I am not a professional statistician and not a native English speaker, but I use simple statistics as a journalist. I am looking for a method to find a relationship between an ordinal variable with multiple choices and a binary one. I thought about Spearman’s ρ first, but I don’t know how to combine this ρ with multiple choices.
To be more detailed: I am investigating a dataset about some companies (namely, real estate agents). For each company, there is a data about typical budget(s) of its sales, given as an ordinal with four levels, like this:
- Under €1,000,000
- €1,000,000 to €5,000,000
- €5,000,000 to €10,000,000
- More than €10,000,000
The peculiarity is that a company can work in one or several segments, and in the second case, the segments are always adjacent. I.e., an agent may make deals in categories 1 and 2, or 2, 3, and 4, but not in 1 and 3 only. Some companies perform in all four segments.
Second, for each company there are some attributes given as binary values, for instance:
- Does this company use a particular business software?
- Did the sales of this company increase last year?
I am looking for a method to find a relationship between these binary data and company’s budgets. I hope to make conclusions like “The agents in higher price segment tend to use X software more than in the lower ones”.
If Spearman’s ρ can be applied, then how? If not, then which method is suitable?