ASPECTS OF MULTIVARIATE ANALYSIS

1.1Introduction
Scientific inquiry is an iterative learning process. Objectives pertaining to the
explanation of a social or physical phenomenon must be specified and then
tested by gathering and analyzing data. In turn, an analysis of the data gathered
by experimentation. Throughout this iterative learning process, variables are
often added or deleted from the study. Thus, the complexities of most
phenomena require an investigator to collect observations on many different
variables. This book is concerned with statistical methods designed to elicit
information from these kinds of data sets. Because the data include simultaneous
measurements on many variables, this body of methodology is called
multivariate analysis.
The need to understand the relationships between many variables makes
multivariate analysis an inherently difficult subject. Often, the human mind is
overwhelmed by the sheer bulk of the data. Additionally, more mathematics is
required to derive multivariate statistical techniques for making inferences than
in a univariate setting. We have chosen to provide explanations based upon
algebraic concepts and to avoid the derivations of statistical results that require
the calculus of many variables. Our objective is to introduce several useful
multivariate techniques in a clear manner, making heavy use if illustrative
examples and a minimum of mathematics. Nonetheless, some mathematical
sophistication and a desire to think quantitatively will be required.
Most of our emphasis will be on the analysis of measurements obtained
without actively controlling or manipulating any of the variables on which the
measurements are made. Only in Chapters 6 and 7 shall we treat a few
experimental plans (designs) for generating data that prescribe the active
manipulation of important variables. Although the experimental design is
ordinarily the most important part of a scientific investigation it is frequently
impossible to control the generation of appropriate data in certain disciplines.
(This is true, for example, in business, economics, ecology, geology, and
sociology.) You should consult [6] and [7] for detailed accounts of design
principles that, fortunately, also apply to multivariate situations.
It will become increasingly clear that many multivariate methods are based
upon an underlying probability model known as the multivariate normal
distribution. Other methods are ad hoc in nature and are justified by logical or
commonsense arguments. Regardless of their origin, multivariate techniques
must, invariably, be implemented on a computer. Recent advances in computer
technology have been accompanied by the development of rather sophisticated
statistical software packages, making the implementation step easier.
Multivariate analysis is a mixed bag. It is difficult to establish a
classification scheme for multivariate techniques that is both widely accepted
and indicates the appropriateness of the techniques. Once classification
distinguishes techniques designed to study interdependent relationships from
those designed to study dependent relationships. Another classifies techniques
according to the number of populations and the number of set of variables being
studied. Chapters in this text are divided into section according to inference

about treatment means, inference about covariance structure, and techniques for
sorting or grouping. This should not, however, be considered an attempt to place
each method into a slot. Rather, the choice of methods and the types of analyses
employed are largely determined by the objectives of the investigation. In
Section 1.2, we list a smaller number of practical problems designed to illustrate
the connection between the choice of a statistical method and the objectives of
the study. These problems plus the examples in the text, should provide you with
an appreciation of the applicability of multivariate techniques across different
fields.
The objectives of scientific investigations to which multivariate methods
most naturally lend themselves include the following:
1. Data reduction or structural simplification. The phenomenon being studied
is represented as simply as possible without sacrificing valuable
information. It is hoped that this will make interpretation easier.
2. Sorting and grouping. Groups of similar objects or variables are created,
based upon measured characteristics. Alternatively, rules for classifying
objects into well-defined groups may be required.
3. Investigation of the dependence among variables. The nature of the
relationships among variables is of interest. Are all the variables mutually
independent or are one or more variables dependent on the others? If so,
how?
4. Prediction. Relationships between variables must be determined for the
purpose of predicting the values of one or more variables on the basis of
observations on the other variables.
5. Hypothesis construction and testing. Specific statistical hypotheses,
formulated in terms of the parameters of multivariate populations, are
tested. This may be done to validate assumptions or to reinforce prior
convictions.
We conclude this brief overview of multivariate analysis with a quotation
from F. H. C. Marriot [19], page 89. The statement was made in a discussion of
cluster analysis, but we feel it is appropriate for a broader range of methods. You
should keep it in mind whenever you attempt or read about a data analysis. It
allows one to maintain a proper perspective and not be overwhelmed by the
elegance of some of the theory:
If the results disagree with informed opinion, do not admit a simple logical
interpretation, and do not show up clearly in a graphical presentation, they are probably
wrong. There is no magic about numerical methods, and may ways in which they can
break down. They are a valuable aid to the interpretation of data, not sausage machines
automatically transforming bodies of numbers into packets of scientific fact.

1.2Applications of multivariate Techniques

The published applications of multivariate methods have increased tremendously
in recent years. It is now difficult to cover the variety of real-word applications of
these methods with brief discussions, as we did in earlier editions of this book.
However, in order to give some indication of the usefulness of multivariate
techniques, we offer the following short descriptions of the result of studies from
several disciplines. These descriptions are organized according to the categories

of objectives given in the previous section. Of course, many of our examples are
multifaceted and could be placed in more than one category.
Data reduction or simplification

Using data on several variables related to cancer patient responses to

radiotherapy, a simple measure of patient response to radiotherapy was
constructed. (See Exercise 1.15.)
Track records from many nations were used to develop an index of
performance for both male and female athletes. (See [8] and [22].)
Multispectral image data collected by a high-altitude scanner were reduced
to a form that could be viewed as images (pictures) of a shoreline in two
dimensions. (See [23].)
Data on several variables relating to yield and protein content were used
to create an index to select parents of subsequent generations of improved
bean plants. (See [13].)
A matrix of tactic similarities was developed from aggregate data derived
from professional mediators. From this matrix the number of dimensions by
which professional mediators judge the tactics they use in resolving
disputes was determined. (See [21].)

Sorting and grouping

Data om several variables related to computer use were employed to

create clusters of categories of computer jobs that allow a better
determination of existing (or planned) computer utilization. (see [2].)
Measurements of several physiological variables were used to develop a
screening procedure that discriminates alcoholics from nonalcoholics. (See
[26].)
Data related to responses to visual stimuli were used to develop a rule for
separating people suffering from a multiple-sclerosis-caused visual
pathology from those not suffering from the disease. (See Exercise 1.14.)
The U.S. Internal Revenue Service uses data collected from tax returns to
sort taxpayers into two groups: those that will be audited and those that
will not. (See [31].)

Investigation of the dependence among variables

Data on several variables were used to identify factors that were

responsible for client success in hiring external consultants. (See [12].)
Measurements of variables related to innovation, on the one hand, were
used to discover why some firms are product innovators and some firms
are not. (See [3].)
Measurements of pulp fiber characteristics and subsequent measurements
of characteristics of the paper made from them are used to examine the
relations between pulp fiber properties and the resulting paper properties.
The goal is to determine those fibers that lead to higher quality paper. (See
[17].)
The associations between measures of risk-taking propensity and
measures of socioeconomic characteristics for top-level business

executives were used to assess the relation between risk-taking behavior

and performance. (See [18].)
Prediction

The associations between test scores, and several high school

performance variables, and several college performance variables were
used to develop predictors of success in college (See [10].)
Data on several variables related to the size distribution of sediments were
used to develop rules for predicting different depositional environments.
(See [7] and [20].)
Measurements on several accounting and financial variables were used to
develop a method for identifying potentially insolvent property-liability
insurers. (See [28].)
cDNA microarray experiments (gene expression data) are increasingly
used to study the molecular variations among cancer tumors. A reliable
classification of tumors is essential for successful diagnosis and treatment
of cancer. (See [9].)

Hypotheses testing

Pg. 25

Several pollution-related variables were measured to determine whether

levels for