Master of Business Administration - Semester 3 MB 0050: Research Methodology (Book ID: B1206) ASSIGNMENT- Set 2

1. What is the significance of research in social and business sciences? Answer:

Significance of Research in Social and Business Sciences According to a famous Hudson Maxim, All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry, and inquiry leads to invention. It brings out the significance of research, increased amounts of which makes progress possible. Research encourages scientific and inductive thinking, besides promoting the development of logical habits of thinking and organization. The role of research in applied economics in the context of an economy or business is greatly increasing in modern times. The increasingly complex nature of government and business has raised the use of research in solving operational problems. Research assumes significant role in formulation of economic policy, for both the government and business. It provides the basis for almost all government policies of an economic system. Government budget formulation, for example, depends particularly on the analysis of needs and desires of the people, and the availability of revenues, which requires research. Research helps to formulate alternative policies, in addition to examining the consequences of these alternatives. Thus, research also facilitates the decision making of policymakers, although in itself it is not a part of research. In the process, research also helps in the proper allocation of a countrys scare resources. Research is also necessary for collecting information on the social and economic structure of an economy to understand the process of change occurring in the country. Collection of statistical information though not a routine task, involves various research problems. Therefore, large staff of research technicians or experts is engaged by the government these days to undertake this work. Thus, research as a tool of government economic policy formulation involves three distinct stages of operation which are as follows:

ognosis, i.e., the prediction of future developments Research also assumes a significant role in solving various operational and planning problems associated with business and industry. In several ways, operations research, market research, and motivational research are vital and their results assist in taking business decisions. Market research is refers to the investigation of the structure and development of a market for the formulation of efficient policies relating to purchases, production and sales. Operational research relates to the application of logical, mathematical, and analytical techniques to find solution to business problems such as cost minimization or profit maximization, or the optimization problems. Motivational research helps to determine why people behave in the manner they do with respect to market characteristics. More specifically, it is concerned with the analyzing the motivations underlying consumer behaviour. All these researches are very useful for business and industry, which are responsible for business decision making. Research is equally important to social scientist for analyzing social relationships and seeking explanations to various social problems. It gives intellectual satisfaction of knowing things for the sake of knowledge. It also possesses practical utility for the social scientist to gain knowledge so as to be able to do something better or in a more efficient manner. This, research in social sciences is concerned with both knowledge for its own sake, and knowledge for what it can contribute to solve practical problems.

2. What is the meaning of hypothesis? Discuss the types of hypothesis. Answer:

Meaning and Examples of Hypothesis According to Theodorson and Theodorson, a hypothesis is a tentative statement asserting a relationship between certain facts. Kerlinger describes it as a conjectural statement of the relationship between two or more variables. Black and Champion have described it as a tentative statement about something, the validity of which is usually unknown. This statement is intended to be tested empirically and is either verified or rejected. It the statement is not sufficiently

established, it is not considered a scientific law. In other words, a hypothesis carries clear implications for testing the stated relationship, i.e., it contains variables that are measurable and specifying how they are related. A statement that lacks variables or that does not explain how the variables are related to each other is no hypothesis in scientific sense. Types of Hypothesis There are many kinds of hypothesis the researcher has to be working with. One type of hypothesis asserts that something is the case in a given instance; that a particular object, person or situation has particular characteristics. Another type of hypothesis deals with the frequency of occurrence or of association among variables; this type of hypothesis may state that X is associated with Y. A certain Y proportion of items e.g. urbanism tends to be accompanied by mental disease or than something are greater or lesser than some other thing in specific settings. Yet another type of hypothesis asserts that a particular characteristics is one of the factors which determine another characteristic, i.e. X is the producer of Y. hypothesis of this type are called causal hypothesis. Null Hypothesis and Alternative Hypothesis In the context of statistical analysis, we often talk null and alternative hypothesis. If we are to compare method A with method B about its superiority and if we proceed on the assumption that both methods are equally good, then this assumption is termed as null hypothesis. As against this, we may think that the method A is superior, it is alternative hypothesis. Symbolically presented as: Null hypothesis = H0 and Alternative hypothesis = Ha Suppose we want to test the hypothesis that the population mean is equal to the hypothesis mean ( H0) = 100. Then we would say that the null hypotheses are that the population mean is equal to the hypothesized mean 100 and symbolical we can express as: H0: = H0=100 If our sample results do not support these null hypotheses, we should conclude that something else is true. What we conclude rejecting the null hypothesis is known as alternative hypothesis. If we accept H0, then we are rejecting Ha and if we reject H0, then we are accepting Ha. For H0: = H0=100, we may consider three possible alternative hypotheses as follows: Alternative Hypothesis Ha: H0 To be read as follows (The alternative hypothesis is that the population mean is not equal to 100 i.e., it may be more or less 100) (The alternative hypothesis is that the population mean is greater than 100) (The alternative hypothesis is that the population mean is less than 100)

Ha: > H0

Ha: < H0

The null hypothesis and the alternative hypothesis are chosen before the sample is drawn (the researcher must avoid the error of deriving hypothesis from the data he collects and testing the hypothesis from the same data). In the choice of null hypothesis, the following considerations are usually kept in view: s a null hypothesis represents the hypothesis we are trying to reject, the alternative hypothesis represents all other possibilities. se then the probability of rejecting it when it is true is (the level of significance) which is chosen very small.

the alternative hypothesis in view. Why so? The answer is that on assumption that null hypothesis is true, one can assign the probabilities to different possible sample results, but this cannot be done if we proceed with alternative hypothesis. Hence the use of null hypothesis (at times also known as statistical hypothesis) is quite frequent.

3. What is frequency Distribution? What are the types and general rules for graphical representation of data? Answer:
Frequency Distribution and Class Intervals Variables that are classified according to magnitude or size are often arranged in the form of a frequency table. In constructing this table, it is necessary to determine the number of class intervals to be used and the size of the class intervals. A distinction is usually made between continuous and discrete variables. A continuous variable has an unlimited number of possible values between the lowest and highest with no gaps or breaks. Examples of continuous variable are age, weight, temperature etc. A discrete variable can have a series of specified values

with no possibility of values between these points. Each value of a discrete variable is distinct and separate. Examples of discrete variables are gender of persons (male/female) occupation (salaried, business, profession) car size (800cc, 1000cc, 1200cc) In practice, all variables are treated as discrete units, the continuous variables being stated in some discrete unit size according to the needs of a particular situation. For example, length is described in discrete units of millimetres or a tenth of an inch. Class Intervals: Ordinarily, the number of class intervals may not be less than 5 not more than 15, depending on the nature of the data and the number of cases being studied. After noting the highest and lower values and the feature of the data, the number of intervals can be easily determined. For many types of data, it is desirable to have class intervals of uniform size. The intervals should neither be too small nor too large. Whenever possible, the intervals should represent common and convenient numerical divisions such as 5 or 10, rather than odd division such as 3 to 7. Class intervals must be clearly designated in a frequency table in such a way as to obviate any possibility of misinterpretation of confusion. For example, to present the age group of a population, the use of intervals of 1-20, 20-50, and 50 and above would be confusing. This may be presented as 1-20, 21-50, and above 50. Every class interval has a mid point. For example, the midpoint of an interval 1-20 is 10.5 and the midpoint of class interval 1-25 would be 13. Once class intervals are determined, it is routine work to count the number of cases that fall in each interval. One-Way Tables: One-way frequency tables present the distribution of cases on only a single dimension or variable. For example, the distribution of respondents of gender, by religion, socio economic status and the like are shown in one way tables (Table 10.1) lustrates one-way tables. One way tables are rarely used since the result of frequency distributions can be described in simple sentences. For instance, the gender distribution of a sample study may be described as The sample data represents 58% by males and 42% of the sample are females. Two-Way Table: Distributions in terms of two or more variables and the relationship between the two variables are show in two-way table. The categories of one variable are presented one below another, on the left margin of the table those of another variable at the upper part of the table, one by the side of another. The cells represent particular combination of both variables. To compare the distributions of cases, raw numbers are converted into percentages based on the number of cases in each category.

Another method of constructing a two-way table is to state the percent of representation as a within brackets term rather than as a separate column. Here, special care has been taken as to how the percentages are calculated, either on a horizontal representation of data or as vertical representation of data. Sometimes, the table heading itself provides a meaning as to the method of representation in the two-way table.

Types of Graphs and General Rules The most commonly used graphic forms may be grouped into the following categories: a) Line Graphs or Charts b) Bar Charts c) Segmental presentations. d) Scatter plots e) Bubble charts f) Stock plots g) Pictographs h) Chesnokov Faces

The general rules to be followed in graphic representations are: 1. The chart should have a title placed directly above the chart. 2. The title should be clear, concise and simple and should describe the nature of the data presented. 3. Numerical data upon which the chart is based should be presented in an accompanying table. 4. The horizontal line measures time or independent variable and the vertical line the measured variable. 5. Measurements proceed from left to right on the horizontal line and from bottom to top on the vertical. 6. Each curve or bar on the chart should be labelled. 7. If there are more than one curves or bar, they should be clearly differentiated from one another by distinct patterns or colours. 8. The zero point should always be represented and the scale intervals should be equal. 9. Graphic forms should be used sparingly. Too many forms detract rather than illuminating the presentation. 10. Graphic forms should follow and not precede the related textual discussion.

4. List down various measures of central tendency and explain the difference between them? Answer:
Central tendency: Central tendency relates to the way in which quantitative data is clustered around some value. Measure of central tendency is a way of specifying central value. In practical statistical analysis, the terms are often used before one has chosen even a preliminary form of analysis: thus an initial objective might be to "choose an appropriate measure of central tendency. In the simplest cases, the measure of central tendency is an average of a set of measurements, the word average being variously construed as mean, median, or other measure of location, depending on the context. However, the term is applied to multidimensional data as well as to uni variate data and in situations where a transformation of the data values for some or all dimensions would usually be considered necessary: in the latter cases, the notion of a "central location" is retained in converting an "average" computed for the transformed data back to the original units. In addition, there are several different kinds of calculations for central tendency, where the kind of calculation depends on the type of data (level of measurement).Both "central tendency" and "measure of central tendency" applies to either statistical populations or to samples from a population. Basic measures of central tendency The following may be applied to individual dimensions of multidimensional data, after transformation, although some of these involve their own implicit transformation of the data. Arithmetic mean- the sum of all measurements divided by the number of observations inthe data set Median- the middle value that separates the higher half from the lower half of the dataset Mode- the most frequent value in the data set Geometric mean- the nth root of the product of the data values Harmonic mean- the reciprocal of the arithmetic mean of the reciprocals of the data values Weighted mean- an arithmetic mean that incorporates weighting to certain data elements Truncated mean- the arithmetic mean of data values after a certain number or proportion of the highest and lowers data values have been discarded. Mid-range- The arithmetic mean of the maximum and minimum values of a data set. Arithmetic mean: In mathematics and statistics, the Arithmetic mean, often referred to as simply the Mean or average when the context is clear, is a method to derive the central tendency of a sample space. The term "arithmetic mean" is preferred in mathematics and statistics because it helps distinguish it from other means such as the geometric and harmonic mean. In addition to mathematics and statistics, the arithmetic mean is used frequently in fields such as economics, sociology, and history, though it is used in almost every academic field to some extent. For example, per capita GDP gives an approximation of the arithmetic average income of a nation's population. While the arithmetic mean is often used to report central, it is not robust, meaning that it is greatly influenced by outliers. Notably, for skewed distributions, the arithmetic mean may not accord with one's notion of "middle", and robust statistics such as the median may be a better description of central tendency.

Median: A median is described as the numeric value separating the higher half of a sample, a population, or a probability distribution, from the lower half. The Median of a finite list of numbers can be found by arranging all the observations from lowest value to highest value and picking the middle one. If there is an even number of observations, then there is no single middle value; the median is then usually defined to be the mean of the two middle values. In a sample of data, or a finite population, there may be no member of the sample whose value is identical to the median (in the case of an even sample size), and, if there is such a member, there may be more than one so that the median may not uniquely identify a sample member. Nonetheless, the value of the median is uniquely determined with the usual definition. A related Concept, in which the outcome is forced to correspond to a member of the sample, is the medoid. At most, half the population have values less than the median, and, at most, half have values greater than the median. If both groups contain less than half the population, then some of the population is exactly equal to the median. For example, if a<b<c, then the median of the list{a,b,c} is b, and, if a<b<c<d, then the median of the list {a,b,c,d} is the mean of b and c; i.e., it is (b+c)/2.The median can be used as a measure of location when a distribution is skewed, when end-values are not known, or when one requires reduced importance to be attached to outliers, e.g., because they may be measurement errors. A disadvantage of the median is the difficulty of handling it theoretically. Mode (statistics): In statistics, the mode is the value that occurs most frequently in a data set or a probability distribution. In some fields, notably education, sample data are often called scores, and the sample mode is known as the modal score Like the statistical mean and the median, the mode is a way of capturing important information about a random variable or a population in a single quantity. The mode is in general different from the mean and median, and may be very different for strongly skewed distributions. The mode is not necessarily unique, since the same maximum frequency may be attained at different values. The most ambiguous case occurs in uniform, wherein all values are equally likely Geometric mean : The geometric mean, in mathematics, is a type of mean or average, which indicates the central tendency or typical value of a set of numbers. It is similar to the arithmetic mean, except that the numbers are multiplied and then the n th root (where n is the count of numbers in the set) of the resulting product is taken. For instance, the geometric mean of two numbers, say 2 and 8, is just the square root of their product; that is 22 8 = 4. As another example, the geometric mean of the three numbers 4,1, and 1/32 is the cube root of their product (1/8), which is 1/2; that is 34 1 1/32 = . . The geometric mean can also be understood in terms of geometry. The geometric mean of two numbers, a and b, is the length of one side of a square whose area is equal to the area of a rectangle with sides of lengths a and b. Similarly, the geometric mean of three numbers, a, b, and c, is the length of one side of a cube whose volume is the same as that of a right cuboids with sides whose lengths are equal to the three given numbers. The geometric mean only applies to positive numbers.[1] It is also often used for a set of numbers whose values are meant to be multiplied together or are exponential in nature, such as data on the Growth of the human population or interest rates of a financial investment. The geometric mean is also one of the three classic Pythagorean means, together with the aforementioned arithmetic mean and the harmonic mean. For all positive data sets containing at least one pair of unequal values, the harmonic mean is always the least of the three means, while the arithmetic mean is always the greatest of the three and the geometric mean is always in between (see Inequality of arithmetic and geometric means.)Harmonic mean : the harmonic mean (sometimes called the subcontrary mean) is one of several kinds of average. Typically, it is appropriate for situations when the average of rates is desired. The harmonic mean H of the positive real numbers x1, x2, ..., xn > 0 is defined to be

From the third formula in the above equation it is more apparent that the harmonic mean is related to the arithmetic and geometric means.Equivalently, the harmonic mean is the reciprocal of the arithmetic mean of the reciprocals. As a simple example, the harmonic mean of 1, 2, and 4 is

Weighted mean : The weighted mean is similar to an arithmetic mean (the most common type of average), where instead of each of the data points contributing equally to the final average, some data points contribute more than others. The notion of weighted mean plays a role in descriptive statistics and also occurs in a more general form in several other areas of Mathematics. If all the weights are equal, then the weighted mean is the same as the arithmetic mean. While weighted means generally behave in a similar fashion to arithmetic means, they do have a few counter-intuitive properties, as captured for instance in Simpson's paradox. The term weighted average usually refers to a weighted arithmetic mean, but weighted versions of other means can also be calculated, such as the weighted geometric mean and the weighted Truncated mean: A truncated mean or trimmed mean is a statistical measure of central tendency, much like the mean and median. It involves the calculation of the mean after discarding given parts of a probability distribution or sample at the high and low end, and typically discarding an equal amount of both. For most statistical applications, 5 to 25 percent of the ends are discarded. In some regions of Central Europe it is also known as a Windsor mean, but this name should not be confused with the Winsorized mean: in the latter, the observations that the trimmed mean would discard are instead replaced by the largest/smallest of the remaining values. Mid-range : the mid-range or mid-extreme of a set of statistical data values is the arithmetic mean of the maximum and minimum values in a data set, or:

As such it is a measure of central tendency. The midrange is highly sensitive to outliers and ignores all but two data points. It is therefore a very non-robust statistic (having a breakdown point of 0, meaning that a single observation can change it arbitrarily), and it is rarely used in statistical analysis. The midhinge is the 25% trimmed mid-range, and is more robust, having a breakdown point of 25%.

5. Select any topic for research and explain how you will use both secondary and primary sources to gather the required information. Answer:
For performing research on the literacy levels among families, the primary and secondary sources of data can be used very effectively. More specifically the primary sources of data collection is suggested in this regard. Because personal data or data related to human beings consist of:1. Demographic and socioeconomic characteristics of individuals: Age, sex, race, social class, religion, marital status, education, occupation income, family size, location of the household lifestyle etc.2. Behavioural variables: Attitudes, opinions, awareness, knowledge, practice, intentions, etc.3. Organizational data consist of data relating to an organizations origin, ownership, objectives, resources, functions, performance and growth.4. Territorial data are related to geo-physical characteristics, resource endowment, population, occupational pattern infrastructure degree of development, etc. of spatial divisions like villages, cities, talks, districts, state and the nation. The data serve as the bases or raw materials for analysis. Without an analysis of factual data, no specific inferences can be drawn on the questions under study. Inferences based on imagination or guess work cannot provide correct answers to research questions. The relevance, adequacy and reliability of data determine the quality of the findings of a study. Data form the basis for testing the hypothesis formulated in a study. Data also provide the facts and figures required for constructing measurement scales and tables, which are analyzed with statistical techniques. Inferences on the results of statistical analysis and tests of significance provide the answers to research questions. Thus, the scientific process of measurements, analysis, testing and inferences depends on the availability of relevant data and their accuracy. Hence, the importance of data for any research studies The sources of data may be classified into: a. Primary sources b. Secondary sources. Primary Sources of Data Primary sources are original sources from which the researcher directly collects data that have not been previously collected e.g.., collection of data directly by the researcher on brand awareness, brand preference, brand loyalty and other aspects of consumer behavior from a sample of consumers by interviewing them,. Primary data are first-hand information collected through various methods such as observation, interviewing, mailing etc. Advantage of Primary Data: It is original source of data it is possible to capture the changes occurring in the course of time. It flexible to the advantage of researcher. Extensive research study is based on primary data Disadvantage of Primary Data:

Methods of Collecting Primary Data: Primary data are directly collected by the researcher from their original sources. In this case, the researcher can collect the required date precisely according to his research needs, he can collect them when he wants them and in the form he needs them. But the collection of primary data is costly and time consuming. Yet, for several types of social science research required data are not available from secondary sources and they have to be directly gathered from the primary sources. In such cases where the available data are in appropriate, inadequate or obsolete, primary data have to be gathered. They include: socioeconomic surveys, social anthropological studies of rural communities and tribal communities, sociological studies of social problems and social institutions. Marketing research, leadership studies, opinion polls, attitudinal surveys, readership, radio listening and T.V. viewing surveys, knowledge-awareness practice (KAP) studies, farm managements studies, business management studies etc. There are various methods of data collection. A Method is different from a Tool while a method refers to the way or mode of gathering data, a tool is an instruments used for the method. For example, a schedule is used for interviewing. The important methods are (a) Observation, (b) Interviewing, (c) Mail survey, (d) Experimentation, (e) Simulation and (f) Projective technique. Each of these methods is discussed in detail in the subsequent sections in the later chapters. Secondary Sources of Data: These are sources containing data which have been collected and compiled for another purpose. The secondary sources consists of readily compendia and already compiled statistical statements and reports whose data may be used by researchers for their studies e.g., census reports , annual reports and financial statements of companies, Statistical statement, Reports of Government Departments, Annual reports of currency and finance published by the Reserve Bank of India, Statistical statements relating to Co-operatives and Regional Banks, published by the NABARD, Reports of the National sample survey Organization, Reports of trade associations, publications of international organizations such as UNO, IMF, World Bank, ILO,WHO, etc., Trade and Financial journals newspapers etc. Secondary sources consist of not only published records and reports, but also unpublished records. The latter category includes various records and registers maintained by the firms and organizations, e.g., accounting and financial records, personnel records, register of members, minutes of meetings, inventory records etc.

6. Write short notes on the following: a. Dispersion Answer:

Dispersion Dispersion is the tendency of the individual values in a distribution to spread away from the average. Many economic variables like income, wage etc., are widely varied from the mean. Dispersion is a statistical measure, which understands the degree of variation of items from the average. Objectives of Measuring Dispersion Study of dispersion is needed to: 1. To test the reliability of the average 2. To control variability of the data 3. To enable comparison with two or more distribution with regard to their variability 4. To facilitate the use of other statistical measures. Measures of dispersion points out as to how far the average value is representative of the individual items. If the dispersion value is small, the average tends to closely represent the individual values and it is reliable. When dispersion is large, the average is not a typical representative value. Measures of dispersion are useful to control the cause of variation. In industrial production, efficient operation requires control of quality variation. Measures of variation enable comparison of two or more series with regard to their variability. A high degree of variation would mean little consistency and low degree of variation would mean high consistency. Properties of a Good Measure of Dispersion A good measure of dispersion should be simple to understand. 1. It should be easy to calculate 2. It should be rigidly defined 3. It should be based on all the values of a distribution 4. It should be amenable to further statistical and algebraic treatment. 5. It should have sampling stability 6. It should not be unduly affected by extreme values. Measures of Dispersion 1. Range 2. Quartile deviation 3. Mean deviation 4. Standard deviation 5. Lorenz curve Range, Quartile deviation, Mean deviation and Standard deviation are mathematical measures of dispersion. Lorenz curve is a graphical measure of dispersion. Measures of dispersion can be absolute or relative. An absolute measure of dispersion is expressed in the same unit of the original data. When two sets of data are expressed in different units, relative measures of dispersion are used for comparison. A relative measure of dispersion is the ratio of absolute measure to an appropriate average. The following are the important relative measures of dispersion. 1. Coefficient of range 2. Coefficient of Quartile deviation 3. Coefficient of Mean deviation 4. Coefficient of Standard deviation

b. Mathematical averages Answer:

Arithmetic mean, geometric mean and harmonic mean are mathematical averages. These statistical measures try to understand how individual values in a distribution concentrate to a central value like average. If the values of distribution approximately come near to the average value, we conclude that the distribution has central tendency. Arithmetic Mean Arithmetic mean is the most commonly used statistical average. It is the value obtained by dividing the sum of the item by the number of items in a series. Symbolically we say X/n N = the number of items in the series. If x1 x2 x3 xn are the values of a series, then arithmetic mean of the series obtained by (x1 + x2 + x

When frequencies are also given with the values, to calculate arithmetic mean, the values are first multiplied with the corresponding frequency. Then their sum is divided by the number of frequency. Thus in a discrete series, arithmetic mean is calculated by the following formula. fx/ f If x1 x2 x3 xn are the values of a series, and f1 f2 f3 fn are their corresponding frequencies, Arithmetic mean is calculated by (f1 x1 + f2 x2 + f3x3 + fn xn) / (f1 + f2 + f3 + fn) or fx / f Geometric Mean Geometric mean is defined as the nth root of the product of N items of a series. If there are two items in the data, we take the square root; if there are three items we take the cube root, and so on. Symbolically, GM = n 2 1 ...x .x x n Where x1, x2. ..xn are the items of the given series. To simplify calculations, logarithms are used. Accordingly, GM = Anti log of log x /n) In discrete series GM = Anti log of f . log x / f Harmonic Mean In individual series (1/x) In discrete series f (1/m) N = Total frequency M = Mi values of the class