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4 5962984352970179647
4 5962984352970179647
1. What is a Theory?
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- Theories can be used as principles of explanation and
prediction for a class of phenomena
- A theory is a proposed explanation whose status is
still subject to experimentation
Examples:
- In mathematics, we have a body of principles and
theorems about numbers – Number Theory
- In Economics, we have a body of principles and
theorems about how economic agents behave, etc.
2. What is a Hypothesis?
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- Researchers, in weighing up alternative hypotheses,
may take the following into consideration:
i) Testability: whether the theory can be supported or
falsified by the actual data.
ii) Parsimony: among competing hypotheses the one
with the fewest assumptions should be selected.
That is, discouraging the postulation of excessive
number of entities.
iii) Scope: the apparent application of the hypothesis to
multiple cases of phenomena
iv) Fruitfulness: the prospect that a hypothesis may
explain future phenomena
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foreign and domestic outsourcing. For example, two
organizations may enter into a contractual agreement
involving an exchange of services and payments.
Outsourcing is said to help firms to perform well in their
core competencies and mitigate shortage of skill or
expertise in the areas where they want to outsource.
Companies primarily outsource to avoid certain costs –
such as peripheral or “non – core” business expenses, high
taxes, high energy costs, excessive government regulation,
production and labor costs.
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“monopolies should be regulated’ or “profits should be
taxed.”