Assignment: MBA – SEM III

Subject Code: MB0034

Research Methodology

Set I
Question1. What do you mean by research? Explain its significance in social
and business sciences.

Answer: Meaning and Definition of Research: Research simply means a

search for facts – answers to questions and solutions to problems. It is a
purposive investigation. It is an organized inquiry. It seeks to find explanations to
unexplained phenomenon to clarify the doubtful facts and to correct the
misconceived facts.

The search for facts may be made through either:

Arbitrary (or unscientific) Method: It’s a method of seeking answers to

questions consisting of imagination, opinion, blind belief or impression.

Scientific Method: This is a systematic rational approach to seeking facts. It is

objective, precise and arrives at conclusions on the basis of verifiable evidences.

Significance of Research in Social and Business Sciences

Research encourages scientific and inductive thinking, besides promoting the
development of logical habits of thinking and organization. The role of research
in applied economics in the context of an economy or business is greatly
increasing in modern times. The increasingly complex nature of government and
business has raised the use of research in solving operational problems.
Research assumes significant role in formulation of economic policy, for both the
government and business. It provides the basis for almost all government
policies of an economic system. Government budget formulation, for example,
depends particularly on the needs and desires of people, and the availability of
revenues, which requires research. Research helps to formulate alternative
policies, in addition to examining the consequences of these alternatives.

Thus, research as a tool of government economic policy formulation involves

three distinct stages of operation which are as follows:

 Investigation of economic structure through continual compilation of facts

 Diagnoses of events that are taking place and the analysis of the forces
underlying them
 The prognosis, i.e., the prediction of future developments

Research also assumes a significant role in solving various operational and

planning problems associated with business and industry, in several ways,
operations research, market research and motivational research are vital and
their results assist in taking business decisions.

Research is equally important to social scientist for analyzing social relationships

and seeking explanations to various social problems. It gives intellectual
satisfaction of knowing things for the sake of knowledge. It also possesses
practical utility for the social scientist to gain knowledge so as to be able to do
something better or in a more efficient matter. Thus, research in social sciences
is concerned with both knowledge for its own sake, and knowledge for what it
can contribute to solve practical problems.

Question2: What is meant by research problem? And what are the

characteristics of a good research problem?
Answer: Meaning of Research Problem: A research problem in simple words
is some difficulty experienced by the researcher in a theoretical or practical
situation. Solving this difficulty is the task of the research. As per the analysis of
R.L. Ackoff there are five components of a problem:

1) Research Consumer
2) Research Consumer’s Objectives
3) Alternative Means to Meet the Objectives
4) Doubt in Regard to Selection of Alternatives
5) There must be one or more environments to which the difficulty
or problem pertains

Characteristic of a Good Research Problem:

Horton and Hunt have given following characteristics of a good research

problem:

1. Verifiable Evidence: That is factual observations which other observers

can see and check.
2. Accuracy: That is describing what really exists. It means truth or
correctness of a statement or describing things exactly as they are and
avoiding jumping to unwarranted conclusions either by exaggeration or
fantasizing.
3. Precision: That is making it as exact as necessary, or giving exact
number or measurement. This avoids colorful literature and vague
meanings.
4. Systematization: That is attempting to find all the relevant data, or
collecting data in a systematic and organized way so that the conclusions
drawn are reliable. Data based on casual recollections are generally
incomplete and give unreliable judgments and conclusions.
5. Objectivity: That is free being from all biases and vested interests. It
means observation is unaffected by the observer's values, beliefs and
preferences to the extent possible and he is able to see and accept facts
as they are, not as he might wish them to be.
6. Recording: That is jotting down complete details as quickly as possible.
Since human memory is fallible, all data collected are recorded.
7. Controlling Conditions: That is controlling all variables except one and
then attempting to examine what happens when that variable is varied.
This is the basic technique in all scientific experimentation – allowing one
variable to vary while holding all other variables constant.
8. Training Investigators: This is imparting necessary knowledge to
investigators to make them understand what to look for, how to interpret
it and avoid inaccurate data collection.

Question3. What is hypothesis? Examine the procedures for testing hypothesis

Answer: Definition of Hypothesis: According to Theodorson and

Theodorson, “a hypothesis is a tentative statement asserting a relationship
between certain facts. This statement is intended to be tested empirically and is
either verified or rejected. To test a hypothesis means to tell (on the basis of the
data researcher has collected) whether or not the hypothesis seems to be valid.
In hypothesis testing the main question is: whether to accept the null hypothesis
or not to accept the null hypothesis? Procedure for hypothesis testing refers to
all those steps that we undertake for making a choice between the two actions
i.e., rejection and acceptance of a null hypothesis.

The various steps involved in hypothesis testing are stated below:

Making a Formal Statement

The step consists in making a formal statement of the null hypothesis (H0) and
also of the alternative
hypothesis (Ha). This means that hypothesis should clearly state, considering the
nature of the research problem. For instance, Mr. Mohan of the Civil Engineering
Department wants to test the load bearing capacity of an old bridge which must
be more than 10 tons, in that case he can state his hypothesis as under:
Null hypothesis H0: µ = 10 tons
Alternative hypothesis Ha: µ > 10 tons
The formulation of hypothesis is an important step which must be accomplished
with due care in accordance with the object and nature of the problem under
consideration. It also indicates whether we should use a tailed test or a two
tailed test. If Ha is of the type greater than, we use alone tailed test, but when Ha
is of the type "whether greater or smaller" then we use a two-tailed test.

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 samples;
 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.

Deciding the Distribution to Use

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

Selecting a Random Sample & Computing an Appropriate Value

Another step is to select a random sample(S) and compute an appropriate value
from the sample data concerning the test statistic utilizing the relevant
distribution. In other words, draw a sample to furnish empirical data.

Calculation of the Probability

One has then to calculate the probability that the sample result would diverge as
widely as it has from expectations, if the null hypothesis were in fact true.

Comparing the Probability

Yet another step consists in comparing the probability thus calculated with the
specified value for a, the significance level. If the calculated probability is equal
to smaller than a value in case of one tailed test (and a/2 in case of two-tailed
test), then reject the null hypothesis (i.e. accept the alternative hypothesis), but
if the probability is greater, then accept the null hypothesis. In case we reject H0
we run a risk of (at most level of significance) committing an error of type I, but if
we accept H0, then we run some risk of committing error type II.

Question4. Write an essay on the need for research design and explain the
principles of experimental designs.

Answer: The need for methodologically designed research is as follows:

a) In many a research inquiry, the research has no idea as to how accurate

the results of his study ought to be in order to be useful. Where such is the
case, the researcher has to determine how much inaccuracy may be
tolerated. In quite a few cases he may be in a position to know how much
inaccuracy his method of research will produce. In either case he should
design his research if he wants to assure himself of useful results.

b) In many research projects, the time consumed in trying to ascertain what

the data mean after they have been collected is much greater than the
time taken to design a research which yields data whose meaning is
known as they are collected.

c) The idealized design is concerned with specifying the optimum research

procedure that could be followed when there are no practical restrictions.

Principles of Experimental Designs

Professor Fisher has enumerated three principles of experimental designs

which are as follows:
1. The principle of replication: The experiment should be reaped more
than once. Thus, each treatment is applied in many experimental units
instead of one. By doing so, the statistical accuracy of the experiments is
increased. For example, suppose we are to examine the effect of two
varieties of rice. For this purpose we may divide the field into two parts
and grow one variety in one part and the other variety in the other part.
We can compare the yield of the two parts and draw conclusion on that
basis. But if we are to apply the principle of replication to this experiment,
then we first divide the field into several parts, grow one variety in half of
these parts and the other variety in the remaining parts. We can collect
the data yield of the two varieties and draw conclusion by comparing the
same. The result so obtained will be more reliable in comparison to the
conclusion we draw without applying the principle of replication. The
entire experiment can even be repeated several times for better results.
Consequently replication does not present any difficulty, but
computationally it does. However, it should be remembered that
replication is introduced in order to increase the precision of a study; that
is to say, to increase the accuracy with which the main effects and
interactions can be estimated.

2. The principle of randomization: It provides protection, when we

conduct an experiment, against the effect of extraneous factors by
randomization. In other words, this principle indicates that we should
design or plan the `experiment in such a way that the variations caused
by extraneous factors can all be combined under the general heading of
"chance". For instance if we grow one variety of rice say in the first half of
 the parts of a field and the other variety is grown in the other half, then it
is just possible that the soil fertility may be different in the first half in
comparison to the other half. If this is so, our results would not be
realistic. In such a situation, we may assign the variety of rice to be grown
in different parts of the field on the basis of some random sampling
technique i.e., we may apply randomization principle and protect
ourselves against the effects of extraneous factors. As such, through the
application of the principle of randomization, we can have a better
estimate of the experimental error.

3. Principle of local control: It is another important principle of

experimental designs. Under it the extraneous factors, the known source
of variability, is made to vary deliberately over as wide a range as
necessary and this needs to be done in such a way that the variability it
causes can be measured and hence eliminated from the experimental
error. This means that we should plan the experiment in a manner that we
can perform a two-way analysis of variance, in which the total variability
of the data is divided into three components attributed to treatments, the
extraneous factor and experimental error. In other words, according to the
principle of local control, we first divide the field into several
homogeneous parts, known as blocks, and then each such block is divided
into parts equal to the number of treatments. Then the treatments are
randomly assigned to these parts of a block. In general, blocks are the
levels at which we hold an extraneous factors fixed, so that we can
measure its contribution to the variability of the data by means of a two-
way analysis of variance. In brief, through the principle of local control we
can eliminate the variability due to extraneous factors from the
experimental error.

Question5. Distinguish between primary and secondary data collection. Explain

the features, uses, advantages and limitations of secondary data. Which is the
best way of collecting the data for research - “Primary or Secondary”? Support
your answer.

Answer: Primary VS Secondary Data Collection:

Primary Data Collection Secondary Data Collection

It is the original source of data.
It is possible to capture the changes
occurring in the course of time.
It is flexible to the advantage of
researcher.
Extensive research study is based out
of primary data.
These are the sources containing data
which have been collected and
compiled for another purpose.
Wider geographical area and longer
reference period may be covered
without much cost. Thus, the use of
secondary data extends the
researcher’s space and time reach.
It consists of data to which a
researcher has no original control over
collection and classification.
The use of secondary data enables the
researcher to verify the findings based
on primary data. It readily meets the
needs for additional empirical support.
Features of Secondary Data:
1. Secondary data sources are readymade and readily available, and do not
require the trouble of constructing tools and administering them.
2. Second, they consist of data which a researcher has original control over
collection and classification.
3. Finally, secondary sources are not limited in time and space.

Uses of Secondary Data:

1. First some specific information from secondary sources may be used for
reference purpose.
2. Second, secondary data may be used as benchmarks against which the
findings of research may be tested.
3. Finally, secondary data may be used as the sole source of information for
a research project.

Advantages of Secondary Data:

1. Secondary data, if available can b secured quickly and cheaply.
2. Wider geographical area and longer reference period may be covered
without much cost.
3. The use of secondary data broadens the database from which scientific
generalizations can be made.
4. Environmental and cultural settings are required for the study.
5. The use of secondary data enables the researcher to verify the findings
based on primary data. It readily meets the needs for additional empirical
support.

Limitations of Secondary Data:

1. The most important limitation is that the available data may not meet our
specific needs.
2. The available data may not be as accurate as desired.
3. The secondary data are not up-to-date and become obsolete when they
appear in print, because of the time lag in producing them.
4. Finally, information about the whereabouts of sources may not be
available to all social scientists.

On account of the aforementioned limitations with secondary data

collection, it is always advisable to collect primary data for research
purposes as it is the original source of data, is accurate, flexible to the
advantage of researcher and it is possible to capture the changes
occurring in the course of time.

Question6. Describe interview method of collecting data. State the conditions

under which it is considered most suitable. You have been assigned to conduct a
survey on the reading habits of the house wives in the middle class family.
Design a suitable questionnaire consisting of 20 questions you propose to use in
the survey.

Answer: Interviewing is one of the prominent methods of data collection. It

may be defined as a two way systematic conversation between an investigator
and an informant, initiated for obtaining information relevant to a specific study.
It involves not only conversation, but also learning from the respondent’s
gesture, facial expressions and pauses and his environment.

The interview process consists of the following stages:

  Preparation: The interviewer should keep the copies of interview
schedule/guide ready to use. He should have the list of names and
addresses of respondents, he should regroup them into contiguous groups
in terms of location in order to save time and cost in travelling. The
interviewer should find out the general daily routine of the respondents in
order to determine the suitable timings for interview. Above all, he should
mentally prepare himself for the interview.

 Introduction: The investigator is a stranger to the respondents.

Therefore, he should be properly introduced to each of the respondents.
There is no appropriate universal mode of introduction. Mode varies
according to the type of respondents.

 Developing rapport: Before starting the research interview, the

interviewer should establish a friendly relationship with the respondent.
This is described as ‘rapport’. It means establishing a relationship of
confidence and understanding between the interviewer and the
respondent. It is a skill which depends primarily on the interviewer’s
commonsense, experience, sensitivity and keen observation.

 Carrying the interview forward: After establishing rapport, the

technical task of asking questions from the interview schedule starts. This
task requires care, self-restraint, alertness and ability to listen with
understanding, respect and curiosity.

 Recording the interview: It is essential to record responses as they take

place. If the note taking is done after the interview, a good deal of
relevant information may be lost. Note-taking should be made in the
schedule under respective question. It should be complete and verbatim.
The responses should not be summarized or paraphrased. Electronic
transcription through devices like tape recorder can achieve this.

 Closing the interview: After the interview is over, take leave off the
respondent thanking him with a friendly smile. In case of qualitative
interview of longer duration, select the occasion for departure more
carefully. Assembling the papers for putting them in the folder at the time
of asking the final question sets the stage for a final handshake, a thank-
you and a good-bye.

Following are the conditions under which interviewing is considered

most suitable:

 Interviewing is the only suitable method for gathering information from

illiterate or less educated respondents.
 It is useful for collecting a wide range of data from factual demographic
data to highly personal and intimate information relating to a person’s
opinions, attitudes, and values, beliefs, past experience and future
intentions.
 When qualitative information is required or probing is necessary to draw
out fully, and then interviewing is required.
  Where the area covered for the survey is a compact, or when a sufficient
number of qualified interviewers are available, personal interview is
feasible.

Survey on the reading habits of the house wives in the middle class
family: Questionnaire

1. What is your good name?

2. What is your DOB?
3. What is your qualification (graduate/post graduate)?
4. What is your husband’s name?
5. What is your husband’s occupation?
6. What are your hobbies/leisure time activities?
7. Do you like reading books/novels/magazines?
8. What categories of books do you like reading?
9. Who is your favourite author?
10.What is your all time favourite book?
11.What is the book you have read/reading lately?
12.What kind of magazines do you prefer to read?
13.At what time of the day do you prefer reading?
14.Do you prefer reading at leisure only or it’s a routine activity?
15. Do you prefer reading ebooks/ezines or traditional paper
books/magazines?
16. Are you associated with any professional organization (like
www.booklovers.com)?
17.Do you visit libraries for reading/hold any membership with any particular
library?
18. For how long have you been a member of this organization/library?
19.How has this activity helped you in developing your overall personality?
20.Would you recommend/encourage book-reading to others?