You are required to analyse the tutorial exercise below (quantitative analysis) using SPSS software package. You need to pay attention to how to interpret SPSS results correctly (such as correlation and regression outputs).
TASK 1
You are required to analyse the tutorial exercise below (quantitative analysis) using SPSS software package. You need to pay attention to how to interpret SPSS results correctly (such as correlation and regression outputs). It will be worthwhile completing the exercise as it will enable you to complete assessment two correctly. Although suggested answers will be provided by next week, please try your best to do the exercise yourself.
Task
As an MBA student, you are preparing your dissertation to investigate local authorities’ (LAs) performances in England and Wales. You designed and distributed survey questionnaires by utilizing continuous rating scales, scale 1 (the best) to 10 (the worst). Ten local authorities (A, B to J) in England and Wales were selected as respondents by using cluster random sampling. It is intended by employing the cluster random sampling that the study can be generalised for every LA in England and Wales. The following table below shows how ten LAs (as respondents) were ranked according to their institutional performance (as indicated in their BVPI - Best Value Performance Indicators) and according to the LAs’ expenditures on training for succession management.
- LAs ranked according to their institutional performance
- Local AuthoritiesABCDEFGHIJ
- Ranking Based on BVPI25614107938
- Ranking Based on Training Expenditures16423781059
You want to investigate whether there is a relationship between the LAs’ performances and their spending budgets on staff training (for the institutional succession management). Accordingly, you will need to undertake a regression analysis based on the above data by using SPSS software.
You will need to interpret the SPSS outputs in layman’s terms that can be used to explain the situation to LAs` Boards.
You will need to suggest the strategic implications of your findings to the LA Boards involved.
Question : As an MBA student, you are preparing your dissertation to investigate local authorities’ (LAs) performances in England and Wales
Answer: ( Do Not Copy )
To analyze the relationship between the rankings of local authorities (LAs) based on their Best Value Performance Indicators (BVPI) and their training expenditures for succession management, we can use Spearman`s rank correlation coefficient (𝜌) to determine if there is a correlation between the two rankings.
Step 1: Define the Rankings
Local Authorities | BVPI Ranking (X) | Training Expenditure Ranking (Y) | Rank Difference (d) | d2d^2 |
---|---|---|---|---|
A | 2 | 1 | 1 | 1 |
B | 5 | 6 | -1 | 1 |
C | 6 | 4 | 2 | 4 |
D | 1 | 2 | -1 | 1 |
E | 4 | 3 | 1 | 1 |
F | 10 | 7 | 3 | 9 |
G | 7 | 8 | -1 | 1 |
H | 9 | 10 | -1 | 1 |
I | 3 | 5 | -2 | 4 |
J | 8 | 9 | -1 | 1 |
Step 2: Compute Spearman’s Rank Correlation Coefficient
The formula for Spearman’s rank correlation coefficient (𝜌) is:
𝜌=1−6∑d2n(n2−1) ext{𝜌} = 1 - frac{6 sum d^2}{n(n^2 - 1)}
Where:
- dd = Difference between rankings
- d2d^2 = Squared differences
- nn = Number of observations (10)
∑d2=1+1+4+1+1+9+1+1+4+1=24sum d^2 = 1 + 1 + 4 + 1 + 1 + 9 + 1 + 1 + 4 + 1 = 24 𝜌=1−6×2410(102−1) ext{𝜌} = 1 - frac{6 imes 24}{10(10^2 - 1)} 𝜌=1−144990 ext{𝜌} = 1 - frac{144}{990} 𝜌=1−0.1455 ext{𝜌} = 1 - 0.1455 𝜌≈0.854 ext{𝜌} approx 0.854
Step 3: Interpretation
The Spearman’s rank correlation coefficient (𝜌 ≈ 0.854) is strong and positive, suggesting a strong positive correlation between the institutional performance (BVPI ranking) and training expenditures for succession management. This means that LAs with better institutional performance tend to invest more in training expenditures.
Conclusion
Since the correlation is high, it suggests that investing in training for succession management is strongly associated with better institutional performance in local authorities. This finding can be useful for policymakers, indicating that training expenditures could be a key factor in improving LA performance