MULTIVARIAT

E ANALYSIS

INTRODUCTION
All statistical techniques which
simultaneously analyse more than
two variables on a sample of
observation can be categorized as
multivariate techniques. We may
as well use multivariate analysis
which is a collection of methods
for analyzing data in which a
number
of
observations
are
available for each object.

Meaning of
Multivariate Analysis :
Multivariate analysis which
may be defined as all statistical
methods which simultaneously
analyse more than two variables
on sample of observations.

Growth of Multivariate
Techniques :
Multivariate techniques have
emerged as a powerful tool to
analyze data represented in
terms of many variables. the
main reason being that a series
of univariate analysis carried
out separately for each variable
may, at times, lead to incorrect
interpretation of the result.

Variables in Multivariate
Analysis :
1.

Explanatory Variable & Criterion

Variable :

In economics, the explanatory

variables are called external or
exogenous variables and the criterion
variables are called endogenous
variables. Some people use the term
external criterion for explanatory
variables
&
the
term
internal
criterion for criterion variables.

2. Observable Variables & Latent

Variables :

explanatory variables described

above are supposed to be observable
directly in some situations, and if this
is so, the same are termed as
observable variables.

3. Discrete Variable &continuous

Variables :

Discrete variable is that variable

which when measured may take only
the integer value whereas continuous
variable is one which, when measured,
can assume any real value.

Important Multivariate
Techniques :
1.Multiple Regression :
In multiple regression we form a
linear
composite
of
explanatory
variables in such way that it has
maximum correlation with a criterion
variables. This technique is appropriate
when the researcher has a single, metric
criterion variable.

2. Multiple Discriminate
Analysis :
Through discriminate analysis
technique,
researcher
may
classify individuals or objects
into one of two or more mutually
exclusive and exhaustive groups
on the basis of a set of
independent variables.

3. Multivariate Analysis of
Variance :
Multivariate analysis of
variance is an extension of
bivariate analysis of variance
which the ratio of amonggroups variance to within
groups variance is calculated
on a set of variables instead of
a single.

4. Correlation Analysis :
This technique was first
developed by hotelling where in
an effort is made to
simultaneously predict a set of
criterion variables from their
joint co- variance with a set of
explanatory variables.

CONCLUSION
From the brief account of
multivariate techniques presented
above, we may conclude that such
techniques are important for they
make it possible to encompass all
the data from an investigation in
one analysis.
In spite of all this,
multivariate
techniques
are
expensive and involve laborious
computations.

Thank you