Reference no: EM132355684

Statistics and Data Analysis Assignment -

Background Information -

Entrepreneurship has been considered an important growth pillar in an economy. Among other things, it creates jobs, contributes to national wealth and facilitates innovations. To understand more about entrepreneurship, the Centre for Entrepreneurship (CFEN) has conducted a survey on a sample of 200 entrepreneurs with respect to characteristics that it believes strongly reflect entrepreneurial inclination. Demographic characteristics and an indication of entrepreneurial success are also included in the survey. Except for gender and age group, all the other variables can be deemed to be measured on an interval scale.

The survey data have been entered into an SPSS dataset, labelled as Entre.sav. Some relevant details of the variables are summarised below:

Question 1 -

(a) It has been suggested that entrepreneurial success is all about being innovative. If this is the case, then a strong relationship between EntSuc and Innov can be expected. Using IBM- SPSS Statistics and Entre.sav, apply simple regression and interpret the results. Is there sufficient evidence to support the suggestion? Include relevant statistical outputs from IBM-SPSS Statistics.

(b) The regression model is based on certain assumptions. Focusing on any two of these assumptions, evaluate if any of them are violated. Support your answer with relevant statistical outputs from IBM-SPSS Statistics.

Question 2 -

(a) There is substantial literature on entrepreneurial characteristics, five of which are included in CFEN's survey. It is widely believed that entrepreneurial success is dependent on (and hence, can be predicted from) these entrepreneurial characteristics. With reference to this belief, apply multiple regression to analyse the data. Interpret the results. Do you think entrepreneurial success can be predicted from entrepreneurial characteristics? What are the main entrepreneurial characteristics driving entrepreneurial success? Include relevant IBM- SPSS Statistics outputs to support your answer. (You are not required to test the assumptions of the regression model for this question.)

(b) In addition to entrepreneurial characteristics, demographic characteristics have been suggested as potential determinants of entrepreneurial success. Formulate and implement an expanded multiple regression model (from the earlier multiple regression model) to verify this suggestion. Evaluate the results. Do demographic characteristics add to the predictive ability of the regression model in 2(a) above? Support your answer with relevant statistical outputs.

(c) Following from 2(b) above, suppose that you would like to include only "important" variables in the (final) regression model (and not all the entrepreneurial and demographic characteristics). Formulate and implement a statistical analysis (based on regression) to do this. Using relevant outputs from IBM-SPSS Statistics, interpret your results. What, do you think, are the "important" variables?

Question 3 -

(a) Although multicollinearity is not an assumption in regression, its presence can confound the results. Appraise if multicollinearity should be a concern in 2(a) above by looking at the correlation matrix and Variance Inflation Factor (VIF) values. Support your answer with relevant outputs from IBM-SPSS Statistics.

(b) Apply the findings in Question 2 above to write an executive summary on the determinants of entrepreneurial success for "laymen" who do not have a background in statistics. This summary should not be more than 600 words and should be based on supporting evidence from statistical analyses performed. However, you do not need to include any IBM-SPSS Statistics outputs.