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MGT221 Business Research Methods

Business Research MethodsTU Board 2081

Discuss about moderating variable. GROUP: B Short Answer Questions 2 × 10 = 20

2

Answer

· Based on the official syllabus and past papers
Updated
A variable that **influences the strength/direction** of theDefinition1. **Not part of the IV-DV relationship** but alters its nat2. **Can be continuous** (e.g., age, temperature) or **categ3. **Interacts multiplicatively** with IV to change its effeKey Characteristics**Scenario**: Effect of *training (IV)* on *job performance ExampleModerating Variable
Hierarchical breakdown of a moderating variable’s role in research.

A moderating variable is an extraneous variable that influences the strength or direction of the relationship between an independent variable (IV) and a dependent variable (DV). Unlike mediators, which explain how or why the relationship occurs, moderators alter when or under what conditions the relationship holds.

For example, in studying the effect of advertising expenditure (IV) on sales (DV), competitor activity could act as a moderator. If competitors increase their promotions, the impact of advertising on sales may weaken. Moderators are identified through interaction effects in statistical analysis (e.g., ANOVA, regression with interaction terms).

Key distinction:

Moderator Mediator
Changes the strength/direction of IV-DV link Explains the mechanism of the link
Example: Gender moderates the effect of education on income Example: Confidence mediates the effect of training on performance

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