Chapter Two

Defining the
Research Problem

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 Research Problem
 Is the beginning activity of the research process.
 Is the most difficult phase.
 Is the most critical step in scientific research.
 Reflects a gap in understanding.
 Is some difficulty which a researcher experiences
in the context of either a practical or theoretical
situation.

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Cont…
A problem is said be occurred if:
 The individual or the organization does not know what
course of action is best
 When the individual or organization is in doubt about
the solution
Problem definition involves:
 Specifying the symptoms

 Itemizing the possible causes

Formulating research problem entails asking a previously
unanswered questions for which an answer is sought.
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Cont…
 A research problem is a set of
conditions that need solution through
data collection and analysis.
 A good research problem should be
one that is socially and scientifically
important to investigation.

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Sources of Research Problem
Personal Experience of Practical Situation:

 Day to day experience/observation

 unresolved issues in the surrounding environment

Previous Research and Related Literature

 Articles and journals, books, magazines and other research

outputs

 Indentify research gaps

Current Social and Political Issues

Contemporary debates, concerns or movements.

Changes in social, economic, political, cultural aspects

Their impacts or influence can be studied 5

Cont…
 From Discussions with Peoples
 With friends, students, neighbors, workers of different
organizations, and with different members of the society
 On various socio-economic, political issues.
 Personal Motivation
 An interest to know certain phenomena or events from
different perspectives
 Lack of Information
 If there is no sufficient or relevant information to
formulate policy in various issues and to make various
decisions
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Components of Research Problem
a. There must be an individual or a group which has
some difficulty or problem.
b. There must be some objective(s) to be attained.

c. There must be alternative means (or courses of action)

for obtaining the objective(s) one wishes to attain.
d. There must remain some doubt in the mind of a
researcher with regard to the selection of alternatives.

e. There must be some environment(s) to which the

difficulty pertains.

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Selection of Research Problem
 The first step in the problem identification
involves selecting a research topic.
 Statement of the problem is generated from a
research topic.
 The research problem must be carefully selected

 Problem must spring from the researcher’s

mind.

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Cont…
Points to be considered in selecting research problem.
Subject which is overdone/difficult task should not be
normally chosen.
Controversial subject should not become the choice of
researcher.
Too narrow or too vague/unclear problems should be
avoided.
The subject selected for research should be familiar
and feasible
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Cont…
 The importance of the subject, the
qualifications and the training of a researcher,
the costs involved, and the time factor must
also be considered in selecting a problem.
 When the field of inquiry is relatively new the
selection of a problem must be preceded by a
preliminary study.

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Cont…
The research topic to be selected should be:
a. The one in which the researcher has an interest
b. The one that the researcher has the background
knowledge
c. The one that address felt need
d. The one on which enough materials could be obtained

e. The one whose selection is justifiable on social,

scientific or policy grounds.

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Techniques of Defining a Research Problem

Involves the following general steps

i. Statement of the problem in a general way

(choice of research topic)
ii. Understanding the nature of the problem

iii. Surveying the available literature

iv. Developing ideas through discussions

v. Rephrasing the research problem into a working
proposition.
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Techniques of Defining a Research Problem
i. Statement of the problem in a general way:

 First of all ,the problem should be stated in a broad general

way.

 Then the researcher narrow it down and phrase the problem

in operational terms.

ii. Understanding the Nature of the Problem:

 Understanding its origin and nature clearly.

 The best way of understanding the problem is to discuss it

with those who first raised it.

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Techniques of Defining a Research Problem

iii. Surveying the Available Literatures: -

 All available literatures concerning the problem at
hand must be surveyed and examined.
 It helps a researcher to know if there are certain
gaps in the theories or whether the existing
theories applicable to the problem under study.
 In reviewing literature, it is important to begin with
the most recent publications and work backwards.

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Techniques of Defining a Research Problem

iv. Developing Ideas through discussions:

 a researcher must discuss his problem with his

colleagues and others who have enough experience

in the same area.

 concerned with the general approach to the given

problem, techniques that might be used, possible

solutions, etc.
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Techniques of Defining a Research Problem

v. Rephrasing the Research Problem: - is putting the

research problem in as specific terms as possible.

 In rephrasing research problem, a researcher has to

narrow a research focus, and develop:
 Statement of the problem

 Statement of research purpose

 Research objectives

 Research questions

 Formulation of research hypothesis

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Statement of the problem
It conveys the specific research problem, usually in a few
paragraphs.
It should indicate:

 the focus area of the research

 researches done by other researchers in the area including

their findings
 issues that are not yet assessed by other researcher in the
area (the knowledge gap)
 difference in the findings of various researchers in the area (if
any)
 the study area and the issues or subjects of research

 Indicate the purpose of the study

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Statement of the problem
 A good research problem should be capable of
being stated in one major research question.
 E.g. Suppose that our title says:
 “Determinants of Microfinance outreach in Ethiopia”

 Then, our main research question might be:

 “What are the determinants of Microfinance outreach
in Ethiopia and how do those factors influence the
outreach of Ethiopian microfinance institutions’?”

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Statement of Research Purpose
 conveys the focus of the study and should be spelt out in:
• clear,
• direct and
• unambiguous manner.

 It is usually expressed in a declarative manner, starting with

the phrase:

• The purpose of the study is …, followed by neutral

verbs such as, to investigate, to examine, to compare,
to explore, to find out , to inquire, to determine, etc.

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Statement of Research Purpose
For example:
 Assuming the previous title, our purpose
statement might be:
“In the context of the problems
highlighted above, the purpose of the
study is to assess the factors that affect
microfinance outreach in Ethiopia.”

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Research Objectives
 Specify the issues or area of knowledge that the
researcher wants to examine or explore.
 One general objectives with number of specific
objectives
Research Questions
 Describe the ideas contained in a research objectives
in the form of questions.
 The questions have to be related to three aspects:
What, Why and How?
 What’ questions seek descriptions,
 ‘Why’ questions seek explanation and understanding
 ‘how’ questions seek interventions to bring about
change.
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Formulation of Research Hypothesis
 Is a tentative prediction of the expected
relationships between two or more variables
that can be investigated and tested.
 Derived from a theory, previous research, or
professional experience.
 Until a hypothesis is tested against other
probable propositions, it cannot be
accepted as an answer
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Characteristics of Good Hypothesis
Capable of being expressed as a question.
Capable of being stated in a negative way.
Capable of being answered with a “yes”
and “no” or “may be.”
Should clearly show the relationship
between the variables under consideration

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Characteristics of Good Hypothesis

 Should be in line with the prevailing research

findings and theories.
 Should be testable: can be accepted or rejected
 Should be in agreement with:
 research topic,
 problem statement,

 research questions and

 research objectives.

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Types of Research Hypothesis
1. Alternative Hypothesis (H1) – is a researcher’s
proposition about some social fact.

2. Null Hypothesis (Ho) - is the reverse of research

hypothesis. It is a hypothesis of no relationship.
H0 is true H1 is true
Accept null Right Decision Wrong Decision
hypothesis Type II Error
Reject null Wrong Decision Right Decision
hypothesis Type I Error

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FOUR STEPS TO HYPOTHESIS TESTING

 Step 1: State the hypotheses.

 Step 2: Set the criteria for a decision.

 Step 3: Compute the test statistic.
 Step 4: Make a decision.

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Step 1: State the hypotheses
H1. There is significant positive relationship between age of the institution

and outreach.

H2. There is significant positive relationship between percentage of voluntary

saving and outreach.

H3. There is significant negative relationship between loan loss rate and

outreach.

H4. There is significant positive relationship between operational self-

sufficiency and outreach.

H5. There is significant negative relationship between inflation and outreach.

H6. There is significant positive relationship between real gross domestic

product growth and outreach.

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Step 2: Set the criteria for a decision

How do we know whether a relationship between two

variables in an observed sample is significant, and not a

matter of chance?

Establishing the basic guidelines for significance testing.

Statistical result may be considered significant if it can be

shown that the probability of it being rejected due to

chance is 5% or less.

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Step 2: Set the criteria for a decision

In inferential statistics, this probability is called the p

value, 5% is called the significance level (α), and the

desired relationship between the p-value and α is

denoted as: p≤0.05.

If the p-value is less than 5%, it means that we have a 5%

chance of being incorrect in rejecting the null hypothesis

or having a Type I error.

If p>0.05, we do not have enough evidence to reject the

null hypothesis or accept the alternative hypothesis.

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Step 3: Compute the test statistic
 Is a mathematical formula that allows
researchers to determine the likelihood
of obtaining sample outcomes if the
null hypothesis were true.
 The value of the test statistic is used to
make a decision regarding the null
hypothesis.
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Step 3: Compute the test statistic
Variable Coefficient Std. Error Prob.

C 4.295469 0.371387 0.0000

AGE 0.039662 0.009880 0.0001

OSS 0.154197 0.044153 0.0007

VS 0.048317 0.016309 0.0037

LLR -0.199491 0.279474 0.4768

GDP -1.606719 2.397460 0.5041

INFL -0.086239 0.182329 0.6371

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Step 4: Make a decision
 We use the value of the test statistic to make a decision about
the null hypothesis.

 The decision is based on the probability of obtaining a sample

mean, given that the value stated in the null hypothesis is true.

 If the probability of obtaining a sample mean is less than 5%

when the null hypothesis is true, then the decision is to reject
the null hypothesis.

 If the probability of obtaining a sample mean is greater than 5%

when the null hypothesis is true, then the decision is to retain
the null hypothesis.

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Step 4: Make a decision
 In sum, there are two decisions a researcher can make:

1. Reject the null hypothesis. The sample mean is associated

with a low probability of occurrence when the null hypothesis

is true.

2. Retain the null hypothesis. The sample mean is associated

with a high probability of occurrence when the null hypothesis

is true.

NOTE: Researchers make decisions regarding the null

hypothesis. The decision can be to retain the null (p> .05) or

reject the null (p < .05).

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THE END

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