Interview

The researcher will conduct interview for employees and tax officers as well as respondents to confirm
more the data collected by questionnaires and also in cases where elaboration is required. Structured
interview will provide in depth information and unstructured will provide greater autonomy for
interviewer in explaining the questions in detail. For this purpose predetermined interview
question will be designed by the researchers for manager, and other eligible respondents’. This
will allow the researchers to gather information which enrich the study

3.5. Methods of Data Analysis

After the required information will be collected from target respondents, the researchers will
employ different statistical tools to present, analyze, interpret and conclude the findings. Thus, in
order to minimize the burdens of doing manually, SPSS will be used to analyze the data.
Moreover, descriptive analysis such as, percentage, mean and frequency distribution will be used
to present/categorize the demographic characteristics of the respondents and analyze the result of
finding. The study will test the instruments and a reliability test of the questionnaire using the
scale of Cronbach alpha coefficient. This will be tested or measured the strength of the
instruments. Ordinary Least Square (OLS) regression analysis will be used to test the strength of
all the variables in the independent variables against dependent variable.

3.5. M o d e l Specification

Model specification can be defined as the exercise of formally stating a model i.e. the explicit
translation of theory into mathematical equations and involves using all the available relevant theory
research and information and developing a theoretical model.
This study examined the factors affecting tax compliance behavior in the Nekemte town. This study
will use multiple (Ordinary Least Squares (OLS)) regression model. According to Coakes and Steed
(2007), multiple regressions are an extension of bivariate correlation. They state that the result of
regression is an equation that represents the best prediction of a dependent variable from several
independent variables. Regression analysis will be used when independent variables are correlated
with one another and with the dependent variable. The Ordinary Least Square (OLS) have the
following form: