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Business Research Methods

(RMB 203)
MBA Semester II
(Session 2017-2018)

Prepared By
Mr. Mohammad Talha Siddiqui
Assistant Professor


Research: Definition, Meaning, Importance types and Qualities of Research; Research applications in functional
areas of Business, Emerging trends in Business research.
Research & the Scientific Method: Characteristics of scientific method. Steps in Research Process
Concept of Scientific Enquiry: Formulation of Research Problem – Management Question – research Question –
Investigation Question
Research Proposal: Elements of a Research Proposal, Drafting a Research Proposal, evaluating a research proposal.

Q.1. What do you mean by research?

Research: Meaning
Research means a detailed study of a subject, especially in order to discover (new) information or reach
a (new) understanding.
Research can be defined as the search for knowledge, or as any systematic investigation, with an open
mind, to establish novel facts, usually using a scientific method.
Research is, thus, an original contribution to the existing stock of knowledge making for its advancement.
It is the search of truth with the help of study, observation, comparison and experiment.

Research has been defined in a number of different ways.
(1) By Martyn Shuttleworth - "In the broadest sense of the word, the definition of research includes any
gathering of data, information and facts for the advancement of knowledge."
(2) By Creswell - "Research is a process of steps used to collect and analyze information to increase
our understanding of a topic or issue".

Q.2. What are the characteristics and qualities of research?

Research is a process of collecting, analyzing and interpreting information to answer questions.
But to qualify as research, the process must have certain characteristics: it must, as far as possible, be
controlled, rigorous, systematic, valid and verifiable, empirical and critical.
1. Controlled: In real life there are many factors that affect an outcome. The concept of control implies
that, in studying the relationship between two variables (factors), we should set up our study in a way
that minimizes the effects of other factors affecting the relationship.
2. Rigorous: You must be careful in ensuring that the procedures followed to find answers to questions
are relevant, appropriate and justified. Again, the degree of rigor varies markedly between the physical
and social sciences and within the social sciences.
3. Systematic: This implies that the procedure adopted to undertake an investigation follow a certain
logical sequence. The different steps cannot be taken in a haphazard way. Some procedures must follow

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4. Valid and verifiable: This concept implies that whatever you conclude on the basis of your findings
is correct and can be verified by you and others.
5. Empirical: This means that any conclusion drawn are based upon hard evidence gathered from
information collected from real life experiences or observations.
6. Critical: Critical scrutiny of the procedures used and the methods employed is crucial to a research
enquiry. The process of investigation must be foolproof and free from drawbacks. The process adopted
and the procedures used must be able to withstand critical scrutiny.

Q.3. Discuss different types of research?

Research can be classified in many different ways. Some major ways of classifying research include the

Descriptive research, also known as statistical research, describes data and characteristics about the
population or phenomenon being studied. It concentrates on finding facts to ascertain the nature of
something as it exists. However, it does not answer questions about how/when/why characteristics of
the problem. Although the data description is factual, the research cannot describe what caused a
situation, for example, frequency of shopping, preferences of people, or similar data. In social science
and business research we quite often use the term Ex post facto research for descriptive research
In analytical research, the researcher has to use facts or information already available, and analyze
these to make a critical evaluation of the material so as to find the answers of questions, such as
how/when/why. It concerned with determining validity of hypothesis based on analysis of facts
collected. The aim of this research is to improve practice in the future.
Research can either be applied (or action) research or fundamental (basic or pure) research. Applied
research is carried out to find answers to practical/immediate problems a society or business
organization is facing and helps in decision making in different areas including product design, process
design and policy making.
Fundamental research is carried out as more to satisfy intellectual curiosity, than with the intention of
using the research findings for any immediate practical application. It is mainly concerned with
generalizations and with the formulation of a theory. It, thus, adds to the already existing organized
body of scientific knowledge.
Quantitative research makes significant use of measurements and quantitative analysis techniques. It
is based on the principle that something is meaningful only if it can be observed and counted. Its key
characteristics are numerical data that can be used for statistical analysis.
Qualitative researcher studies such aspects of the research subject which are not quantifiable, and
hence not subject to measurement and quantitative analysis. It aims to gather an in-depth understanding
of human behavior and the reasons that govern such behavior. The qualitative method investigates the
why and how of decision making, not just what, where, when.
Conceptual research involves investigation of thoughts and ideas and developing new ideas or
interpreting the old ones based on logical reasoning. It is generally used by philosophers and thinkers to
develop new concepts or to reinterpret existing ones.

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Empirical research is data based research, coming up with conclusions which are capable of being
verified by observation or experiment. It tests the predictions of conceptual research by focusing on real
people and real situations. We can also call it as experimental type of research.
(v) Some Other Types of Research All other types of research are variations of one or more of the
above stated approaches, based on either the purpose of research, or the time required to accomplish
research, on the environment in which research is done, or on the basis of some other similar factor.
We have different types of research they are:
1. Exploratory or Formulative research studies.
2. Experimental research studies.
3. Diagnostic research studies.
4. Hypothesis testing research studies.
5. Correlational research studies.
6. Comparative research studies.
8. Longitudinal research study.
9. Simulation research study.

1. Exploratory or Formulative research studies.

To gain familiarity with a phenomenon or to achieve new insights into.
2. Experimental research studies
To carry out the study under controlled conditions.
3. Diagnostic research studies
To determine the frequency with which something occurs or with which it is associated with
something else.
4. Hypothesis testing research studies
To test a hypothesis of a casual relationship between variables.
5. Correlational research studies.
To discover relationships between two variables, e.g. relation between size of pack and consumption
6. Comparative research studies
Researcher attempts to study the comparison of institutions, organization and practices.
7. Longitudinal research study
To study the problem over a long period of time.
8. Simulation research study
To conduct study in an artificial environment which is very similar to real environment.
Q.4. State the research applications in the functional area of business research.


Research always facilitates effective management. The prime managerial value of management research
is that it reduces uncertainty by providing information that improves the decision-making process.
Companies conduct business research for a number of reasons.
(1) Launching New Product

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If a company hopes to launch a new product in the market, they must do some market research to see if
it would be a good idea. Certainly, seeing what works and what doesn’t will help a business owner have
the knowledge to make informed decisions in specific areas of business.
(2) Testing New Products
Business research tests the potential success of new products. Companies must know what types of
products and services customers want before they market them. For example, a restaurant chain may
initially interview focus groups to test new dish. The focus groups will likely consist of small groups of
customers. The objective of the focus group may be to determine which fish meal customers like the
(3) Pricing of Product
Business research helps management to fix the price of the product. Management, on the basis of
research findings, may select best suitable and feasible method of pricing.
(4) Ensuring Adequate Distribution
Companies may also use business research to ensure the adequate distribution of their products. For
example, a consumer products company may want to talk to retailers about all the different brands they
sell. The results of the business research will help marketing managers determine where they need to
increase their product distribution.
(5) Measuring Advertising Effectiveness
Companies use business research to determine the success of their advertising. For example, a milk
manufacturer may want to know what percentage of the population saw its most recent television
commercial. The milk company may find that more people become aware of its advertising the longer
television ad runs. Companies also use business research to see if consumers recall the message or
slogan of their commercials.
(6) Studying the Competition
Companies often use business research to study key competitors in their markets. Companies will often
start with secondary research information or information that is already available. For example, a
software company may want to know the percentage of customers in the market who purchase its
products versus competitors' products.
(7) Deciding the Procedure
Research also helps a business determine whether a procedure should be changed or if more needs to be
done to meet the needs of the customer base.
(8) Avoiding Future Failure
Doing research in business management is vital as it helps a business plan for the future, based on what
may have happened in the past. If carried out successfully it can help a company make informed plans
on how to become more viable in its sector. If something has been unsuccessful, effective research may
help a business avoid future failure.
(9) Evaluating the Future
Business experts agree that looking to the future of business is very much about looking at the past. The
two are interlinked and by carrying out research you are more likely to see a positive outcome in your
chosen objective. In business, making ill informed decisions may be very precarious as there may be too
much money at risk or a company’s reputation may be put at stake.

Q.5.Discuss the need to study business research and emerging trends in business research.


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In the past few years, many organizations have adopted technologies into their business models in hopes
to increase efficiency, become more flexible, and to transform their current business functions. Business
research, too, has adopted new techniques and methodologies in order to keep up with the evolving
markets and extend its reach. In a recent study industry expert determine the emerging trends that are
expected to be used in the upcoming years by business researchers.

Trends gaining traction in business research are as written below-

1. Market Research Online Communities: MROCs combine a mixture of social media, online
discussion and qualitative research to provide long-term benefits, in-depth insight and an
unparalleled level of access to participants. The format is flexible enough to suit nearly any
audience, through gamification, live chat, bulletin boards or other methods, to provide a powerful
tool for researchers at a fraction of the cost that hosting in-person events and similar studies would

2. Social Media: Social media is one of the driving forces in new methods of technology based
research. From qualifying study participants to conducting research on the plethora of platforms
available, there are endless options for optimizing your research methods, reaching new audiences
and gathering mass quantities of data quickly and efficiently. However, these platforms are also
ideal for long-term research due to their low-cost, easy management and instant communication

3. Mobile Survey: Mobile survey was once a research method reserved for specific studies and
businesses. With the penetration and instant-access characteristics of mobile research, studies with
the help of mobile device lower the costs and study duration. Through video chat, mobile polls and
other methods, it is possible to conduct studies without the need for constant on-site supervision.

4. Increased Automation and, thus, Accelerated Speed to Market: As the amount of data available
to the researchers increases, artificial intelligence, data mining tools, trends analysis algorithms and
other research software are improving the ability to collate data and achieve results. This, in turn, is
reducing the overall time needed to conduct the research and produce results for clients.

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5. Increased Emphasis on the Customer Experience: Study reports including interactive elements, such as
word clouds, video clips and storytelling, help to provide information with increased insight. Geo-location
targeting, mobile surveys and other tools help to conduct studies in the moment as experiences are occurring
to capture a truer sense of the study participant. The result is that traditional question-and-answer and static
report formats of research are losing ground to new technologies at a rapid pace.

Q.6. what are the characteristics of scientific method

The scientific method is the system used by scientists to explore data, generate and test hypotheses, develop new
theories and confirm or reject earlier results. Although the exact methods used in the different sciences vary, they
share some fundamental attributes that may be called characteristics of the scientific method.
1. Empirical
Scientific method is concerned with the realities that are observable through “sensory experiences.” It generates
knowledge which is verifiable by experience or observation. Some of the realities could be directly observed,
like the number of students present in the class and how many of them are male and how many female. There are
also realities which cannot be observed directly, but the researchers have designed ways to observe these
2. Replicable
Scientific experiments are replicable. That is, if another person duplicates the experiment, he or she will get the
same results. Scientists are supposed to publish enough of their method so that another person, with appropriate
training, could replicate the results.
3. Provisional
Results obtained through the scientific method are provisional; they are (or ought to be) open to question and
debate. If new data arise that contradict a theory, that theory must be modified.
4. Objective
The scientific method is objective. It relies on facts and on the world as it is, rather than on beliefs, wishes or
desires. Scientists attempt (with varying degrees of success) to remove their biases when making observations.
5. Systematic
Strictly speaking, the scientific method is systematic; that is, it relies on carefully planned studies rather than on
random or haphazard observation. Nevertheless, science can begin from some random observation. Isaac Asimov
said that the most exciting phrase to hear in science is not "Eureka!" but "That's funny." After the scientist
notices something funny, he or she proceeds to investigate it systematically.

Q.7. What are the factors affecting good research or

Requirements/determinants of good research or
Precautions for good research?
A number of factors affect the success or failure of research, irrespective of the method that is being used. These
factors are -
1. Need for research
Topic of the study must have a significant need for the research. The results need not have immediate application
but the topic should not be insignificant; it should be important and worthwhile.
2. Research problem definition
If we don’t understand your research problem clearly then it is unlikely that we will arrive at a reasonable
solution. This is an obvious remark. However, many research projects do little more than re-express a problem in
a form that can then be addressed by subsequent research.
3. Well defined research context is required

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There must be well-defined research context. If not, there is a danger that we will ”re-invent the spoon” if we do
not have a good grasp of previous work in the area. It is critical that we spend some time consulting many
sources before starting any research project. Otherwise, we will find ourselves repeating work that others have
done before us.
4. Good documentation
It is important that we spend some time documenting our daily activities when engaged on a research project.
For example, it is common to find much relevant papers or URLs or books as references and then lose them by
not making a careful note or bookmarks.
5. Effective time management
Research is labour intensive. It takes time to find reference material. It can take days to complete a proof. It can
take weeks to complete a simulation (or emulation) program or run a set of experiments. It can take many
months to write up about the research. We will run out of time if we do not carefully plan our allocation of time
to each of these components. It is also important that we plan for failure.
6. Match with interests and capabilities
The research topic should match both our interests and capabilities. This will sustain us in times of frustration
and offset the possibility of entering areas in which we are less competent.
7. Contribution of knowledge
The research should be based on a significant problem, research question or hypothesis. Our work should relate
to, explain, solve or add proof to the question, problem or hypothesis. The results of our research should increase
knowledge of that particular field of enquiry.

Q.8. What are the various steps in research process?

Research is often conducted using the hourglass model structure of research. The hourglass model starts with a
broad spectrum for research, focusing in on the required information through the method of the project (like the
neck of the hourglass), then expands the research in the form of discussion and results. The major steps in
conducting research are:

Step -1 Formulating/Identifying the Research Problem

Step -2 Extensive Literature Survey

Step -3 Specifying the Purpose of Research

Step -4 Developing the Hypothesis

Step -5 preparing the Research Design

Step -6 Data Collection

Step -7 Data Analysis

Step -8 Hypothesis Testing

Step -9 Generalisation and Interpretation

Step -10 Preparation of the Report or Presentation of Results

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It is the first and most crucial step in the research process. Main function is to decide what you want to find out
Sources of research problems:
Research in social sciences revolves around four Ps:
• People- a group of individuals.
• Problems- examine the existence of certain issues or problems relating to their lives; to ascertain attitude of a
group of people towards an issue.
• Programmes- to evaluate the effectiveness of an intervention.
• Phenomena- to establish the existence of regularity.
In practice, most research studies are based upon at least a combination of two Ps.
Considerations in selecting a research problem:
These help to ensure that your study will remain manageable and that you will remain motivated.
1. Interest of researcher: a research work is usually time consuming, and involves hard work and possibly
unforeseen problems. One should select topic of great interest to sustain the required motivation.
2. Magnitude of problem: It is extremely important to select a topic that you can manage within the time and
resources at your disposal. Narrow the topic to something so that it becomes manageable, specific and clear.
3. Level of expertise: Make sure that you have adequate level of expertise for the task you are proposing since
you need to do the work yourself.
4. Relevance: Ensure that your study adds to the existing body of knowledge, bridges current gaps and is useful
in policy formulation. This will help you to sustain interest in the study.
5. Availability of data: Before finalizing the topic, make sure that data are available.
6. Ethical issues: How ethical issues can affect the study population and how ethical problems can be overcome
should be thoroughly examined at the problem formulating stage.
Once the problem is formulated, a brief summary of it should be written down. Reviewing literature can be time-
consuming, difficult and frustrating, but is also rewarding. Its functions are:
a. Bring clarity and focus to your research problem;
b. Improve your methodology;
c. Broaden your knowledge;
d. Contextualise your findings.
a. Bring clarity and focus to your research problem;
The process of reviewing the literature helps you to understand the subject area better and thus helps you to
conceptualise your research problem clearly and precisely.
b. Improve your methodology:
A literature review tells you if others have used procedures and methods similar to the ones that you are
proposing, which procedures and methods have worked well for them, and what problems they have faced with
them. Thus you will be better positioned to select a methodology that is capable of providing valid answer to
your research questions.
c. Broaden your knowledge base in your research area:
It ensures you to read widely around the subject area in which you intend to conduct your research study. As you
are expected to be an expert in your area of study, it helps fulfill this expectation. It also helps you to understand
how the findings of your study fit into the existing body of knowledge.
d. Contextualise your findings:

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How do answers to your research questions compare with what others have found? What contribution have you
been able to make in to the existing body of knowledge? How are your findings different from those of others?
For you to be able to answer these questions, you need to go back to your literature review. It is important to
place your findings in the context of what is already known in your field of enquiry.


Objectives are the goals you set out to attain in study. They inform a reader what the researcher want to attain
through the study. It is extremely important to word them clearly and specifically. The objectives should start
with words such as ‘to determine’, ‘to find out’, ‘to ascertain’, ‘to measure’, ‘to explore’ etc. We should use
action oriented words or verbs when writing objectives.
Objectives should be listed under two headings:
a) Main objectives (aims);
b) Sub-objectives.
• The main objective is an overall statement of the thrust of your study. It is also a statement of the main
associations and relationships that you seek to discover or establish.
• The sub-objectives are the specific aspects of the topic that you want to investigate within the main framework
of your study.


After extensive literature survey, researcher should state in clear terms the working hypothesis or hypotheses.
Hence, a hypotheses is a hunch, assumption, suspicion, assertion or an idea about a phenomenon, relationship
or situation, the reality or truth of which you do not know.
The functions of hypotheses:
(i) The formulation of hypothesis provides a study with focus.
(ii) A hypothesis tells you what data to collect and what not to collect.
(iii) As it provides a focus, the construction of a hypothesis enhances objectivity in a study.


Research design is the conceptual structure within which research would be conducted. The function of research
design is to provide for the collection of relevant information with minimal expenditure of effort, time and
The preparation of research design involves the consideration of the following:
1. Objectives of the research study.
2. Nature of Study
3. Source of Data
4. Sample Design
5. Tool and Technique of Data collection
6. Data Analysis Tools


After formulating the research problem, you have to collect the data from which you will draw inferences and
conclusions for your study. There are several ways of collecting the appropriate data which differ in terms of
money costs, time and other resources.
Data can be collected by any one or more of the following ways:
(i) By observation: This method implies the collection of information by way of investigator’s own
observation, without interviewing the respondents. This method is expensive method and the information
provided by this method is also very limited.

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(ii) Through personal interview: The investigator follows a rigid procedure and seeks answers to a set of pre-
conceived questions through personal interviews.
(iii) Through telephone interviews: This method of collecting information involves contacting the
respondents on telephone itself. It plays an important role in industrial surveys in developed regions, particularly,
when the survey has to be accomplished in a very limited time.
(iv) By mailing of questionnaires: If this method of survey is adopted, questionnaires are mailed to the
respondents with a request to return after completing the same. It is the most extensively used method in various
economic and business surveys.
(v) Through schedules: Under this method the enumerators are appointed and given training. They are
provided with schedules containing relevant questions. These enumerators go to respondents with these
schedules. Data are collected by filling up the schedules by enumerators on the basis of replies given by


After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data
requires a number of closely related operations such as establishment of categories, the application of these
categories to raw data through edidtng, coding, tabulation and then drawing statistical inferences.
Editing is the procedure that improves the quality of the data for coding. Researcher classify the raw data into
some purposeful and usable categories. Coding operation is usually done at this stage through which the
categories of data are transformed into symbols that may be tabulated and counted. Tabulation is a part of the
technical procedure wherein the classified data are put in the form of tables. The mechanical devices such as
computer can be made use of at this juncture.
After tabulation, analysis work is done that is generally based on the computation of various percentages,
coefficients, etc., by applying various well defined statistical formulae. In the process of analysis, inferences
related to study are drawn.


After analysing the data, the researcher is in a position to test the hypotheses, if any. Do the facts support the
hypotheses or they happen to be contrary? This is the usual question which should be answered while testing
hypotheses. Various tests, such as Chi square test, t-test, F-test, have been developed by statisticians for the
purpose. The hypotheses may be tested through the use of one or more of such tests, depending upon the nature
and object of research inquiry. Hypothesis-testing will result in either accepting the hypothesis or in rejecting it.


If a hypothesis is tested and upheld several times, it may be possible for the researcher to arrive at generalisation,
i.e., to build a theory. As a matter of fact, the real value of research lies in its ability to arrive at certain
generalisations. If the researcher had no hypothesis to start with, he might seek to explain his findings on the
basis of some theory. It is known as interpretation. The process of interpretation may quite often trigger-off new
questions which in turn may lead to further researches.


Finally, the researcher has to prepare the report of what has been done by him. Writing of report must be done
with great care. The layout of the report should be as follows:
(i) Preliminary pages;
(ii) Main text; and
(iii) End matter.
In its PRELIMINARY PAGES, the report should carry title, date, acknowledgements and foreword. Then there
should be a table of contents followed by a list of tables, graphs and charts, if any, given in the report.

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The MAIN TEXT of the report should have the following parts:
(a) Introduction: It contain a clear statement of the objective of the research, an explanation of the
methodology adopted in the research, and the scope & limitations of the study.
(b) Summary of findings: After introduction there would be an statement of findings and recommendations in
non-technical language.
(c) Main report: The main body of the report should be presented in logical sequence and broken-down into
readily identifiable sections.
(d) Conclusion: Towards the end of the main text, researcher should again put down the results of his research
clearly and precisely. In fact, it is the final summing up.
END MATTER, As the word suggests itself, is written at the end of the report. It should contain bibliography, i.e.,
list of books, journals, reports consulted, and appendices etc.

Q.9. what are the steps in formulation of a research problem?

Working through these steps presupposes a reasonable level of knowledge in the broad subject area within which
the study is to be undertaken. Without such knowledge it is difficult to clearly and adequately ‘dissect’ a subject

Step-1 Identify a broad field or subject area of interest to you.

Step-2 Dissect/Divide the broad area into sub areas.

Step-3 Select what is of most interest to you.

Step-4 Raise research questions.

Step-5 Formulate objectives.

Step-6 Assess your objectives.

Step-7 Double check.



Scientific inquiry generally aims to obtain knowledge in the form of testable explanations that researchers can
use to predict the results of future experiments.

We need to study the mindset of a manager and the process he takes to solve a problem so that we can prepare
ourselves for the real world business problems.

Today’s managers have an increasing need to take the assistance of scientific methods to help them in decision
making. They find that it is more effective to study all the options for the solution of a problem that are available
to them, evaluate them accordingly and then select the best possible course of action.

There are six steps to the management research question hierarchy that can be faced at work. Step
1: Management Problem
First, we try to know that what factors have resulted in the current problem and what environmental factors have
stimulated the issue.

An increased number of complaints have been received regarding a product due to delay in its delivery. Step
2: Management Question
In this step we try to know how management can fully eliminate the factors that are causing the problem.
What can be done so that the delay in delivery of the product does not occur again?

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Step 3: Research Question
In this step we try to know that by taking which course of action the management can eliminate the factors
that are causing the problem.
Should the delivery service be switched to another company?
Step 4: Investigative Question
Now, we study to know which alternative is most suitable for the managers in order to avail the
Which specific delivery company can be used for the delivery of this product?
Step 5: Measurement Question
This step is to know how the questions can be measured. We also try to know what needs to be asked or
observed for the information needed to solve the problem and the management research question. Example:
What is the approximate delivery time of the best delivery company in the city?
Step 6: Management Decision
Finally, based on the findings gained from the research, we have to know what action course should the
management take.
Based on the data gathered, should the company switch to a new delivery company or not?

Q.11. What is a research proposal? What are the various elements of research proposal?

A research proposal is a document that provides a detailed description of the intended program. It is like an
outline of the entire research process that gives a reader a summary of the information discussed in a project.
Elements of Your Research Proposal are as discussed below:
1) Title:
Title of research should be concise and descriptive. It must be informative and catchy. An effective title not only
creates the readers interest, but also predisposes him/her favorably towards the proposal.
2) Abstract:
It should be a summary of what you are going to do, why, and what its value is. It should include the main
research question, the rationale for the study, the hypothesis (if any), the method, expected outcomes and
potential value of the research.
3) Introduction:
The introduction provides the readers with the background information. Its purpose is to establish a framework
for the research, so that readers can understand how it relates to other research. It should answer the question of
why the research needs to be done and what will be its relevance.
4) Objectives:
Research objectives are the goals to be achieved by conducting the research. They may be stated as ‘general’ and

The general objective of the research is what is to be accomplished by the research project, for example, to
determine whether or not a new vaccine should be incorporated in a public health program.

The specific objectives relate to the specific research questions the investigator wants to answer through the
proposed study and may be presented as primary and secondary objectives.

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For Example
Primary: To determine the degree of protection that is attributable to the new vaccine in a study population by
comparing the vaccinated and unvaccinated groups.
Secondary: To study the cost-effectiveness of this programme.

5) Variables: During the planning stage, it is necessary to identify the key variables of the study and their
method of measurement and unit of measurement must be clearly indicated. Four types of variables are
important in research:

a. Independent variables: variables that are manipulated or treated in a study in order to see what effect
differences in them will have on those variables proposed as being dependent on them.

b. Dependent variables: variables in which changes are results of the level or amount of the independent
variable or variables.

c. Confounding or intervening variables: variables that should be studied because they may influence or ‘mix’
the effect of the independent variables. For instance, in a study of the effect of measles (independent variable) on
child mortality (dependent variable), the nutritional status of the child may play an intervening (confounding)

d. Background variables: variables that are so often of relevance in investigations of groups or populations that
they should be considered for possible inclusion in the study. For example sex, age, ethnic origin, education,
marital status, social status etc.

6) Hypotheses and/or specific aims: A hypothesis can be defined as a tentative prediction or explanation of
the relationship between two or more variables. In other words, the hypothesis translates the problem statement
into a precise, unambiguous prediction of expected outcomes.

7) Methodology: The method section is very important because it tells your client/research Committee how you
plan to tackle your research problem. The guiding principle for writing the Methods section is that it should
contain sufficient information for the reader to determine whether the methodology is
This section should include:

a. Research design: The choice of the strategy, whether descriptive, analytical, experimental, operational or a
combination of these.
b. Research subjects or participants: Depending on the type of your study, the following questions should be
 What are the criteria for inclusion or selection?
 What are the criteria for exclusion?
 What is the sampling procedure?

c. Sample size: The proposal should provide information and justification (basis on which the sample size is
calculated) about sample size in the methodology section.

d. Research setting: The research setting includes all the pertinent facets of the study, such as the population to
be studied (sampling frame), the place and time of study.

e. Study instruments: Instruments are the tools by which the data are collected. For validated
questionnaires/interview schedules, reference to published work should be given and the instrument appended to
the proposal.
f. Collection of data: A short description of the protocol of data collection.

g. Data analysis: The description should include the design of the analysis form, plans for processing and
coding the data and the choice of the statistical method to be applied to each data.
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h. Significance of the study: Indicate how your research will refine, revise or extend existing knowledge in the
area under investigation. How will it benefit the concerned stakeholders?

i. Dissemination of the study results: How do you propose to share the findings of your study with professional
peers, practitioners, participants and the funding agency?
j. Budget: A proposal budget with item wise/activity wise breakdown and justification for the same.
Indicate how the study will be financed.

8) References: The proposal should end with listing of all the literature used in writing proposal. For web based
search include the date of access for the cited website, for example: add the sentence "accessed on June 10,
9) Appendices:

It includes the appropriate appendixes in the proposal. For example: Interview protocols, sample of informed
consent forms, cover letters sent to appropriate stakeholders, official letters for permission to conduct research
and data collection tool. if the instrument is copyrighted then permission in writing to reproduce the instrument
from the copyright holder.
Q.12. What are the various problems encountered by researchers in india?


There are several problems encountered by students and novice researchers. Some of them are:

1. Lack of scientific training in the methodology of research

There is a scarcity of competent researchers. The scenario in most cases is like a blind leading the blind. Most of
the people who hold the position of research guides are themselves not thorough with the various methodologies.
They lead the researcher/students to copy methodology of similar studies.

2. Copying of data (Plagiarism)

Some researchers (as they call themselves), merely copy other international studies or studies which have been
done by researchers/students of other universities. This is a crime and should not be promoted. A Researcher can
re-evaluate others study by considering and overcoming the limitations of previous study, but at no cost should
be copied or repeated.

3. Manipulation of data
Every researcher tries or does one or the other kinds of manipulation of data. May be multiplying the sample size
or to make the result in the way they want. This never reveals the reality, as the intuition of the researcher is
guided by mere theoretical knowledge. In reality sometimes theory and practice may be contradictory. Some
researchers just finish off their study by simply sitting in their home; they don’t even interact with their subject
or any one.

4. Lack of availability or access to literature needed

This is a major problem faced during the literature review. The lack of availability of access to Internet,
ignorance of the way to search needed articles from journals and other databases are other problems. The
libraries are not managed systematically. Much of the precious time of the researchers is spent in searching
books and newspaper-articles from conventional libraries. These kind of libraries, especially which are situated
away from the capital cities lack copies of new acts/rules published by the government.

5. The outlook of the researcher/research student

All students before being selected by the guide interact with their senior students. They already finding difficulty
with research, tells the hardships they suffer or suffered. This changes the outlook of the students. Research is the
way you take it. It can be easy or difficult as you perceive.

6. Lack of confidence to take up a new study especially explorative study

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This may be due to any of the above-mentioned reasons, the fear of the result or the fear of not able to answer
questions during presentations. One should be dare enough to publicize the result of the study, as it is the truth
he/she has come to know after the research process.

7. Unavailability of permission to do research in specific centres

Hospitals and business establishments usually don’t allow third party inside to conduct research. This may be
due to security reasons or may be due to lack of confidence in keeping the confidentiality of the data or names.
No establishment will agree a third person to get in and find out the problems within and it being gets published.

8. Research: a mere formality to fulfil course requirement

Yes, of course research is a part of curriculum. But most of the students find it as a mere formality to fulfil their
course requirement. They just want to finish off the study. For this, they search the shortcuts.

9. Lack of Code of Conduct

No specific code of conduct exists for the researchers, which leads to inter-departmental and inter-university

10. Inadequate Assistance

Researchers in India have to cope with the non-availability of adequate and timely secretarial assistance, which
affects the schedule of their research study.

11. Publishing may be expensive

Once, the research study is completed, the next step is publishing of the same. Printing and binding may turn to
be expensive. Also, it will be very expensive the paper has to be published in any international journals or
conferences. These expenses may not be affordable by the student researchers.

12. Lack of availability of sponsors

This may be due to lot of reasons-
A. Hesitation to contact sponsors
B. Not able to convince the sponsors
C. Lack of confidence of sponsors over the researcher

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Research design: Concept, Features of a good research design, Use of a good research design; Qualitative and Quantitative
research approaches, Comparison – Pros and Cons of both approaches.
Exploratory Research Design: Concept, Types: Qualitative techniques – Projective Techniques, Depth Interview,
Experience Survey, Focus Groups, Observation.
Descriptive Research Designs: Concept, types and uses. Concept of Cross-sectional and Longitudinal Research
Experimental Design: Concept of Cause, Causal relationships, Concept of Independent & Dependent variables,
concomitant variable, extraneous variable, Treatment, Control group.

Q.1. Define research design. What are the elements of research design?

Research design is the conceptual structure within which research would be conducted. It constitutes the
blueprint for collection, arrangement and analysis of data. A research design includes an outline of what the
researcher will do from writing the hypothesis and its operational implication to the final analysis of the data.
The function of research design is to provide for the collection of relevant information with minimal
expenditure of effort and time.
The preparation of research design, appropriate for a particular research problem, involves the consideration of
the following:
1. Objectives of the research study.
2. Nature of Study
3. Source of Data
4. Sample Design
5. Tool and Technique of Data collection
6. Data Analysis Tools
1. Objectives of the Research Study: Objectives identified to answer the research questions have to be listed
making sure that they are:
a) numbered, and
b) statement begins with an action verb.
2. Nature of Study: The research design should be expressed in relation to the nature of study to be undertaken.
The choice of the type of study should be made at this stage so that the steps in planning may have relevance to
the proposed problem.
3. Source of Data: There are two types of data
Primary Data— collected for the first time.
Secondary Data—those which have already been collected and analysed by someone else.
4. Sample Design:
Researchers usually draw conclusions about large groups by taking a sample. A Sample is a segment of the
population selected to represent the population as a whole.
Sample Design tells us everything about sample with which study would be undertaken. Sample Design includes
following things.
(A) Population – Segment of individuals whom study is undertaken for.
(B) Sample element – A part of population that represent whole population.
(C) Sampling technique - Method of selection of sample items.
(D) Sample size – Total number of sample items in the sample.
5. Tools and Technique for Data collection:
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There are several ways of collecting the appropriate data.
(i) By observation
(ii) Through personal interview
(iii) Through telephone interviews
(iv) By mailing of questionnaires
(v) Through schedules
6. Data Analysis Tools
Data analysis is done for drawing inferences. Data can be analysed either manually or with the help of a
computer. There are various methods for analyzing the data. These may be Chi-square test, Z-test, ANOVA
method, etc.
The following are the main features of a good research design.
a. Simplicity: It should be simple and understandable
b. Economical: It must be economical. The technique selected must be cost-effective and less time-consuming.
c. Reliability: It should give the smallest experimental error. This should have the minimum bias and have the
reliability of data collected and analysed.
d. Workability: It must be workable. It should be pragmatic and practicable.
e. Flexibility: It must be flexible enough to permit the consideration of many different aspects of a phenomenon.
f. Accuracy: It must lead to accurate results
Research is the most widely used tool to increase and brush-up the stock of knowledge about something and
someone. In the field of marketing, business, sociology, psychology, science & technology, economics, etc.
There are two standard ways of conducting research, i.e. qualitative research or quantitative research. While the
former relies on verbal narrative like spoken or written data, the latter uses logical or statistical observations to
draw conclusions.

1. Qualitative research: Qualitative research seeks to answer questions about why and how people behave in
the way that they do. It provides in-depth information about human behaviour.
Sources of Qualitative Data:
Although qualitative data is much more general than quantitative, there are still a number of common
techniques for gathering it. These include:

 Interviews, which may be structured, semi-structured or unstructured;

 Focus groups, which involve multiple participants discussing an issue;
 ‘Postcards’, or small-scale written questionnaires that ask, for example, three or four focused questions of
participants but allow them space to write in their own words;
 Secondary data, including diaries, written accounts of past events, and company reports; and
 Observations, which may be on site, or under ‘laboratory conditions’, for example, where participants are
asked to role-play a situation to show what they might do.
2. Quantitative Research: Quantitative research is “explaining phenomena by collecting numerical data that
are analysed using mathematically based methods (in particular statistics).”
Sources of Quantitative Data:
The most common sources of quantitative data include:
a) Surveys, whether conducted online, by phone or in person. These rely on the same questions being asked in
the same way to a large number of people;

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b) Observations, which may either involve counting the number of times that a particular phenomenon occurs,
such as how often a particular word is used in interviews, or coding observational data to translate it into
numbers; and
c) Secondary data, such as company accounts.

Q.2. Elaborate differences between Qualitative and Quantitative Research.

Differences Between Qualitative and Quantitative Research Methods

Qualitative Methods Quantitative Methods

1. Methods include focus groups, in- 1. Surveys, structured interviews &

depth interviews, and reviews of observations, and reviews of records
documents for types of themes or documents for numeric information

2. Primarily inductive process used 2. Primarily deductive process used to

to formulate theory or hypotheses test pre-specified concepts, constructs,
and hypotheses that make up a theory

3. More subjective: describes a problem or 3. More objective: provides observed effects

condition from the point of view of those (interpreted by researchers) of a program on
experiencing it a problem or condition

4. Text-based
4. Number-based
5. More in-depth information on a few cases 5. Less in-depth but more breadth of
information across a large number of cases

6. Unstructured or semi-structured response 6. Fixed response options


7. No statistical tests
7. Statistical tests are used for analysis
8. Can be valid and reliable: largely depends on 8. Can be valid and reliable: largely
skill and rigor of the researcher depends on the measurement device or
instrument used

9. Time expenditure lighter on the planning 9. Time expenditure heavier on the planning
end and heavier during the analysis phase phase and lighter on the analysis phase

10. Less generalizable 10. More generalizable

Q.3. What are the benefits of qualitative approach?

Qualitative Approach

Using open-ended questions and interviews allows researchers and practitioners to understand how
individuals are doing, what their experiences are, and recognize important antecedents and outcomes of
interest that might not surface when surveyed with pre-determined questions. Although qualitative research
can be thought of as anecdotal, when pooled across a number of participants it provides a conceptual
understanding and evidence that certain phenomena are occurring with particular groups or individuals.
 Allows identification of new and untouched phenomena
 Can provide a deeper understanding of mechanisms
 Gives a one-on-one and anecdotal information

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 Provides verbal information that may sometimes be converted to numerical form
 May reveal information that would not be identified through pre-determined survey questions
 Cannot generalize to the general population
 Challenges in applying statistical methods
 Difficulty in assessing relations between characteristics

Q.4. What are the benefits of qualitative approach?

Quantitative approach:
Using survey methods across a large group of individuals enables generalization. For example, if policy makers
wanted to instantiate a policy about mentor training, they would likely require some evidence that this training
actually works. Interviewing a few individuals, or conducting a focus group with forty matches, might be
reflective of specific cases in which the mentoring training worked, however, it would not provide strong
evidence that such training is beneficial overall. Stronger support for successful training would be evident if
using quantitative methods.

 Enables gathering information from a relatively large number of participant

 Can conduct in a number of groups, allowing for comparison
 Allows generalizing to broader population
 Provides numerical or rating information
 Informative for instantiating policy or guidelines
 Lends to statistical techniques that allow determining relations between variables (think of better word)

 Difficulty in recognizing new and untouched phenomena
 Caution in interpretation without a control group

In summary, the qualitative and quantitative approaches to research allow a different perspective of situations or
phenomena. These two main approaches to research are highly informative, especially if used in combination.
Each approach has its benefits and detriments, and being aware of the methods used to gather information can
help practitioners and policy-makers understand the extent to which research findings can be applied.

Q.5. What are the different types/forms of a research design?

Research design may be for the convenience of study, categories and the following heads:
I. Research design for exploratory or formulative research II.
Research design for descriptive and diagnostic research III.
Research design for experimental research


Another name for exploratory research is formulative research studies. Basic purpose of such studies is to
discover new ideas or insights. The exploratory design must possess the following characteristics.
Types of Exploratory Research Design with Qualitative Technique:
Generally, the following methods in the context of research design for such studies are talked about -
(a) Projective Techniques: Projective Techniques are indirect and unstructured methods of investigation which
have been developed by the psychologists and use projection of respondents for inferring about underline
motives, urges or intentions which cannot be secure through direct questioning as the respondent either resists to
reveal them or is unable to figure out himself.
(b) Depth Interview: A depth interview is a loosely structured interview. It allows freedom for both the
interviewer and the interviewee to explore additional points and change direction, if necessary.
(c) Literature Search: It happens to be the most simple and fruitful method of formulating the research
problem or developing the hypothesis. Hypotheses stated by earlier workers may be reviewed and their
usefulness be evaluated as a basis for further research. It may also be considered whether the already stated
hypotheses suggest new hypothesis. In this way the researcher should review and build upon the work already
done by others, but in cases where hypotheses have not yet been formulated, his task is to review the available
material for deriving the relevant hypotheses from it.
(d) Experience survey: means the survey of people who have had practical experience with the problem to be
studied. The object of such a survey is to obtain insight into the relationships between variables and new ideas
relating to the research problem. For such a survey people who are competent and can contribute new ideas may
be carefully selected as respondents to ensure a representation of different types of experience. The respondents
so selected may then be interviewed by the investigator.
(e) Focus Groups: A focus group most commonly contains 8 to 12 people fitting the description of the target
sample group and asks them specific questions on the issues and subjects being researched. Sometimes, focus
groups will also host interactive exercises during the session and request feedback on what was given. This
depends on what is being researched, like a food sampling for a fast food chain or maybe a presentation of
potential advertisements for an anti-smoking campaign.
(f) Observation: Observational studies are all about watching people. It is a systematic data collection
approach where researchers use all of their senses to examine people in natural settings or naturally occurring
situations. This is different from experimental research in which a artificial environment is created to control for
unwanted factors, and where at least one of the variables is manipulated as part of the experiment.
(g) Analysis of ‘insight-stimulating’ examples: It is also a fruitful method for suggesting hypotheses for
research. It is particularly suitable in areas where there is little experience to serve as a guide. This method
consists of the intensive study of selected instances of the phenomenon in which one is interested. For this
purpose the existing records may be examined, the unstructured interviewing may take place, or some other
approach may be adopted.
Advantages of Exploratory Research
1. Flexibility and adaptability to change.
2. Exploratory research is effective in laying the groundwork that will lead to future studies.
3. These types of studies can potentially save time and other resources by determining the types of
research that is are worth pursuing at the earlier stages.

Disadvantages of Exploratory Research

1. Exploratory studies generate qualitative information and interpretation of such type of information is
subject to bias.
2. These types of studies usually make use of a modest number of samples that may not adequately
represent the target population.


Descriptive research studies describe the characteristics of a person or a group whereas diagnostic research
studies determine the frequency of occurrence of something or its association with something else. From the
research design point of view, the design of such studies should be rigid and should focus on the following:
a) Objective of the study (what the study is about and why is it being made?)
b) Methods of data collection (what techniques of data collection will be adopted?)
c) Sample selection (how much material will be needed?)
d) Data collection (where the required data can be found and with what time frequency should the data
be related?)
e) Data processing and analysis
f) Reporting the findings

Types of Descriptive Research Methods:

(a) Observational Method: With the observational method (sometimes referred to as field observation) animal
and human behavior is closely observed. There are two main categories of the observational method —
naturalistic observation and laboratory observation.

The biggest advantage of the naturalistic method of research is that researchers view participants in their natural
environments. This leads to greater ecological validity than laboratory observation

Laboratory observations are usually less time-consuming and cheaper than naturalistic observations. Of course,
both naturalistic and laboratory observation are important in regard to the advancement of scientific knowledge.

(b) Case Study Method: Case study research involves an in-depth study of an individual or group of
individuals. Case studies often lead to testable hypotheses and allow us to study rare phenomena. Case studies
should not be used to determine cause and effect, and they have limited use for making accurate predictions.

(c) Survey Method: In survey method research, participants answer questions administered through interviews
or questionnaires. After participants answer the questions, researchers describe the responses given. In order for
the survey to be both reliable and valid it is important that the questions are constructed properly. Questions
should be written so they are clear and easy to comprehend.
Longitudinal Design: The study follows one group of people over a period of time. This can be a month, years,
or may be decades. In this case, the memory test would be conducted at the beginning of the study period, and
then again at regular intervals to see the changes found. The aim is to compare the data of each test to see how
the passage of time affects whatever it is being tested for.

For example, to conduct a longitudinal design, we start with 20-year-olds and then check in with them every 10
years to see how they've changed.

Cross-Sectional Design: A cross-sectional study takes place at one specific moment in time, and compares
different groups of people at that time. The participants are tested once, usually to find a simple relationship
between one variable and another. This type of study is most common, as it can be done quickly and participants
need only be tested once.

For example, instead of taking one group of people and following them for 60 years, we take 4 groups of people
and study them now. Our first group is all 20-year-old, the second group is 30-year-old, the third group is 40-
year-old and so on. This saves us time because we can do all the research now instead of over 60 years.

Difference between Research Designs of Exploratory and Descriptive Research Studies:

Given below is the difference between research designs of exploratory and descriptive research studies:

Type of study

Research Design Exploratory or Formulative Descriptive/Diagnostic

Overall design Flexible design (design must Rigid design (design must make
provide opportunity for enough provision for protection
considering different aspects of against bias and must maximize
the problem) reliability)
1. Sampling design Non-probability sampling design Probability sampling design
(purposive or judgement (random sampling)

2. Statistical design No pre-planned design for Pre-planned design for analysis


3. Observational Unstructured instruments for Structured or well thought out

design data collection instruments for data collection

4. Operational No fixed decisions about the Advanced decisions about

design operational procedures operational procedures


Experimental research is an attempt by the researcher to maintain control over all factors that may affect the
result of an experiment. Experimental research is conducted for possible outcomes on the research problem,
which can lead to possible solution of the research problem. Experimental research is conducted mostly in
laboratories in the context of basic research.
Experimental Designs is a blueprint of the procedure that enables the researcher to test his hypothesis by
reaching valid conclusions about relationships between independent and dependent variables. It refers to the
conceptual framework within which the experiment is conducted.
Professor Fisher has enumerated three principles of experimental designs:
(1) The Principle of Replication;
(2) The Principle of Randomization; and
(3) Principle of Local Control.
(1) The Principle of Replication: According to the Principle of Replication, the experiment should be repeated
more than once. Thus, each treatment is applied in many experimental units instead of one. By doing so the
statistical accuracy of the experiments is increased. For example, suppose we are to examine the effect of two
varieties of rice. For this purpose we may divide the field into two parts and grow one variety in one part and the
other variety in the other part. We can then compare the yield of the two parts and draw conclusion on that basis.
But if we are to apply the principle of replication to this experiment, then we first divide the fie ld into several
parts, grow one variety in half of these parts and the other variety in the remaining parts. We can then collect the
data of yield of the two varieties and draw conclusion by comparing the same. The result so obtained will be
more reliable in comparison to the conclusion we draw without applying the principle of replication. The entire
experiment can even be repeated several times for better results.
(2) The Principle of Randomization: The Principle of Randomization provides protection against the effect of
extraneous factors by randomization. In other words, this principle indicates that we should design or plan the
experiment in such a way that the variations caused by extraneous factors can all be combined under the general
heading of “chance.” For instance, if we grow one variety of rice, say, in the first half of the parts of a field and
the other variety is grown in the other half, then it is just possible that the soil fertility may be different in the
first half in comparison to the other half. If this is so, our results would not be realistic. In such a situation, we
may assign the variety of rice to be grown in different parts of the field on the basis of some random sampling
technique i.e., we may apply randomization principle and protect ourselves against the effects of the extraneous
factors (soil fertility differences in the given
case). As such, through the application of the principle of randomization, we can have a better estimate of the
experimental error.
(3) Principle of Local Control: The Principle of Local Control is another important principle of experimental
designs. Under it the extraneous factor is made to vary deliberately over as wide a range as necessary and this
needs to be done in such a way that the variability it causes can be measured and hence, eliminated from the
experimental error. In brief, through the principle of local control we can eliminate the variability due to
extraneous factor(s) from the experimental error.
Important experiment designs are as follows:
(a) Informal experimental designs:
(i) Before-and-after without control design.
(ii) After-only with control design.
(iii) Before-and-after with control design.
(b) Formal experimental designs:
(i) Completely randomized design (C.R. Design).
(ii) Randomized block design (R.B. Design).
(iii) Latin square design (L.S. Design).
(iv) Factorial designs.
Causality or cause-effect relationship is a relationship in which one event (the cause) makes another event
happen (the effect).
For example, we wake up by the sound of an alarm clock. The sound of the alarm is the cause and the alarm had
the effect of waking you up at a certain time.
Criteria or Conditions to Establish Cause-Effect Relationship:
In order to establish a cause-effect relationship, three criteria must be met.
(a) Temporal Relationship: The first criterion is that the cause has to occur before the effect.
(b) Constant Conjunction: Whenever the cause happens, the effect must also occur.
(c) Absence of Alternative Explanations: No other explanation for the relationship can be present.
Scaling & measurement techniques: Concept of Measurement: Need of Measurement; Problems in measurement in
management research – Validity and Reliability. Levels of measurement: Nominal, Ordinal, Interval, Ratio.
Attitude Scaling Techniques: Concept of Scale – Rating Scales viz. Likert Scales, Semantic Differential Scales, Constant
Sum Scales, Graphic Rating Scales – Ranking Scales – Paired comparison & Forced Ranking – Concept and Application.

Q.1. Explain the concept of measurement in research .

MEANING: Measurement is the process of observing and recording the observations that are collected as part
of a research effort.
DEFINITION: “Measurement refers to the assessment, estimation, observation, evaluation, appraisal or
judgment of an event.”
Measurement in research is the process of assigning numerals to objects according to certain pre-specified rules to
facilitate the use of mathematics in studying and describing objects and their relationships.

Level of measurement refers to the amount of information that the variable provides about the phenomenon
being measured. In research there may be four major levels of measurement.
1. Nominal Measurement:
Nominal measurement is a process of assigning numerals to categories.
For instance, you might create a variable for gender, which takes the value 1 if the person is male and 0 if the
person is female. The 0 and 1 have no numeric meaning but function simply as labels. In the same way you may
record the values as “M” or “F.”

2. Ordinal Measurement:
Ordinal measurement permits researchers to make comparisons like "greater than"; "less than", "higher than",
and "lower than" but not "how much"
For example, researchers can make a comparison according to one of the example in table 1 as people who
strongly agree with legalize abortion is higher than people who disagree with it.

3. Interval Measurement:
Characteristics of this level of measurement are the attributes are ordered and the distances between attributes
are equal. However, it doesn't have true zero point. The Fahrenheit and Celsius temperature scales always used
as examples in this level of measurement. Fahrenheit and Celsius temperature scales
don't have true zero point because the zero temperature does not mean "no temperature".
In this level of measurement, researchers can make a description that 40-50 degree is same as 80-90 degree
because it has equal distances between the categories. However, they can't make a description like 80 degree is
twice as 40 degree because it doesn't have true zero point.

Example of Interval Scale

4. Ratio Measurement:
Ratio measurement defined as numbers with equal intervals and meaningful zero. Ratio measurement not only
incorporates all of the assumptions (nominal, ordinal, and interval) but has an absolute zero point. Due to the
absolute zero point in this measurement, we can divide or multiply the numbers. Many physical measurements
are ratio data: for instance, height, weight, and age all qualify.
For example, researchers measure the size of city A and city B. If city A has 10,000 population and city B has
20,000 population, researchers can make a conclusion that city B is twice as much as city A. Conclusion as this
can be make because there is true zero point in measuring the populations, the zero at here mean "no people" in
the city.

In summary, nominal variables are used to “name,” or label a series of values. Ordinal scales provide good
information about the order of choices, such as in a customer satisfaction survey. Interval scales give us the
order of values + the ability to quantify the difference between each one. Finally, Ratio scales give us the
ultimate–order, interval values, plus the ability to calculate ratios since a “true zero” can be defined.
Q.2. Explain Reliability and validity in research.
ISSUES OF MEASUREMENT: Reliability and Validity
There are many ways to assign numbers or categories to data, and not all are equally useful. Two standards we
use to evaluate measurements are reliability and validity.

1. Reliability:
Reliability is synonym of repeatability and consistency. Thus, Reliability refers to how consistent or repeatable
measurements are. Reliability defined as the degree to which test scores are free from errors of measurement.
The degree of reliability can decide whether the scores or data that researchers obtained can be relied to measure
a variable or construct. For instance, if we give the same person the same test on two different occasions, will the
scores be similar on both occasions?
Types of Reliability:
 Inter-rater: Different people, same test.
 Test-retest: Same people, different times.
 Parallel-forms: Different people, same time, different test.
 Internal consistency: Different questions, same construct.
 Inter-Rater Reliability

When multiple people are giving assessments of some kind or are the subjects of some test, then similar people
should lead to the same resulting scores. It can be used to calibrate people, for example those being used as
observers in an experiment.
Examples: Two people may be asked to categorize pictures of animals as being dogs or cats. A perfectly reliable
result would be that they both classify the same pictures in the same way.
Observers being used in assessing prisoner stress are asked to assess several 'dummy' people who are briefed to
respond in a programmed and consistent way. The variation in results from a standard gives a measure of their
 Test-Retest Reliability
An assessment or test of a person should give the same results whenever you apply the test.
Examples: Various questions for a personality test are tried out with a class of students over several years. This
helps the researcher determine those questions and combinations that have better reliability.
 Parallel-Forms Reliability

One problem with questions or assessments is knowing what questions are the best ones to ask. A way of
discovering this is do two tests in parallel, using different questions.
Examples: An experimenter develops a large set of questions. They split these into two and administer them
each to a randomly-selected half of a target sample.
 Internal Consistency Reliability

When asking questions in research, the purpose is to assess the response against a given construct or idea.
Different questions that test the same construct should give consistent results.
2. Validity:
Validity refers to an accuracy of a measure. A measurement is valid when it measures what the researchers
suppose to measure. For example, IQ tests are supposed to measure intelligence and depression tests are
supposed to measure depression level or symptoms of respondents. Normally, the inferences drawn from a valid
test are appropriate, meaningful, and useful.
Types of validity:
 Construct: Constructs accurately represent reality.

Convergent: Simultaneous measures of same construct correlate.

Discriminant: Doesn't measure what it shouldn't.
 Internal: Causal relationships can be determined.
 Conclusion: Any relationship can be found.
 External: Conclusions can be generalized.
 Criterion: Correlation with standards.

Predictive: Predicts future values of criterion.

Concurrent: Correlates with other tests.
 Face: Looks like it'll work.

Q.3. Explain attitude scaling techniques.


DEFINITION OF ATTITUDE: Attitude has been defined by Gene F. Summers as a predisposition to
respond to an idea or an object.

In marketing, this refers to the consumer’s predisposition about the product or service. If it is favorable, then
the consumer is likely to purchase the product or service.

Attitudes about products or services are composed of three elements:

Beliefs such as the product’s strength or the economy of the product or service

Emotional feelings such as likes or dislikes

Readiness to respond to the product or service, i.e. to buy it.

DEFINITION OF SCALE: Originally the word ‘scale’ come from the Latin word scala, meaning a ladder or
flight of steps. Scales are used to rank people’s judgments of objects, events, or other people from low to high
or from poor to good.
DEFINITION OF ATTITUDE SCALE: An attitude scale is a special type of questionnaire designed to
produce scores indicating the intensity and direction (for or against) of a person’s feelings about an object or

Some important characteristics of attitude scale are:

 These are used for measuring the consumers’ attitudes.
 A questionnaire is prepared; by the items in the questionnaire assess the attitude of an individual towards a
matter, thing, an object or system and score is allotted for each item.
 3.The individual is asked to express his response towards an object or system, on the basis of his responses,
he is assigned a score which indicates the position.
 Some relevant and indirect statements can also be used to reveal the attitude.
 The scale also specifies the crucial shades of opinions.
 Most of the scales used are ordinal in nature, though there is attempt to treat the resulting data as intervally
scaled. The simplest possible type of such scale has the respondent classifying the
object/issue/product/himself into one among two dichotomous categories.
 The attitude measurement scales can be categorised into those which are unidimensional in nature and those
which are multidimensional. The different type of single dimensional attitude measurement scales which are
available are graphical and numerical scales, summated scales, paired comparisons, equal-appearing

The rating scale is one of the oldest and most versatile of assessment techniques. A rating scale is a method that
requires the respondents to assign a value, sometimes numeric, to the rated object, as a measure of some rated
attribute. Typically, Rating scales present users with an item and ask them to select from a number of choices.
It may be of following types-
1. Likert Scale:
It is an extremely popular means for measuring attitudes. Respondents indicate their own attitudes by checking
how strongly they agree or disagree with statements.
For Example: Likert Scale for Measuring Attitudes Toward Tennis-
 Playing tennis is a great way to exercise.
___Strongly Agree
___Not Sure
___Strongly Disagree

To analyze a Likert Scale, each response category is assigned a numerical value. These examples could be
assigned values such as Strongly Agree=1, through Strongly Disagree=5 or the scoring could be reversed, or a –2
through +2 system could be used. They can be analyzed on an item-by-item basis, or they can be summed to
form a single score for each individual.
1. It is relatively easy to construct and administer.
2. Instructions that accompany the scale are easily understood; hence it can be used for mail surveys and
interviews with children.
1. It takes a longer time to complete as compared to Semantic Differential Scales, etc.
2. Care needs to be taken when using Likert Scales in cross cultural research, as there may be cultural
variations in willingness to express disagreement.
3. Semantic Differential Scale:
It is a series of seven-point bipolar rating scales. Bipolar adjectives, such as “good” and “bad”, anchor both
ends or poles of the scale.
For Example: Semantic Differential Scale for measuring attitudes toward Tennis-
___ : ___ : ___ : ___ : ___ : ___ : ___
Exciting Calm
___ : ___ : ___ : ___ : ___ : ___ : ___
Interesting Dull
___ : ___ : ___ : ___ : ___ :
Simple ___ : ___ Complex
___ : ___ : ___ : ___ : ___ :
Passive ___ : ___ Active

4. Constant-Sum Scale:
The constant-sum scale requires respondents to allocate a fixed number of rating points (usually 100) among
several objects, to reflect the relative preference for each object.8 It is widely used to measure the relative
importance of attributes, as in the following example:

Please divide 100 points among the following characteristics so the division reflects the relative importance of
each characteristic to you in the selection of a health care plan.
---Ability to choose a doctor
---Extent of coverage provided
---Quality of medical care
---Monthly cost of the plan
---Distance to clinic or doctor from your home

The most attractive feature of this scale is the quasi-interval nature of the resulting scale. However, just how
close it comes to a true interval scale has not been fully established. The scale is limited in the number of objects
or attributes it can address at one time. Respondents sometimes have difficulty allocating points accurately
among more than a few categories.
5. Graphic Rating Scales:
A graphic rating scale presents respondents with a graphic continuum. Graphic Rating Scale Stressing
Pictorial Visual Communications.


Ranking scales require the respondent to arrange a set of objects with regard to a common criterion like
advertisements in terms of interest, product features in terms of importance, or new-product concepts with regard
to willingness to buy in the future.
In paired comparisons the respondents are presented with two objects at a time and asked to pick the one they

Ranking objects with respect to one attribute is not difficult if only a few products are compared, but as the
number of items increases, the number of comparisons increases geometrically (n*(n -1)/2). If the number of
comparisons is too great, respondents may fatigue and no longer carefully discriminate among them.

For Example: Divide 100 points among each of the following brands according to your preference for the brand:
Brand A _________
Brand B _________
Brand C _________
Forced ranking is a workforce management tool that uses intense yearly evaluations to identify a company's best
and worst performing employees, using person-to-person comparisons. In theory, each ranking will improve the
quality of the workforce.

Managers rank workers into three categories:

 The top 20 percent are the "A" players, the people who will lead the future of the company. They're given
salary hike, stock options, and training.
 The middle 70 percent are the "B" players, steady-eddies who are given smaller raises and encouraged
to improve.
 The bottom 10 percent are the "C" players, who contribute the least and may be meeting expectations but are
simply "good" on a team of "greats." They're given no raises or bonuses and are either offered training, asked
if they'd be happier elsewhere, or fired.


Many people struggle to understand the distinct difference between rating questions and ranking questions in
online surveys, yet it is vital that you know how to tell them apart in order to conduct proper research.
Rating vs Ranking Questions/Scale
 Rating questions look at how respondents feel about individual items, measuring positive or negative
responses to a question or statement. For instance, they will rate a specific area of service on a Likert
rating scale.

 Ranking questions compare individual elements to each other. This question type allows respondents to
rank items, in order of preference, by selecting a numeric value for each answer choice.

Pros and Cons of Ranking Questions/Scale

Ranking questions are a useful way to get respondents to tell you their choice between preferred items. Each
item in ranking questions will have a completely unique value. This type of question is a good option when you
want to rank things in order of preference.

However, people may be forced to make one item worse or better than another, when they actually find them
equal. Also, the data here is not statistical, meaning you can’t use it to calculate averages.
Pros and Cons of Rating Questions/Scale
Rating questions¸ on the other hand, are often much easier to understand by individual people and they prefer
completing these. These types of survey questions can provide insight into what customers’ value about your
products and services or what your employees like or dislike at work. Also, it allows for each individual part to
have the same value if that is how people feel about them.

However, people often have “tactics” when it comes to completing these types of questions. Very few, for
instance, will ever assign the highest or lowest score. Also, if they are in a hurry or lose interest in the
questionnaire, they may just assign an average score to each of the items without actually looking at them.
Sampling: Basic Concepts: Defining the Universe, Concepts of Statistical Population, Sample, Characteristics of a good
sample. Sampling Frame (practical approach for determining the sample frame expected), Sampling errors, Non Sampling
errors, Methods to reduce the errors, Sample Size constraints, Non Response.
Probability Sample: Simple Random Sample, Systematic Sample, Stratified Random Sample, Area Sampling & Cluster
Non Probability Sample: Judgment Sampling, Convenience Sampling, Purposive Sampling, Quota Sampling &
Snowballing Sampling methods. Determining size of the sample – Practical considerations in sampling and sample size,
sample size determination.

Q.1. Explain the concept of sample and sampling.


A Sample is a part of the total population. It can be an individual element or a group of elements selected from
the population. It is a subset and representative of the population.

Sampling is the act, process, or technique of selecting a representative part of a population for the purpose of
determining the characteristics of the whole population. In other words, the process of selecting a sample
population using special sampling techniques called sampling.


Population OR Universe: The entire aggregation of items from which samples can be drawn is known as a
population. In sampling, the population may refer to the units, from which the sample is drawn. “N” represents
the size of the population.

Sampling frame: A sampling frame is a list of all items in the population with proper identification who can be
sampled. The list of names and addresses will be called sampling frame.

Census: a complete study of all the elements present in the population is known as a census. It is a time
consuming and costly process and is, therefore, seldom a popular with researchers. The national population
census is an example of census survey.

Precision: Precision is a measure of how close an estimate is expected to be, to the true value of a parameter.
Less precision is reflected by a larger standard error.

Bias: Bias is the term refers to how far the average statistic lies from the parameter it is estimating, that is, the
error, which arises when estimating a quantity.
Q.2. What are the errors in sampling process?


An ideal research design seeks to control various types of error. There are two types of error; sampling error, and
non-sampling error.
3. Sampling Error

Sampling error is the error that arises in a data collection process as a result of taking a sample from a population
rather than using the whole population.
Sampling Error denotes a statistical error arising out of a certain sample selected being unrepresentative of the
population of interest. In simple terms, it is an error which occurs when the sample selected does not contain the
true characteristics, qualities or figures of the whole population.
The concept of sampling error can be understood from the following diagram:

From the above diagram-

Sampling Error = (Frame Error) + (Chance Error) + (Response Error)
These errors are because of the following-
 Selection bias - true selection probabilities deviate from assumed ones.
 Random sampling error - Random variation in the results due to random.


Here are mainly two ways by which this sampling error can be reduced. The ways are-
A. Increasing sample size
B. Stratification
A. Increasing Sample Size
From a population, we can select any sample of any size. The size depends on the experiment and the situation.
If the size of the sample increases, chance of occurrence of the sampling error will be less. There will be no error
if the sample size and the population size coincide. Hence sampling error is in inverse proportion to the sample
B. Stratification:
When all the population units are homogeneous, it's very easy to get a sample that can be taken as a
representative of the whole population, but the population may not be homogeneous, so, taking a perfect sample
becomes impossible. In such conditions, to get a better representative, the sample design is modified. The
population is divided into different groups called strata, containing similar units. From each of these stratum, a
sub sample is selected randomly. Thus, all the groups are represented in the sample and hence the sampling error
is very much reduced. The size of the sub-sample from each stratum is in proportion with the size of the stratum.
4. Non-sampling error:
Non-Sampling Error is an umbrella term which comprises of all the errors, other than the sampling error.
There are two types of non-sampling error:
A. Response Error: When errors arise because the answer or response is misinterpreted or recorded wrongly.
These errors are further classified as under.
(i) Researcher Error

Surrogate Error

Sampling Error

Measurement Error

Data Analysis Error

Population Definition Error
(ii) Respondent Error

Inability Error

Unwillingness Error
(iii) Interviewer Error

Questioning Error

Recording Error

Respondent Selection Error

Cheating Error
B. Non-Response Error: Error arising due to some respondents who are a part of the sample do not respond.
Some of the common methods of controlling non-sampling errors are as under:

 Providing detailed guidelines: Detailed guidelines should be provided for data collection and data
 Proper training: Proper training should be given to the field workers and data processing personnel.
 Consistency checks: Certain items in the questionnaires can be added which may serve as a check on the
quality of collected data.
 Sample check: An independent duplicate census or sample survey can be conducted on a comparatively
smaller group by trained and experienced staff.
 Post-census and post-survey checks: It is a type of sample check in which a sample (or subsample) is
selected of the units covered in the census (or survey) and re-enumerate or re-survey it by using better
trained and more experienced survey staff than those involved in the main investigation.
 External record check: Take a sample of relevant units from a different source, if available, and to check
whether all the units have been enumerated in the main investigation and whether there are discrepancies
between the values when matched.
 Interpenetrating sub-samples: Interpenetrating sub-samples can be used to secure information on non-
sampling errors such as differences arising from differential interviewer bias, different methods of eliciting
information etc. After the sub-samples have been surveyed by different groups of investigators and
processed by different team of workers at the tabulation stage, a comparison of the final estimates based on
the sub-samples provides a broad check on the quality of the survey results.
Q.2. Explain various steps in sampling.

An operational sampling process can be divided into seven steps as given below:
Step – 1 Defining the target population

Step – 2 Specifying the sampling frame

Step – 3 Specifying the sampling unit

Step – 4 Selection of the sampling method

Step – 5 Determination of sample size

Step – 6 Specifying the sampling plan

Step – 7 Selecting the sample


For business research, defining the population of interest is the first step in sampling process. In general,
target population is defined in terms of element, sampling unit, extent, and time frame. The definition should be
in line with the objectives of the research study. e. g. if a kitchen appliances firm wants to conduct
a survey to ascertain the demand for its micro ovens, it may define the population as ‘all women above the age
of 20 who cook.
Once the definition of the population is clear a researcher should decide on the sampling frame. A sampling
frame is the list of elements from which the sample may be drawn. In general, researchers use easily available
sampling frames like telephone directories and lists of credit card and mobile phone users.
A sampling unit is a basic unit that contains a single element or a group of elements of the population to be
sampled. In this case, a household becomes a sampling unit and all women above the age of 20 years living in
that particular house become the sampling elements.
The sampling method is the way, in which the sample units are to be selected. The choice of the sampling
method is influenced by the objectives of the business research, availability of financial resources, time
constraints, and the nature of the problem. Sampling methods can be grouped under two heads, i.e., probability
and non-probability sampling.
The sample size plays a crucial role in the sampling process. There are various ways of classifying the
techniques used in determining the sample size. In non-probability sampling procedures, the allocation of
budget, number of sub groups to be analyzed, importance of the decision, number of variables etc. play a major
role in sample size determination. However, In the case of probability sampling formulas are used to calculate
the sample size after the levels of acceptable error and level of confidence are specified.
In this step, the specifications and decisions regarding the implementation of the research process are outlined.
These are guidelines that would help the researcher in every step of the process. It includes issues
like how is the interviewer going to take a systematic sample of the houses. What should the interviewer do when
a house is vacant? What is the recontact procedure for respondents who were unavailable?
This is the final step in the sampling process, where the actual selection of the sample elements is carried out.
This step involves implementing the sampling plan to select a sample required for the survey.
The characteristics of a good sample design are as under:
(a) Sample design must result in a truly representative sample.
(b) Sample design must be such which results in a small sampling error.
(c) Sample design must be viable in the context of funds available for the research study.
(d) Sample design must be such so that systematic bias can be controlled in a better way.
(e) Sample should be such that the results of the sample study can be applied, in general, for the universe
with a reasonable level of confidence.

Q.3. Explain different types of sample/ sampling techniques.


Probability sampling is also known as ‘random sampling’ or ‘chance sampling’. Probability sampling is a
sampling technique wherein the samples are selected by a process that gives all the elements in the population
equal chances of being selected.

1. Simple random Sampling: Simple random sampling is the easiest form of probability sampling. Researcher
includes all the members of the population in the list and then randomly selects the desired number of

Advantage of Random Sampling Method:

a) It is quite simple, and follows a mathematical procedure.
b) It is free from bias and prejudices.
c) It is said to be more representative each unit has equal chance of being selected.

2. Systematic Sampling: In some cases, the most practical way of sampling is to select every n th item on a list.
Sampling of this type is known as systematic sampling. It involves beginning with a random start of an
element in the range of 1 to n.
Skip interval=population list size/sample size

Advantage of Systematic Sampling Method:

a) Simplicity in drawing a sample, which is easy to check.
b) Reduce variability compared to simple random sampling.
3. Stratified Sampling: Population is divided into strata or subpopulations on different basis as age, gender
etc. The elements of each group are homogeneous in nature. Now, random sampling is done in each group
and sample elements are chosen.
Stratified Sampling may be of two types:
(i) Proportionate Stratified Sampling: In Proportionate Stratified Sampling, Sample elements are selected
according to the ratio of their presence in the strata.
(ii) Disproportionate Stratified Sampling: In Disproportionate Stratified Sampling, it is not necessary to
select Sample elements according to the ratio of their presence in the strata.

Advantage of the Stratified Sampling Method:

a) Greater control of the investigator.
b) Easy to achieve representative character.
c) Replacement of units is possible.
4. Cluster Sampling: In this method, population is divided into groups whose elements are heterogeneous in
nature. Now, one or more group are taken as sample. In simple random sampling and stratified sampling
single elements are selected from the population, but in cluster sampling the elements are selected in groups
or clusters.

Advantages of Cluster Sampling Method:

a) It is cheaper than other methods – e.g. fewer travel expenses, administration costs.
b) The researcher can have a larger sample size, since they are more accessible.
5. Area Sampling: This is one type of cluster sampling. The population is divided into different groups on
geographical basis such as blocks and sectors, and the researcher draws a group as a sample to interview.
6. Mixed/Multi-Stage Random Sampling: This probability sampling technique involves a combination of
two or more sampling techniques discussed above. In most of the complex researches done in the field or in
the lab, it is not suited to use just a single type of probability sampling.
Advantages of Multistage Sampling Method:
a) A complete listing of the universe is not required. Sampling lists, identification and numbering are
required only for sampling units selected in sample.
b) If sampling units are geographically defined, it cuts down field costs, of travel etc.

7. Sequential Sampling: This is a complex form of sampling. It involves taking samples in a sequence, but
data collection and analysis is done at each stage. The size of sample is not fixed in advance but a decision
rule is stated before the sampling begins. At each stage, after analysis, it is checked that further sampling is
needed or not. In this, the sampling is done till the time, sufficient data is collected to give some conclusions.

Non-probability sampling is a sampling technique where the samples are gathered in a process that does not give
all the individuals in the population equal chances of being selected.
1. Convenience sample: Convenience sampling is a non-probability sampling technique where the researcher
selects the easiest and close population members from which he has to obtain information. The elements are
selected just because they are easiest to take on for the study and the researcher did not consider selecting
elements that are representative of the entire population.
Merits of convenience sampling:
(a) When universe is not well defined,
(b) When sampling unit is not clear, and
(c) When complete list of the source is not available.

2. Judgmental or Purposive Sampling: Judgmental sampling is a non-probability sampling technique where

the researcher selects sample units on the basis of their knowledge and professional
judgment. This type of sampling technique is also known as purposive sampling and authoritative sampling.
Purposive sampling is used to select population members who are good prospects for accurate information.
Merits of Judgmental sampling:

(a) If there are a small number of sampling units, judgmental sampling helps inclusion of important units.
(b) It helps in obtaining a more representative sample.
(c) It is a practical method to arrive at some solution to everyday business problems.

3. Quota sample: The researcher finds and interviews a prescribed number of people in each of several
categories. It is a non-random form of stratified sampling.
Following steps are taken in Quota sampling-
(a) Classification of the population into various categories.
(b) Determination of the proportion of the universe falling into each, and
(c) Fixing of quotas for each interviewer or investigator.
Merits of Quota sampling:
a) Reduces cost of preparing sample and field work.
b) Introduces some stratification effect.
4. Snow-Ball Sampling: In this, a set of respondents are selected initially and interviewed. After this, these
respondents are asked to list the names of other people who can be part of the sample. This process
continued till sufficient data is collected. It is like moving ball whereby referrals are obtained from referrals,
thus creating a snow ball effect which keeps on growing in size as it rolls down.

For proper study of the problem, determining sample size is a very important issue because samples that are too
large may waste time, resources and money, while samples that are too small may lead to inaccurate results.

There is no definite answer to define the most appropriate size. However, the size of the sample can be decided
from two angles viz. the Subjective Approach and Mathematical Approach.
A. Subjective Approach to Determine Sample Size: (Or Factors Affecting Sample Size)

In subjective approach of sample size determination, the following factors should be considered while deciding
the sample size:
i) Size of the Population: The large the size of the population, the bigger should be the sample size.

ii) Nature of the Population: If the universe consists of homogeneous units, a small sample may serve the
purpose but if the universe consists of heterogeneous units, a large sample may be required.

iii) Nature of study: For an intensive and continuous study a small sample may be suitable. But for studies
which are quite extensive in nature, it may be necessary to take larger sample size.

iv) Nature of respondents: Where it is expected a large number of respondents will not co-operate and send
back the questionnaires, a larger sample should be selected.

v) Method of sampling used: The size of samples is also influenced by the type of sampling plan adopted. For
example, if the sample is a simple random sample it may necessitate a bigger sample size. However, in a
properly drawn stratified sampling plan, even a small sample may give better results.

vi) Availability of resources: If the resources such as time and money available are vast, a large sample size
could be taken. If less time and money is available for study, small sample size is to be selected.

vii) The degree of accuracy desired: The greater the degree of accuracy desired the larger should be the sample
viii) Permissible error in estimation: If less error is needed, we should use large sample size.
B. Mathematical Approach to Determine Sample Size:
In mathematical approach of sample size determination, the precision of estimate is stated first and then the
sample size is calculated. The level of precision is denoted by ‘e’.
Mathematical approach is worked out in two ways-
(a) Sample Size determination for means: Confidence interval can be calculated by the following formula.

= Sample Mean

e = Acceptable error (Difference between population mean and sample mean) Z =

Value of standard normal variate
= Standard deviation of the population
n = Size of Sample
Acceptable error (e) is given by-

Data Analysis: Editing, Coding, Tabular representation of data, frequency tables, Construction of frequency distributions,
Graphical Representation of Data: Appropriate Usage of Bar charts, Pie charts, Histogram, Leaf and stem, Candle stick, Box
Bi-variate Analysis: Linear Regression Analysis: Meaning and two lines of regression; relationship between correlation and
regression co-efficient, Cross tabulations, Chi-square test;
Hypothesis: Qualities of a good Hypothesis –Framing Null Hypothesis & Alternative Hypothesis. Concept of Hypothesis
Testing – Logic & Importance.
Test of Significance: Small sample tests: t (Mean, proportion) and F tests, Z test, Non ‐parametric tests: Binomial test of
proportion, Randomness test; Analysis of Variance: One way and two‐way Classifications, Interpretation of the given data
and scenario analysis is expected for appropriate managerial decision inferences to be drawn.

Q.1. Explain data processing. What are the elements of data processing?

Data processing may be defined as the process of editing, coding classification and tabulation of collected data
so that it becomes amenable to analysis.
The elements of data processing are as follows:
i) Editing
ii) Coding
iii) Tabulation
Editing of data may be defined as process of detecting and correcting errors and omissions in the questionnaire.
Editing is done to achieve following objectives:
a) Completeness: It ensures that no answer left uncompleted, no section left unattempted.
b) Comprehensibility: An answer may not convey anything specific or researcher may not be able to understand
it. In such case, the researcher should immediately contact the field-worker for clarification.
c) Consistency: If the answers do not show uniformity it needs corrections. It also may be due to improper data
collection instrument.
Stages/Types of Editing
Editing of data can be staggered in two stages:
a) Field Editing: It is done immediately after the questionnaire has been filled by the respondent. Field
editing removes any glaring errors and omissions in the questionnaire form.
b) Central Editing: The central editing is done after field editing. It is more complete. Central editing is
more thorough and is generally conducted by a single editor.


The process whereby numerals or letters or symbols are assigned to data in order to organize the data into a
limited number of categories or classes is termed as codification. Coding is done using a codebook. Coding is
followed by classification.
Code Book: A code book is a coding scheme that contains each variable in the study. It also specifies the
application of coding rules to the variables.
Classification of Data: Classification is the process of arranging data in groups or classes according to
resemblances and similarities. In classification process, data units having similar characteristics are placed in
class and in this manner the entire data is divided into a number of classes.
Bases of Classification:
There are four important bases of classification:
(1) Qualitative Base (2) Quantitative Base

(3) Geographical Base (4) Chronological or Temporal Base

(1) Qualitative Base
When the data are classified according to some quality or attributes such as sex, religion, literacy, intelligence
(2) Quantitative Base
When the data are classified by quantitative characteristics like heights, weights, ages, income etc…
(3) Geographical Base
When the data are classified by geographical regions or location, like states, provinces, cities, countries etc.
(4) Chronological or Temporal Base
When the data are classified or arranged by their time of occurrence, such as years, months, weeks, days etc…
For Example: Time series data.
(1) One -way Classification (Univariate Classification)
If we classify observed data keeping in view single characteristic, this type of classification is known as one-way
For Example: The population of world may be classified by religion as Muslim, Christians etc…
(2) Two -way Classification (Bivariate Classification)
If we consider two characteristics at a time in order to classify the data then it is two way classifications.
For Example: The population of world may be classified by Religion and Sex.
(3) Multi -way Classification (Multivariate Classification)
We may consider more than two characteristics at a time to classify data. This classification is known as multi-
way classification.
For Example: The population of world may be classified by Religion, Sex and Literacy.


Tabulation is an orderly arrangement of data in column and rows. It is the final stage in collection and
compilation of data. Proper tabulation of data is of great importance because if the tabulation of data is not
satisfactory its analysis is bound to be defective.
Decision on the type of tabulation is influenced by the nature, scope and the object of research problem.
Following are the major advantages of tabulation to the research methodology:
1. Ease in Understanding: It is easy to understand tabulated data than the unorganized data.
2. Time Savings: Tabulation of Data leads to saving of time during analysis.
3. Ease in Drawing Diagrams: Diagrammatic representation of data is more convenient if it is done on the
basis of a tabulated data.
4. Ease in Comparison: Through tabulated data, it becomes easy to undertake comparative study because it is
systematically displayed.
5. Detection of Errors: Errors and omissions in data are easily detected in tabulated data.
6. Space-Saving: In tabulation, the data is displayed in columns and rows and so it uses less space.
7. No Chances of Repetition: Repetition of data may occur if it is displayed in an unorganized fashion.
Tabulation saves the data from being repeated.

(a) Hand Tabulation: Tabulation by hand is done using a tally sheet. It is done when the sample size is
small. E.g. In a survey of 20 families, the number of children was as followes :

1, 0, 2, 4, 3, 2, 4, 3, 2, 3, 4, 2, 1, 0, 2, 1, 0, 3, 1, 1.
No. of Children Frequency
0 ∣∣ 2
1 6
2 5
3 ∣∣∣∣ 4
4 ∣∣∣ 3
(b) Machine Tabulation: Machine tabulation is done with the help of machine such as computer. This
method is used when sample size and number of variables are very large. It is also a cheaper method of
We can take up the following two problems of processing the data for analytical purposes:
(a) “Don’t know” (or DK) response: While processing the data, the researcher often comes across some
responses that are difficult to handle. One category of such responses may be ‘Don’t Know Response’ or simply
DK response. When the DK response group is small, it is of little significance. But when it is relatively big, it
becomes a matter of major concern. It may happen due to following reasons:
† The respondent actually may not know the answer.
† The researcher may fail in obtaining the appropriate information.
† The respondent may be unwilling to provide answers to the question.
The researcher can handle the problem of DK response by designing better type of questions. Good rapport of
interviewers with respondents will result in minimising DK responses. For the DK-responses that have already
taken place, researcher can estimate the allocation of DK answers from other data in the questionnaire or a
separate category of DK responses in tabulation can be formed.
(b) Use or percentages: Percentages are often used in data presentation for they simplify numbers, reducing all
of them to a 0 to 100 range. Through the use of percentages, the data are reduced in the standard form with base
equal to 100. While using percentages, the following rules should be kept in view by researchers:
† Two or more percentages must not be averaged unless each is weighted by the group size from which it
has been derived.
† Use of too large percentages should be avoided, since a large percentage is difficult to understand and
tends to confuse.
† Percentages hide the base from which they have been computed. If this is not kept in view, the real
differences may not be correctly read.
† Percentage decreases can never exceed 100 per cent.
(c) Fictitious Interview: In case of ‘phony returns’, there is always fear of fabricating answers to save the
efforts. However, such responses have a negative effect on the results. The researcher can handle this problem by
sporadic check on interviewers or call back randomly. Also, it also can be checked in editing stage.
(d) Incomplete or incorrect answers: Data processing becomes difficult when the answers have not been written
correctly or they have been written illegibly. An incomplete answer may be completed either on the basis of logic
or reasoning derived from other answers of the respondent.
Q. Explain different diagrams and graphs used to present statistical data.
The way of presentation of statistical data is not always interesting to a layman. Too many figures are often
confusing and fail to convey the message effectively. One of the most effective and interesting alternative way in
which a statistical data may be presented is through diagrams and graphs. The commonly used diagrams and
graphs to be discussed in subsequent paragraphs are given as under:


Although presenting tables of numbers can be very informative but it is not always interesting to a layman as
they lack visual impact. User may want to see the message instantly. A diagram, chart or graph can help by
summarising the key features of the data, and representing it as a picture.
There are many different types of diagram and chart which are written below:
(1) Bar chart
(2) Histogram
(3) Pictogram
(4) Pie chart
(5) Scattergram
(6) Stem and leaf plot
(1) Bar chart: A bar chart is the most common type of diagram, and
is frequently used. It represents data in terms of bars of equal width,
whose height varies to represent the size of the data. Also note that the
bars can be any width, and sometimes may be just
thin vertical line.
 It can represent data expressed as actual numbers,
percentages and frequencies.
 A bar chart can represent either discrete or continuous data.  If
the data is discrete there should be a gap between the bars
(as in the diagram above).
 If the data is continuous there should be no gap between the bars.

(2) Histogram: A histogram looks similar to a bar chart. The

difference between bar graph and histogram is not only the length
of the bar but also width of the bar is important.
 It can only be used to represent continuous data.
 It can represent data expressed as actual numbers, percentages and
 It is of value if the classes are different sizes.

(3) Pictogram: A pictogram uses pictures or symbols to represent a
number of units of data. The pictures usually relate to the data shown.
 These are the most visually appealing diagrams to use.
 They are often used as part of advertising campaigns.
 Make sure that it is appropriate for the needs.
 It is not always suitable for large quantities of data. We do not
necessarily need one picture per piece of data
 Some pictograms can vary the size of the symbols rather than the
number. Here the area of the picture that increases in proportion to
the frequencies rather than the length. We do not use this, unless we
are confident, otherwise this can be misleading.

(4) Pie chart: A pie chart shows data in terms of proportions of a whole.
The 'pie' is divided into segments that represent this proportion. This is
done by dividing the angles at the centre.
It is best used to present the proportions of a sample.
It is most useful where one or two results dominate the findings.
It can represent data expressed as actual numbers or percentages.
We do not use it where there are a large number of categories, or where each has a small, fairly equal
share, as this can be unclear.
(4) Scattergram: A scattergram shows how two sets of
numerical data relate to each other.
These are used to show patterns of correlation between two sets of
data – i.e. how 'connected' the data is. E.g. there is likely to be a
connection between height and shoe size but there is not a
connection between height and eye colour.
Each point represents one relationship (eg one person’s height and
shoe size). A 'line of best fit' can be inserted to show a trend.
(6) Stem and leaf plot: This displays the actual data as well as its
frequency. This uses part of the data as the class or group heading,
this is called the stem. The remainder of the value is listed in the
bars, i.e. the leaf.
 As all the actual values are shown, this type of diagram is
only really appropriate for small quantities of data
 This type of diagram is unique in that you can see the
raw data as well as the frequency in it
 It is not used very often as its appearance can be
(7) Candlestick chart: candlestick chart (also called Japanese
candlestick chart) is a style of financial chart used to describe price
movements of a security, derivative, or currency. Each "candlestick"
typically shows one day. For example, a one-month chart may show
the 20 trading days as 20 "candlesticks".

In order to create a candlestick chart, we must have a data set that

contains open, high, low and close values for each time period we
want to display. The hollow or filled portion of the candlestick is called
“the body” (or “the real body”). The long thin lines above and below
the body represent the high/low range and are called “upper shadows”
(or “wicks”) and “lower shadow” (or “tails”). The high is marked by
the top of the upper shadow and the low by the bottom of the lower

(7) Boxplots or ‘Box and Whisker’ Plots: Box plots are used to show overall patterns of response for a group.
They provide a useful way to visualise the range and other characteristics of responses for a large group.

A boxplot splits the data set into quartiles. The body of the boxplot consists of a "box", which goes from the first
quartile (Q1) to the third quartile (Q3). Within the box, a vertical line is drawn at the Q2, the median of the data
set. Two horizontal lines, called whiskers, extend from the front and back of the box. The front whisker goes
from Q1 to the smallest non-outlier in the data set, and the back whisker goes from Q3 to the largest non-outlier.
If the data set includes one or more outliers, they are plotted separately as points on the chart. In the boxplot
above, two outliers precede the first whisker; and three outliers follow the second whisker.

How to Interpret a Boxplot?

The median is indicated by the vertical line that runs down the center of the box. In the boxplot above, the
median is about 400.

Additionally, boxplots display two common measures of the variability or spread in a data set.

 Range: If you are interested in the spread of all the data, it is represented on a boxplot by the horizontal
distance between the smallest value and the largest value, including any outliers. In the boxplot above, data
values range from about -700 (the smallest outlier) to 1700 (the largest outlier), so the range is 2400. If you
ignore outliers, the range is illustrated by the distance between the opposite ends of the whiskers - about
1000 in the boxplot above.
 Interquartile range (IQR): The middle half of a data set falls within the interquartile range. In a boxplot,
the interquartile range is represented by the width of the box (Q3 minus Q1). In the chart above, the
interquartile range is equal to 600 minus 300 or about 300.

Q. Explain bivariate analysis.

Bivariate Research Techniques is used in research to analyse the relationship between two variables. One
variable is frequently labelled as the independent variable, which is usually demographic, geo-demographic or
behavioural in nature, and the other is known as the dependent variable.

There are many different statistical methods for bivariate analysis. One of the most common methods employed
during market research is bivariate regression analysis, also known as linear regression.
Linear regression analysis is a powerful technique used for predicting the unknown value of a variable from the
known value of another variable. For example, For example age of a human being and maturity are related
variables. Then linear regression analyses can predict level of maturity given age of a human being.
Dependent and Independent Variables
By linear regression, we mean models with just one independent and one dependent variable. The variable whose
value is to be predicted is known as the dependent variable and the one whose known value is used for prediction
is known as the independent variable.
Two Lines of Regression:
There are two lines of regression- that of Y on X and X on Y.
The line of regression of Y on X is given by-Y = a + bX

where a and b are unknown constants known as intercept and slope of the equation. This is used to predict the
unknown value of variable Y when value of variable X is known.
On the other hand, the line of regression of X on Y is given by-

X = c + dY

which is used to predict the unknown value of variable X using the known value of variable Y. Often, only one of
these lines make sense.

Relationship between Correlation and Regression Coefficient:

Correlation and Regression are the two analysis based on multivariate distribution. A multivariate distribution is
described as a distribution of multiple variables. Correlation is described as the analysis which lets us know the
association or the absence of the relationship between two variables ‘x’ and ‘y’. On the other end, Regression
analysis, predicts the value of the dependent variable based on the known value of the independent variable,
assuming that average mathematical relationship between two or more variables.

Comparison Chart


Cross-tabulation is one of the most useful analytical tools and is a basis of the market research industry. One
estimate is that single variable frequency analysis and cross-tabulation analysis account for more than 90% of all
research analyses.

Cross-tabulation analysis, also known as contingency table analysis, is most often used to analyze categorical
(nominal measurement scale) data. A cross-tabulation is a two (or more) dimensional table that records the number
(frequency) of respondents that have the specific characteristics described in the
cells of the table. Cross-tabulation tables provide a wealth of information about the relationship between the

A typical cross-tabulation table comparing the two hypothetical variables “City of Residence” with “Favorite
Cricket Team” is shown below. The cells of the table report the frequency counts and percentages for the number
of respondents in each cell.

Cross-tabulation analysis has its own unique language, using terms such as “banners”, “stubs”, “Chi-Square
Statistic” and “Expected Values.” Tabulation Professionals call the column variables in these multiple tables
“Banners” and row variables “Stubs”. Tabulation Professionals call the column variables in these multiple tables
“Banners” and row variables “Stubs”.


The Chi-square statistic is the primary statistic used for testing the statistical significance of the cross-tabulation
table. Chi-square tests whether or not the two variables are independent. If the variables are independent (have
no relationship), then the results of the statistical test will be “non-significant” and we “are not able to reject the
null hypothesis”, meaning that we believe there is no relationship between the variables.

If the variables are related, then the results of the statistical test will be “statistically significant” and we “are able
to reject the null hypothesis”, meaning that we can state that there is some relationship between the variables.

The chi-square statistic, along with the associated probability of chance observation, may be computed for any
table. If the variables are related (i.e. the observed table relationships would occur with very low probability, say
only 5%) then we say that the results are “statistically significant” at the “.05 or 5% level”. This means that the
variables have a low chance of being independent.


The chi-square statistic is computed by first computing a chi-square value for each individual cell of the table
and then summing them up to form a total Chi-square value for the table. The chi-square value for the cell is
computed as:

(Observed Value – Expected Value)2 / (Expected Value)

The Chi-Square computations are done as below. In this example table, we observe that the chi-square value for
the table is 19.35, and has an associated probability of occurring by chance less than one time in 1000. We
therefore reject the null hypothesis of no difference and conclude that there must be a relationship between the
We can observe the relationship in two places in the table. The most obvious is in the chi-square value computed
for each cell. We observe that the cells “Australia and Lucknow”, “India and Mumbai” and “Australia and Delhi”
were the three cells where the number of observed respondents was greater than expected. We further note that
when we examine the expected and observed frequencies, the “S. Africa and Mumbai”, “Australia and Delhi”,
and “Australia and Mumbai” frequencies were fewer than expected.

Because the cell chi-square and the expected values are often not displayed, these same relationships can be observed by
comparing the column total percent to the cell percent (of the row total). In cell “Australia and Lucknow” we would
compare 41.10% with 64.71% and observe that more Australia fans liked Lucknow than expected.

Q. Define hypothesis?
A hypothesis is something not proved but assumed to be true for purposes of argument or further study or
investigation. It is something more than a wild guess but less than a well-established theory.

Q. What are the characteristics & qualities of a good hypothesis?

Characteristics & Qualities of a Good Hypothesis:

1. A hypothesis should be conceptually clear :
A clear definition of concepts should be used in a hypothesis and should be done free from secret words and
words instead of shapes should be used, these should further be analyzable into indicators and consist of
concepts being used in previous researches.
2. A hypothesis should have on empirical reference :
The concepts used in a hypothesis should be scientific instead of based on moral judgment like bad parents,
irreligious or'dirty children but measurable concepts, capable to be turned into indicators.
3. A hypothesis must be specific :
A useful hypothesis should be testable for the foretelling described with limits. Sometimes hypotheses are made
of general words having grandeur but there are not simply testable. Therefore,
i. It should be specific for its topic with no irrelevant matters.
ii. ii. It should not be vast enough to be investigated.
4. A hypothesis should be related to available techniques :
A hypothesis should be related to the available techniques of research to be tested easily for the verification,
otherwise it will be devoid of meaning with no service to the scientific knowledge.
5. A hypothesis should be related to a body of theory :
A hypothesis should be related to present scientific theory. Knowledge can only progress when already present
theories and facts are further researched. If every research is individualistic and is isolated, it will have no
meaning with no progress of the scientific knowledge.
Formulating the Research Hypothesis and Null Hypothesis:
When we set up a hypothesis test to determine the validity of a statistical claim, we need to define two types of
hypothesis - a null hypothesis and an alternative hypothesis.
Every hypothesis test contains a set of two opposing statements, or hypotheses, about a population parameter.
The first hypothesis is called the null hypothesis, denoted H0.
The null hypothesis always states that the population parameter is equal to the claimed value. For example, if the
claim is that the average time to make a xyz ready-mix cake is five minutes, the statistical shorthand notation for
the null hypothesis in this case would be as follows:

Before actually conducting a hypothesis test, we have to put two possible hypotheses on the table — the null
hypothesis is one of them. But, if the null hypothesis is rejected (that is, there was sufficient evidence against it),
what’s our alternative going to be? Actually, three possibilities exist for the second (or alternative) hypothesis,
denoted Ha. Here they are, along with their shorthand notations in the context of the pie example:
 The population parameter is not equal to the claimed value

 The population parameter is greater than the claimed value

 The population parameter is less than the claimed value

Which alternative hypothesis you choose in setting up your hypothesis test depends on what we are interested in
concluding, should we have enough evidence to refute the null hypothesis (the claim). The alternative hypothesis
should be decided upon before collecting or looking at any data, so as not to influence the results.
For example, if we want to test whether a company is correct in claiming its cake takes five minutes to make
and it doesn’t matter whether the actual average time is more or less than that, we use the not-equal-to
alternative. Our hypotheses for that test would be

If we only want to see whether the time turns out to be greater than what the company claims, we use the greater-
than alternative, and our two hypotheses are

Finally, say we work for the company marketing the cake, and you think the cake can be made in less than five
minutes (and could be marketed by the company as such). The less-than alternative is the one we want, and our
two hypotheses would be
Q. Explain the concept of hypothesis testing.

Once we have generated a hypothesis, the process of hypothesis testing becomes important. For testing, we will
be analyzing and comparing our results against the null hypothesis, so our research must be designed with this in
mind. It is vitally important that the research we design produces results that will be analyzable using statistical

The Logic of Hypothesis Testing:

The logic of hypothesis testing in statistics involves four steps.
1. State the Hypothesis: We state a hypothesis (guess) about a population. Usually the hypothesis concerns the
value of a population parameter.
2. Define the Decision Method: We define a method to make a decision about the hypothesis. The method
involves sample data.
3. Gather Data: We obtain a random sample from the population.
4. Make a Decision: We compare the sample data with the hypothesis about the population. Usually we
compare the value of a statistic computed from the sample data with the hypothesized value of the
population parameter.

If the data are consistent with

the hypothesis we conclude that the hypothesis is reasonable.

If there is a big discrepancy between the data and the hypothesis we conclude that the hypothesis was wrong.

Importance of Hypothesis Testing:

Hypothesis testing is one of the most important concepts in research because hypothesis testing helps us decide
 something really happened,
 certain treatments have positive effects,
 groups differ from each other
 one variable predicts another.
In short, if we want to proof our data is statistically significant and unlikely to have occurred by chance alone. In
essence then, a hypothesis test is a test of significance.
Test of Significance is a statistical test that challenges a hypothesis to determine whether the alternative
hypothesis produces a pre-established significance level. The significance test attempts to disprove the concept
of "chance" and reject a null hypothesis by adhering to observed patterns.
Tests for statistical significance indicate whether observed differences between assessment results occur because
of sampling error or chance.
Steps in Tests of Significance
 State clearly Null Hypothesis (Ho)
 Choose Level of Significance (α)
 Decide test of Significance

 Obtain P-Value and Conclude Ho

About Acceptance and Rejection Regions:

Acceptance Region: Region in which Ho is accepted
Rejection Region: Region in which Ho is rejected.
 If Zcal > Zα
 Then P < α → Ho is rejected
 If Zcal/ < Zα
 Then P > α → Ho is accepted
 Usually α = 0.05, May be 0.01.,0…..

Parametric Statistics
Z-test (for large samples) for testing significance of

single population mean,

difference of two population means,

single population proportion,

difference of two population proportions.

t-test (for small samples): For testing significance of

single population mean,

difference of two population means,

paired data (Effectiveness of Drug)

correlation coefficient.


Testing equality of several means

Testing equality of two population variances.

One-way, Two-way and Multi-way ANOVA

 Testing Associations
 Significance of Risk
H0: RR=1 or OR =1

Non-parametric tests are used if the assumptions for the parametric tests are not met, and are commonly called
distribution free tests. The advantage of non-parametric tests is that we do not assume that the data come from
any particular distribution (hence the name).
Usually the parametric methods rely on the assumption that the data come from a normally distributed
population, in which case ANOVA and t-tests etc. can be used. If this is not the case however, or the data are
non-numerical but are ranked etc. non-parametric tests can be used.
 Sign test: Testing median
 Wilcoxon signed rank test: Testing median
 Run test: For randomness
 Median test: For testing equality of two medians
 Mann-Whitney test: For testing equality of two medians
 Chi-square test: Testing “goodness of fit”, testing independence, homogeneity
 Kruskal Wallis: One way ANOVA
 Friedman: Two-way ANOVA
1. Mann Whitney test / Wilcoxon rank sum test
The Mann Whitney test was initially developed by Wilcoxon hence it is also known as the / Wilcoxon rank sum
test. This is used when we want to compare two independent samples, and the assumptions underlying the t-test
are not met. Consider the situation where a psychologist wants to copmare the reaction times of people to two
drugs. Randomly people are assingned to groups where the first group recieves drug A, and the other recieves
drug B. To compare the probability distributions of group A and B, the reaction times in each group are recorded
and pooled, the rank of each observation in the pooled sample is then recorded. The test statistic is the rank sum
of the smaller group and the following hypothesis can then be tested.
• H0: The probability distributions of the groups for each of the two products (in our case drugs) are identical.
• H1: The probability distributions of the groups differ, (either one sided or two sided alternatives can be
• The two samples are random and independent.
• The two probability distributions from which the samples are dawn are continuous.

2. Wilcoxon signed rank test

The Wilcoxon test is used when we are unwilling to make assumptions about the form of the underlying
population probability distributions, but we want compare paired samples. Analogous to the dependent t-test we
are interested in the difference in two measurements taken from each person, for example consider a person
being asked to score two films on some scale (say 1 to 10), the signed rank test takes the absolute value of the
differences between the scores for each film from each person and ranks the absolute value of the differences
from the smallest (rank 1) to the largest (rank n). The rank sum of the positive (T +) and negative (T−) differences
are then calculated, the smallest of these is used as the test statistic to test the hypothesis,
• H0: The probability distributions of the ratings for each of the two products (in our case films) are identical.
• H1: The probability distributions of the ratings differ, (either one sided or two sided alternatives can be
• The sample of differences is randomly selected from the population of differences.
• The two probability distributions from which the sample of paired differences is dawn is continuous.

3. Kruskal Wallis test

The Kruskal Wallis test is a non-parametric technique for comparing two or more populations, i.e. analogous to
ANOVA. Just as in the case of two independent samples the ranks are computed for each observation according
to the relative magnitude of the measurements when the data for all the samples are combined. The test statistic
is computed which is a function of the rank sums for each sample, and the following hypothesis is tested.
• H0: The probability distributions for each sample are identical.
• H1: At least two of the probability distributions differ in location.
• The p samples are random and independent.
• There are 5 or more measurements in each sample.
• The p probability distributions from which the samples are dawn are continuous.

4. Other non-parametric tests

• The Sign Test can be used for single population inferences.
• The Friedman Test used for a randomized block design
Analysis of variance (abbreviated as ANOVA) is an extremely useful technique concerning researches in the
fields of economics, biology, education, psychology, sociology, business/industry and in researches of several
other disciplines. Using this technique, we can draw inferences about whether the samples have been drawn from
populations having the same mean.
ANOVA can be of two types-
(A) One way ANOVA
(B) Two way ANOVA
(A) ONE WAY ANOVA: Under the one-way ANOVA, we consider only one factor, and determine if there are
differences within that factor.
The technique involves the following steps:
(i) Mean of Each Sample: Calculate the mean of each sample, i.e.,
(ii) Mean of Sample Means: Calculate the mean of the sample means.

Where k is number of samples.

(iii) SS between: Find out the sum of squares for variance between the samples (or SS between). In this step
calculate the deviation/difference of sample mean from the means, square it, multiply it by the number of items
in the corresponding sample, and obtain their total.

(iv) MS between: Divide SS between by the degrees of freedom between the samples to obtain variance or

mean square (MS) between samples.

where (k – 1) is degrees of freedom (d. f.) between samples.
(v) SS within: Find out the sum of squares for variance within samples (or SS within). Obtain the deviations of
the values of the sample items for all the samples from corresponding means of the samples and calculate the
squares of such deviations and then obtain their total.

(vi) MS within: Divide MS within by the degrees of freedom within samples to obtain the variance or mean
square (MS) within samples.

Where n= total number of items in all the samples

(n-k)= degrees of freedom within samples
(vii) SS for total variance:
SS total = SS between + SS within

(viii) Total degree of freedom:

Total d. f. = (k - 1) + (n - 1) = n – 1

(ix) ANOVA table:

ANOVA Table for One-way ANOVA
Source Degree
Mean F-Ratio F-Ratio
of of
Variatio Sum of Squares Freedom Squares (Calculate (Table
(MS) d) Value)
n (df)
(k – 1) SS between
Samples k = no. of K–1
(n – k)) S
Within n = total SS within
Samples no. of N–k SS within

Total SS total = SS between + SS within (n – 1)

If above table shows that the calculated value of F-ratio is less than the table value, the null hypothesis is
accepted; otherwise rejected.


Two-way ANOVA technique is used when the data are classified on the basis of two factors. For
example, a business firm may have its sales data classified on the basis of different salesmen and also on the
basis of sales in different regions.
In a two way ANOVA, three different null hypothesis can be tested.
H01 = Thre is no significant difference between column means
(a) ANOVA technique when repeated values are not there:
The various steps involved are as follows:
(i) Take the total of all items, T.
T = Σ Xij
(ii) Work out the correction factor.

(iii) Find out the square of all the item values and then take its total. Subtract the correction factor from this total
to obtain the total SS.
(iv) Take the total of different columns and then obtain the square of each column total and divide such squared
values of each column by the number of items in the concerning column and take the total of the result thus
obtained. Finally, subtract the correction factor from this total to obtain the SS between columns.

(v) Take the total of different rows and then obtain the square of each row total and divide such squared values
of each row by the number of items in the corresponding row and take the total of the result thus obtained.
Finally, subtract the correction factor from this total to obtain the SS between rows.

(vi) Sum of squares of deviations for residual or error variance can be worked out by subtracting the sum of SS
column and SS row from Total SS.
SS residual = Total SS – (SS between columns + SS between rows)
(vii) Degrees of freedom (d.f.) can be worked out as under:
d.f. for total variance = (c . r – 1)
d.f. for variance between columns = (c – 1)
d.f. for variance between rows = (r – 1)
d.f. for residual variance = (c – 1) (r – 1)
where c = number of columns
r = number of rows

(viii) ANOVA table:

ANOVA Table for Two-way ANOVA

(b) ANOVA technique when there are repeated values: The two way ANOVA with repeated values
involves the same steps as one without repeated values. The only difference is that in this case the
interaction variation is worked out. In this, from steps (i) to step (v) are common. Then,
Step (vi) SS within is worked out. It is the sum of squares of deviations of the items from their respective
Step (vii) SS interaction is calculated. It is left over variation calculated by following formula.
SS interaction = SS total – (SS column + SS rows + SS within)

Step (viii) d.f. for total SS = (n – 1)

d.f. for variance between = (c – 1)
columns = (r – 1)
d.f. for variance between rows = (n – k)
d.f. for SS within = (n – 1)
d.f. for interaction
Step (ix) Now the ANOVA table is constructed.

F-ratio F-ratio
Source of variation SS d.f. MS
(Calculated) (Tabulated)
Between columns
Between rows
Within samples

~*~*~Good Luck~*~*~*~