Spring 2010 (Jan-June)

Master of Business Administration- MBA Semester 3

MB0034– Research Methodology - 3 Credits

(Book ID: B0800)

Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

1. What do you mean by research? Explain its significance in social and business sciences.

Research basically means fact finding such as answers to questions, solutions to problems and so on.
In nutshell, it is an organized way to go ahead in order to get the result.

It well-known fact that Doubt is often better than overconfidence. It means, it leads to inquiry and
inquiry leads to invention. Ultimately, it brings out the significance of research for the development
of logical habit of thinking and organization.

In today’s scenario, complex nature of government and business has raised the research significance
to solve the operational problem. It provides the basis for almost all government policies of an
economic system. Government budget formulation that depends particularly on the analysis of needs
and desires of the people and availability of revenues. It also helps to formulate alternative policies.

Research also facilitates the decision making of policy-makers. It is necessary for collecting
information on the social and economic structure of an economy to understand the process of change
occurring in the country. Thus, research as a tool of government economic policy formulation
involves three distinct stages of operation which are as follows:

Investigation of economic structure,

Diagnoses of events,

Prediction of future developments.

Research is equally important to social scientis for analyzing social relationships.

2. What is meant by research problem? And what are the characteristics of a good research
problem?

In order to research, we often experience the problem/difficulty is said to be research problem.

Personal values play an important role in the selection of a topic for research. A problem in simple
words is some difficulty experienced by the researcher in a practical situation. Solving this difficulty
is the task of research.
According to Ackoffs analysis that considers the following problem for research. He identifies five
components of a problem.

a. Research- consumer: There must be an individual or group which experiences some difficulty.

b. Doubt in regard to selection of alternatives: the existence of alternative courses of action in not
enough. In order to experience a problem, the research consumer must have some doubt as to which
alternative to select.

c. Research consumer’s objectives: the research consumer must have available. Alternative means
for achieving the objectives he desires.

d. A change in environment may produce or remove a problem. A research consumer may have
doubts as to which will be the most efficient means in one environment but would have no such
doubt in another.

e. Alternative means to meet the objective: the research consumer must have available that means for
achieving the objectives he desires.

3. What is hypothesis? Examine the procedures for testing hypothesis?

Hypothesis is an assumption about relations between variables. It is a tentative explanation of the

research problem or a guess about the research outcome.

Hence, an adequate statement about the research problem is very important. What is a good problem
statement? How are A and B are related to C? Is A related to B under conditions X and Y?

Testing a hypothesis means to tell whether or not the hypothesis seems to be valid. In this procedure,
the main question is: whether the null hypothesis or not to accept the null hypothesis? It refers to all
those steps that we undertake for making a choice between the two actions i.e. rejection and
acceptance of a null hypothesis.

Making a Formal Statement: This means that hypothesis should clearly state, considering the
nature of the research problem. For instance, Mr. X of the civil engineering department wants to test
the load bearing capacity of an old bridge which must be more than 10 tons. In that case he can state
his hypothesis as:

Null hypothesis H0: U=10 tons

Alternative hypothesis H1: U>10 tons

Selecting a Significant Level: This is based on a pre-determined level of significance and such the
same should have specified. Generally, either 5% level or 1% level is adopted for the purpose.

Deciding the Distribution to Use: After deciding the level of significance, the next step in
hypothesis testing is to determine the appropriate samplings distribution. The choice generally
remains between distribution and the t distribution. The rules for selecting the correct distribution are
similar to those which we have stated earlier in the context of estimation.

Calculation of the Probability: We have to calculate the probability that the sample result would
diverge as widely as it has from expectations, if the null hypothesis were in fact true.

Comparing the Probability: If the calculated probability is equal to smaller than A value in case of
one tailed test then reject the null hypothesis. But if the probability is greater then accept the null
hypothesis.

4. Write an essay on the need for research design and explain the principles of experimental
designs.

A research design is a logical and systematic plan prepared for directing a research study. It specifies
the objectives of the study, the methodology and techniques to be adopted for measurement and
analysis. It constitutes the blue print for the collection, measurement and analysis of data.
A research design is the program that guides the investigator in the process of collecting, analyzing
and interpreting observations. It provides a systematic plan of procedures for the researcher.
In many a research inquiry, the researcher has no idea as to how accurate the results of his study
ought to be in order to be useful. Where such is the case, the researcher has to determine how much
inaccuracy may be tolerated. In a quite few cases he may be in a position to know how much
inaccuracy his method of research will produce.
In many research projects, the time consumed in trying to ascertain what the data mean after they
have been collected is much greater than the time taken to design a research which yields data whose
meaning is known as they are collected.
The idealized design is concerned with specifying the optimum research procedure that could be
followed were there no practical restrictions.
The principle of Replication: The experiment should be repeated more than once. Each treatment is
applied in many experimental units instead of one. By doing so, the statistical accuracy of the
experiments is increased. For example, suppose we are to examine the effect of two varieties of rice.
For this purpose we may divide the field into two parts and grow one variety in one part and the
other variety in the other part. We can compare the yield of the two parts and drew conclusion on
that basis.
Principle of Randomization: It provides protection, when we conduct an experiment, against the
effect of extraneous factors by randomization. In other words, this principle indicates that we should
design or plan the experiment in such a way that the variations caused by extraneous factors can all
be combined under the general heading of chance.
Principle of Local Control: It is another important principle of experimental designs. Under the
extraneous factors, the known source of variability is made to vary deliberately over as wide a range
as necessary and these needs to be done in such a way that the variability it causes can be measured
and hence eliminated from the experimental error.
5. Distinguish between primary and secondary of data collection. Explain the features, uses,
advantages and limitations of secondary data. Which is the best way of collecting the data for
research”Primary or secondary”. Support your answer.
The search for answer to research questions is called collection of data.
Primary sources are original sources from which the researcher directly collects data that have not
been previously collected i.e. 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.
Secondary Sources of Data which have been collected and compiled for another purpose. The
secondary sources consist 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.
Secondary sources consist of not only published reports and reports, but also unpublished records.
Though secondary sources are diverse and consist of all sorts of materials, they have certain common
characteristics.
First, they are readymade and readily available, and do not require the trouble of constructing tools
and administering them.
Second, they consist of data which a researcher has no original control over collection and
classification. Both the form and the content of secondary sources are shaped by others. Clearly, this
is a feature which can limit the research value of secondary sources.
Finally, secondary sources are not limited in time and space. That is, the researcher using them need
not have been present when and where they were gathered.
The secondary data may be used in three ways by a researcher. First, some specific information from
secondary sources may be used for reference purpose. For example, the general statistical
information in the number of co-operative credit societies in the country, their coverage of villages,
their capital structure, volume of business etc.
Second, secondary data may be used as bench marks against which the findings of research may be
tested, e.g. the findings of a local or regional survey may be compared with the national averages, the
performance indicators of the banking industry as a whole and so on.
Finally, secondary data may be used as the sole sources of information for a research project. Such
studies as securities Market Behavior, Financial Analysis of companies. Trade in credit allocation in
commercial banks, sociological studies on crimes, historical studies, and the like, depends primary
on secondary data.
6. Describe interview method of collecting data. State the conditions under which it is
considered most suitable. You have been assigned to conduct a survey on the reading habits of
the house wives in the middle class family. Design a suitable questionnaire consisting of 20
questions you propose to use in the survey.
Interview is one of the prominent methods of data collection. It may be defined as a two way
systematic conversion between an investigator and an important, initiated for obtaining information
relevant to a specific study.
Interview may be used either as a main method or as a supplementary one in studies of persons.
Interviewing is the only suitable method for gathering information from illiterate or less educated
respondents. It is useful for collecting a wide range of data from factual demographic data to highly
personal and intimate information relating to a person’s opinions, attitudes, values, beliefs past
experience and future intentions.
Interview is often superior to other data-gathering methods. People are usually more willing to talk
than to write.
Interview can add flesh to statistical information. It enables the investigator to grasp the behavioral
context of the data furnished by the respondents.
As in the above case of survey on the reading habits of the house wives in the middle class family.
Clinical Interview: This is concerned with broad underlying feelings or motivations or with the
course of the individual’s life experiences.
The personal history interview used in social case work, prison administration, psychiatric clinics
and in individual life history research is the most common type of clinical interview. The specific
aspects of the individual’s life history to be covered by the interview are determined with reference
to the purpose of the study and the respondent is encouraged to talk freely about them. So that, we
can cover maximum respondents to ascertain the reading habits of the house wives in the middle
class family.
Spring 2010 (Jan-June)

Master of Business Administration- MBA Semester 4

MB0034– Research Methodology - 3 Credits

(Book ID: B0800)

Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

1. Write a short note on the following:

(a) Null Hypothesis
Null Hypothesis is also a kind of assumption in context of statistical analysis. If we compare method
A with method B about its superiority and if we proceed on the assumption that both methods are
equally favorable then this assumption is said to be null hypothesis.

For example, if we say the population mean is equal to the hypothesis mean. It means the population
mean is equal to the hypothesized mean.

(b) What is exploratory research?

This type of research is basically done of an unfamiliar difficulty about which we have little or even
no knowledge. It is ill-structured and much focused on pre-determined objectives. It usually takes the
form of a pilot study. The purpose of this research may be to generate new ideas or to make precise
formulation of the problem or to gather information for clarifying concepts whether it is feasible to
attempt the study.
(b) What is Random Sampling?
Random sampling is based on the theory of probability. It is also known as random sampling that
provides a known nonzero chance of selection for each population element. It is used when
generalization is the objective of study. The cost and time required is high hence the benefit derived
from it should justify the costs.
This sampling technique gives each element an equal and independent chance of being selected. That
means equal probability of selection.
(c) Rank Order Correlation
In this rank order correlation, 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. Hence, correlation based on rank is given to the observations.
2. Elaborate the format of a research report touching briefly on the mechanics of writing.
Communicate to a Specific Audience: While writing research report, we must know the audience, its
background, and its objectives. Most effective presentations seem live conversations or memos to a
particular person as opposed to an amorphous group. Audience identification affects presentation
decisions such as selecting the material to be included and the level of presentation. Excessive details
presented at too low a level can be boring. The audience can become irritated when material
perceived as relevant is excluded or the material is presented at too high level. Presentation must be
addressed to two or more different audiences.

Structure of the Presentation: Each piece of presentation should fit into the whole. Just as individual
pieces fit into a jigsaw puzzle. The audience should not be muttering. The solution to this is to
provide a well-defined structure. The structure should include an introduction, a body, and a
summary. Each of the major sections should be structured similarly.
Create Audience Interest: The audience should be motivated to read or listen to the presentation’s
major parts and to the individual elements of each section the audience should know why the
presentation is relevant to them a section that cannot hold interest should be excluded.

Address Validity and Reliability Issues: The presentation should help the audience avoid
misinterpreting the results. The wording of the questions, order in which they are asked, and the
sampling design are among the design dimensions that can lead to biased results and
misinterpretation.

Be Specific and Visual: Avoid taking or writing in the abstract. If different members of the audience
have different or vague understandings of important concepts. There is a potential problem. Terms
that are ambiguous or not well known should be defined and illustrated or else omitted.

3. Discuss the importance of case study method.

Case study of particular value when a complex set of variable 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 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.

4. Give the importance of frequency tables and discuss the principles of table construction,
frequency distribution and class intervals determination.
Frequency tables prove 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 omission and provide a basis for computations.
There are certain principles of rules to construction of tables:
a. Every table should have a title. The title should represent a succinct description of the contents of
the tables.
b. A number facilitating easy references should identify every table.
c. The captions should be clear and brief.
d. Usually lines separate columns from one another. Lines are always drawn at the top and bottom of
the table and below the captions.
e. The table should be made as logical, clear, accurate and simple as possible.
f. Abbreviations should be avoided whenever possible and ditto marks should not be used in a table.
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.
For example, continuous variable are age, weight, temperature etc.
Ordinarily, the number of class intervals may not be less that 5 not more than 15, depending on the
nature of the data and the number of cases being studied.

5. Write a short note on the following:

(a) Type I error and type II error
In this context of testing of hypothesis there are basically two types of errors that researchers make.
We may reject 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.
(b) One tailed and two tailed test
Two tailed test rejects the null hypothesis if, say, the sample mean is significantly higher or lower
than the hypothesized value of he mean of the population. The probability of the rejection area will
be 0.5(equally split on both tails of curve as 0.025).
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) Selecting the significance level

Level of significance is always some percentage (usually 5%) which should be chosen with great
care, thought and reason. In case we take the significance level at 5%, then this implies that H0 will
be rejected when the sampling result has less than 0.05 probability of occurring if H0 is true.

6. Explain Karl Pearson Co-efficient of correlation. Calculate Karl Pearson coefficient for the
following data:

Karl Pearson’s Co-Efficient of Correlation is mathematical method for measuring correlation. Karl
developed the correlation from the covariance between two sets of variables.

X Y dx dy dx2 Dy2 dxdy

174 61 19 76 361 5776 1444
175 65 18 77 324 5929 1386
176 67 17 78 289 6084 1326
177 68 16 79 256 6241 1264
178 72 15 80 225 6400 1200
182 74 11 84 121 7056 924
183 80 10 85 100 7225 850
 186 87 7 88 49 7744 616
189 92 4 91 16 8281 364
193 95 0 95 0 9025 0
∑ 117 ∑ 833 ∑ 1741 ∑ 69761 ∑ 9374

Karl Pearson’s Co-efficient of correlation =

Covariance between X and Y

r = √SDx X √S

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

∑ Dx = Standard deviation of X series = √ (∑X2/N)–(∑X/N)2

2 2
∑Dy = Standard deviation of Y series = √ (∑Y /N)–∑Y/N)
= 9374/10 – (117/10 X 833/10)

√(1741/10)-(117/10) X √(69761/10)-(833/10)2
2

937.4 – (11.7 X 83.3)

=
√(174.1)-(11.7) X √(6976.1)-(83.3)2
2
= 937.4 – 974.61

√(174.1-136.89) X √(6976.1-6938.89)

-37.21
=
√(37.21) X √(37.21)
-37.21
=
±
37.21
±
= 1
= +1 or -1

Interpretation: There is perfect negative or positive correlation between X and Y variable.