Chapter two

Formulation of Research
Problems and Hypotheses

1
Chapter objectives

• Upon the completion of this chapter, students

will be able to:
– Discover problem
– Formulate problem
– Develop hypotheses

2
What is a Research problem?
• Refers to some difficulty, which a researcher faces
(experiences) in the context of both a theoretical or
practical situation and wants to obtain a solution for the
same.
• is an expression of the dilemma or disturbing situation that
needs investigation for the purposes of providing
understanding and direction.
• is a perceived difficulty, a feeling of discomfort about the way
things are, or a discrepancy between what someone believes
should be the situation and what the situation is in reality.
• is a gap or a difference between what is expected or
desired to be and the actual condition exists.
• The significance of a problem can be measured by the gap
3
“The formulation of the problem is often more essential than its
solution.”

Albert Einstein

4
Evaluation of a problem
• Before the final decision is made on the
investigation of the problem, the feasibility of the
problem has to be tested with regard to personal
suitability of the researcher and social value of
the problem.
– Is the problem researchable?
– Is the problem new?
– Is the problem significant?
– Is the problem feasible?
• Interest and enthusiasm
• Financial consideration
• Time requirement
• Researcher’s Competence
5
• Administrative consideration:
 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of the Situation

Exploratory
Research
Problem Definition (Optional)

Statement of Research Objectives

6
 Cont….

• problem definition is refer to the process of defining

and developing a decision statement and the steps
involved in translating it into more precise research
terminology, including a set of research objectives
• A decision statement is a written expression of the
key question(s) that a research user wishes to answer.
It is the reason that research is being considered.
• It can also be considered rationale/justification/reason
behind the study.

7
 Significance of research problem

 At the out set of the research process, the researcher may not have a clear
statement of the problem.

 The formulation of a problem is often more important than its solution

(Albert Einstein) because the subsequent research process and the solution
are completely dependent on the problem.

 A problem well defined is a problem half solved (Dewy).

 It allows the researcher to set the proper research objectives, and efficiently
use resources.

 Problem definition is the indication of a specific development decision area

that would be classified by answering some research questions.

 A problem definition error or omission is likely to be a costly mistake

that cannot be corrected in latter stages of the process.
8
• There is a common say in research that “The problem
clearly stated is a problem half solved”.
• A proper definition of research problem will enable the
researcher to find answers to question such as:
– What kind of data and information are relevant and needed to be
studied?
– What relationship is to be explored among variables?
– What technique has to be used to collect and analyze data?
– Who are the target population?
– What would be the inclusion/exclusion criteria?
• Therefore, defining a research problem properly is a
prerequisite for any study and a very important step.
•Even it is more essential than its solution.
9
 Identification of research problems
• Theory of One’s Interest
• Daily Problems
• Technical Changes
• Unexplored Areas
• Discussion With Experts
• Preliminary Survey of Literature
• Places/Institutes Conducting Research in the Area (NBE, WB,
IMF, ERI, EEA)
• Professional Journals, Papers, Conferences, Seminars Etc.
• Encyclopedia
• Research Abstract in that Area
• Current Researches and their Limitations
• Future research direction of prior studies
10
Techniques involved in defining a Problem
• The research problem should be defined in a
systematic manner.
a) Statement of problem in a general way:
– First of all the problem should be stated in a broad
general way keeping with some practical, scientific
and intellectual interest (deductive reasoning).
– For that purpose the researcher must engage
him/herself completely in the subject matter,
where the researcher wishes to pose a problem. In
social science it is advisable to do some field
observation and / or preliminary survey (pilot
survey).
b) Understanding the nature of the problem:
• The next step is to understand clearly the nature and
the origin of the problem. The best way of
understanding the problem is:
 To discuss with those who first raised the
problem in order to know how the problem
originally come in view.
 To discuss it with those who have a good
knowledge of the problem concerned or similar
other problem.
c) Survey the available literature.
• All available literature concerning the problem must be
studied and examined before defining research problem.
• This means the researcher must be familiar with the
relevant theory in the area. Theory has got the following
role in overall research studies;
– Theory provides patterns of the interpretation of data
– It provides frameworks within which concepts and
variables acquire special significance.
• Generally, survey of literature will enable researcher
to know
 If there are certain gap in the theory
 Whether the existing theory applicable to the problem and
consistent with each other.
 Whether the findings of the research do or do not follow a
pattern consistent with the theoretical expectation.
 Study on a related problem is also useful for indicating the type of
difficulty that may be encountered in the present study.
d) Developing ideas through discussion:
• Discussion on a problem produces useful information. Various
new ideas can be discovered and developed through it.
• The researcher should discuss his problem with colleagues and
others who have enough experience in the same area. Such
practice is called ‘experience survey”
– Peoples with rich experience are in a position to show
the researcher different aspects of his proposed study and
their advice and comments are usually of high values.
e) Rephrasing the research problem (reformulation of
the problem):
• Finally the researcher at this stage should be able to
reformulate the problem that has been stated in broad
and general way in to working proposition.
• The researcher should narrow and break down the
problem into its components variables and
relationships.
• That is, problem should be expressed as:
 a relationship between two or more variable
 the problem should be stated either in question form or
hypothesis form
• Question form is appropriate mostly when the research is
descriptive in nature.
• What important is that when a researcher state the problem
in question form the formulated problem should be free
from ambiguity and the relationship among variables
should be clearly expressed
• Examples
• Does a relationship exist between income level of university
students and score on their exams?
• Is there a relationship between employees' age and their
productivity?
• Does R&D investment boosts firms’ performance in the long
run?
• Does digitalization improves income generating capacity of
The following points must be considered while redefining the
research problem:
 Technical terms and words or phrased, with special meanings
used in the statement of the problem, should be clearly defined.
 Basic assumptions or postulates (if any) relating to the research
problem should be clearly defined.
 A straightforward statements of the value of the investigation,
i.e., the criteria for the selection of the problem) should be
provided
 The suitability of the time period and the sources of data
available must also be considered by the researcher in defining
the problem.
 The scope of the investigation or the limits within which the
problem is to be studied must be mentioned explicitly in
defining the research problem.
The Process of Problem Definition

Ascertain the Determine unit of

decision maker’s analysis
objectives

Understand Determine relevant

background of the variables
problem

Isolate/identify the State research

problem, not the questions and
symptoms objectives
19
 1. Ascertain the Decision Maker's Objective

• Objectives are clearly articulated and stated.

• The decision maker formulates his objectives accurately.
• Objectives usually have to be extracted by the researcher.
• Often exploratory research can illuminate the
nature of the opportunity or problem and help
decision makers clarify their objectives and
decisions.

20
2. Understanding the Background of the Problem
• The iceberg principle illustrates that understanding
the background of a problem is vital.
• In situations in which the decision maker's objectives
are clear, the problem may be diagnosed exclusively by
exercising managerial judgment.
• In the absence of adequate information about a
problem a situation analysis is the logical first step in
defining the problem.
• A situation analysis involves a preliminary
investigation or informal gathering of background
informa­tion to familiarize researchers or decision
makers with the decision area
• Gaining an awareness of organizational or
environmental conditions and an appreciation of the
situation often requires exploratory research. 21
3. Isolating and Identifying the Problem, Not the Symptoms

• Anticipating all of the dimensions of a problem is

impossible for any researcher or executive.

• Occurrences that appear to be "the problem" may be only

symptoms of a deeper problem.

• Isolation of a core problem from its symptoms can be

carried out by listing all the likely problems and
conducting cause and effect relationship of the identified
problems through paired comparison.

22
4. Determine the unit of analysis
• Unit of analysis the level or unit about which conclusions
are made in research

• The investigation may focus on the collection of data

about organizations, departments, work groups,
individuals or objects.

• A problem may be investigated at more than one levels of

analysis and the conclusions may vary.

• Determining the unit of analysis should not be overlooked

during the problem definition stage of the research.

23
 5. Determine the Relevant Variables

• A variable is defined as anything that varies or changes

in value.
• A variable generally is anything that may assume
different numerical or categorical values.
• Key independent and the dependent variables should be
identified in the problem definition stage.
• A dependent variable is a criterion or a variable that is
to be predicted or explained.
• An independent variable is a variable that is expected
to influence the dependent variable.
• For example, average hourly rate of pay may be a
dependent variable that is influenced or can be
predicted by an independent variable such as number
of years of experience.
24
 6. State research questions and objectives
• After problem definition researchers should prepare a
written statement that clarifies any ambiguity about
what they hope the research will accomplish.
• Research questions and hypothesis can add clarity to
the statement of the development problem.
• Research questions makes it easier to understand
what is perplexing to deciosion makers and indicate
the issues to be resolved.
• A research question is the researcher’s translation of
the development problem into a specific need for
inquiry.

25
• The goal of defining the problem is to state the
research questions clearly and to have well
formulated hypothesis.

• Research Objective is the researcher's version of

the development problem – specifies what is to be
done by the researcher

• These objectives explain the purpose of the

research in measurable terms-and define
standards of what the research should
accomplish.
• Objectives helps to ensure that the project will be
manageable in size.
26
 Research objectives must specify the information needed
to make a decision.

 Identifying the information needed may require decision

makers or researchers to be as specific as listing the exact
wording of the question in a survey or explaining exactly
what behavior might be observed or recorded in an
experiment.

 It is useful if the research objective is a managerial action

standard. If the criterion to be measured

27
continued

 The number of research objectives should be limited

to a manageable quantity.

 The fewer the study objectives, the easier it is to

ensure that each will be addressed fully.

 Therefore specific objectives influence the research

design because they indicate the type of information
needed.

28
Activity 2

• Identify ten major problems in your

organization
• From these ten problems select the most
significant three problems by following the
procedures to be followed in problem
definition and recognize that one of theses
problems will be your research topic for the
research proposal that you are going to
develop by the end of chapter three.

29
CONDITIONS FOR EFFECTIVE FORMULATION OF RESEARCH
PROBLEMS

1. Systematic immersion in the subject through first

hand observation (information)

2. Study of relevant literature on the subject

3. Discussions with persons with practical experience

in the field of study: experience
survey

30
State the research questions and
research objectives

31
If you do not know where you are going,
any road will take you there.

32
 Broad research Statement of Exploratory research
objectives business problem (optional)

Specific Objective 1 Specific Objective 2 Specific Objective 3

Research Design
Results

33
 Formulation of Research Hypotheses
Hypotheses are a set of proposed solutions
or explanations, which the researcher is obliged
to test on the bases of already known facts.

A research hypothesis is a predictive statement,

capable of being tested by scientific methods, that
relates an independent variable to some dependent
variable.

A hypothesis provides basic guide/direction/

frame work to the researcher. It is a tentative
solution/proposition/explanation.
34
Research hypothesis may refer to an unproven
proposition or supposition that tentatively
explains certain facts; phenomena; a proposition
that is empirically testable.

Research hypotheses are statements that can be

empirically tested.

Hypothesis are usually more specific than

problem statements; they are usually nearer to the
actual research operations and testing.

35
Cont….

In social science hypothesis formulation may

be replaced by research questions and
objectives.

Research question is the researcher’s

translation of the problem into specific need
for inquiry.

Research objective is the purpose of the

research in measurable term
36
 Sources of Hypothesis
1. Hypothesis originates in the science itself or in the
scientist
 Personal experiences, perception and conception of the
researcher play a major role.
 Researchers should think differently and carefully.

2. Analogies are comparisons or analogies between systems

(such as social and natural systems)

3. Hypothesis may rest also on the findings of other studies

 In social science research is usually exploratory i.e it is an
extension from other researches or clear hypothesis

37
Cont…………

4. A hypothesis may stem from a body of theory,

which may afford by way of logical deduction, the
prediction that if certain conditions are present certain
results would follow.

5. Value orientation of the culture in which a science

develops may furnish many of its basic hypotheses.

38
 Characteristics of Hypothesis

1. Hypothesis should be clear and precise

2. Hypothesis should be capable of being tested
3. Hypothesis should state relationship between
variables, if it happens to be a relational
hypothesis.
4. Hypothesis should be limited in scope and
must be specific
5. Hypothesis should be stated as far as
possible in most simple terms
39
 Cont……….

6. Hypothesis should be consistent with most

known facts
7. Hypothesis should be responsive to testing
within a reasonable time.
8. Hypothesis must explain the facts that gave
rise to the need for explanation.

40
 Types of Hypothesis

Null hypothesis
Often stated as … There is no difference/ relationship
etc among alternatives or variables.
Alternative hypothesis
The alternate hypothesis ,on the other hand, states that
there is some difference /relationship among
alternatives or variables.

41
Nine Steps of Hypothesis Testing

1. State the null & alternative hypothesis

2. Choose the level of significance
3. Choose the sample size
4. Determining the appropriate statistics technique
5. Set up the critical value
6. Collect data and compute the sample value
7. determine whether the test statistics has fallen in
to the rejection or non-rejection region
8. Make the statistical decision
9. Express the statistical decision in the context of
the problem 42
 Errors in Hypothesis Testing
In hypotheses testing there are basically two types of
errors that one can make.
We may reject H0 when H0 is true and we may accept
H0 when in fact H0 is not true.
The former is known as Type I error and the latter as
Type II error. In other words, Type I error means
rejection of hypothesis which should have been
accepted and Type II error means accepting the
hypothesis which should have been rejected.
Type I error is denoted by α (alpha) known as α error,
also called the level of significance of test; and Type II
error is denoted by β (beta) known as β error. 43
Tabular presentation of α and β

44
Activity 3

1. For the three most important problems

identified in Activity 2, formulate, at least, one
hypothesis for each problem

2. Test / check whether they are qualify a good

hypothesis or not. Make sure that these
hypotheses will included in the research proposal
that you are going to prepare at the end of
chapter three.

45