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Roll No. : 510910259

Learning Centre : Systems Domain (2779)

Subject : Research Methodology

Assignment No. : Set – II (MB0034)

Date of Submission : 2010
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MBA Semester 3
MB0034– Research Methodology
Assignment Set- 2

1. Write 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 frequentist 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 that data was assuming the null
hypothesis were true. If the data appears 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 looks 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 gives 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.
The term was originally coined by English geneticist and statistician Ronald Fisher.

In some versions of statistical hypothesis testing (such as developed by Jerzy Neyman and Egon
Pearson), the null hypothesis is tested against an alternative hypothesis. This alternative may or may not
be the logical negation of the null hypothesis. The use of alternative hypotheses was not part of Ronald
Fisher's formulation of statistical hypothesis testing, though alternative hypotheses are standardly used

(b) Exploratory research provides insights into and comprehension of an issue or situation. It
should draw definitive conclusions only with extreme caution. Exploratory research is a type of research
conducted because a problem has not been clearly defined. Exploratory research helps determine the
best research design, data collection method and selection of subjects. Given its fundamental nature,
exploratory research often concludes that a perceived problem does not actually exist.

Exploratory research often relies on secondary research such as reviewing available literature
and/or data, or qualitative approaches such as informal discussions with consumers, employees,
management or competitors, and more formal approaches through in-depth interviews, focus groups,
projective methods, case studies or pilot studies. The Internet allows for research methods that are more
interactive in nature: E.g., RSS feeds efficiently supply researchers with up-to-date information; major
search engine search results may be sent by email to researchers by services such as Google Alerts;
comprehensive search results are tracked over lengthy periods of time by services such as Google
Trends; and Web sites may be created to attract worldwide feedback on any subject.

The results of exploratory research are not usually useful for decision-making by themselves, but
they can provide significant insight into a given situation. Although the results of qualitative research
can give some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how
often" or "how many."
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Exploratory research is not typically generalizable to the population at large.

(c) A sample is a subject chosen from a population for investigation. A random sample is one
chosen by a method involving an unpredictable component. Random sampling can also refer to taking
a number of independent observations from the same probability distribution, without involving any
real population. A probability sample is one in which each item has a known probability of being in the

The sample usually will not be completely representative of the population from which it was
drawn— this random variation in the results is known as sampling error. In the case of random samples,
mathematical theory is available to assess the sampling error. Thus, estimates obtained from random
samples can be accompanied by measures of the uncertainty associated with the estimate. This can take
the form of a standard error, or if the sample is large enough for the central limit theorem to take effect,
confidence intervals may be calculated.

(d) When we are dealing with data at the ordinal level, such as ranks, we must use a measure of
correlation that is designed to handle ordinal data. The Spearman Rank Order Correlation Coefficient
was developed by Spearman to use with this type of data. The Symbol for the Spearman Rank Order

Correlation Coefficient is , r sub s, or the Greek letter rho ( ).

The formula for the Spearman Correlation Coefficient is:

Where 6 is a constant (it is always used in the formula),

D refers to the difference between subjects ranks on the two variables,

and N is the number of subjects.

2. Elaborate the format of a research report touching briefly on the mechanics of writing.

Ans: The format of a research report is given below:

I. Prefatory Items

 Title page
 Declaration
 Certificates
 Preface/ acknowledgements
 Table of contents
 List of tables
 List of graphs/ figures/ charts
 Abstract or synopsis

II. Body of the Report
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 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.

Research report is a means for communicating research experience to others. The purpose of
the research report is to communicate to interested persons the methodology and the results of the
study in such a manner as to enable them to understand the research process and to determine its
validity. Research report is a narrative and authoritative document on the outcome of a research effort.
It represents highly specific information for a clearly designated audience. It serves as a means for
presenting the problem studied, methods and techniques used for collecting and analyzing data,
findings and conclusions and recommendations. It serves as a basic reference material for future use. It
is a means for judging the quality of research project. It is a means for evaluating researcher’s
competency. It provides a systematic knowledge on problems and issues analyzed. In a technical report a
comprehensive full report of the research process and its outcome. It covers all the aspects of the
research process. In popular report the reader is less interested in the methodological details, but more
interested in the findings of the study. An interim report in such case can narrate what has been done
so far and what was its outcome. It presents a summary of the findings of that part of analysis which has
been completed. Summary report is meant for lay audience i.e., the general pubic. It is written in non-
technical, simple language with pictorial charts it just contains objectives, findings and its implications.
It is a short report of two to three pages. Research abstract is a short summary of technical report. It is
prepared by a doctoral student on the eve of submitting his thesis. Research article is designed for
publication in a professional journal. A research article must be clearly written in concise and
unambiguous language.
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3. Discuss the importance of case study method.

Ans: Case study research excels at bringing us to an understanding of a complex issue or object and
can extend experience or add strength to what is already known through previous research. Case studies
emphasize detailed contextual analysis of a limited number of events or conditions and their
relationships. Researchers have used the case study research method for many years across a variety of
disciplines. Social scientists, in particular, have made wide use of this qualitative research method to
examine contemporary real-life situations and provide the basis for the application of ideas and
extension of methods. Researcher Robert K. Yin defines the case study research method as an empirical
inquiry that investigates a contemporary phenomenon within its real-life context; when the boundaries
between phenomenon and context are not clearly evident; and in which multiple sources of evidence
are used (Yin, 1984, p. 23).

Critics of the case study method believe that the study of a small number of cases can offer no
grounds for establishing reliability or generality of findings. Others feel that the intense exposure to
study of the case biases the findings. Some dismiss case study research as useful only as an exploratory
tool. Yet researchers continue to use the case study research method with success in carefully planned
and crafted studies of real-life situations, issues, and problems. Reports on case studies from many
disciplines are widely available in the literature.

This paper explains how to use the case study method and then applies the method to an
example case study project designed to examine how one set of users, non-profit organizations, make
use of an electronic community network. The study examines the issue of whether or not the electronic
community network is beneficial in some way to non-profit organizations and what those benefits might

Many well-known case study researchers such as Robert E. Stake, Helen Simons, and Robert K.
Yin have written about case study research and suggested techniques for organizing and conducting the
research successfully. This introduction to case study research draws upon their work and proposes six
steps that should be used:

 Determine and define the research questions
 Select the cases and determine data gathering and analysis techniques
 Prepare to collect the data
 Collect data in the field
 Evaluate and analyze the data
 Prepare the report

Step 1. Determine and Define the Research Questions
The first step in case study research is to establish a firm research focus to which the
researcher can refer over the course of study of a complex phenomenon or object. The
researcher establishes the focus of the study by forming questions about the situation or
problem to be studied and determining a purpose for the study. The research object in a case
study is often a program, an entity, a person, or a group of people. Each object is likely to be
intricately connected to political, social, historical, and personal issues, providing wide ranging
possibilities for questions and adding complexity to the case study. The researcher investigates
the object of the case study in depth using a variety of data gathering methods to produce
evidence that leads to understanding of the case and answers the research questions.
Case study research generally answers one or more questions which begin with "how" or "why."
The questions are targeted to a limited number of events or conditions and their inter-
relationships. To assist in targeting and formulating the questions, researchers conduct a
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literature review. This review establishes what research has been previously conducted and leads
to refined, insightful questions about the problem. Careful definition of the questions at the
start pinpoints where to look for evidence and helps determine the methods of analysis to be
used in the study. The literature review, definition of the purpose of the case study, and early
determination of the potential audience for the final report guide how the study will be
designed, conducted, and publicly reported.
Step 2. Select the Cases and Determine Data Gathering and Analysis Techniques
During the design phase of case study research, the researcher determines what
approaches to use in selecting single or multiple real-life cases to examine in depth and which
instruments and data gathering approaches to use. When using multiple cases, each case is
treated as a single case. Each case conclusions can then be used as information contributing to
the whole study, but each case remains a single case. Exemplary case studies carefully select
cases and carefully examine the choices available from among many research tools available in
order to increase the validity of the study. Careful discrimination at the point of selection also
helps erect boundaries around the case.
The researcher must determine whether to study cases which are unique in some way
or cases which are considered typical and may also select cases to represent a variety of
geographic regions, a variety of size parameters, or other parameters. A useful step in the
selection process is to repeatedly refer back to the purpose of the study in order to focus
attention on where to look for cases and evidence that will satisfy the purpose of the study and
answer the research questions posed. Selecting multiple or single cases is a key element, but a
case study can include more than one unit of embedded analysis. For example, a case study may
involve study of a single industry and a firm participating in that industry. This type of case
study involves two levels of analysis and increases the complexity and amount of data to be
gathered and analyzed.
A key strength of the case study method involves using multiple sources and techniques
in the data gathering process. The researcher determines in advance what evidence to gather
and what analysis techniques to use with the data to answer the research questions. Data
gathered is normally largely qualitative, but it may also be quantitative. Tools to collect data can
include surveys, interviews, documentation review, observation, and even the collection of
physical artefacts.
The researcher must use the designated data gathering tools systematically and properly
in collecting the evidence. Throughout the design phase, researchers must ensure that the study
is well constructed to ensure construct validity, internal validity, external validity, and
reliability. Construct validity requires the researcher to use the correct measures for the
concepts being studied. Internal validity (especially important with explanatory or causal
studies) demonstrates that certain conditions lead to other conditions and requires the use of
multiple pieces of evidence from multiple sources to uncover convergent lines of inquiry. The
researcher strives to establish a chain of evidence forward and backward. External validity
reflects whether or not findings are generalizable beyond the immediate case or cases; the more
variations in places, people, and procedures a case study can withstand and still yield the same
findings, the more external validity. Techniques such as cross-case examination and within-case
examination along with literature review helps ensure external validity. Reliability refers to the
stability, accuracy, and precision of measurement. Exemplary case study design ensures that the
procedures used are well documented and can be repeated with the same results over and over
Step 3. Prepare to Collect the Data
Because case study research generates a large amount of data from multiple sources,
systematic organization of the data is important to prevent the researcher from becoming
overwhelmed by the amount of data and to prevent the researcher from losing sight of the
original research purpose and questions. Advance preparation assists in handling large amounts
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of data in a documented and systematic fashion. Researchers prepare databases to assist with
categorizing, sorting, storing, and retrieving data for analysis.
Exemplary case studies prepare good training programs for investigators, establish clear
protocols and procedures in advance of investigator field work, and conduct a pilot study in
advance of moving into the field in order to remove obvious barriers and problems. The
investigator training program covers the basic concepts of the study, terminology, processes,
and methods, and teaches investigators how to properly apply the techniques being used in the
study. The program also trains investigators to understand how the gathering of data using
multiple techniques strengthens the study by providing opportunities for triangulation during
the analysis phase of the study. The program covers protocols for case study research, including
time deadlines, formats for narrative reporting and field notes, guidelines for collection of
documents, and guidelines for field procedures to be used. Investigators need to be good
listeners who can hear exactly the words being used by those interviewed. Qualifications for
investigators also include being able to ask good questions and interpret answers. Good
investigators review documents looking for facts, but also read between the lines and pursue
collaborative evidence elsewhere when that seems appropriate. Investigators need to be flexible
in real-life situations and not feel threatened by unexpected change, missed appointments, or
lack of office space. Investigators need to understand the purpose of the study and grasp the
issues and must be open to contrary findings. Investigators must also be aware that they are
going into the world of real human beings who may be threatened or unsure of what the case
study will bring.
After investigators are trained, the final advance preparation step is to select a pilot site
and conduct a pilot test using each data gathering method so that problematic areas can be
uncovered and corrected. Researchers need to anticipate key problems and events, identify key
people, prepare letters of introduction, establish rules for confidentiality, and actively seek
opportunities to revisit and revise the research design in order to address and add to the
original set of research questions.
4. Collect Data in the Field
The researcher must collect and store multiple sources of evidence comprehensively
and systematically, in formats that can be referenced and sorted so that converging lines of
inquiry and patterns can be uncovered. Researchers carefully observe the object of the case
study and identify causal factors associated with the observed phenomenon. Renegotiation of
arrangements with the objects of the study or addition of questions to interviews may be
necessary as the study progresses. Case study research is flexible, but when changes are made,
they are documented systematically.
Exemplary case studies use field notes and databases to categorize and reference data so
that it is readily available for subsequent reinterpretation. Field notes record feelings and
intuitive hunches, pose questions, and document the work in progress. They record
testimonies, stories, and illustrations which can be used in later reports. They may warn of
impending bias because of the detailed exposure of the client to special attention, or give an
early signal that a pattern is emerging. They assist in determining whether or not the inquiry
needs to be reformulated or redefined based on what is being observed. Field notes should be
kept separate from the data being collected and stored for analysis.
Maintaining the relationship between the issue and the evidence is mandatory. The
researcher may enter some data into a database and physically store other data, but the
researcher documents, classifies, and cross-references all evidence so that it can be efficiently
recalled for sorting and examination over the course of the study.
Step 5. Evaluate and Analyze the Data
The researcher examines raw data using many interpretations in order to find linkages
between the research object and the outcomes with reference to the original research questions.
Throughout the evaluation and analysis process, the researcher remains open to new
opportunities and insights. The case study method, with its use of multiple data collection
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methods and analysis techniques, provides researchers with opportunities to triangulate data in
order to strengthen the research findings and conclusions.
The tactics used in analysis force researchers to move beyond initial impressions to
improve the likelihood of accurate and reliable findings. Exemplary case studies will deliberately
sort the data in many different ways to expose or create new insights and will deliberately look
for conflicting data to disconfirm the analysis. Researchers categorize, tabulate, and recombine
data to address the initial propositions or purpose of the study, and conduct cross-checks of
facts and discrepancies in accounts. Focused, short, repeat interviews may be necessary to gather
additional data to verify key observations or check a fact.
Specific techniques include placing information into arrays, creating matrices of
categories, creating flow charts or other displays, and tabulating frequency of events.
Researchers use the quantitative data that has been collected to corroborate and support the
qualitative data which is most useful for understanding the rationale or theory underlying
relationships. Another technique is to use multiple investigators to gain the advantage provided
when a variety of perspectives and insights examine the data and the patterns. When the
multiple observations converge, confidence in the findings increases. Conflicting perceptions,
on the other hand, cause the researchers to pry more deeply.
Another technique, the cross-case search for patterns, keeps investigators from reaching
premature conclusions by requiring that investigators look at the data in many different ways.
Cross-case analysis divides the data by type across all cases investigated. One researcher then
examines the data of that type thoroughly. When a pattern from one data type is corroborated
by the evidence from another, the finding is stronger. When evidence conflicts, deeper probing
of the differences is necessary to identify the cause or source of conflict. In all cases, the
researcher treats the evidence fairly to produce analytic conclusions answering the original
"how" and "why" research questions.
Step 6. Prepare the report
Exemplary case studies report the data in a way that transforms a complex issue into
one that can be understood, allowing the reader to question and examine the study and reach
an understanding independent of the researcher. The goal of the written report is to portray a
complex problem in a way that conveys a vicarious experience to the reader. Case studies
present data in very publicly accessible ways and may lead the reader to apply the experience in
his or her own real-life situation. Researchers pay particular attention to displaying sufficient
evidence to gain the readers confidence that all avenues have been explored, clearly
communicating the boundaries of the case, and giving special attention to conflicting
Techniques for composing the report can include handling each case as a separate
chapter or treating the case as a chronological recounting. Some researchers report the case
study as a story. During the report preparation process, researchers critically examine the
document looking for ways the report is incomplete. The researcher uses representative
audience groups to review and comment on the draft document. Based on the comments, the
researcher rewrites and makes revisions. Some case study researchers suggest that the document
review audience include a journalist and some suggest that the documents should be reviewed
by the participants in the study.

4. 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
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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.

Components of a Table

The major components of a table are:

A Heading:
(a) Table Number
(b) Title of the Table
(c) Designation of units

B Body
1. Sub-head, Heading of all rows or blocks of stub items
1. Body-head: Headings of all columns or main captions and their sub-captions.
2. 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:

1. 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.
2. 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.
3. The captions (or column headings) should be clear and brief.
4. The units of measurement under each heading must always be indicated.
5. 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.
6. 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.
7. Usually lines separate columns from one another. Lines are always drawn at the top and
bottom of the table and below the captions.
8. The columns may be numbered to facilitate reference.
9. All column figures should be properly aligned. Decimal points and “plus” or “minus” signs
should be in perfect alignment.
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10. Columns and rows that are to be compared with one another should be brought closed
11. Totals of rows should be placed at the extreme right column and totals of columns at the
12. In order to emphasize the relative significance of certain categories, different kinds of type,
spacing and identifications can be used.
13. 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
14. Miscellaneous and exceptions items are generally placed in the last row of the table.
15. Usually the larger number of items is listed vertically. This means that a table’s length is more
than its width.
16. Abbreviations should be avoided whenever possible and ditto marks should not be used in a
17. 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 millimetres or a tenth of an inch.

Class Intervals: Ordinarily, the number of class intervals may not be less than 5 not more than 15,
depending on the nature of the data and the number of cases being studied. After noting the highest
and lower values and the feature of the data, the number of intervals can be easily determined.

For many types of data, it is desirable to have class intervals of uniform size. The intervals
should neither be too small nor too large. Whenever possible, the intervals should represent common
and convenient numerical divisions such as 5 or 10, rather than odd division such as 3 to 7. Class
intervals must be clearly designated in a frequency table in such a way as to obviate any possibility of
misinterpretation of confusion. For example, to present the age group of a population, the use of
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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.

5. Write 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 statistics, the terms type I error (also, α error, false alarm rate (FAR) or false
positive) and type II error (β error, miss rate or a false negative) are used to describe possible errors
made in a statistical decision process. In 1928, Jerzy Neyman (1894-1981) and Egon Pearson (1895-
1980), both eminent statisticians, discussed the problems associated with "deciding whether or not a
particular sample may be judged as likely to have been randomly drawn from a certain population"
(1928/1967, p. 1), and identified "two sources of error", namely:

Type I (α): reject the null hypothesis when the null hypothesis is true, and
Type II (β): fail to reject the null hypothesis when the null hypothesis is false

In systems theory an additional type III error is often defined:

Type III (δ): asking the wrong question and using the wrong null hypothesis.

In 1930, they elaborated on these two sources of error, remarking that "in testing hypotheses
two considerations must be kept in view, (1) we must be able to reduce the chance of rejecting a true
hypothesis to as low a value as desired; (2) the test must be so devised that it will reject the hypothesis
tested when it is likely to be false."[

When you conduct a test of statistical significance, whether it is from a correlation, an
ANOVA, a regression or some other kind of test, you are given a p-value somewhere in the output. If
your test statistic is symmetrically distributed, you can select one of three alternative hypotheses. Two of
these correspond to one-tailed tests and one corresponds to a two-tailed test. However, the p-value
presented is (almost always) for a two-tailed test. But how do you choose which test? Is the p-value
appropriate for your test? And, if it is not, how can you calculate the correct p-value for your test given
the p-value in your output?

(b) What is a two-tailed test?

First let's start with the meaning of a two-tailed test. If you are using a significance level of 0.05,
a two-tailed test allots half of your alpha to testing the statistical significance in one direction and half of
your alpha to testing statistical significance in the other direction. This means that .025 is in each tail
of the distribution of your test statistic. When using a two-tailed test, regardless of the direction of the
relationship you hypothesize, you are testing for the possibility of the relationship in both
directions. For example, we may wish to compare the mean of a sample to a given value x using a t-
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test. Our null hypothesis is that the mean is equal to x. A two-tailed test will test both if the mean is
significantly greater than x and if the mean significantly less than x. The mean is considered significantly
different from x if the test statistic is in the top 2.5% or bottom 2.5% of its probability distribution,
resulting in a p-value less than 0.05.

What is a one-tailed test?

Next, let's discuss the meaning of a one-tailed test. If you are using a significance level of .05, a
one-tailed test allots all of your alpha to testing the statistical significance in the one direction of
interest. This means that .05 is in one tail of the distribution of your test statistic. When using a one-
tailed test, you are testing for the possibility of the relationship in one direction and completely
disregarding the possibility of a relationship in the other direction. Let's return to our example
comparing the mean of a sample to a given value x using a t-test. Our null hypothesis is that the mean
is equal to x. A one-tailed test will test either if the mean is significantly greater than x or if the mean is
significantly less than x, but not both. Then, depending on the chosen tail, the mean is significantly
greater than or less than x if the test statistic is in the top 5% of its probability distribution or bottom
5% of its probability distribution, resulting in a p-value less than 0.05. The one-tailed test provides
more power to detect an effect in one direction by not testing the effect in the other direction.

(c) Selecting a Significant Level: 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(hei 174 175 176 177 178 182 183 186 189 193
Y(wei 61 65 67 68 72 74 80 87 92 95

Ans: Karl Pearson’s Co-Efficient of Correlation: 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:
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Rakesh Kumar Singh

Direct method

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

SDx = standard deviation of x series = x(2 x/N)/ N) – ( 2

SDy = standard deviation of y series = y(2 y/N)/ N) – ( 2

Shortcut Method using Assumed Mean

If short cut method is used using assumed mean, the formula for obtaining Karl Pearson’s Co-Efficient
of Correlation is:

dy/N)dx/N X dxdy / N – (Covariance between x and y =

SDx = dx(2 dx /N)/ N) – ( 2

SDy = dy(2 dy /N)/ N) – ( 2

Steps in calculating Karl Pearson’s Correlation Coefficient using Shortcut Method

 Assume means of x and y series
 Take deviations of x and y series from assumed mean and get dx and dy
 Square the dx and dy and find the sum of squares and get dx2 and dy2.
 Multiply the corresponding deviations of x and y series and total the products to get dxdy.

If the deviations are taken from the arithmetic mean dx = 0 and dy =0 and the formula becomes

Shortcut Method using Arithmetic Mean

If short cut method is used using actual mean, the formula for obtaining Karl Pearson’s Co-Efficient of
Correlation is:

Interpreting Co-Efficient of Correlation
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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.

Probable Error

Probable Error of Correlation coefficient is estimated to find out the extent to which the value
of r is dependable. If Probable Error is added to or subtracted from the correlation coefficient, it would
give such limits within which we can reasonably expect the value of correlation to vary.

If the coefficient of correlation is less than Probable Error it will not be significant. If the
coefficient of correlation r is more than six times the Probable Error, correlation is definitely significant.
If Probable Error is 0.5 or more, it is generally considered as significant. Probable Error is estimated by
the following formula

PE = 0.6745 (1- r2/ N)

X Y dx dy dx2 dy2 dxdy
174 61 -01 -19 01 361 19
A(175) 65 00 -15 00 225 00
176 67 01 -13 01 169 -13
177 68 02 -12 04 144 -24
178 72 03 -08 09 64 -24
182 74 07 -06 49 36 -42
183 A(80) 08 00 64 00 00
186 87 11 07 121 49 77
189 92 14 12 196 144 168
193 95 18 15 324 225 270
63 -39 769 1417 431

Covariance between X and Y= ∑dxdy/N – (∑dx/N X ∑dy/N)

r = ∑dxdy/N – (∑dx/N X ∑dy/N) / √ (∑ dx2 /N) – (∑dx/N)2 X √(∑ dy2 /N) – (∑dy/N)2

= 0.8454511 (putting the values we get approximately)