wilcoxon Rank Sum test, with the null
hypothesis each time being that the samples were from the same population, and the
alternative hypothesis being that the samples were from several populations that differ
in location. The Wilcoxon Rank Sum test indicates that those companies that achieved a midlow decision analysis ranking position (i.e. b...
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 Summer '14
 The Land

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