DSOM 5522: Managerial Statistics

Group Practice Deliverable I -- Due 9:00AM, Tuesday, 29 August

Deliverable Instructions:

The deliverable document itself is a slide deck--Google Slides, a pdf, Keynote, Prezi , reveal.js, (or if you just have to, PowerPoint).  I'm a big believer in parsimony, so five slides are all that is necessary to answer the five questions, though feel free to use the ‘presenter notes’ section to add additional information if you so desire.  In terms of the content of the sides, I will leave that to your discretion, but err on the side of presenting results suitable for discussion in a professional (meeting, conference, etc.) setting.  Please also submit a markdown file with your code so that I can replicate your answers.  I will provide the data for all of the analyses, and the deliverable is due 9:00AM on the following Tuesday.  The deliverable is worth 10 points, with 7 of those points being technical accuracy and the remaining 3 being presentation and clarity of the answer (i.e., did you communicate the answer in a way that demonstrates fundamental understanding of the topic).  Please post the deck (or a share link to the deck) and a markdown file of your code in your team’s Slack channel.  Early submissions are, of course, welcome!

Scenario:

You collected data on the entrepreneurial activities of 119 mid-sized businesses in the United States.  In your exploratory analyses, you notice an interesting pattern: the psychometric measures for Innovativeness, Proactiveness, and RiskTaking all seem to correlate strongly.  You also notice that the three variables correlate strongly with a fourth variable, LRP.  The LRP variable is a simple question on a 1 → 7 scale asking the CEO how important long range planning is to the firm, with 1 being not at all important, and 7 being critically important.  The Innovativeness, Proactiveness, and RiskTaking variables are composites constructed by taking the mean of the three indicators for each variable.

Questions:

1. Provide and interpret a correlation matrix of the variables.  What does it mean to observe a statistically significant relationship between the variables and at what magnitude (hint...don’t just think in terms of statistical significance, but also practical significance)?
2. Provide a brief discussion of the strengths of measuring innovativeness, proactiveness, risk-taking, and long range planning using psychometric indicators.
3. Provide a brief discussion of the weaknesses of measuring innovativeness, proactiveness, risk-taking, and long range planning using psychometric indicators.
4. For each variable, propose an alternate measure (not psychrometric) that would reasonably capture/proxy the same underlying phenomenon.  Provide a justification for why each measure would be just as valid, or more valid, as the psychometric measures.
5. Outline a second study that you would conduct using your alternate measures.  How would you go about collecting the data, and what sample would you need?