Introduction:

We are going to present a step by step process on how we addressed our research question with
respect to data collection, sampling, data analysis, setting a hypothesis, and testing it. We are going to
present an appropriate description of the limitations involved and include graphic representations to
further elaborate.

The Data Collected and Variables Introduced:

In order for us to be able to formulate and test a hypothesis we need to introduce the quantitative data
gathered previously. Our data collection method was based on documents analysis and observations
with the intention to find data that can assist us in answering our research question on (how to maintain
or even expand a business during recession). We reviewed a number of documents that includes
financial statements, import export documents, and sales invoices. In addition we monitored behaviors
that we can relate to the research question. With respect to observation it is recorded using binary
variables Y/N that occur in two states for a set of activates. These activates include: implementation of
proposed plan, presence of tension, and proposition of solutions by employees. On the other hand, and
with respect to documents, we recorded the data in the form of interval variables. The data monitored
includes revenues, expenses, net income, net increase in cash, stakeholders equity, and imports.

Data Summary:

After reporting the data, it is of major importance to present it in a visual manner that makes it easy to
be apprehended. Two major aspects are needed to be considered when summarizing the data. The type
of variables presented and the visual presentation that best simplifies the data. If we assume that with
respect to observation we collected data for a period of 14 days for the following activates:
implementation of proposed plan, presence of tension, and proposition of solutions by employees using
a Y/N type of binary variables than we will end up with a record that looks as following:

Observation Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14
Implementation of Proposed Plan Y N Y N N Y N N Y Y N Y Y N
Presence of Tension Y Y N Y N Y N N Y Y Y Y Y Y
Proposition of Solutions by Employees N N N Y N N N N N N N N N N
On the other hand the and with respect to document analysis if we recorded the data in the form of
interval variables for a period of three years for the following records: revenues, expenses, net income,
net increase in cash, stakeholders equity, and imports we will end up with the following representation:

Data Type Year 2014 Year 2015 Year 2016

Revenues 5.6 4.8 3
Expenses 1.4 0.9 1.4
Net Income 4.2 3.9 1.6
Net Increase in Cash 1.3 1 0.3
Stakeholders Equity 25 22 19
Imports 5 4.1 0.8

Such a representation will not allow for the data distributions to be seen clearly. As a result we need to
structure the data in a visual form that will help understand its distribution. The binary variables taken
from observation in addition to the interval variables taken from documents are best represented by a
bar chart. The following bar graph represents the Yes (Y) occurrence of the behaviors under observation
in a time interval of 14 working days.

On the other hand, and with respect to the interval variables taken for the revenues, expenses, net
income, net increase in cash, stakeholders equity, and imports the following graph represent the values
for a three year period.

Formulating a Hypothesis:

For hypothesis testing we need to define the null hypothesis and the alternative hypothesis. The null
hypothesis is the initial standard claim about a subject. Usually the null hypothesis is constructed based
on prior information or research (Frick, 1995). In our case the null hypothesis H0 would be: If employees
stick to the implementation of the proposed plan, avoided organizational tensions, and proposed
solutions to expected problems, than the ramifications of recession of the business will be absent. In
addition if the business decreased imports, decreased expenses, and increased net cash and revenues
the business will be maintained or even expanded during a recession. The alternative hypothesis H1 is
opposite to that.

Testing the Hypothesis:

In order to test a hypothesis we need to formulate an analysis plan. The analysis plan describes how to
use sample data to accept or reject the null hypothesis. With respect to the part of the null hypothesis
that relies on data taken from observation (If no significant observations of employs implementing the
proposed plan, avoiding organizational tensions, and proposing solutions to expected problems, than
the ramifications of recession on the business will be absent). To test the hypothesis we will conduct a
one way analysis of variance. The one-way analysis of variance (ANOVA) is used to determine whether
there are any statistically significant differences between the means of two or more independent
groups. It will help us statistically see whether implementation of the proposed plan, avoiding
organizational tensions, and proposing solutions to expect problems were significantly observed thus
accepting the null hypothesis. Mathematically restructuring the hypothesis: H0: 1=2=3 & Ha: ALOI
(at least one inequality). Using excel we performed one-way analysis of variance (ANOVA). The following
results were achieved.
Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Implementation of Proposed Plan 14 7 0.5 0.269230769
Presence of Tension 14 10 0.714285714 0.21978022
Proposition of Solutions by Employees 14 1 0.071428571 0.071428571

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 3 2 1.5 8.029411765 0.001201 3.238096
Within Groups 7.285714286 39 0.186813187

Total 10.28571429 41

To determine whether to reject or accept the hypothesis we need to look at the P-value, the significance
level, the F critical, and F. Looking at the P-value, If the p-value is less than or equal to the significance
level we reject the null hypothesis. If F value is larger than F critical we reject the hypothesis. In our case
both conditions apply. P-value is less the significance level and F critical is less than the F value as a
result the hypothesis is rejected. Rejecting the null hypothesis implies that no significant observations of
employs implementing the proposed plan, avoiding organizational tensions, and proposing solutions to
expected problems, thus the ramifications of recession are expected.

With respect to the other type of data collected using document analysis our null hypothesis would be:
if the business decreased imports, decreased expenses, increased net cash, and increased revenues the
business will be not be maintained or even expanded during a recession. Looking at the following graph
we could see that one condition was fulfilled during a period of three years and it is highlighted in
yellow.

Data Type Year 2014 Year 2015 Year 2016

Revenues 5.6 4.8 3
Expenses 1.4 0.9 1.4
Net increase in Cash 1.3 1 0.3
Imports 5 4.1 0.8

As a result, the conditions set for the null hypothesis to be accepted were not fulfilled, we could clearly
reject the null hypothesis. Rejecting the null hypothesis implies that the four conditions set by the null
hypothesis to maintain the business or expand it during recession were not fulfilled. A look at
descriptive statistics further gives and explanation.
 Revenues Expenses Net increase in Cash Imports
Mean 4.466666667 1.233333333 0.866666667 3.3
Standard Error 0.768837506 0.166666667 0.296273147 1.276714533
Median 4.8 1.4 1 4.1
Standard Deviation 1.331665624 0.288675135 0.513160144 2.211334439
Sample Variance 1.773333333 0.083333333 0.263333333 4.89
Skewness -1.055831894 -1.732050808 -1.09029058 -1.414907805
Range 2.6 0.5 1 4.2
Minimum 3 0.9 0.3 0.8
Maximum 5.6 1.4 1.3 5
Sum 13.4 3.7 2.6 9.9
Count 3 3 3 3
Confidence Level(95.0%) 3.308040795 0.717108788 1.274760466 5.493259273

Conclusion:

Finally, we presented a way of analysis involving collecting data, summarizing data, formulating a
hypothesis and testing it. Our findings suggest that in order for a business to be maintained or even
expand during recession a number of conditions needs to be fulfilled: employs must implement the
proposed plan, avoid organizational tensions, and propose solutions in addition the business must
decrease imports, decrease expenses, increase net cash, and increase revenues.

References:

Easterby-Smith, M., Thorpe, R. & Jackson, P. (2012) Management research. 4th ed. London: Sage.

Frick, R.W., 1995. Accepting the null hypothesis. Memory & Cognition, 23(1), pp.132-138.

Oyeyemi, G., Adewara, A. A. & Adeyemi, R. A. (2010) Complex survey data analysis: a comparison of
SAS, SPSS and STATA, Asian Journal of Mathematics & Statistics, 3 (1), pp.33-39.
http://linksource.ebsco.com.ezproxy.liv.ac.uk/linking.aspx?title=Asian+Journal+of+Mathematics+and+St
atistics&volume=3&issue=1&spage=33&date=2010