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  • Univariate analysis, anova test or ttest when comparing three groups

    I am researching retail investors where I look at three different groups based on the stock price. Low includes deciles 1-3, medium contains 4-7 and Hgih includes 8-10. Then I do a univariate analysis per group and analyze different variables such as stock price, assets per investor, leverage, number of investors etc. By testing this difference, I can provide evidence that supports or refutes the idea that different stock price groups have distinct investor profiles or investment behaviours.

    My question is should I do an ANOVA to test the differences across groups? or would it be better to compare low to high groups with a normal ttest.
    What would be the preferred method?

  • #2
    Herman:
    given the number of your predictors, why not going -regress-?
    Kind regards,
    Carlo
    (StataNow 18.5)

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    • #3
      I think Carlo`s idea is great if you want to use raw deciles and go for a linear trend. Then, even a simple correlation analysis, maybe with spearman, might be fine. However, comparing extreme terciles is a rather different research question. You need to decide what is the main goal of your study.
      Best wishes

      (Stata 16.1 MP)

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      • #4
        Thanks for the fast replies. I do a univariate analysis to see how the data is constructed and will regress later. But first I want to see how the data is spread over these different deciles.

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