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 ASSIGNMENT SOLUTIONS GUIDE (2020-2021)
MCO-03: RESEARCH METHODOLOGY AND STATISTICAL ANALYSIS
Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions
given in the Assignments. These Sample Answers/Solutions are prepared by Private
Teacher/Tutors/Authors for the help and guidance of the student to get an idea of how he/she can
answer the Questions given the Assignments. We do not claim 100% accuracy of these sample
answers as these are based on the knowledge and capability of Private Teacher/Tutor. Sample
answers may be seen as the Guide/Help for the reference to prepare the answers of the Questions
given in the assignment. As these solutions and answers are prepared by the private teacher/tutor so
the chances of error or mistake cannot be denied. Any Omission or Error is highly regretted though
every care has been taken while preparing these Sample Answers/Solutions. Please consult your own
Teacher/Tutor before you prepare a Particular Answer and for up-to-date and exact information, data
and solution. Student should must read and refer the official study material provided by the
university.

Q1. Explain the various methods of collecting primary data pointing out their merits and demerits.
Ans. If the available secondary data does not meet the requirements of the present study, the
researcher has to collect primary data. As mentioned earlier, the data which is collected for the first
time by the researcher for his own purpose is called primary data. There are several methods of
collecting primary data, such as observation, interview through reporters, questionnaires and
schedules.
Observation Method
The Concise Oxford Dictionary defines observation as, ‘accurate watching and noting of phenomena
as they occur in nature with regard to cause and effect or mutual relations’. Thus observation is not
only a systematic watching but it also involves listening and reading, coupled with consideration of
the seen phenomena. It involves three processes. They are: sensation, attention or concentration and
perception. Under this method, the researcher collects information directly through observation
rather than through the reports of others. It is a process of recording relevant information without
asking anyone specific questions and in some cases, even without the knowledge of the respondents.
This method of collection is highly effective in behavioural surveys. For instance, a study on
behaviour of visitors in trade fairs, observing the attitude of workers on the job, bargaining strategies
of customers etc. Observation can be participant observation or non-participant observation. In
Participant Observation Method, the researcher joins in the daily life of informants or organisations,
and observes how they behave. In the Non-participant Observation Method, the researcher will not
join the informants or organisations but will watch from outside.
Merits:
1) This is the most suitable method when the informants are unable or reluctant to provide
information.
2) This method provides deeper insights into the problem and generally the data is accurate and
quicker to process. Therefore, this is useful for intensive study rather than extensive study.
Limitations:
Despite of the above merits, this method suffers from the following limitations:
1) In many situations, the researcher cannot predict when the events will occur. So when an event
occurs there may not be a ready observer to observe the event.
2) Participants may be aware of the observer and as a result may alter their behaviour.
3) Observer, because of personal biases and lack of training, may not record specifically what he/she
observes.

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4) This method cannot be used extensively if the inquiry is large and spread over a wide area.
Interview Method
Interview is one of the most powerful tools and most widely used method for primary data collection
in business research. In our daily routine we see interviews on T.V. channels on various topics related
to social, business, sports, budget etc. In the words of C. William Emory, ‘personal interviewing is a
two-way purposeful conversation initiated by an interviewer to obtain information that is relevant to
some research purpose’. Thus an interview is basically, a meeting between two persons to obtain the
information related to the proposed study. The person who is interviewing is named as interviewer
and the person who is being interviewed is named as informant. It is to be noted that, the research
data/information collect through this method is not a simple conversation between the investigator
and the informant, but also the glances, gestures, facial expressions, level of speech etc., are all part of
the process. Through this method, the researcher can collect varied types of data intensively and
extensively.
Merits:
The major merits of this method are as follows:
1) People are more willing to supply information if approached directly. Therefore, personal
interviews tend to yield high response rates.
2) This method enables the interviewer to clarify any doubt that the interviewee might have while
asking him/her questions. Therefore, interviews are helpful in getting reliable and valid responses.
3) The informant’s reactions to questions can be properly studied.
4) The researcher can use the language of communication according to the standard of the
information, so as to obtain personal information of informants which are helpful in interpreting the
results.
Limitations:
The limitations of this method are as follows:
1) The chance of the subjective factors or the views of the investigator may come in either consciously
or unconsciously.
2) The interviewers must be properly trained, otherwise the entire work may be spoiled.
3) It is a relatively expensive and time-consuming method of data collection especially when the
number of persons to be interviewed is large and they are spread over a wide area.
4) It cannot be used when the field of enquiry is large (large sample).
Through Local Reporters and Correspondents
Under this method, local investigators/agents or correspondents are appointed in different parts of
the area under investigation. This method is generally adopted by government departments in those
cases where regular information is to be collected. This method is also useful for newspapers,
magazines, radio and TV news channels. This method has been used when regular information is
required and a high degree of accuracy is not of much importance.
Merits:
1) This method is cheap and economical for extensive investigations.
2) It gives results easily and promptly.
3) It can cover a wide area under investigation.
Limitations:
1) The data obtained may not be reliable.
2) It gives approximate and rough results.
3) It is unsuited where a high degree of accuracy is desired.
4) As the agent/reporter or correspondent uses his own judgement, his personal bias may affect the
accuracy of the information sent.
Questionnaire and Schedule Methods
i) Questionnaire Method
Under this method, questionnaires are sent personally or by post to various informants with a request
to answer the questions and return the questionnaire. If the questionnaire is posted to informants, it is

2
called a Mail Questionnaire. Sometimes questionnaires may also sent through E-mail depending upon
the nature of study and availability of time and resources. After receiving the questionnaires the
informants read the questions and record their responses in the space meant for the purpose on the
questionnaire. It is desirable to send the questionnaire with self-addressed envelopes for quick and
high rate of response.
Merits:
1) You can use this method in cases where informants are spread over a vast geographical area.
2) Respondents can take their own time to answer the questions. So the researcher can obtain original
data by this method.
3) This is a cheap method because its mailing cost is less than the cost of personal visits.
4) This method is free from bias of the investigator as the information is given by the respondents
themselves.
5) Large samples can be covered and thus the results can be more reliable and dependable.
Limitations:
1) Respondents may not return filled in questionnaires, or they can delay in replying to the
questionnaires.
2) This method is useful only when the respondents are educated and co-operative.
3) Once the questionnaire has been despatched, the investigator cannot modify the questionnaire.
4) It cannot be ensured whether the respondents are truly representative.
ii) Schedule Method
A Schedule is also a list of questions, which is used to collect the data from the field. This is generally
filled in by the researcher or the enumerators. If the scope of the study is wide, then the researcher
appoints people who are called enumerators for the purpose of collecting the data. The enumerators
go to the informants, ask them the questions from the schedule in the order they are listed and record
the responses in the space meant for the answers in the schedule itself. For example, the population
census all over the world is conducted through this method. The difference between questionnaire
and schedule is that the former is filled in by the informants, the latter is filled in by the researcher or
enumerator.
Merits:
1) It is a useful method in case the informants are illiterates.
2) The researcher can overcome the problem of non-response as the enumerators go personally to
obtain the information.
3) It is very useful in extensive studies and can obtain more reliable data.
Limitations:
1) It is a very expensive and time-consuming method as enumerators are paid persons and also have
to be trained.
2) Since the enumerator is present, the respondents may not respond to some personal questions.
3) Reliability depends upon the sincerity and commitment in data collection. The success of data
collection through the questionnaire method or schedule method depends on how the questionnaire
has been designed.
Q2. (a) Explain the concept of skewness. How does it help in analysing the data?
Ans. The measure of skewness tells us the direction of dispersion about the centre of the distribution.
Measures of central tendency indicate only the single representative figure of the distribution while
measures of variation, indicate only the spread of the individual values around the means. They do
not give any idea of the direction of spread. Two distributions may have the same mean and variation
but may differ widely in the shape of their distribution. A distribution is often found skewed on
either side of its average, which is termed as asymmetrical distribution. Thus, skewness refers to the
lack of symmetry in distribution. Symmetry signifies that the value of variables are equidistant from
the average on both sides. In other words, a balanced pattern of a distribution is called symmetrical
distribution, whereas unbalanced pattern of distribution is called asymmetrical distribution.

3
A simple method of finding the direction of skewness is to consider the tails of a frequency polygon.
The concept of skewness will be clear from the following three figures showing symmetrical,
positively skewed and negatively skewed distributions.

Carefully observe the figures presented above and try to understand the following rules governing
them. It is clear from Figure (a) that the data are symmetrical when the spread of the frequencies is
the same on both sides of the middle point of the frequency polygon. In this case the value of mean,
median, and mode coincide i.e., Mean = Median = Mode.
When the distribution is not symmetrical, it is said to be a skewed distribution. Such a distribution
could be either positively skewed or negatively skewed. In Figure (b), when there is a longer tail
towards the right hand side of the centre of distribution, the skewness is said to be “Positively
Skewed”. In such a situation, Mean > Median > Mode.
In Figure (c), when there is a longer tail towards the left hand side of the centre, then the skewness is
said to be “Negatively Skewed”. In such a case, Mean < Median < Mode.
It is seen that, in positively skewed distribution, dispersal of individual observations is greater
towards the right of the central value. Where as in a negatively skewed distribution, a greater
dispersal of individual observations is towards the left of the central value. We can say, therefore, the
concept of Skewness not only refers to lack of symmetry in a distribution but also indicates the
magnitude as well as the direction of skewness in a distribution. The relationship of mean, median
and mode in measuring the degree of skewness is that, for a moderately symmetrical distribution the
interval between the mean and the median is approximately 1/3rd of the interval between the mean
and mode.
Tests of Skewness
In the light of the above discussion, we can summarise the following facts regarding presence of
skewness in a given distribution.
1) The mean, median, and mode are not identical.
2) The total of deviations are not zero from median or mode i.e. Σ(X - Me) or Σ(X - Mo) ≠ 0.
3) Frequencies on both sides of the mode are not equal
4) The distance from the Median to the quantities are not equal i.e., (Q3 - Me) is not equal to (Me -
Q1).
5) The curve of distribution is not bell shaped. This means the two halves of the curve from Median or
Mode do not coincide in a perfect manner.
(b) What is reporting? What are the different stages in the preparation of a report?
Ans. Reporting simply means communicating or informing through reports. The researcher has
collected some facts and figures, analyzed the same and arrived at certain conclusions. He has to
inform or report the same to the parties interested. Therefore “reporting is communicating the facts,
data and information through reports to the persons for whom such facts and data are collected and
compiled”. A report is not a complete description of what has been done during the period of
survey/research. It is only a statement of the most significant facts that are necessary for
understanding the conclusions drawn by the investigator. Thus, “a report by definition, is simply an
account”. The report thus is an account describing the procedure adopted, the findings arrived at and
the conclusions drawn by the investigator of a problem.

4
STAGES IN PREPARATION OF A REPORT
Research reports are the product of slow and painstaking and accurate work. Therefore, the
preparation of the report may be viewed in the following major stages.
1) The logical understanding and analysis of the subject matter.
2) Planning/designing the final outline of the report.
3) Write up/preparation of rough draft.
4) Polishing/finalization of the Report.
Logical Understanding of the Subject Matter: It is the first stage which is primarily concerned with
the development of a subject. There are two ways to develop a subject viz. a. logically and b.
chronologically. The logical development is done on the basis of mental connections and associations
between one aspect and another by means of logical analysis. Logical treatment often consists of
developing material from the simple to the most complex. Chronological development is based on a
connection or sequence in time or happening of the events. The directions for doing something
usually follow the chronological order.
Designing the Final Outline of the Report: It is the second stage in writing the report. Having
understood the subject matter, the next stage is structuring the report and ordering the parts and
sketching them. This stage can also be called as planning and organization stage. Ideas may pass
through the author’s mind. Unless he first makes his plan/sketch/design he will be unable to achieve a
harmonious succession and will not even know where to begin and how to end. Better
communication of research results is partly a matter of language but mostly a matter of planning and
organizing the report.
Preparation of the Rough Draft: The third stage is the write up/drafting of the report. This is the most
crucial stage to the researcher, as he/she now sits to write down what he/she has done in his/her
research study and what and how he/she wants to communicate the same. Here the clarity in
communicating/reporting is influenced by some factors such as who the readers are, how technical
the problem is, the researcher’s hold over the facts and techniques, the researcher’s command over
language (his communication skills), the data and completeness of his notes and documentation and
the availability of analyzed results. Depending on the above factors some authors may be able to
write the report with one or two drafts. Some people who have less command over language, no
clarity about the problem and subject matter may take more time for drafting the report and have to
prepare more drafts (first draft, second draft, third draft, fourth draft etc.,).
Finalization of the Report: This is the last stage, perhaps the most difficult stage of all formal writing.
It is easy to build the structure, but it takes more time for polishing and giving finishing touches. Take
for example the construction of a house. Up to roofing (structure) stage the work is very quick but by
the time the building is ready, it takes up a lot of time. The rough draft (whether it is second draft or
‘n’ th draft) has to be rewritten, polished in terms of requirements. The careful revision of the rough
draft makes the difference between a mediocre and a good piece of writing. While polishing and
finalizing one should check the report for its weaknesses in logical development of the subject and
presentation cohesion. He/she should also check the mechanics of writing — language, usage,
grammar, spelling and punctuation.
Q3. Briefly comment on the following:
(a) Classification of data provides a basis for tabulation of data.
Ans. Presentation of collected data in the tabular form is one of the techniques of data presentation.
The two other techniques are diagrammatic and graphic presentation. Arranging the data in an
orderly manner in rows and columns is called tabulation of data. Sometimes data collected by survey
or even from publications of official bodies are so numerous that it is difficult to understand the
important features of the data. Therefore it becomes necessary to summarize data through tabulation
to an easily intelligible form. It may be noted that there may be loss of some minor information in
certain cases, but the essential underlying features come out more clearly. Quite frequently, data
presented in tabular form is much easier to read and understand than the data presented in the text.
In classification, the data is divided on the basis of similarity and resemblance, whereas tabulation is

5
the process of recording the classified facts in rows and columns. Therefore, after classifying the data
into various classes, they should be shown in the tabular form.
(b) Research problem would be both abstract and of applied interest.
Ans. Research problems can be both abstract and of applied interest. The researcher may identify the
areas in which much work has been done and the areas in which little work has been done or areas in
which no work has been done. He may select those areas which have not been explored so
far/explored very little.
(c) Decision makers use index numbers as part of intermediate computations.
Ans. Decision makers use index numbers as part of intermediate computations to understand other
information better. Nominal income can be transformed into real income. Similarly, nominal sales
into real sales & so on …, through an appropriate index number. Consumer price index, also known
as cost of living index, is arrived at for a specified group of consumers in respect of prices of specific
commodities and services which they usually purchase. This index serves as an indicator of ‘real’
wages (or income) of the consumers. For example, an individual earns Rs.100/- in the year 1970 and
his earnings increase to Rs.300/- in the year 1980. If during this period, consumer price index increases
from 100 to 400 then the consumer is not able to purchase the same quantity of different commodities
with Rs.300, which he was able to purchase in the year 1970 with his income of Rs.100/-. This means
the real income has declined. Thus real income can be calculated by dividing the actual income by
dividing the consumer price index:

Therefore, the consumer’s real income in the year 1980 is Rs.75/- as compared to his income of
Rs.100/- in the year 1970. We can also say that because of price increase, even though his income has
increased, his purchasing power has decreased.
(d) Comparison between two things cannot be made unless they are really alike.
Ans. Comparisons between two things cannot be made unless they are really alike. Unfortunately,
this point is generally forgotten and comparisons are made between two dissimilar things, thereby,
leading to fallacious conclusions. For example, the cost of living index of Bangalore is 150 (with base
year 1999) and that of Hyderabad is 155 (with base 1995). Therefore, Hyderabad is a costlier city than
Bangalore city. This conclusion is misleading as the base years of the Indices are different.
Q4. Write short notes on the following:
(a) Research Design
Ans. Research design is also known by different names such as research outline, plan, and blue print.
In the words of Fred N. Kerlinger, it is the plan, structure and strategy of investigation conceived so
as to obtain answers to research questions and control variance. The plan includes everything the
investigator will do from writing the hypothesis and their operational implications to the final
analysis of data. The structure is the outline, the scheme, the paradigms of the operation of the
variables. The strategy includes the methods to be used to collect and analyze the data. At the
beginning this plan (design) is generally vague and tentative. It undergoes many modifications and
changes as the study progresses and insights into it deepen. The working out of the plan consists of
making a series of decisions with respect to what, why, where, when, who and how of the research.
According to Pauline V.Young “a research design is the logical and systematic planning and directing
of a piece of research”. According to Reger E.Kirk “research designs are plans that specify how data
should be collected and analyzed”. The research has to be geared to the available time, energy, money
and to the availability of data. There is no such thing as a single or correct design. Research design
represents a compromise dictated by many practical considerations that go into research.

6
(b) Statistical Derivatives
Ans. Statistical derivatives are the quantities obtained by simple computation from the given data.
Though very easy to compute, they often give meaningful insight to the data. Here we discuss three
often-used measures: percentage, ratio and rate. These measures point out an existing relationship
among factors and thereby help in better interpretation.
Three types:
Ratio: It expresses the relative value of frequencies in the same way as proportion or percentages but
it does so by comparing any one group to either total number of cases or any other group.
Rate: The concept of ratio may be extended to the rate. The rate is also a comparison of two figures,
but not of the same variable, and it is usually expressed in percentage. It is a measure of the number
of times a value occurs in relation to the number of times the value could occur, i.e. number of actual
occurrences divided by number of possible occurrences. Unemployment rate in a country is given by
total number of unemployed person divided by total number of employable persons. It is clear now
that a rate is different from a ratio. For example, we may say that in a town the ratio of the number of
unemployed persons to that of all persons is 0.05: 1. The same message would be conveyed if we say
that unemployment rate in the town is 0.05, or more commonly, 5 per cent.
Percentage: the frequency distribution may be regarded as simple counting and checking as to how
many cases are in each group or class. The relative frequency distribution gives the proportion of
cases in individual classes. On multiplication by 100, the percentage frequencies are obtained.
Converting to percentages has some advantages - it is now more easily understood and comparison
becomes simpler because it standardizes data.
(c) Normal Distribution
Ans. The normal distribution is the most versatile of all the continuous probability distributions. It is
useful in statistical inferences, in characterising uncertainties in many real life situations, and in
approximating other probability distributions. As stated earlier, the normal distribution is suitable for
dealing with variables whose magnitudes are continuous. Many statistical data concerning business
problems are displayed in the form of normal distribution. Height, weight and dimensions of a
product are some of the continuous random variables which are found to be normally distributed.
This knowledge helps us in calculating the probability of different events in varied situations, which
in turn is useful for decision-making. To define a particular normal probability distribution, we need
only two parameters i.e., the mean (µ) and standard deviation (σ).
(d) Deflating of Indices
Ans. As we know that the price of goods and series gradually increases, as a result the purchasing
power of money (value of money) decreases. Consequently, the real wages become less than the
money wage. In such a situation the real wage may be obtained by reducing the money wage to the
extent the price level has risen. Thus, the process of finding out the real wage by applying appropriate
price indices to the money wages so as to allow for the changes in the price level is called ‘deflating’.
We may express this process by the following formulae:

7
Q5. Distinguish between the following:
(a) Cluster Sampling and Stratified Random Sampling
Ans.

(b) Simple Bar diagram and Multiple Bar Diagram

Ans.

(c) Correlation and Regression

Ans.

8
(d) Estimation and Testing of hypothesis.
Ans.