ASSIGNMENTS- MBA Semester-3

Subject code MB0034

RESEARCH METHODOLOGY

Submitted to

SIKKIM MANIPAL UNIVERSITY

By

Ajay Vilakkumadathil
Reg # 520921832
Q1. Write a short notes on the following:
(a) Null Hypothesis
(b) What is exploratory research?
(c) What is Random Sampling?
(d) Rank Order Correlation
Ans:
a) A null hypothesis is a hypothesis (within the context of statistical hypothesis testing) that might be falsified
using a test of observed data. Such a test works by formulating a null hypothesis, collecting data, and calculating
a measure of how probable those data were, assuming the null hypothesis were true. If the data appear very
improbable (usually defined as a type of data that should be observed less than 5% of the time), then the
experimenter concludes that the null hypothesis is false. If the data look reasonable under the null hypothesis,
then no conclusion is made. In this case, the null hypothesis could be true, or it could still be false; the data give
insufficient evidence to make any conclusion. The null hypothesis typically proposes a general or default position,
such as that there is no relationship between two quantities, or that there is no difference between a treatment
and the control.
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
Null hypothesis should always be specific hypothesis i.e., it should not state about or approximately a certain
value

b) Exploratory research studies are also termed as formulative research studies. The main purpose of such
studies is that of formulating a problem for more precise investigation or of developing the working hypothesis
from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights.
As such the research design appropriate for such studies must be flexible enough to provide opportunity for
considering different aspects of a problem under study. Inbuilt flexibility in research design is needed because the
research problem, broadly defined initially, is transformed into one with more precise meaning in exploratory
studies, which fact may necessitate changes in the research procedure for gathering relevant data. Generally, the
following three methods in the context of research design for such studies are talked about:
1. The survey of concerning literature happens to be the most simple and fruitful method of formulating
precisely the research problem or developing hypothesis. Hypothesis stated by earlier workers may be reviewed
and their usefulness be evaluated as a basis for further research. It may also be considered whether the already
stated hypothesis suggests new hypothesis. In this way the researcher should review and build upon the work
already done by others, but in cases where hypothesis have not yet been formulated, his task is to review the
available material for deriving the relevant hypothesis from it. Besides, the bibliographical survey of studies,
already made in one’s area of interest may as well as made by the researcher for precisely formulating the
problem. He should also make an attempt to apply concepts and theories developed in different research contexts
to the area in which he is himself working. Sometimes the works of creative writers also provide a fertile ground
for hypothesis formulation as such may be looked into by the researcher.
2. Experience survey means the survey of people who have had practical experience with the problem to be
studied. The object of such a survey is to obtain insight into the relationships between variables and new ideas
relating to the research problem. For such a survey, people who are competent and can contribute new ideas may
be carefully selected as respondents to ensure a representation of different types of experience. The respondents
so selected may then be interviewed by the investigator. The researcher must prepare an interview schedule for
the systematic questioning of informants. But the interview must ensure flexibility in the sense that the
respondents should be allowed to raise issues and questions which the investigator has not previously
considered. Generally, the experience of collecting interview is likely to be long and may last for few hours.
Hence, it is often considered desirable to send a copy of the questions to be discussed to the respondents well in
advance. This will also give an opportunity to the respondents for doing some advance thinking over the various
issues involved so that, at the time of interview, they may be able to contribute effectively. Thus, an experience
survey may enable the researcher to define the problem more concisely and help in the formulation of the
research hypothesis. This, survey may as well provide information about the practical possibilities for doing
different types of research.
3. Analysis of ‘insight-stimulating’ examples are also a fruitful method for suggesting hypothesis for
research. It is particularly suitable in areas where there is little experience to serve as a guide. This method
consists of the intensive study of selected instance of the phenomenon in which one is interested. For this
purpose the existing records, if nay, may be examined, the unstructured interviewing may take place, or some
other approach may be adopted. Attitude of the investigator, the intensity of the study and the ability of the
researcher to draw together diverse information into a unified interpretation are the main features which make this
method an appropriate procedure for evoking insights. Experience indicates that for particular problems certain
types of instances are more appropriate than others. One can mention few examples of ‘insight-stimulating’ cases
such as the reactions of strangers, the reactions of marginal individuals, the study of individuals who are in
transition from one stage to another, the reactions of individuals from different social strata and the like. In
general, cases that provide sharp contrasts or have striking features are considered relatively more useful while
adopting this method of hypothesis formulation. Thus, in an exploratory of formulative research study which
merely leads to insights or hypothesis, whatever method or research design outlined above is adopted, the only
thing essential is that it must continue to remain flexible so that many different facets of a problem may be
considered as and when they arise and come to the notice of the researcher.

c) A part of the population is known as sample. The method consisting of the selecting for study, a portion of the
‘universe’ with a view to draw conclusions about the ‘universe’ or ‘population’ is known as sampling. A statistical
sample ideally purports to be a miniature model or replica of the collectivity or the population constituted of all the
items that the study should principally encompass, that is, the items which potentially hold promise of affording
information relevant to the purpose of a given research. Sampling helps in time and cost saving. It also helps in
checking their accuracy. But on the other hand it demands exercise of great care caution; otherwise the results
obtained may be incorrect or misleading.

Random sampling is based on the theory of probability. It is also known as random sampling. It provides a known
nonzero chance of selection for each population element. It is used when generalization is the objective of study,
and a greater degree of accuracy of estimation of population parameters is required. The cost and time required is
high hence the benefit derived from it should justify the costs.

The following are the types of probability sampling:

i. Simple Random Sampling: This sampling technique gives each element an equal and independent chance of
being selected. An equal chance means equal probability of selection. An independent chance means that the
draw of one element will not affect the chances of other elements being selected. The procedure of drawing a
simple random sample consists of enumeration of all elements in the population.

ii. Stratified Random Sampling: This is an improved type of random or probability sampling. In this method, the
population is sub-divided into homogenous groups or strata, and from each stratum, random sample is drawn.
E.g., university students may be divided on the basis of discipline, and each discipline group may again be
divided into juniors and seniors. Stratification is necessary for increasing a sample’s statistical efficiency, providing
adequate data for analyzing the various sub-populations and applying different methods to different strata. The
stratified random sampling is appropriate for a large heterogeneous population. Stratification process involves
three major decisions. They are stratification base or bases, number of strata and strata sample sizes.
Stratified random sampling may be classified into:
a) Proportionate stratified sampling:
b) Disproportionate stratified random sampling:

iii) Systematic Random Sampling: This method of sampling is an alternative to random selection. It consists of
taking kth item in the population after a random start with an item form 1 to k. It is also known as fixed interval
method. E.g., 1st, 11th, 21st ……… Strictly speaking, this method of sampling is not a probability sampling. It
possesses characteristics of randomness and some non-probability traits.

d) Charles Edward Spearman, a British psychologist devised a method for measuring correlation between two
variables based on ranks given to the observations. This method is adopted when the variables are not capable of
quantitative measurements like intelligence, beauty etc. in such cases, it is impossible to assign numerical values
for change taking place in such variables. It is in such cases rank correlation is useful.

Spearman’s rank correlation coefficient is given by

rk = 1- 6 ΣD2 / n (n2-1)

Where D is the difference between ranks and n, number of pairs correlated.

Q2. Elaborate the format of a research report touching briefly on the mechanics of writing.
Ans:
Research report is a means for communicating research experience to others. A research report is a formal
statement of the research process and it results. It narrates the problem studied, methods used for studying it and
the findings and conclusions of the study.

Research reports can be classified as:

• Technical reports
• Popular reports
• Summary reports
• Research abstract
• Research article
These differ in terms of the degree of formality, physical form, scope, style and size.

Contents of the Research Report

The outline of a research report is given below:
I. Prefatory Items
Title page
Declaration
Certificates
Preface/ acknowledgments
Table of contents
List of tables
List of graphs/ figures/ charts
Abstract or synopsis
II. Body of the Report
Introduction
Theoretical background of the topic
Statement of the problem
Review of literature
The scope of the study
The objectives of the study
Hypothesis to be tested
Definition of the concepts
Models if any
Design of the study
Methodology
Method of data collection
Sources of data
Sampling plan
Data collection instruments
Field work
Data processing and analysis plan
Overview of the report
Limitation of the study
Results: findings and discussions
Summary, conclusions and recommendations
III. Reference Material
Bibliography
Appendix
Copies of data collection instruments
Technical details on sampling plan
Complex tables
Glossary of new terms used.
Along with the related skill of working with and motivating people, the ability to communicate effectively is
undoubtedly the most important attribute a manager can have. Effective communication between research users
and research professional is extremely important to the research process. The formal presentation usually plays a
key role in the communication effort. Generally, presentations are made twice during the research process. First,
there is the research proposal presentation. Second, there is the presentation of the research results.
Some important points for effective report writing are:
• Use main heading and subheadings to communicate the content of the material discussed.
• Use the present tense as much as possible to communicate information.
• Whether the presentation is written or oral, use active voice construction to make it lively and
interesting, passive voice is wordy and dull.
• Use computer-generated tables and graphs for effective presentations.
• Use informative headings.
• Use double-sided presentation if possible. For example, tables or graphs could be presented on the left
side of an open report and their descriptions on the right side.

Q3. Discuss the importance of case study method.

Ans:
Case study is a method of exploring and analyzing the life of a social unit or entity, be it a person, a family, an
institution or a community. The aim of case study method is to locate or identify the factors that account for the
behavior patterns of a given unit, and its relationship with the environment. The case data are always gathered
with a view to attracting the natural history of the social unit, and its relationship with the social factors and forces
operative and involved in this surrounding milieu. In short, the social researcher tries, by means of the case study
method, to understand the complex of factors that are working within a social unit as an integrated totality. Looked
at from another angle, the case study serves the purpose similar to the clue-providing function of expert opinion. It
is most appropriate when one is trying to find clues and ideas for further research.

The major credit for introducing case study method into social investigation goes to Frederick Leplay. Herbert
Spencer was the first social philosopher who used case study in comparative studies of different cultures. William
Healey used case study in his study of juvenile delinquency. Anthropologists and ethnologists have liberally
utilized cast study in the systematic description of primitive cultures. Historians have used this method for
portraying some historical character or particular historical period and describing the developments within a
national community.

Advantages of Case Study Method:

Case study of particular value when a complex set of variables may be at work in generating observed results and
intensive study is needed to unravel the complexities. For example, an in-depth study of a firm’s top sales people
and comparison with worst salespeople might reveal characteristics common to stellar performers. Here again,
the exploratory investigation is best served by an active curiosity and willingness to deviate from the initial plan
when findings suggest new courses of inquiry might prove more productive. It is easy to see how the exploratory
research objectives of generating insights and hypothesis would be well served by use of this technique

Disadvantages of Case Study Method:

Blummer points out that independently, the case documents hardly fulfill the criteria of reliability, adequacy and
representativeness, but to exclude them form any scientific study of human life will be blunder in as much as
these documents are necessary and significant both for theory building and practice.

In-depth analysis of selected cases is of particular value to business research when a complex set of variables
may be at work in generating observed results and intensive study is needed to unravel the complexities. For
instance, an in-depth study of a firm’s top sales people and comparison with the worst sales people might reveal
characteristics common to stellar performers. The exploratory investigator is best served by the active curiosity
and willingness to deviate from the initial plan, when the finding suggests new courses of enquiry, might prove
more productive

Q4. Give the importance of frequency tables and discuss the principles of table construction,
frequency distribution and class intervals determination
Ans:
Frequency tables provide a “shorthand” summary of data. The importance of presenting statistical data in tabular
form needs no emphasis. Tables facilitate comprehending masses of data at a glance; they conserve space and
reduce explanations and descriptions to a minimum. They give a visual picture of relationships between variables
and categories. They facilitate summation of item and the detection of errors and omissions and provide a basis
for computations.
It is important to make a distinction between the general purpose tables and specific tables. The general purpose
tables are primary or reference tables designed to include large amount of source data in convenient and
accessible form. The special purpose tables are analytical or derivate ones that demonstrate significant
relationships in the data or the results of statistical analysis. Tables in reports of government on population, vital
statistics, agriculture, industries etc., are of general purpose type. They represent extensive repositories and
statistical information. Special purpose tables are found in monographs, research reports and articles and reused
as instruments of analysis. In research, we are primarily concerned with special purpose.

The major components of a table are:

A Heading:
(a) Table Number
(b) Title of the Table
(c) Designation of units
B Body
Sub-head, Heading of all rows or blocks of stub items
Body-head: Headings of all columns or main captions and their sub-captions.
Field/body: The cells in rows and columns.
C Notations:
Footnotes, wherever applicable.
Source, wherever applicable.
Principles of Table Construction

There are certain generally accepted principles of rules relating to construction of tables. They are:
Every table should have a title. The tile should represent a succinct description of the contents of the table. It
should be clear and concise. It should be placed above the body of the table.
A number facilitating easy reference should identify every table. The number can be centred above the title. The
table numbers should run in consecutive serial order. Alternatively tables in chapter 1 be numbered as 1.1, 1.2,
1….., in chapter 2 as 2.1, 2.2, 2.3…. and so on.
The captions (or column headings) should be clear and brief.
The units of measurement under each heading must always be indicated.
Any explanatory footnotes concerning the table itself are placed directly beneath the table and in order to obviate
any possible confusion with the textual footnotes such reference symbols as the asterisk (*) DAGGER (+) and the
like may be used.
If the data in a series of tables have been obtained from different sources, it is ordinarily advisable to indicate the
specific sources in a place just below the table.
Usually lines separate columns from one another. Lines are always drawn at the top and bottom of the table and
below the captions.
The columns may be numbered to facilitate reference.
All column figures should be properly aligned. Decimal points and “plus” or “minus” signs should be in perfect
alignment.
Columns and rows that are to be compared with one another should be brought closed together.
Totals of rows should be placed at the extreme right column and totals of columns at the bottom.
In order to emphasize the relative significance of certain categories, different kinds of type, spacing and
identifications can be used.
The arrangement of the categories in a table may be chronological, geographical, alphabetical or according to
magnitude. Numerical categories are usually arranged in descending order of magnitude.
Miscellaneous and exceptions items are generally placed in the last row of the table.
Usually the larger number of items is listed vertically. This means that a table’s length is more than its width.
Abbreviations should be avoided whenever possible and ditto marks should not be used in a table.
The table should be made as logical, clear, accurate and simple as possible.
Text references should identify tables by number, rather than by such expressions as “the table above” or “the
following table”. Tables should not exceed the page size by photo stating. Tables those are too wide for the page
may be turned sidewise, with the top facing the left margin or binding of the script. Where tables should be placed
in research report or thesis? Some writers place both special purpose and general purpose tables in an appendix
and refer to them in the text by numbers. This practice has the disadvantages of inconveniencing the reader who
wants to study the tabulated data as the text is read. A more appropriate procedure is to place special purpose
tables in the text and primary tables, if needed at all, in an appendix.

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
millimeters 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.

Q5. Write a short notes on the following:

(a) Type I error and type II error.
(b) One tailed and two tailed test
(c) Selecting the significance level
Ans:
a)
In the context of testing of hypothesis there are basically two types of errors that researchers make. We may
reject null hypothesis (H0) when H0 is true & we may accept H0 when it is not true. The former is known as Type I
& the later is known as Type II. In other words, Type I error mean rejection of hypothesis which should have been
accepted & Type II error means accepting of hypothesis which should have been rejected. Type I error is donated
by α (alpha), also called as level of significance of test; and Type II error is donated by β(beta).

Decision
Accept H0 Reject H 0
H0 (true) Correct decision Type I error (α error)
Ho (false) Type II error (β error) Correct decision

The probability of Type I error is usually determined in advance and is understood as the level of significance of
testing the hypothesis. If type I error is fixed at 5%, it means there are about chances in 100 that we will reject H0
when H0 is true. We can control type I error just by fixing it at a lower level. For instance, if we fix it at 1%, we will
say that the maximum probability of committing type I error would only be 0.01.

But with a fixed sample size, n when we try to reduce type I error, the probability of committing type II error
increases. Both types of errors can not be reduced simultaneously. There is a trade-off in business situations,
decision-makers decide the appropriate level of type I error by examining the costs of penalties attached to both
types of errors. If type I error involves time & trouble of reworking a batch of chemicals that should have been
accepted, where as type II error means taking a chance that an entire group of users of this chemicals compound
will be poisoned, then in such a situation one should prefer a type I error to a type II error means taking a chance
that an entire group of users of this chemicals compound will be poisoned, then in such a situation one should
prefer a type II error. As a result one must set very high level for type I error in one’s testing techniques of a given
hypothesis. Hence, in testing of hypothesis, one must make all possible effort to strike an adequate balance
between Type I & Type II error.

b) A two-tailed test rejects the null hypothesis if, say, the sample mean is significantly higher or lower than the
hypnotized value of the mean of the population. Such a test inappropriate when we haveH0: µ= µ H0 and Ha: µ≠µ
H0 which may µ>µ H0 or µ<µ H0. If significance level is % and the two-tailed test to be applied, the probability of
the rejection area will be 0.05 (equally split on both tails of curve as 0.025) and that of the acceptance region will
be 0.95. If we take µ = 100 and if our sample mean deviates significantly from µ, in that case we shall accept the
null hypothesis. But there are situations when only one-tailed test is considered appropriate. A one-tailed test
would be used when we are to test, say, whether the population mean in either lower than or higher than some
hypothesized value.

c) The Level of Significance is always some percentage (usually 5%) which should be chosen with great care,
thought and reason. If we take the significance level at 5%, then this implies that H0 will be rejected when the
sampling result (i.e., observed evidence) has a less than 0.05 probability of occurring if H0 is true. In other words,
the 5% level of significance means that researcher is willing to take as much as 5% risk rejecting the null
hypothesis when it (H0) happens to be true. Thus the significance level is the maximum value of the probability of
rejecting H0 when it is true and is usually determined in advance before testing. The hypothesis is tested on a
pre-determined level of significance and such the same should have specified. Generally, in practice, either 5%
level or 1% level is adopted for the purpose. The factors that affect the level of significance are:
• The magnitude of the difference between sample ;
• The size of the sample;
• The variability of measurements within samples;
Whether the hypothesis is directional or non – directional (A directional hypothesis is one which predicts the
direction of the difference between, say, means). In brief, the level of significance must be adequate in the context
of the purpose and nature of enquiry.

6. Explain Karl Pearson Co-efficient of correlation. Calculate Karl Pearson coefficient for the
following data:
X(height- 174 175 176 177 178 182 183 186 189 193
cm)
Y(weight- 61 65 67 68 72 74 80 87 92 95
kg)

Ans:
Karl Pearson’s Co-Efficient of Correlation is a mathematical method for measuring correlation. Karl Pearson developed the
correlation from the covariance between two sets of variables. Karl Pearson’s Co-Efficient of Correlation is denoted by
symbol r. The formula for obtaining Karl Pearson’s Co-Efficient of Correlation is:
Direct method:

Covariance between x and y = Σ xy / N – (Σ x/N X Σ y/N)

SDx = standard deviation of x series = √ (Σ x2 / N) – (Σ x/N) 2

SDy = standard deviation of y series = √ (Σ y2 / N) – (Σ y/N) 2

Shortcut method:

The Co-Efficient of Correlation measures the correlation between two variables. The value of Co-Efficient of Correlation
always lies between +1 and –1. It can be interpreted in the following ways.
• If the value of Co-Efficient of Correlation r is 1 it is interpreted as perfect positive correlation.
• If the value of Co-Efficient of Correlation r is -1, it is interpreted as perfect negative correlation.
• If the value of Co-Efficient of Correlation r is 0 < r < 0.5, it is interpreted as poor positive correlation.
• If the value of Co-Efficient of Correlation r is 0.5 < r < 1, it is interpreted as good positive correlation.
• If the value of Co-Efficient of Correlation r is 0 > r > -0.5, it is interpreted as poor negative correlation.
• If the value of Co-Efficient of Correlation r is –0.5 > r > -1, it is interpreted as good negative correlation.
• If the value of Co-Efficient of Correlation r is 0, it is interpreted as zero correlation.

X Y X-Xbar Y-Ybar (X-Xbar)2 (Y-Ybar)2 (X-Xbar)(Y-Ybar)

174 61 -7.3 -15.1 53.29 228.01 110.23
175 65 -6.3 -11.1 39.69 123.21 69.93
176 67 -5.3 -9.1 28.09 82.81 48.23
177 68 -4.3 -8.1 18.49 65.61 34.83
178 72 -3.3 -4.1 10.89 16.81 13.53
182 74 0.7 -2.1 0.49 4.41 -1.47
183 80 1.7 3.9 2.89 15.21 6.63
186 87 4.7 10.9 22.09 118.81 51.23
189 92 7.7 15.9 59.29 252.81 122.43
193 95 11.7 18.9 136.89 357.21 221.13
181.3 76.1 372.1 1264.9 676.7

r = 676.7 / (√ 372.1 * √ 1264.9)

= 0.986