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IIMM/HP/2/2004/2617 NameShacheendra Sharma PGDMDUAL (FINANCE)
SubjectResearch Methodology Page 1 of 30 Assignment # 6
Name : Shacheendra Sharma
Registration No. : IIMM / HP / 2 / 2004 / 2617
Subject : Research Methodology
Ans1(a)
Arithmetic, Geometric and Harmonic Mean
A single representative value for a set of observations on a characteristic X is called
a measure of central tendency (or measure of location).
Arithmetic mean, Geometric mean and Harmonic mean are measures of central
tendency. Apart from these three means, there are two more measures viz. fractile
and mode.
1. Arithmetic Mean:
Simple arithmetic mean is the sum of all values of a variable divided by the number of
observations.
k
i i
i=1
M= f . y /n
¦
where M is arithmetic mean
y is the midpoint of the i
th
class interval
f
i
is the corresponding frequency
k is number of classes
n is total number of observations
Example1: Simple mean: There are 3 labourers whose per day wages are Rs 50, 60
and 80.
Here, n=3; the observations are a random variable denoted as X and k can take
values from the first to third labourer.
M = (50+60+80)/3 = 190/3 = Rs 63.34
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SubjectResearch Methodology Page 2 of 30 Assignment # 6
Example2: Weighted mean: If we have classes, we choose mid points and multiply
them by frequency.
Per Day wages (classes) No. of Labourers (f
i
) Midpoint (y
i
) of classes f
i
* y
i
4555 1 50 50
5565 1 60 60
6575 0 70 0
7585 1 80 80
n = 3
i i
f *y =190
¦
Therefore, M = 190/3 = 63.34
This method is useful in condensing large volumes of data.
2. Geometric Mean:
Geometric mean is defined as the nth root of the multiplication of n observations.
Geometric Mean =
n
1 2 n n
n . n . n . . . n
If the characteristics X takes only positive values, i.e. values greater than zero, and it
is a sequence of ratios forming a highly positively skewed distribution, then it is
appropriate to compute Geometric Mean.
In computational procedure, logarithm is used.
Example1: If there are two observations n
1
and n
2
, then their geometric mean is:
GM =
2
1 2
n . n
Taking log, log GM = ½ (log n
1
+ log n
2
)
therefore GM = antilog [½ (log n
1
+ log n
2
)]
Let us consider marks of 25 students in mathematics out of 100. The data is 74, 62,
84, 72, 61, 83, 72, 81, 64, 71, 63, 61, 60, 67, 74, 66, 64, 79, 73, 75, 76, 69, 68, 78
and 67.
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SubjectResearch Methodology Page 3 of 30 Assignment # 6
The GM of this data is:
GM = antilog [1/25*(46.1677)] = 70.25
In case of frequency distribution, it is the antilog of weighted arithmetic mean of log of
mid values of classes, weights being the frequencies of the corresponding classes.
The data can be arranged in tabular fashion as follows:
Marks in
Mathematics
No. of
Students
(f
i
)
Midpoint (y
i
) of
classes
(y
i
)
fi
f
i
*log(y
i
)
6065 7 62.5 (62.5)
7
7*1.79588=12.57116
6570 5 67.5 (67.5)
5
5*1.82930=9.146518
7075 6 72.5 (72.5)
6
6*1.860338=11.162028
7580 4 77.5 (77.5)
4
4*1.88930=7.5572068
8085 3 82.5 (82.5)
3
3*1.916454=5.7493618
n = 25 Total = 46.18627
GM =
7 5 6 4 3 25
62.5 x67.5 x72.5 x77.5 x82.5 = 70.38
Alternatively:
GM=antilog(1/25*((7*log(62.5)+5*log(67.5)+6*log(72.5)+4*log(77.5)+3*log(82.5)))
=antilog (1/25*46.1862756)=antilog (1.847451) =70.38
3. Harmonic Mean:
Harmonic Mean is the reciprocal of the arithmetic mean of the reciprocal of
observation. Here, it is important to note that if any one of the data is zero, Harmonic
Mean can not be calculated.
In cases involving rates and ratios where time factor is variable and distance is
constant, a useful average is the Harmonic Mean.
If there are three observations, n
1
, n
2
and n
3
then, the Harmonic Mean (HM) is
defined as:
The harmonic mean H(x
1
, x
2
, x
3
, ….., x
n
) of n numbers x
i
(where i = 1, ..., n) is the
number H defined by:
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SubjectResearch Methodology Page 4 of 30 Assignment # 6
HM = Reciprocal of (Arithmetic Mean of reciprocals of observations)
= (1/ Arithmetic mean of reciprocals of observations)
= (1/ Arithmetic Mean of the 1/n
1
+ 1/n
2
+ 1/n
3
)
= (1/(1/n
1
+ 1/n
2
+ 1/n
3
)/3) since here there are 3 observations, so n = 3
=3/ (1/n
1
+ 1/n
2
+ 1/n
3
)
For example, If we travel from city A to city B at x miles per hour, and then travel
back at y miles per hour. What was the average velocity for the whole trip? The
harmonic mean of x and y. That is, the average velocity is
For a frequency distribution, the Harmonic Mean is the reciprocal of the weighted
arithmetic mean of the midvalue of the class, weights being the frequency
corresponding to the class. A zero frequency will not alter the definition of the
harmonic mean.
Ans1(b)
Measures of Dispersion:
While measures of central tendency are used to estimate "normal" values of a
dataset, measures of dispersion are important for describing the spread of the data,
or its variation around a central value. Two distinct samples may have the same
mean or median, but completely different levels of variability, or vice versa. A proper
description of a set of data should include both of these characteristics. There are
various methods that can be used to measure the dispersion of a dataset, each with
its own set of advantages and disadvantages.
Some measures of dispersions are:
1. Range
2. Inter quartile range
3. Percentile range
4. Average deviation
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SubjectResearch Methodology Page 5 of 30 Assignment # 6
5. Standard deviation and variance
6. Concentration ratio
1. Range:
This is the simplest but least informative of all the measures of dispersion. It is
calculated by finding the difference between the lowest and the highest values in a
set of data. It tells us the gap between the top and bottom limits of the data, but it
tells you nothing about how the data values are arranged within those top and bottom
limits. Of course, the range is greatly affected by extreme values in the data.
The range R is the difference between the maximum and minimum value of X
i
. This
measure is unstable since it depends upon the two extreme values of the data and
not the entire set. The extreme values can result from exceptional observations, but
the range is useful to show the extent (or limits) of the data.
Data set 1: 27 39 65 47 95 32 76 85 94 40
Range = 95 (highest value)  27 (lowest value) = 68
Data set 2: 120 130 110 154 173 150 176 125 164 100 137 105
Range = 176 – 100 = 76
2. InterQuartile Range:
In order to reduce the influence of the extreme values, inter–quartile range (IQR) or
inter–decile range is often used as indicators of the dispersion of the data.
Inter–quartile range = q
3
– q
1
Inter–decile range = q
9
– q
1
This represents the difference between the upper quartile (75
th
percentile) value of
the distribution and the lower quartile (25
th
percentile) value. It is sometimes useful to
express the IQR in terms of the median as:
percentile
percentile percentile Lower Upper
50
25 75
Median
Q Q
This measure provides an indication of the spread of data drawn from a random
variable relative to the median. The interquartile range is the range of the middle 50%
of a distribution. Because any outliers in our distribution must be on the ends of the
distribution, the range as a measure of dispersion can be strongly influenced by
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SubjectResearch Methodology Page 6 of 30 Assignment # 6
outliers. One solution to this problem is to eliminate the ends of the distribution and
measure the range of scores in the middle. Thus, with the interquartile range we will
eliminate the bottom 25% and top 25% of the distribution, and then measure the
distance between the extremes of the middle 50% of the distribution that remains. To
actually compute some IQR’s we would need to use calculus. Instead, of that
possibility we will use a method that will yield a consistent, and somewhat accurate
answer. Before we compute the value, let’s learn some new definitions. A quartile is a
quarter or 25% of the distribution. When we compute the IQR we will want to find
each of the quartiles. The first quartile is the same as the 25
th
percentile because 25
percent of the distribution is at or below that point. The second quartile is the same
thing as the 50
th
percentile and the median. The third quartile is the same as the 75th
percentile. The IQR is the found by eliminating the values that lie between the bottom
end and the first
quartile (bottom 25%). We will also eliminate the values between the third quartile
and the top of the distribution. We then subtract the new low and high score of the left
over middle part of the distributions.
So, IQR = Quartile 3 – Quartile 1 or IQR = 75th
percentile – 25th percentile.
To compute the IQR first we arrange numbers from lowest to highest and
1) Find the median. The median is the 50th percentile and second quartile. It’s a
starting point for us to find the other quartiles.
2) Next we find the median of the bottom half of the distribution (ignoring the top
half). This value is the 25th percentile or first quartile because we have taken the
bottom 50% and cut it in half.
3) We find the median of the top half of the distribution just like we did for the
bottom. This value is the 75th percentile or third quartile.
4) Next we subtract the upper and lower medians you found in step 2 and 3.
In the following example the median is 8 because it is the average of the two middle
numbers. The value 8 is the 50th percentile or second quartile, though we will not use
this number in the computation.
1 2 5 6 7 9 10 12 15 19
Once we find the median we can divide the distribution into two halves
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SubjectResearch Methodology Page 7 of 30 Assignment # 6
1 2 5 6 7 9 10 12 15 19
Bottom 50% Top 50%
The median of the bottom 50% is 5. The median of the top 50% is 12.
So, IQR = 12 – 5 = 7
Bottom 25% Top 25%
1 2 5 6 7 9 10 12 15 19
Middle 50%
3. Percentile Range:
Percentile  A value that exceeds a specific percentage of the distribution. Thus, if
the 63rd percentile score for a set of students on the SAT verbal exam is 560, then
63% of scores are at or below 560.
Percentile describes the relative location of points anywhere along the range of a
distribution. A score that is at a certain percentile falls even with or above that
percent of scores. The median score of a distribution is at the 50th percentile: It is the
score at which 50% of other scores are below (or equal) and 50% are above.
Commonly used percentile measures are named in terms of how they divide
distributions. Quartiles divide scores into fourths, so that a score falling in the first
quartile lies within the lowest 25% of scores, while a score in the fourth quartile is
higher than at least 75% of the scores.
4. Average deviation:
The average deviation is a measure of scale based on the average of the absolute
deviations from the center of the distribution. For a normal distribution the average
deviation is somewhat less efficient than the standard deviation as a measure of
scale, but this advantage quickly reverses for distributions with heavier tails.
The average deviation (AD) is a reasonably robust measure of scale, usually defined
as:
i
X  m
AD =
n
¦
where m is some measure of location, usually the mean, but occasionally the median.
As defined, the AD is simply the average distance of observations from the center of
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SubjectResearch Methodology Page 8 of 30 Assignment # 6
the distribution. Taking deviations about the median rather than the mean minimizes
AD.
The average deviation is often referred to as the mean absolute deviation and
abbreviated M. A. D., but that notation is best used to refer to the median absolute
deviation.
5. Standard deviation and variance
By far the most commonly used measures of dispersion in the social sciences are
variance and standard deviation. Variance is the average squared difference of
scores from the mean score of a distribution. Standard deviation is the square root of
the variance.
In calculating the variance of data points, we square the difference between each
point and the mean because if we summed the differences directly, the result would
always be zero. For example, suppose three friends work on campus and earn $5.50,
$7.50, and $8 per hour, respectively. The mean of these values is $(5.50 + 7.50 +
8)/3 = $7 per hour. If we summed the differences of the mean from each wage, we
would get (5.507) + (7.507) + (87) = 1.50 + .50 + 1 = 0. Instead, we square the
terms to obtain a variance equal to 2.25 + .25 + 1 = 3.50. This figure is a measure of
dispersion in the set of scores.
The variance is the minimum sum of squared differences of each score from any
number. In other words, if we used any number other than the mean as the value
from which each score is subtracted, the resulting sum of squared differences would
be greater. (we can try it ourselves  if any number other than 7 can be plugged into
the preceding calculation and yield a sum of squared differences less than 3.50.)
The standard deviation is simply the square root of the variance. In some sense,
taking the square root of the variance "undoes" the squaring of the differences that
we did when we calculated the variance.
Variance and standard deviation of a population are designated by and ,
respectively. Variance and standard deviation of a sample are designated by s
2
and
s, respectively.
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SubjectResearch Methodology Page 9 of 30 Assignment # 6
Variance Standard Deviation
Population
Sample
In these equations, is the population mean, is the sample mean, N is the total
number of scores in the population, and n is the number of scores in the sample.
6. Concentration ratio
It is a measure commonly used for economic variables like income, consumption,
wealth, profits, turnover, production, population, etc.
To compute the Concentration Ratio, first we have to draw the concentric curv or the
Lorenz curve.
Let x be a variable which takes only positive values.
Let the be the total of all variable values.
For a given number x:
Let P(x) be the proportion of individuals with variable values not exceeding x.
Let T(x) be the total of their variate values and
Q(x) = T(x)/T the proportion of the total which can be attributed to these individuals.
The graph showing Q(x) against P(x) for various values of x is called the
concentration curve and the equiangular line Q is = P.
Then the concentration ration is defined as d =2A, such that 0<d<1. larger the value
of d, greater is the disparity between the individuals.
In addition to the end points (P
i
,Q
i
), I= 1,2,………n, where P
i
= P(x
i
) and Q
i
= Q(x
i
) ,x
1
<
x
2
<…..x
n
, the two terminal points (0,0) and (1,1) are on the concentration curve. The
concentration ratio is approximately evaluated by using the formula
d = P
1
Q
1
+ P
2
(Q
3
 Q
1
) + P
3
(Q
4
 Q
2
) +………+P
n
(1Q
n1
)  Q
n
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SubjectResearch Methodology Page 10 of 30 Assignment # 6
Ans2(a)
Random Experiments
Many experiments, when repeated under identical conditions, do not yield the same
result. For example, if the experiment consists of throwing a die, the result of any
single throw is unpredictable and varies from one throw to another. But the set of all
possible outcomes is fixed that is we know that the set consists of numbers from 1 to
6 (both inclusive), which are collectively the set of all possible outcomes. Other
examples are drawing a card from a pack, tossing a coin etc. these experiments are
known as Random Experiments.
A Random Experiment, having a well defined set of possible outcomes, can be
repeated a large number of times, independently and under identical conditions. The
outcome of any particular trial is unpredictable. However, if we toss a coin will yield
heads half the number of times and so also for tails. In a large number of throw of die,
we expect that each number will appear equal number of times i.e. 1/6
th
times of the
total throws.
Thus we say that fn, the number of times a particular outcome E (say, a die showing
the face ‘two’) occurs in n repetitions (where n is nay large number), is such that, as
n increases, the relative frequency fn/n tends to a limiting value p, which is called the
probability of the outcome.
Conditional Probability
The occurrence of E
2
after E
1
has occurred is called as the Conditional Probability of
E
2
given that E
1
has occurred. It is written as (E
2
/E
1
) i.e. conditional to E
1
happening,
what is the chance that E
2
happens. When calculating this, we would assume that E
1
has already happened. In the above example, we would calculate the chance of the
customer being of 3035 years of age given that the customer is a woman. In this we
assume that a customer has already walked into the shop and the customer is a
woman.
A student going to college does only one of the following three activities in any one
day:
He goes to the library (event A), or
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SubjectResearch Methodology Page 11 of 30 Assignment # 6
He goes to the canteen (B), or
He attends classes (C)
On any one day (entire day), the student will be doing any one and ONLY one of
these activities. Last month, for 15days, the student only visited the canteen and
came back home, 9 days of the month he spent visiting the library and remaining 6
days he spent attending classes before coming back home.
Therefore, the probabilities are P(a) = 0.3, P (B) = 0.5 and P (C) = 0.2 (note that the
sample space consists of three points and the sum of all probabilities is one)
Q. The principal is looking for the student. What are the chances that the student can
be found in either the canteen or is found attending classes that day?
A. This calls for calculating the union of event B and C = 0.5 + 0.2= 0.7
Q. What are the chances that he visit both the canteen and attends classes in a
single day?
A. This calls for finding the Intersection of the two events, which we know from data
given is not possible.
Ans2(b)
Estimation Procedures:
It is often necessary to estimate the total number of people in an affected population
or group.
A population may be difficult to count directly. This may be either because the
country does not have population registers or lists of people with characteristics of
interest to the RAR (because the group or behaviour is rare), or because people are
‘hidden’ or ‘hard to reach’ e.g.:
x People who engage in illicit or socially disapproved behaviours such as drug use
and sex work.
x People who are marginalised such as street children, homeless adults or mobile
or displaced populations.
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SubjectResearch Methodology Page 12 of 30 Assignment # 6
x Transient people, such as truck drivers, fisherman, seasonal labourers, migrant
workers.
Estimation methods can be used to:
x Estimate the total number of cases in a population.
x Estimate the prevalence of a particular behaviour or characteristic.
x Over a period of time, assess whether there are changes in the size of the
population.
Having an estimate of the size of the target population helps to:
x Persuade decision makers that interventions are needed.
x Assess the scale and location of interventions required (for example, the number
of outreach workers needed, or the number of treatment places required).
x Assess intervention coverage.
Estimation techniques generally use limited amounts of data from a number of known
cases. These data are usually obtained from existing data sources or collected during
the RAR. Estimation methods are not totally accurate. They produce estimates or a
rough idea of the size of, or changes in, the population.
Drawback of conventional measurement methods (such as surveys):
1. Some populations form a small proportion of the general population. A population
survey would need a huge sample size to accurately estimate the prevalence of a
rare behaviour.
2. There may be no appropriate sampling frame.
3. Surveys underestimate rare behaviours and the size of some population groups
due to reporting bias, nonresponse and noncontact. Socially excluded and
mobile groups will generally be missed in household surveys, eg out of school
young people will not be included in a school based Tobacco Survey.
4. Data obtained from (for example) treatment centres, social welfare departments,
and police arrest records, record only the number of reported cases. The number
of unreported and unknown cases could be several times this figure.
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SubjectResearch Methodology Page 13 of 30 Assignment # 6
5. Cases reported from, for example, hospital records, produce biased samples (e.g.
people treated for alcohol problems will often be older than those out of
treatment).
Importance of Hypothesis in Research:
It is evident that hypothesis skeptically deals with the variables relating to the real life
situation which provides the propositions and assumptions. If, by being tested, they
help the formulation of theory. While scientific method helps to formulate theory,
hypothesis is at the center of scientific method. Science, on the other hand,
integrates concepts, theory and accumulated knowledge developed from hypothesis,
analytical framework and experimentation.
Thus, hypothesis is part of every organized knowledgs, basis for analysis and
inspiration for investigation. As scientific method involves determination of facts
through observation, investigation and establishment of casual relationships between
variables hypothesis, which is part of scientific method, helps in all these activities.
Thus hypothesis has tremendous scope in science and scientific method.
As mentioned earlier, testing of hypothesis establishes relationship between
variables which predicts the same relationship in identical situations giving birth to
principles, thus hypothesis leads to principles which are the basis for every human
activity. To sum up, both theory and principle which act as the foundation of practice
on hypotheses. The scope of hypothesis is, therefore extensive, and hence it has
various sources.
Steps in Hypothesis Testing:
The basic logic of hypothesis testing has been presented somewhat informally in the
sections on "Ruling out chance as an explanation" and the "Null hypothesis."
1. The first step in hypothesis testing is to specify the null hypothesis (H
0
) and the
alternative hypothesis (H
1
). If the research concerns whether one method of
presenting pictorial stimuli leads to better recognition than another, the null
hypothesis would most likely be that there is no difference between methods (H
0
: µ
1

µ
2
= 0). The alternative hypothesis would be H
1
: µ
1
µ
2
. If the research concerned the
correlation between grades and SAT scores, the null hypothesis would most likely be
that there is no correlation (H
0
. = 0). The alternative hypothesis would be H
1
. 0.
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SubjectResearch Methodology Page 14 of 30 Assignment # 6
2. The next step is to select a significance level. Typically the .05 or the .01 level is
used.
3. The third step is to calculate a statistic analogous to the parameter specified by the
null hypothesis. If the null hypothesis were defined by the parameter µ
1
 µ
2
, then the
statistic M
1
 M
2
would be computed.
4. The fourth step is to calculate the probability value (often called the p value) which
is the probability of obtaining a statistic as different or more different from the
parameter specified in the null hypothesis as the statistic computed from the data.
The calculations are made assuming that the null hypothesis is true.
5. The probability value computed in Step 4 is compared with the significance level
chosen in Step 2. If the probability is less than or equal to the significance level, then
the null hypothesis is rejected; if the probability is greater than the significance level
then the null hypothesis is not rejected. When the null hypothesis is rejected, the
outcome is said to be "statistically significant"; when the null hypothesis is not
rejected then the outcome is said be "not statistically significant."
6. If the outcome is statistically significant, then the null hypothesis is rejected in favor
of the alternative hypothesis. If the rejected null hypothesis were that µ
1
 µ
2
= 0, then
the alternative hypothesis would be that µ
1
µ
2
. If M
1
were greater than M
2
then the
researcher would naturally conclude that µ
1
µ
2
.
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Ans3(a)
Importance of Research
Managerial economics may be viewed as economics applied to problem solving at
the level of the firm. The problem relates to choices and allocation of resources,
which are basically economic in nature and are faced by managers all the time.
Managerial research is also known as operation research. It was undertaken for the
for the first time in Second World War in America. It is also interdisciplinary research
done by mathematicians, Statisticians, Engineers, and other Scientists.
The operation researchers developed the concept of linear programming, inventory
models and game theory. They attempted to attain optimization. The framework of
optimization has been used a great deal in managerial economics. The operation
research has influenced managerial economics through its new concepts and models
for dealing with risk and uncertainly.
Managerial economics it primarily an aid to analyze and decision making in the
context of the firm. But in the management, more than decision making, the
implementation, control and conflict resolutions are also covered.
Managerial research is concerned with decision making at the managerial level it
considers the alternative theories of firm behaviour, decision making problem and
different approaches to arrive at the most appropriate answers to such problems. It
draws heavily from Microeconomics, Econometrics and operation research.
The managerial economics is considered to be applied microeconomics. The
functional areas of the managerial research cover the decision variables for firms.
The microeconomic principles and techniques from decision sciences. The decision
making area is related to the production decisions, the exchange decision and
consumption decision. This operation research necessitates the use of quantitative
techniques. Some of them are methods of estimation, optimization and discounted
cash flow techniques. These techniques are borrowed from statistics, operation
research and finance.
The case study method is useful in managerial research, it helps us to look for and
organize the data and evidence relevant to the problem at hand. A manager does not
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get all the data he needs well organized and presented to him on a platter. The cases
may bring out the complexity of the environment in which manager have to take
decisions.
Types of Research:
A research can be divided into two broad categories:
1. Scientific Research
2. Social Research
Scientific Research:
It is also known as the objective research or pure research. It is defined as a process
of knowing the new facts and verifying old ones, by the application of scientific
method to natural phenomena so as to come to uniform explanation of laws
governing these phenomena.
Social Research:
P.V. Young has defined social research. According to him, it is “the systemic method
of discovering new facts or verifying old facts, their sequences, interrelationship,
casual explanation and the natural laws which govern them.”
This definition explains the following characteristic features of social research:
a. Social research deals with phenomena. It studies the human behaviour.
b. It discover new facts and verifies old facts. With the improvement in the
technique and charges in the phenomena the researcher has to study the casual
relations between various human activities can also be studied in social research.
c. The researcher has to conduct scientific analysis, comparisons and also logical
interpretations of human behaviour.
The other types of research are as given below:
1. Descriptive Research and Analysis Research
2. Applied Research and Fundamental Research
3. Qualitative Research and Quantitative Research
4. Conceptual Research and Empirical Research
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5. One time Research and Longitudinal Research
6. field Research and Laboratory Research
7. Historical Research
8. Conclusion Oriented Research and Decision Oriented Research
1. Descriptive Research and Analysis Descriptive Research:
This type of research covers the surveys and far finding inquiries of different
kinds. It describes the state of affairs as it is today. Expost facto research is the
term often used in social research and business. Researcher cannot have his
control over the variables. The analytical research refers to the collection of the
facts, which are analysed critically.
2. Applied Research and Fundamental Research:
In applied research one can find a solution for an immediate problem of a society
or business organization. In fundamental research, one can generalize and
formulate a theory. P.V. Young refers the pure research as together data for
knowledge’s sake. Any natural phenomenon or an example in pure mathematics
can be explained in fundamental research, the studies relating to human
behaviour are conducted to make generalization about human behaviour and
they are included in the Fundamental Research. But the applied research covers
the socioeconomic and political studies, marketing research or evaluation
research. Therefore, the distinction between the fundamental research and
applied research can be stated as the former deals with finding information and
the latter as the base of its application to the practical problem.
3. Qualitative Research and Quantitative Research:
The quality is the base of qualitative research, whereas the quantitative research
is the measurement of quantity. The motivation research covers the reason of
human behaviour. On the behavioural research the qualitative research is useful.
4. Conceptual Research and Empirical Research:
In the Conceptual Research, abstract idea or theory is covered. Philosophers are
using it. The empirical research covers the experiences or observations.
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The empirical Research is known as the experimental type of research. The
researcher puts forth the hypothesis and then try to collect the facts. Such
research is appropriated when proof is sought. The certain variables affect other
variables in some way.
5. One time Research and Longitudinal Research:
One time research is confined to single time period. Longitudinal research is
carried on over several time periods.
6. Field Setting Research and Laboratory Research:
The research conducted in the field to analyze human behavior is known as field
setting research. If the research is conducted in the laboratory it is called
laboratory research.
7. Historical Research:
This is based on historical sources. It studies the events in the past. It studies the
philosophy of persons.
8. Conclusion Oriented Research and Decision Oriented Research:
Any problem is taken by a researcher, design the inquiry and get the conclusion
on the basis. This is known as conclusion oriented research. In decisionoriented
research, the researcher has to conduct his studies in the direction of the decision
maker. The best example of the decisionoriented research is the operation
research.
Ans3(b): Secondary Data
Type of Data:
Data may be described as Primary or Secondary
a. Primary data  collected by the researcher himself
b. Secondary data  collected by others to be "reused" by the researcher
Forms of Secondary Data:
Qualitative Sources
Ways of Using Secondary Sources
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o Exploratory phase  getting ideas
o Design Phase  definitions & sampling frames, question wording
o Supplement to Main Research
 ReInforcement &/Or Comparison
o Main Mode of Research
 Direct Data Collection Impossible
 Or Costly & Time Consuming
Limitations of Secondary Data
o Collected For A Different Purpose
o Problem of Definitions
o Problem of Comparability Over Time
o Lack of Awareness of Sources of Error/Bias
o Has the Data Been "Massaged"?
o What Do The Statistics Really Mean?
Eg. Health, Crime, Unemployment
o Limitations of Survey Data
Representativeness
Validity of Responses
o Limitations of Documents
Documents "Construct" As Well As Report Social Reality
How to Search & Use Secondary Sources?
o Documents  Bibliographic Skills, Use of Keywords, Boolean Operators
o Published Statistics
Guide to Official Statistics
Digests & Abstracts
Primary Publication
o Electronic Sources
Biron
Gateways  SOSIG, BUBL
Search Engines  Infoseek, Alta Vista, Webcrawler etc.
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Ans5(a)
Sources of Data:
Sources for Qualitative Research:
Biographies  subjective interpretation involved
Diaries  more spontaneous, less distorted by memory lapses
Memoirs  benefit/problem of hindsight
Letters  reveal interactions
Newspapers  public interest & opinion
Novels & Literature In General – e.g. Atkinson's tribute to usefulness of Gordon's
"Dr Novels"; McLelland's study of achievement motivation in different cultures via
children's stories & folktales
Handbooks, Policy Statements, Planning Documents, Reports, Historical & Official
Documents (Hansard, Royal Commission reports) etc. nb Marx's use of Factory
Inspectors reports in developing his theories of the labour process
Quantitative Sources
Published Statistics:
National Government Sources
Demographic (Census, Vital Statistics, Cancer Registrations)
Administrative (byproduct of Government)
Collected by Govt. Depts. overseen by ONS (eg. employment, prices, trade,
finance)
Government Surveys (input to Government)
General Household Survey (GHS)
Family Expenditure Survey (FES)
Labour Force Survey (LFS)
Family Resources Survey (FRS)
Omnibus Survey
Local Government Sources
Planning Documents
Trends Documents (eg former Strathclyde Social Trends and Economic Trends)
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Other Sources
Firms & Trade Associations eg Society of Motot Manufacturers & Traders (SMMT)
Market & Opinion Research eg Gallup, NOP, SCPR System 3
Trade Unions, TUC, STUC
Professional Bodies eg CIPFA (Chartered Instiute of Public Finance &
Accountancy) provides a Statistical Information Service re Local Government
Statistics
Political Parties
Voluntary & Charitable Bodies eg Low Pay Unit, SCF (Save the Children Fund),
Rowntree Foundation
Academic & Research Institutes eg
MicroSocial Change Research Centre (MSRC) at Essex Uni
National Institute for Economic & Social Rsearch (NIESR)
Institute for Fiscal Studies (IFS)
International Sources
EU, OECD, World Bank, IMF
NonPublished / Electronic Sources
Data Archives eg the Data Archive At Essex
Data SubSetting Service On Tape, Disk, Postal Or Via Janet
OnLine Access To National Computing Centres
MIMAS (Manchester Information & Associated Services)
EDINA (Edinburgh)
International Sources on Internet & Web
Data Collection:
After project formulation, data collection is taken up. In order to systematically collect
primary data, questionnaires and schedules are used.
A questionnaire is a schedule consisting of a number of coherent questions related
to various aspects of the topic under study. A schedule is a tabulated statement of
details.
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Questionnaire is used directly by the investigator for collecting information. A
questionnaire is a form of formulated series of questions related to a survey or
research study.
Data may be of two kinds: qualitative or quantitative. Qualitative data is generated
by:
1. observing an attribute of the population
2. classifying individuals of the population into different classes or categories based
on the attribute.
In case of quantitative data, the observations are a measurement of count. If we
actually calculate the return on investment of each firm, we will get observations that
are quantitative measure.
Raw Data: The data collected in any investigation is known as raw data. It is the data
before arranging for analysis. To present raw data in a way that is easy to
comprehend, one of the simplest way is to arrange it in an array or table in some
order.
Classification: Classification is the process of arranging the data into groups or
classes according to resemblance and similarities. For example, the number of
students registered in any institute in a particular session may be classified on the
basis of either gender, or birth place, or subject in graduation or number of family
members, and so on.
Research Design:
Research design is a purposeful scheme of action proposed to be carried out in a
sequence during the process of research focusing on the management problem to
be tackled. The main characteristics of Research Design are:
1. It must be scheme of problem solving through proper analysis, for which
systematic arrangement of managerial effort to investigate the problem is
necessary.
2. It destines the task of a researcher from identify a managerial problem and
problem area to writing with the help of collection, tabulation analysis and
interpretation of data.
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3. A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with
economy in procedure.
4. A research design is plan of action to be carried out in connection with research
project. It is not an unbreakable rule, nor a hard and fast strategy. It is a guideline
for the researcher to enable him to keep tract of his actions and to know weather
he was moving in the right direction in order to achieve his goal.
Steps in Research Design
1. Identifying and stating the management problem and the problem area.
2. Recognising and reconciling with the organizational goals and objectives.
3. Restating the management problem as the research problem.
4. Formulating a hypothesis, identifying the variable and skeptically demonstrating
the relation between variables.
5. Crystallising the objectives, purposes, rationale, scope and expected limitations
of the research.
6. Planning to formulate the research project identifying the resources including
financial and human resource.
7. Identifying the types of data to be collected and its sources.
8. Specifying the method of data collection and analysis
9. Estimating the expected result and comparing it with the company’s expectations
for problem and decision making.
10. Finalising a systematic scheme for proceeding with the project including sampling,
survey, analytical framework and report writing.
Ans5(b)
Sampling:
The process of selecting, randomly or otherwise, some items from a population we
are studying, and using these items to represent the population is called sampling.
We calculate sample statistics, can be frequency, mean, variance etc. from the
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sample and draw conclusions about population parameters from these. If we take all
items from population in our observations, it is called a census.
Types of Sampling:
B. Probability Sampling:
1. Simple Random Sampling (SRS)
In this method, each unit of population is assigned EQUAL chances of being picked
up into the sample. For example, if there are 1200 students in a batch and we want to
measure the average height using a sample of 30 students, each student has a
chance of 1/1200= 0.008 probability of being sampled.
This chance is consistent for all students only if the sampling is With Replacement. If
a population consists of N units is to be drawn in SRS with replacement, any unit ‘i’
continues to have the same chance 1/N of selection in each draw. It is possible that
the same unit is drawn again. The same student who was drawn the first time and his
height measured, could be drawn in the sample again. We will treat the same person
as another unit and count his height once again. Each student has the chance of
being selected all 30 times!
Therefore P (x= one particular student) = (1/N)30
2. Stratified Sampling
In this method of Probability Sampling, we first divide the population units into strata
based on some parameters.
SRS is not used in the corporate world as much as in Agriculture and space research
because it is not possible to find N. How will an organization find out exactly how
many number of people or households are using its brand?
3. Systematic Sampling
Another variation of the SRS, which is also considered as a method of Probability
Sampling is Systemetic Sampling. In this method, we first arrange the elements of
the population in some order not unrelated to the attribute we are measuring. This
arrangement is not physical but instead a list which will help us to select a sample.
C. Purposive Sampling
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This method does not use the concepts of probability and is of greater application in
the corporate world. Here, we are not concerned with assigning equal chances for
each unit to be sampled. Instead, the concern is to ensure that the sample is as
representative of the population using the minimum number of sample size.
Traditionally, Purposive sampling is Judgment sampling, through over a period of
time, there are other methods that fall under the scope of Purposive Sampling.
1. Judgment Sampling
Judgment sampling, as the term suggests is dependent on the experience and the
judgment of the researcher. This is the reason why experienced researcher, people
who have had previous experience with the product or the consumer segment are
often left to decide by themselves what the sample size should be. The researcher
also would decide from which city or state these sample units must be picked up.
2. Convenience Sampling
In this method, the researcher picks up sample elements as and how it is convenient
to him, for example, if you have to study the expenditure pattern of middleincome
household, you will select the appropriate households falling in that income segment
within your city. Maybe, even within you locality, you may not travel all the way to
another state or city for this study. What makes you choose this method of
Convenience Sampling? It is the inherent assumption that all middleincome
households would have a homogenous pattern of expenditure. If this assumption of
homogeneity cannot be made, or is made arroneously, then Convenience Sampling
will not give a true picture of the population. The advantage of lower cost and time
saved must not be given priority if the assumption about homogeneity cannot be
made.
3. Quota Sampling
This method is similar to Stratified Sampling except that there is no SRS used to
select the elements. Once the group have been created based on some population
parameter, referred to as Quotas in this case, we will choose the elements within
each quota by using either Judgment Sampling or Convenience Sampling.
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Ans6(b)
Main Features of Report Writing
1. Purpose of study
Research is one direction oriented study. Researcher should discuss the problem of
his study. He must give background of the problem. He must lay down his hypothesis
of the study. Hypothesis is the statement indicating the nature of the problem. He
should be able to collect data, analyze it and prove the hypothesis. The importance of
the problem for the advancement of knowledge or removed of some evil may also be
explained. He must use review of literature or the data from secondary source for
explaining the statement
2. Significance of his study
Research is research and hence the researcher may highlight the earlier research in
new manner or establish new theory. He must refer earlier research work and
distinguish his own research from earlier work. He must explain how his research is
different and how his research topic is different and how his research topic is
important. In a statement of his problem, he must be able to explain in brief the
historical account of the topic and way in which he can make an attempt. In his study
to conduct the research on his topic.
3. Review of literature
Research is a continuous process. He cannot avoid earlier research work. He must
start with earlier. He should note down all such research work, published in books,
journals or unpublished thesis. He will get guidelines for his research from taking a
review of literature. He should collect information in respect of earlier research work.
He should enlist them in the given below:
(i) Author/researcher
(ii) Title of Research/ name of book
(iii) Publisher
(iv) Year of publication
(v) Object of his study
(vi) Conclusion.
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4. Methodology
It is related to collection of data. There are two sources for collecting data; primary
and secondary. Primary data is original and collected in field work, either through
questionnaire interviews. The secondary data relied on library work. Such primary
data are collected by sampling method. The procedure for selecting the sample must
be mentioned. The methodology must give various aspects of the problem that are
studied for valid generalization about the phenomena. The scale of measurement
must be explained along with different concepts used in the study.
5. Interpretation of data
Mainly the data collected from primary source need to be interpreted in systematic
manner. The tabulation must be completed to draw conclusions. All the questionnaire
is prepared, a copy of it must be given in appendix.
6. Conclusions and suggestions
Data analysis forms the crux of the problem. The information collected in field work is
useful to draw conclusions of study. In relation with the objectives of study the
analysis of data may lead the researcher to pin point the suggestions. This is the
most important part of study. The conclusion must be based on logical and statistical
reasoning. The report should contain not only the generalization of inference but also
the basis on which the inference are drawn. All sorts of proofs, numerical and logical,
must be given in support of any theory that has been advanced. He should point out
the limitations of his study.
7. Bibliography
The list of references must be arranged in alphabetical order and be presented in
appendix. The books should be given in first section and articles are in second
section and research projects in the third. The patterns of bibliography is considered
convenient and satisfactory from the point of view of reader.
8. Appendices
The general information in tabular form which is not directly used in the analysis of
data but which is useful to understand the background of study can be given in
appendix.
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Ans6(d)
Qualitative and Quantitative data
Data may be one of the two kinds: qualitative or quantitative. Qualitative data is
generated by
 observing an attribute of the population and then
 classifying individuals of the population into different classes or categories based
on that attribute
These classes may or may not admit grading. For example, if ‘type of industry’ is the
attribute we consider, a unit (the company or firm we are observing) may belong to
food, textile, building materials, household goods etc. which are graded. We can not
say that the food industry is better than the textile industry. But if the attribute is
return on investments, we can grade the firms based on say, highly profitable,
moderately profitable and not very profitable.
In case of quantitative data, the observations are a measurement or count. If we
actually calculate the return on investment of ach firm, we will get observations that
are a quantitative measure.
Ans6(e)
Tabulation and Coding
Once the task of classification has been completed, one is now ready for tabulation.
Tabular presentation of raw data consists of a table. Each table has a title, column
caption, row caption, body and foot note. The title gives a brief description of the
contents indicating the nature and the extent of data, reference period etc. column
heading describe he characteristic, usually the more important, together with sub
classifications. Similarly the row captions describe the crossclassification characters
together with subtotals, totals etc. Footnotes are used most often to indicate the
source of the data and sometimes to highlight/ explain specific deviation.
All classifications, qualitative, geographical, chronological or quantitative can be
treated this way. Let us take the example of census data. The given population is
divided+ as literates, and illiterates (basis is education a qualitative basis) and also
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according to age (020, 2040, 4060, 6080 and 80100). Based on the census
returns for the city, the following table can be constructed, with the education status
as the defining characteristic and age groups as crossclassifying rows. In addition,
gender of the population is also specified as a subclassification
Ans6(f)
Random Experiments
Many experiments, when repeated under identical conditions, do not yield the same
result. For example, if the experiment consists of throwing a die, the result of any
single throw is unpredictable and varies from one throw to another. But the set of all
possible outcomes is fixed that is we know that the set consists of numbers from 1 to
6 (both inclusive), which are collectively the set of all possible outcomes. Other
examples are drawing a card from a pack, tossing a coin etc. these experiments are
known as Random Experiments.
A Random Experiment, having a well defined set of possible outcomes, can be
repeated a large number of times, independently and under identical conditions. The
outcome of any particular trial is unpredictable. However, if we toss a coin will yield
heads half the number of times and so also for tails. In a large number of throw of die,
we expect that each number will appear equal number of times i.e. 1/6
th
times of the
total throws.
Thus we say that fn, the number of times a particular outcome E (say, a die showing
the face ‘two’) occurs in n repetitions (where n is nay large number), is such that, as
n increases, the relative frequency fn/n tends to a limiting value p, which is called the
probability of the outcome.
Ans6(g)
Fundamental and Applied Research:
In applied research one can find a solution for an immediate problem of a society or
business organization. In fundamental research, one can generalize and formulate a
theory. P.V. Young refers the pure research as together data for knowledge’s sake.
Any natural phenomenon or an example in pure mathematics can be explained in
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SubjectResearch Methodology Page 30 of 30 Assignment # 6
fundamental research. The studies relating to human behaviour are conducted to
make generalization about human behaviour and they are included in the
fundamental Research. But the applied research covers the socioeconomic and
political studies, marketing research or evaluation research. Therefore, the distinction
between the fundamental research and applied research can be stated as the former
deals with finding information and the latter as the base of its application to the
practical problem.
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