I am conducting a study on practices of capital budgeting techniques. I want to study the relationship of Total assets, sales, project life, project size etc (independent variables) with various capital budgeting techniques like NPV, IRR, PB, Real option. etc (dependent variables) among the independent variables 2 are measured at nominal level and four are measured at continuous level. while all dependent variables are dichotomous (used/ not used). How could I frame these relationships theoretically in form of a graphic model.
Dear Muhammad Imran
Greetings,
please find the attached file about your question may be useful and related for your topic.
Best Regards
Hi Mohammad,
Your research idea is poorly conceived. No firm uses only one criteria. Also your dependent variables are attributes (not scaled on ordinal, continuous or ratio scale) so use of any multivariate statistical techniques will be a ridiculous idea.
Your best bet is contingency table after collecting survey data about use of capital budgeting rules by sample of companies..