Question

In a study of motivation level of sales agents of life insurance across four insurance companies in Malaysia, 10 sales agents from each companies were asked to rate how strongly they were motivated in selling their insurance products. The responses were recorded on a five-point scales; 1=weak, 2=fairly weak, 3=neutral, 4=fairly strong and 5=strong.
Determine the most appropriate statistical technique to identify any differences in their motivation between the three insurance companies. State the reasons of your choice.

Answer 1

It is given that the researcher wants to check any differences in their motivation between the three insurance companies.

The researcher studies motivation level of sales agent. For the study, the researcher selects 4 insurance companies and 10 subjects (sales agents) are selected from each of the insurance company. The responses of the subjects recorded on a five-point scales; 1=weak, 2=fairly weak, 3=neutral, 4=fairly strong and 5=strong. It can be said that the data is in the form of ordinal variables.

If the data is given in the form of ordinal or nominal, then in that case the appropriate statistical technique to check any differences in their motivation between the three insurance companies can be used is chi-square test of independence.