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Chapter 4
The conceptual model shows the schematic relationship between the variables. Your ability to
conceptualize same with adequate justification through the literature review is of utmost
importance to proceed with the research. The most common way to draw the conceptual model
for your quantitative study is to place the dependent variable which is the key focus on your right
hand side and the independent variables that influence the dependent variable on your left hand
side.
Increasing number of accidents reported over the years compelled the authorities to implement new
rules and regulations. The new rules include substantial fines for over speeding, periodic checking of
vehicle conditions, stern punishment for drunken drivers, improving road conditions and training of
drivers.
Poor use of
technology
Poor architecture
Software Defects
Lack of coding
skills
Lack of a QA
process
Hypothesis testing
We write a sentence connecting one of the independent variables with the dependent variable to say
that there is no relationship between the two variables. This default position which states that there is
no association among the variables is called the null hypothesis. Ho is used to denote the null
hypothesis. Null hypothesis is generally accepted as true until we find evidence to disprove.
In hypothesis testing, we express our research hypothesis as a null hypothesis and an alternate
hypothesis. They are statements with regard to the differences take place in the population. In the
research we use our sample to test the statements of null and alternate hypothesis.
The alternate hypothesis is the one you are trying to prove as correct. Let’s look at the following
example. In software development the developers are expected to do unit testing or tests on each and
every component or piece of work as and when they complete coding. Unit testing is done to ensure
that errors are detected at the level of software developers so that when it goes through the final
quality assurance tests what we get is error free software. Given below are the two hypotheses.
We attend preventive maintenance work of plant and machinery and also in our vehicles. Preventive
maintenance can avoid sudden and unexpected breakdowns. This is why we change lubricants, oil filter,
air filter, spark plugs, belts etc. in our cars. Failure to be pro-active with maintenance or in other words
not attending preventive maintenance work can lead to costly and unexpected repairs. Look at the two
hypotheses below. What we need to prove as correct based on our general belief goes as the alternate
hypothesis.
You may examine the null hypothesis and alternate hypothesis developed for the following examples.
Requirement study done to identify what the customer is looking for enables software firms to offer
exactly what customer is looking for. There will not be any surprises. What was expected is what you
have developed and delivered. Therefore, we agree that a requirement study leads to better customer
satisfaction.
A bank would study a customer before granting a loan. The regulator requires the bank to do a KYC
check. Due diligence done on the borrower can reduce the risk of loan defaults. It is the general
acceptance. Therefore, in writing the hypotheses what we believe as correct will be stated as the
alternate hypothesis as follows.
Null hypothesis: Due diligence done on borrowers has no effect on loan defaults.
Alternate hypothesis: Due diligence done on borrowers has a positive effect on loan defaults.
Recovery officers of financial institutions and banks are expected to maintain a very close rapport with
the customers so that they can collect the dues easily. If the recovery officer does not visit the client and
does not communicate on a regular basis he may not come across financial difficulties the borrower has
faced and he may not be able to take timely action to safeguard interests of the bank. Therefore, we
believe that regular visits to customers by the field officers can improve the collection ratio of the bank.
Alternate hypothesis: Regular visits to customers have a positive effect on collection ratio.
Airlines and travel agents are well aware of the fact that passengers especially business travelers need
to reach their destinations on time. Passengers who are put on transit lounges for long hours for the
connecting flights are very unlikely to select the same airline for their next trip. A researcher is keen in
knowing whether the transit time has an impact on passenger loyalty to the airline. Will you accept the
following hypotheses as correct?
Alternate hypothesis: Transit time has a positive relationship with passenger loyalty.