Can someone explain to me how i can use univariate, bivariate and multivariate a
ID: 3320121 • Letter: C
Question
Can someone explain to me how i can use univariate, bivariate and multivariate analysis to analyze the following data.
The data is for commenting on how Corporate social responsibility can affect company performance.
Variable definitions:
MBV: Market to book value.
CSR: Index to represent the extent of CSR activities.
Size: Total assets of company, £ million.
ROCE: Return on capital employed, percent.
Industry: Sector in which company operates:
1 if manufacturing,
2 if services,
3 if primary.
MBV
CSR
Size
ROCE
Industry
2.44
40.1
85
42.7
2
2.72
37.3
74
41.1
1
2.49
33.8
102
31.7
1
2.60
33.3
114
43.6
1
2.24
39.3
77
36.0
3
2.27
31.6
62
43.2
1
MBV
CSR
Size
ROCE
Industry
2.44
40.1
85
42.7
2
2.72
37.3
74
41.1
1
2.49
33.8
102
31.7
1
2.60
33.3
114
43.6
1
2.24
39.3
77
36.0
3
2.27
31.6
62
43.2
1
Explanation / Answer
Univariate analysis:
Univaraite analysis is exaimining and describing one variable at a time. Here, there are 5 variables. Each variable can be examined to check its distribution. For example, if the MBV is normally distributed so that the appropriate summary statistics can be reported. For instance, if MBV is normally distributed Mean and SD can be used to report. Reporting the frequency distribution of Industry is also an unvariate anlaysis. For instance, in the given data, there were 4 manufacturing industries, one serivce and one primary industry.
Bivariate analysis:
Bivariate analysis is used to explore the relationship between two variables.
In this case, if the Size (Asses of the company) is taken to bte dependent variable then all oether variables can be tested for the existing relationship to size. Since, CSR is one of the main factor to be tested, and since both, the CSR and Size is measures as a continuous variables, both should be checked for normality assumptions and correlation analysis can be done to examine if there is a linear relationship between the asset (size) and the CSR index.
Multivariate Analysis:
We cannot say that CSR is the only factor that could effect the companys performance. There will be some other factors that could effect the performance. Hence, the other factors has to be identified and should be adjusted to check if there exists a real association between CSR and performance of the company. Hence, tools like, multiple linear regression are used to assess the relationship between CSR and performance of the compay adjusted for type of the industry, MBV, ROCE, etc. (other identified variables)