MB0050 - Research Methodology Nigam R.

No:
Master of Business Administration- MBA 1305000095
Semester 3
Q1.
How would you distinguish between a management decision problem and a
management research problem? Do all decision problems require research?
Explain and illustrate with examples.
Ans:
Management Decision Problem vs. Management Research Problem
S.No Management Decision Problem Management Research Problem
.
1
What should be done to increase What is the awareness and purchase
the consumers of organic food intention of health conscious consumers
products in the domestic market? for organic food products?
2
How to reduce turnover rates in What is the impact of shift duties on
the BPO sector?
work exhaustion and turnover intentions
of the BPO employees?
3
Can the housing and real estate What is the current investment in real
growth be accelerated?
estate and housing? Can the demand in
the sector be forecasted for the next six
months?
Explaination:
The problem recognition process starts when the decision maker
faces some difficulty or decision dilemma.. Sometimes, this might be related to actual
and immediate difficulties faced by the manager (applied research) or gaps
experienced in the existing body of knowledge (basic research). The broad decision
problem has to be narrowed down to information-oriented problem, which focuses on
the data or information required to arrive at any meaningful conclusion.
Example:
In case the decision maker is a business manager, the
management research problem requires that we look for an answer to to the problem
faced by the manager, as in the above example of how to reduce the turnover rate in
a BPO company. This problem has to be translated to a simpler form of research
question. And as said earlier, there can be more than one research problem that can
help the manager in taking a decision. It depends on the researcher how he looks at
it. he may say that the research problem is:
What are the management policies in other BPO companies?
Why do the employees leave the company? What is the problem area?
Are the shift duties creating a problem of work family conflict which is why
they leave?
How can the company work on employee engagement so that he stays with
the company?
Thus, as you can see we can have many questions. Finally, the research problem
you think is likely to give the possible solution is the one you decide to take as your
research problem.
Q2.
How is research designs classified? What are the distinguishing features of
each? Differentiate by giving appropriate examples.
Ans: Research design as the specification of methods and procedures for acquiring
the information needed. It is the overall operational pattern or framework of the project

MB0050 - Research Methodology Nigam R.No:

Master of Business Administration- MBA 1305000095
Semester 3
that stipulates what information is to be collected from which sources by what
procedures.
The formulated design must ensure three basic principles:
Convert the research question and the stated assumptions/hypotheses into
variables that can be measured.
Specify the process to complete the above task.
Specify the control mechanism(s) to follow so that the effect of other
variables that could have an effect on the outcome of the study has been
controlled.
Designs are classified as per figure shown below:
1) Exploratory research design: Loosely structured research design to explore
and gain clarity about the research questions.
a. Secondary Resource Analysis
b. Case Study Method
c. Expert Opinion Survey
d. Focus Group Discussions
2) Descriptive designs: Research designs that describe in detail the phenomena
under study.
a. Cross-sectional Studies
b. Longitudinal Studies
3) Experimental designs are conducted to infer causality. There are four types of
experimental designs
a. Pre-experimental designs
b. Quasi experimental designs
c. True experimental designs
d. Statistical designs

Q3. Discuss with the help of examples the four key levels of measurement. What
mathematical operations/statistical techniques are and are not permissible on
data from each type of scale?
Ans: Key Levels of Measurement
1. Single Item:
In the single item scale, there is only one item to measure a given
construct.
For example: Consider the following question:
How satisfied are you with your current job?
a. Very Dissatisfied
2

MB0050 - Research Methodology Nigam R.No:

Master of Business Administration- MBA 1305000095
Semester 3
b. Dissatisfied
c. Neutral
d. Satisfied
e. Very satisfied
The problem with the above question is that there are many aspects to a job, like
pay, work environment, rules and regulations, security of job and communication
with the seniors. The respondent may be satisfied on some of the factors but may
not on others. By asking a question as stated above, it will be difficult to analyses
the problem areas. To overcome this problem, a multiple item scale is proposed.
2. Multiple item scale:
In multiple item scale, there are many items that play a
role in forming the underlying construct that the researcher is trying to measure. This
is because each of the item forms some part of the construct (satisfaction) which the
researcher is trying to measure.
For example: Consider the following question:
How satisfied are you with the pay you are getting on your current job?
a. Very dissatisfied
b. Dissatisfied
c. Neutral
d. Satisfied
e. Very satisfied
How satisfied are you with the rules and regulations of your organization?
a. Very dissatisfied
b. Dissatisfied
c. Neutral
d. Satisfied
e. Very satisfied
3. Comparative scales: In comparative scales it is assumed that respondents make
use of a standard frame of reference before answering the question.
For example: A question like How do you rate Barista in comparison to Cafe
Coffee Day on quality of beverages? is an example of the comparative rating scale.
It involves the direct comparison of stimulus objects.
Comparative scale data is interpreted generally in a relative kind. Below are
discussed each of the scale under comparative rating scales in detail below:
Paired comparison scaling: The child is offered to choose one out of the
two from the six possible pairs, i.e., chocolate or burger, chocolate or ice
cream, chocolate or pizza, burger or ice cream, burger or pizza and ice
cream or pizza. In general, if there are n items, the number of paired
comparison would be (n(n 1)/2).
Rank order scaling: In the rank order scaling, respondents are presented
with several objects simultaneously and asked to order or rank them
according to some criterion. Consider,
for example the following question:
Rank the following soft drinks in order of your preference, the most
preferred soft drink should be ranked one, the second most preferred
should be ranked two and so on.
Soft Drinks

Rank

MB0050 - Research Methodology Nigam R.No:

Master of Business Administration- MBA 1305000095
Semester 3
Coke
Pepsi
Limca
Sprite

Constant sum rating scaling: Allocate a total of 100 points among the
various schools into which you would like to admit your child. The points
should be allocated in such a way that the sum total of the points allocated
to various schools adds up to 100.
Schools
DPS
Mothers International
DAV Public School
Laxman Public School
TOTAL POINTS

Points

100

Q-sort technique: Suppose there are 100 statements and an individual is

asked to pile them into five groups, in such a way, that the strongly agreed
statements could be put in one pile, agreed statements could be put in
another pile, neutral statement form the third pile, disagreed statements
come in the fourth pile and strongly disagreed statements form the fifth
pile, and so on.
4. Non-comparative scales:
In the non-comparative scales, the respondents do
not make use of any frame of reference before answering the questions. The
resulting data is generally assumed to be interval or ratio scale.
Graphic rating scale: This is a continuous scale, also called graphic rating
Scale. In the graphic rating scale the respondent is asked to tick his
preference on a graph. Consider for example the following question:
Please put a tick mark on the following line to indicate your preference for
fast food.
Least Preferred
Most Preferred
Itemized rating scale: In the itemized rating scale, the respondents are
provided with a scale that has a number of brief descriptions
associated with each of the response categories. The response
categories are ordered in terms of the scale position and the
respondents are supposed to select the specified category that
describes in the best possible way an object is rated. 1) Likert, 2)
Semantic Differential, 3) Stapel
Q4.
Processing of data involves editing, coding, classifying and tabulating.
Explain each of these steps by taking an appropriate example.
Ans:
1. Data Editing: Data editing is the process that involves detecting and correcting
errors (logical inconsistencies) in data. After collection, the data is subjected to
processing. Once the validation process has been completed, the next step is the
editing of the raw data obtained. The editing process is carried out at two levels,
the first of these is field editing and the second is central editing.
I.
Field Editing

MB0050 - Research Methodology Nigam R.No:

Master of Business Administration- MBA 1305000095
Semester 3
Usually, the preliminary editing of the information obtained is done by the field
investigators or supervisors who review the filled forms for any
inconsistencies, non-response, illegible responses or incomplete
questionnaires. Thus the errors can be corrected immediately and if need be
the respondent who filled in the form, can be contacted again.
II.
Centralized in-house Editing
The second level of editing takes place at the researchers end. At this stage
there are two kinds of typical problems that the researcher might encounter.
a. First, one might detect an incorrect entry.
b. The second and the major problem that most researchers face is that
of armchair interviewing or a fudged interview.
2. Coding: The process of identifying and denoting a numeral to the responses
given by a respondent is called coding. This is essentially done in order to help
the researchers in recording the data in a tabular form later.
Codebook formulation: In order to manage the data entry process, it is best to
prepare a method for entering the records. This coding scheme for all the
variables under study is called a code book. Generally, while designing the rules,
care must be taken to decide on some categories that are:
a. Comprehensive: Should cover all the possible answer to the question that
was asked.
b. Mutually exclusive: The categories and codes devised must be exclusive
or clearly different from each other.
c. Single variable entry: The response that is being entered and the code for
it should indicate only a single variable. For example, a working single
mother might seem an apparently simple category which one could code
as occupation. However, it needs three columnsoccupation, marital
status and family life cycle. So, one needs to have three different codes to
enter this information.
3. Classification and Tabulation of Data: Sometimes, the data obtained
from the primary instrument is so huge that it becomes difficult to interpret. In
such cases, the researcher might decide to reduce the information into
homogenous categories. This method of arrangement is called classification of
data. This can be done on the basis of class intervals.
Classification by class intervals: Numerical data, like the ratio scale
data, can be classified into class intervals. This is to assist the quantitative
analysis of data.
Once the categories and codes have been decided upon, the researcher needs
to arrange the same according to some logical pattern. This is referred to as
tabulation of data. This involves an orderly arrangement of data into an array that
is suitable for a statistical analysis.
Q5. Distinguish between the following:
Ans:
a.
Descriptive Analysis
The hypotheses that are proposed
Definition
with the intent of receiving a
rejection for them are called null

Inferential Analysis
Rejection of null hypotheses leads
to the
acceptance
of
alternative
5

MB0050 - Research Methodology Nigam R.No:

Master of Business Administration- MBA 1305000095
Semester 3

Denotatio
n

A null hypothesis - H0.

hypotheses. The rejection of null

hypothesis
indicates
that
the
relationship between variables
The rejection of null hypothesis
indicates that the relationship between
variables
(e.g.,
sales
and
advertisement expenditure) or the
difference between means (e.g., wages
of skilled workers in town 1 and town 2)
or the difference between proportions
have statistical significance and the
acceptance of the null hypotheses
indicates that these differences are due
to chance.
The alternative hypotheses H1.

b.
Definition

One Tailed
A test is called one-sided (or onetailed)
only if the null hypothesis gets
rejected when a value of the test
statistic falls in one specified tail
of the distribution
it would prefer to test the
hypothesis whether the mean
content of the bottles is different
from 300 ml. This hypothesis could
be written as:
H0 : = 300 ml.
H1 : 300 ml
The hypotheses stated above are
called two-tailed or two-sided
hypotheses.

Two Tailed
the test is called two sided (or twotailed) if null hypothesis gets
rejected when a value of the test
statistic falls in either one or the
other of the two tails of its sampling
distribution.
if the concern is the overfilling of
bottles, it could be stated as:
H0 : = 300 ml.
H1 : > 300 ml.
Such hypotheses are called onetailed or one-sided hypotheses and
the
researcher would be interested in
the upper tail (right hand tail) of the
distribution.

Example

Example

c.
Definition

Denotatio
n

d.
Definition

hypotheses. This requires that we

hypothesize the opposite of what
is desired to be roved.
If we want to prove that the average
wages of skilled workers in town 1 is
greater than that of town 2, we
formulate the null hypotheses that
there is no difference in the average
wages of the skilled workers in both
the towns.

Type I Error
if the hypothesis H0 is rejected when
it is actually true, the researcher is
committing an Type I error

Type II Error
if the null hypothesis H0 when false
is accepted, the researcher is
committing an error called Type II
error.
The probability of committing a The probability of committing a
Type I error is denoted by alpha (). Type II error is denoted by beta ( ).
This
is termed as the level of
significance.
One way ANOVA
Completely randomized design
involves the testing of the equality
of means of

Two Way ANOVA

A statistical test used to determine
the effect of two nominal predictor
variables on a continuous outcome
6

MB0050 - Research Methodology Nigam R.No:

Master of Business Administration- MBA 1305000095
Semester 3
two or more groups. In this design,
there is one dependent variable
and one independent variable. The
dependent variable is metric
(interval/ratio scale)
whereas the independent variable
is categorical (nominal scale). A
sample is
drawn at random from each
category of the independent
variable. The size of
the sample from each category
could be equal or different.

variable. A two-way ANOVA test

analyzes
the
effect
of
the
independent
variables
on
the
expected outcome along with their
relationship to the outcome itself.

e.
Definition

Descriptive Analysis
Descriptive
analysis
refers
to
transformation of raw data into a form
that will facilitate easy understanding
and
interpretation.
Descriptive
analysis
deals
with
summary
measures relating to the sample data.

Inferential Analysis
After descriptive analysis has been
carried out, the tools of inferential
statistic are applied. Under inferential
statistics, inferences are drawn on
population
parameters based on sample results.

Question
s

What is the average income of

the sample?
What is the standard deviation of
ages in the sample?
What percentage of sample
respondents are married?
What is the median age of the
sample respondents?
Which income group has the
highest number of user of product
in question
in the sample?
Is there any association between
the frequency of purchase of
product
and
income
level
of
the
consumers?

Is the average age of the

population significantly different
from 35?
Is the job satisfaction of unskilled
workers significantly related with
their
pay packet?
Do the users and non-users of a
brand vary significantly with respect
to
age?
Does
the
advertisement
expenditure
influences
sale
significantly?
Are consumption expenditure and
disposable income of households
significantly correlated?
Is the proportion of satisfied
workers significantly more for skilled
workers
than for unskilled works?

Q6. a. What is Chi-square test of goodness of fit? What precautions are necessary
while applying this test? Point out its role in business decision making.
b. Two research workers classified some people in income groups on the basis of
sampling studies. Their results are as follow:

MB0050 - Research Methodology Nigam R.No:

Master of Business Administration- MBA 1305000095
Semester 3

Show that the sampling technique of atleast one research worker is defective.
Ans: Chi-square test of goodness of fit : A goodness of fit test is a statistical test of
how well the observed data supports the assumption about the distribution of a
population. The test also examines that how well an assumed distribution fits the data.
The principles are summarized in the following steps:
State the null and the alternative hypothesis about a population.
Specify a level of significance.
Compute the expected frequencies of the occurrence of certain events
under the assumption that the null hypothesis is true.
Make a note of the observed counts of the data points falling in different
cells
Compute the chi-square value given by the formula.

b. Let us make the hypothesis that the techniques adopted by both the groups are
similar and the data is similar also.
Expected frequencies are

(160120)2 ( 3060)2 (1020)2 (140180)2 (12090)2 ( 4030)2

+
+
+
+
+
120
60
20
180
90
30

= 55.54
Degree of freedom = (3-1)*(2-1) = 2
Table value of 2 2
for 2 degree of freedom at 5% level of significance is 5.991.
Since the calculated value is bigger than the table value, we conclude the rejection of
null
hypothesis at 5% level of significance. Technique adopted by one of two groups in
data collection is defective.
Hence, sampling technique of atleast one research worker is defective.