A Research Proposal on:

Monthly spending habits of students at IMT Nagpur

In partial fulfilment of the course requirement for

Business Research Methods

Submitted by: Group 6 (Section G)

Surbhi Singh (2017231099)
Syed Azhaan Hussain (2017231100)
Sarthak Sahoo (2017232099)
Rahul Gupta (2017233098)
Saket Vyas (2017233112)

Submitted to:
Dr. R. K. Jena

MARCH 29, 2018

 Table of Contents

EXTENDED SUMMARY........................................................................................................................... 1
CHAPTER 1 ............................................................................................................................................. 2-9
1.1 Types of business Research ................................................................................................................... 2
1.2 Steps in business Research..................................................................................................................... 4
1.3 Data collection methods ......................................................................................................................... 7
1.4 Sampling Techniques ............................................................................................................................. 7
CHAPTER 2 CASE STUDY ................................................................................................................ 10-15
2.1 Objectives of the case study................................................................................................................. 10
2.2 Research questions ............................................................................................................................... 10
2.3 Theoretical Framework ........................................................................................................................ 11
2.4 Research Methodology ........................................................................................................................ 11

2.4.1 Target Population & Sample size .................................................................................................. 12

2.4.2 Sampling techniques used ................................................................................................................. 12

2.5 Result and discussion ........................................................................................................................... 13
2.5.1 Descriptive Statistics ......................................................................................................................... 13
2.5.2Inferential Statistics…………………………………………………………………………………14

CHAPTER 3CONCLUSION……………………………………………………….................................16

3.1 Limitation & FUTURE WORK……………………………………………………………………...16

BIBLOGRAPHY…………………………………………………………………………………………17

APPENDIX…………………………………………………………………………………………...18-24
 EXTENDED SUMMARY
IMT Nagpur’s administration has been receiving complaints from parents regarding expenditure of pocket
money by students. The administration office has asked a group of students to carry out a study on the
spending habits of the students to address the deficiency in the services.

Need of Money: Going to college is an expensive venture. While tuition costs are clearly printed on
schools' websites and in catalogs, the amount of spending money a college student needs may be difficult
to determine. Pinning down an amount of money needed for college depends on many factors, including
what one considers spending money, activities, and the geographical region where the student attends
college. One of the reasons it is difficult to determine how much your college student may need is that
different people consider different things as paid for with "spending money." For example, some people
have already factored the costs of textbooks and parking on campus into the cost of attending school.
Loans are based on this yearly required amount. However, many parents consider things like books to be
something that a student buys during their college career, requiring spending money.
The group of researchers intend to demonstrate in this section that how various consumption patterns are
directly linked with the deficiency of a particular service in the college.
The group of researchers conducts an analysis of the primary data obtained through survey in order to
develop research hypotheses.

1
 CHAPTER 1

Business Research Methods

What is Business Research?

Business research is a process involving the acquisition of information and knowledge for professional or
commercial purposes. Businesses deploy numerous research methods to help grow their operations or to
solve problems in the company. An example of business research would be gathering consumer data to
gain insights and work upon forthcoming marketing plans.

Types of Business Research:

A. Based on Application:
Based on application, Business Research is classified as Pure Research and Applied Research.

I. Pure/Basic Research: Pure research (also known as “basic” or “fundamental” research) is

exploratory in nature and is conducted without any practical end-use in mind. It is conducted to
generate a body of knowledge by trying to comprehend how certain problems that occur in an
organization can be solved. It is driven by gut instinct, interest, curiosity or intuition, and simply
aims to advance knowledge and to identify/explain relationships between variables. Pure research
provides a foundation for further research. It is quite possible that some organizations may, at a
later stage, apply the knowledge gained by the findings of basic research to solve their own
problems.
II. Applied Research: Research can be undertaken for different purposes. one is to solve a current
problem faced by a manager in a work setting, demanding a timely solution. For example, a
popular product may not be selling well and the manager might want to find the reasons for this in
order to take corrective action. Such research is known as applied research. Applied research is
not carried out for its own sake but in order to solve specific, practical questions or problems. It
tends to be descriptive, rather than exploratory and is often based upon pure research.

The main distinction between applied and basic business research is that the former is specifically
aimed at solving a currently experienced problem within a specified organization, whereas the latter
has broad objectives of generating knowledge and understanding of phenomenon and problems that
occur in various organizational settings.

B. Based on objectives:
Based on objectives, Business Research is classified as Exploratory, Descriptive, Analytical and
Predictive Research.

I. Exploratory research is undertaken when not much is known about a particular phenomenon;
existing research results are unclear or suffer from serious limitations; the topic is highly complex;
or there isn’t enough theory available to guide the development of a theoretical framework. The
aim is to look for patterns, hypotheses or ideas that can be tested and will form the basis for further
research. Typical research techniques would include case studies, observation and reviews of

2
 previous relationship. Exploratory research often relies on qualitative approaches to data gathering
such as informal discussions, interviews, focus groups, and/or case studies. Here, the focus of the
research is broad at first, but becomes increasingly narrow as the research proceeds.
II. Descriptive research can be used to identify and classify the elements or characteristics of the
subject. The objective of a descriptive research is to obtain data that describes the topic of interest.
For instance, if we want to know what percent of the population likes Coca-Cola better than Pepsi
in a double-blind test, we are interested in describing consumer’s taste preference. Descriptive
studies are often designed to collect data that describe characteristics of objects, events, or
situations. Descriptive studies are either quantitative or qualitative in nature.t often used to collect
and summaries databased studies and data. For instance, qualitative data might be gathered to
describe how consumers go through a decision-making process, or to examine how managers
resolve conflicts in an organization.
III. Analytical research often extends the Descriptive approach to suggest or explain why or how
something is happening. Analytical research is a specific type of research that involves critical
thinking skills and the evaluation of facts and information relative to the research being conducted.
Within analytical research articles, data and other important facts that pertain to a project is
compiled; after the information is collected and evaluated, the sources are used to prove a
hypothesis or support an idea. Using critical thinking skills (a method of thinking that involves
identifying a claim or assumption and deciding if it is true or false) a person is able to effectively
pull out small details to form greater assumptions about the material. An important feature of this
type of research is in locating and identifying the different factors (or variables) involved. Some
researchers conduct analytical research to find supporting evidence to current research being done
in order to make the work more reliable. other researchers conduct analytical research to form new
ideas about the topic being studied. Analytical research is conducted in a variety of ways including
literary research, public opinion, scientific trials and Meta-analysis.
IV. Prediction is the act of forecasting what will happen in the future. The aim of Predictive research
is to speculate intelligently on future possibilities, based on close analysis of available evidence of
cause and effect. Predictive research uses variables that can be measured and analyzed to predict
the likely behavior of individuals, machinery or other entities. For example, an insurance company
is likely to take into account potential driving safety variables, such as age, gender, location, type
of vehicle and driving record, when pricing and issuing auto insurance policies. Multiple variables
are combined into a predictive model capable of assessing future probabilities with an acceptable
level of reliability.

C. Based on type of Information sought:

Based on type of information sought, Business Research is classified Qualitative and Quantitative
Research.

I. Qualitative Research: Qualitative research is more subjective in nature and involves examining
and reflecting on the less tangible aspects of a research subject. Qualitative Research is primarily
exploratory research. It is used to gain an understanding of underlying reasons, opinions, and
motivations. It provides insights into the problem or helps to develop ideas or hypotheses for
potential quantitative research. Qualitative Research is also used to uncover trends in thought and
opinions, and dive deeper into the problem. Qualitative data collection methods vary using
unstructured or semi-structured techniques. Some common methods include focus groups (group
discussions), individual interviews, and participation/observations. The sample size is typically
small, and respondents are selected to fulfil a given quota.
II. Quantitative Research: The emphasis of Quantitative research is on collecting and analyzing
numerical data; it concentrates on measuring the scale, range, frequency etc. of phenomena.
Quantitative Research is used to quantify the problem by way of generating numerical data or data
that can be transformed into usable statistics. It is used to quantify attitudes, opinions, behaviors,
and other defined variables – and generalize results from a larger sample population. Quantitative
Research uses measurable data to formulate facts and uncover patterns in research. Quantitative
data collection methods are much more structured than Qualitative data collection methods.

3
 Quantitative data collection methods include various forms of surveys – online surveys, paper
surveys, mobile surveys and kiosk surveys, face-to-face interviews, telephone interviews,
longitudinal studies, website interceptors, online polls, and systematic observations.

Steps in Business Research:

For formulating and clarifying your research topic, the important pointers to keep in mind are: Identifying
the attributes of a good research topic; Generating ideas that help you select a suitable topic; Turning ideas
into clear research questions and objectives; Writing your research proposal.

A business research constitutes six steps, starting from designing a research problem, through to the report
and presentation of the research findings.

Following are the steps to carry out a successful business research.

Desigining
and
Formulating
Research
Problem

Planning a
Presentation
Research
& Report
Design

Processing
Planning a
& Analysing
sample
the Data

Gathering
the Data

I. Defining and Formulating Research Problem: The first step is to identify a problem or a business
opportunity that needs attention. A problem is a situation where a gap exists between an actual and
a desired ideal state. To identify the problem more accurately, the researcher can use the ‘5 Why’s’
technique, which is a fairly straightforward approach that will help to get to the root of the cause
of a problem. Developed by the Japanese industrialist Saki chi Toyed, the idea is to keep asking
‘Why’, until the most basic cause is arrived at. The research problem may be something the
business identifies as a problem of any knowledge or information that is needed by the business.
This can be done by exploring, the current situations, or through a literature review. In this step,
one is also required to identify the goals of the research project.
For formulating the research problem, it should be a single statement/question describing the
objective of the research project. The research problem must be clear and focused. The ‘secret’ to
bringing clarity and focus to your problem is to isolate the key ideas in the first version of the
problem statement. A broad, first statement of the problem often includes several words and/or
phrases that need definition. To identify the key terms in your problem statement, look for the
subjects, verbs and objects in your statement.
II. Planning a research Design: A research design is a detailed, carefully constructed plan of the
methods and procedures for collecting and analyzing data. The research design refers to the overall

4
 strategy that you choose to integrate the different components of the study in a coherent and logical
way, thereby, ensuring you will effectively address the research problem; it constitutes the
blueprint for the collection, measurement, and analysis of data. Here, you are supposed to answer
who is your population, who are you going to sample, how are you going to sample, how many
are you going to sample, and what would be your survey questions? The function of a research
design is to ensure that the evidence obtained enables you to effectively address the research
problem logically and as unambiguously as possible.
The elements of a research design are: Research Strategies (Experiments, Surevey Research,
observation, Case Studies, Grounded Theory, Action Research, Mixed Methods); Extent of
Researcher interference (Minimal, Manipulation,control, simulation); Study Setting (Contrived,
Noncontrived); Unit of Analysis (Individuals, Dyads, Groups, organisations, Machines, etc.);
Time Horizon (one Shot, Longitudinal).
III. Planning a Sample: A sample is a subset of the population. The purpose of collecting a sample is
to make inferences about the population, based on results from the sample. The objective is not
just to describe the sample.First ask: who is the population?The population might be obvious: UW-
L students; or is might not be not be obvious: Potential customers of a new product. Avoid sample
selection bias: the act of being part of your sample itself is related to the result.
The sampling unit is a single element or a set of elements that is available for selection in some
stage of the sampling process. Examples of sampling units in a multistage sample are city blocks,
households, and individuals within the households. When we sample, the sampling units provide
us with responses. When we examine the responses that we get for our entire sample, we make use
of statistics.

Sample
(Statistics : S,S^2,X)
Estimate

Population
(Parameters: µ,
sigma, etc.)

IV. Gathering the data: There are two methods for gathering the data. obtrusive methods require filling
out a questionnaire or interacting with an interviewer, when gathering data.In Unobtrusive
methods, subjects are not at all disturbed by collection of the data, or possibly even unaware, for
example, Counting vehicles passing a billboard, or collecting data on customer purchases.

5
 V. Processing and Analysing the data: After the data are obtained through questionnares, they ned to
be coded, keyed in, and edited. Analyzing Data involves choosing appropriate statistical analysis,
and fingding out whether the assumptions behind the statistical procedures met, and will the results
of the statistical procedure answer your research question? Based on the analysis, conclusions are
drawn. The conclusion section should be more than a short summary of what you did. Bring the
results of the statistical analysis back to the research question, and answer the question, did your
analysis fail to fully answer the question, what questions remain, and does the discussion of the
results motivate a new research question?
Following are the steps in a data management process:

VI. Presentation and Report: The presentation section should be more than a short summary of what
you did. Bring the results of the statistical analysis back to the research question, and answering
the question, did your analysis fail to fully answer the question, what questions remain, or does
the discussion of the results motivate a new research question?

Types of Data:

I. Primary Data: Are those which are collected afresh and first time and this happen to be original in
character. There are several methods of collecting primary data, particularly surveys and
descriptive research. In Descriptive research, we obtain primary data either through direct
communication with respondents in one from or the other, or through personal interviews.
II. Secondary Data: Are those which have been collected by someone else and have already been
passed through a statistical process. Secondary data can be either published or unpublished data.
Researcher must be careful as the data might sometimes be unsuitable for use.

6
Data Collection Methods:

I. Interviews: Interviews can be conducted in person or over the telephone. Interviews can be
done formally (structured), semi-structured, or informally. Questions should be focused,
clear, and encourage open-ended responses Interviews are mainly qualitative in nature.
Interviews are mainly qualitative in nature. Example: one-on-one conversation with parent of
at-risk youth who can help you understand the issue.
II. Questionnnaires and Surveys: Responses can be analyzed with quantitative methods by
assigning numerical values to Likert-type scales. Results are generally easier (than qualitative
techniques) to analyze. Pretest/Posttest can be compared and analyzed. Example: Results of a
satisfaction survey or opinion survey.
III. observations: Allows for the study of the dynamics of a situation, frequency counts of target
behaviors, or other behaviors as indicated by needs of the evaluation.Good source for
providing additional information about a particular group, can use video to provide
documentation. Can produce qualitative (e.g., narrative data) and quantitative data (e.g.,
frequency counts, mean length of interactions, and instructional time). Example: Site visits to
an after-school program to document the interaction between youth and staff within the
program.
IV. Focus Groups: A facilitated group interview with individuals that have something in
common. Gathers information about combined perspectives and opinions. Responses are
often coded into categories and analyzed thematically. Example: A group of parents of
teenagers in an after-school program are invited to informally discuss programs that might
benefit and help their children succeed.
V. Ethnographies, oral History, and Case Studies: Involves studying a single phenomenon.
Examines people in their natural settings. Uses a combination of techniques such as
observation, interviews, and surveys.Ethnography is a more holistic approach to
evaluation.Researcher can become a confounding variable. Example: Shadowing a family
while recording extensive field notes to study the experience and issues associated with
youth who have a parent or guardian that has been deployed.
VI. Documents and Records: Consists of examining existing data in the form of databases,
meeting minutes, reports, attendance logs, financial records, newsletters, etc.This can be an
inexpensive way to gather information but may be an incomplete data source. Example: To
understand the primary reasons students miss school, records on student absences are
collected and analyzed.
Sampling Techniques:

Sampling is the process of selecting a representative group from the population under study. The target
population is the total group of individuals from which the sample might be drawn. A sample is the
group of people who take part in the investigation. The people who take part are referred to as
“participants”. Generalizability refers to the extent to which we can apply the findings of our research to
the target population we are interested in.

In research we are interested in learning about large groups of people who all have something in
common. We call the group that we are interested in studying our 'target population’. In some types of
research, the target population might be as broad as all humans, but in other types of research the target
population might be a smaller group such as teenagers, pre-school children or people who misuse drugs.

It is more or less impossible to study every single person in a target population so researchers select a
sample or sub-group of the population that is likely to be representative of the target population we are

7
interested in. If the sample, we select is going to represent the target population then we need to make
sure that the people in it are similar to the other members of the target population. This is important
because we want to generalize from the sample to target population.

The participants in research, the sample, should be as representative as possible of the target population.
The more representative the sample, the more confident the researcher can be that the results can be
generalized to the target population. one of the problems that can occur when selecting a sample from a
target population is sampling bias. Sampling bias refers to situations where the sample does not reflect
the characteristics of the target population. The reasons for sampling could be: Budget and time
Constraints (in case of large populations), High degree of accuracy and reliability (if sample is
representative of population), Sampling may sometimes produce more accurate results than taking each
census in population.

Sampling Methods can be classified into one of two categories: Probability Sampling: Sample has a
known probability of being selected. Every element in the population under study has a non-zero
probability of selection to a sample, and every member of the population has an equal probability of
being selected; Non-probability Sampling: An arbitrary means of selecting sampling units based on
subjective considerations, such as personal judgment or convenience. It is less preferred to probability
sampling. Sample does not have known probability of being selected as in convenience or voluntary
response surveys.

The sampling Process:

A. Non-Probability Sampling
I. Convenience Sampling: This is a sampling technique which selects those sampling units
most conveniently available at a certain point in, or over a period, of time. Major advantages
of convenience sampling are that is quick, convenient and economical; a major disadvantage
is that the sample may not be representative. Convenience sampling is best used for the
purpose of exploratory research and supplemented subsequently with probability sampling.
II. Judgment (purposive) Sampling: This is a sampling technique in which the business
researcher selects the sample based on judgment about some appropriate characteristic of the
sample members. Example 1: The Consumer Price Index (CPI) is based on a judgment
sample of market-based items, housing costs, and other selected goods and services which

8
 are representative for most of the overall population in terms of their consumption. Example
2: Selection of certain voting districts which serve as indicators for the national voting trend.
III. Quota Sampling: This is a sampling technique in which the business researcher ensures that
certain characteristics of a population are represented in the sample to an extent which is he
or she desires. A business researcher wants to determine through interview, the demand for
Product X in a district which is very diverse in terms of its ethnic composition. If the sample
size is to consist of 1oo units, the number of individuals from each ethnic group interviewed
should correspond to the group’s percentage composition of the total population of that
district. Quota Sampling has advantages and disadvantages: Advantages include the speed of
data collection, less cost, the element of convenience, and representativeness (if the
subgroups in the sample are selected properly). Disadvantages include the element of
subjectivity
IV. Snowball Sampling: This is a sampling technique in which individuals or organizations are
selected first by probability methods, and then additional respondents are identified based on
information provided by the first group of respondents. Example: Through a sample of 5oo
individuals, 20 cricket enthusiasts are identified which, in turn, identify a number of another
cricket lover. A major disadvantage is that the second group of respondents suggested by the
first group may be very similar and not representative of the population with that
characteristic.
B. Probability Sampling
I. Simple Random Sampling: This is a technique which ensures that each element in the
population has an equal chance of being selected for the sample. Example: Choosing raffle
tickets from a drum, computer-generated selections, random-digit telephone dialing.
II. Systematic Sampling: This is a technique in which an initial starting point is selected by a
random process, after which every nth number on the list is selected to constitute part of the
sample. Example: From a list of 15oo name entries, a name on the list is randomly selected
and then (say) every 25th name thereafter. The sampling interval in this case would equal 25.
III. Stratified Sampling: This is a technique in which simple random subsamples are drawn from
within different strata that share some common characteristic. Example: The student body of
IMT is divided into two groups (Marketing, Finance) and from each group, students are
selected for a sample using simple random sampling in each of the two groups, whereby the
size of the sample for each group is determined by that group’s overall strength.
IV. Cluster Sampling: For cluster sampling your sampling frame is the complete list of clusters
rather than complete list of individual cases within population, you then select a few cluster
normally using simple random sampling, Data are then collected from every case within the
selected clusters.

9
 CHAPTER-2. CASE STUDY

IMT Nagpur’s administration has been receiving complaints from parents regarding expenditure of pocket
money by students. The administration office has asked a group of students to carry out a study on the
spending habits of the students to address the deficiency in the services. An abbreviated version of the
group's proposal is as follows:

Title
The monthly spending habits of students at IMT Nagpur.

Background
Need of Money: Going to college is an expensive venture. While tuition costs are clearly printed on
schools' websites and in catalogs, the amount of spending money a college student needs may be difficult
to determine. Pinning down an amount of money needed for college depends on many factors, including
what one considers spending money, activities, and the geographical region where the student attends
college. One of the reasons it is difficult to determine how much your college student may need is that
different people consider different things as paid for with "spending money." For example, some people
have already factored the costs of textbooks and parking on campus into the cost of attending school.
Loans are based on this yearly required amount. However, many parents consider things like books to be
something that a student buys during their college career, requiring spending money.
The group of researchers intend to demonstrate in this section that how various consumption patterns are
directly linked with the deficiency of a particular service in the college.
The group of researchers conducts an analysis of the primary data obtained through survey in order to
develop research hypotheses.

2.1-Objectives of the study

1. To predict the type of lifestyle (i.e. socio-economic status) of a particular student by observing the
consumption pattern.
2. To understand the monthly spending habits of students.
3. To draw conclusions about the deficiency in the services offered in the campus.

2.2-Research Questions
1. What kind of lifestyle does an average student of IMT Nagpur live?
2. What are the monthly spending habits of a student at IMT Nagpur?
3. What are the services that need to be improved?

10
2.3-Theoretical Formulation

The administration wants to find out the deficiency of services in IMT Nagpur campus and know
the monthly spending pattern. Monthly spending is the dependent variable and researcher’s interest
is to avoid it. Socio-economic status is the independent variable which influences the monthly
spending pattern. However, this relationship is deemed to be true only for those students who are
spending heavily on the services provided by IMT Nagpur. Students who are second-time hostellers
have a proper budget of monthly spending and are better in terms of saving.

SATISFACTION LEVEL
OF SERVICES

GENDER OF THE
STUDENT

HIGHER POCKET Monthly Spending

MONEY

SPENDING ON Dependent Variable

RECREATIONAL
ACTIVITIES

AGE OF THE
STUDENT

Independent Variable

2.4 Research Methodology

1. Philosophy: Positivism
2. Approach: Deductive and Applied
3. Research Strategy: Quantitative Strategy
4. Research Design: Cross-sectional and Experimental
5. Types of Research: Analytical
6. Data Collection: A Survey Instrument (questionnaire) will be developed with questions based on
the monthly spending by each student. Each value will lead to a hypothesis. The questions in the
questionnaire will seek to test these hypotheses. The questionnaire will be distributed to a sample
(size to be agreed) of students in the college.
7. Data Analysis: Descriptive Statistics and Inferential Statistics will be used in the analysis using
SPSS software. Statistical tests will be run to ensure that results are a function of monthly expenses.

11
2.4.1 Target Population and Sample size

The primary objective was to carry out primary research in the residential campus of IMT Nagpur to
assess the spending pattern and behavior of the students of a management campus. Students, despite not
being part of the earning class have emerged as the major spenders. Most of the management campuses
have almost all the facilities in the campus itself, still students are spending more and more. A
management campus is chosen because students are getting formal education in business management,
hence it would be only appropriate to assess that how well they are able to manage their personal finances.

From a population size of 460 students we received 103 responses limiting our sample size.

2.4.2 Sampling Techniques Used

We have gone for simple random sampling technique where every element in the given sample
has an equal chance for being selected for the sample.

Hypotheses
A. Students with higher pocket money tend to have a better lifestyle.
B. Students generally spend more on recreational activities.
C. Students who are unsatisfied with their college’s facilities tend to spend more on the respective
services.
D. Female Students are better at planning monthly finances.
E. Students who are older are better planners in terms of their monthly budget.

Variable Identification
 Independent Variable: Gender of the student, Age of the student, Spending on recreational activities,
satisfaction level of services, Higher pocket money
 Dependent Variable: Monthly Spending

Hypotheses
A. There is no significant relationship between students with higher pocket money and their total
monthly spending.
B. Spending on recreational activities has no relationship with total monthly spending.
C. Satisfaction level of students with the college’s facilities is not related to total monthly spending.
D. Gender is not significantly related with total monthly spending.
E. Age is not significantly related to total monthly spending.

Variable Mapping
Hypothesis Dependent Independent variable Moderating
No. Variable
Variable (Qstn No.)
(Qstn No.)
(Qstn No.)

1. Monthly spending (Q-3) Value of the --------------

corresponding question
(Q- 4-11) Value of the
corresponding question

2. Monthly spending Recreational ---------------

activities(Q7) Value of Q7
(Q- 4-11) Value of the
corresponding question

3. Monthly spending Satisfaction level(Q- ----------------

11,12) Average value of
(Q- 4-11) Value of the
all the questions
corresponding question

4. Monthly spending Gender(Q-16) Value of ------------------

Q16
(Q- 4-11) Value of the
corresponding question

5. Monthly spending Age(Q-14) Value of Q14 --------------------

(Q- 4-11) Value of the

corresponding question
12
2.5 Results and Discussions

2.5.1 DESCRIPTIVE STATISTICS

HYPOTHESIS-1

Null hypothesis- There is no significant relationship between students with higher pocket money and
their total monthly spending.

Alternative Hypothesis- There is a significant relationship between students with higher pocket money
and their total monthly spending.

From the descriptive table, we get that the maximum spending by a student is 35500 and the mean
spending is around 8292.

HYPOTHESIS-2

NULL HYPOTHESIS- Spending on recreational activities has no relationship with total monthly
spending.

ALTERNATIVE HYPOTHESIS- Spending on recreational activities has a significant relationship

with total monthly spending.

From the descriptive table, we get that the maximum spending by a student is ₹35500 and the mean
spending is around ₹ 8292 . Also, the maximum spent on the monthly recreation expense is ₹ 6000 and
the mean spending on recreational activities is ₹1339.

HYPOTHESIS-3

NULL HYPOTHESIS-Satisfaction level of students with the college’s facilities is not related to total
monthly spending.

ALTERNATIVE HYPOTHESIS- Satisfaction level of students with the college’s facilities is related
to total monthly spending.

From the descriptive table, we get that mean satisfaction level of a student is 2.84 and mean total
spending by a student is ₹8292.5.

HYPOTHESIS-4

NULL HYPOTHESIS- Gender is not significantly related with total monthly spending.

ALTERNATIVE HYPOTHESIS- Gender is significantly related with total monthly spending.

From the descriptive table, we get that the number of female respondents is 30 and number of male
participants is 72. The mean total spending by male respondents is ₹8824.12 and the mean total
spending by female respondents is ₹7024.97.

HYPOTHESIS-5

NULL HYPOTHESIS- Age is not significantly related with total monthly spending.

ALTERNATIVE HYPOTHESIS- Age is significantly related with total monthly spending.

From the descriptive table, we get that number of respondents between 21-23 years is 57 and average
monthly spending is ₹8190.33. The number of respondents between 24-26 years is 33 and average

13
monthly spending is ₹8534.85. The number of respondents above 26 years is 11 and average monthly
spending is ₹4993.013.

2.5.2 INFERENTIAL STATISTICS: -

HYPOTHESIS-1
(ANNOVA)

Null hypothesis- There is no significant relationship between students with higher pocket money and
their total monthly spending.

Alternative Hypothesis- There is a significant relationship between students with higher pocket money
and their total monthly spending.

Rule for rejecting null hypothesis-sig(p)<=α

There was a statistically significant relationship between students with higher pocket money and their
total monthly spending as determined by one-way ANOVA
(F (4,97) =26.551, p = .000). P< 0.05, Hence null hypothesis is rejected.

HYPOTHESIS-2

(LINEAR REGRESSION)

NULL HYPOTHESIS- Spending on recreational activities has no relationship with total monthly
spending.

ALTERNATIVE HYPOTHESIS- Spending on recreational activities has a significant relationship

with total monthly spending.

Rule for rejecting null hypothesis-sig(p)<=α

X (monthly spending) =4991.708+2.464*X (monthly recreation expense)

F=73.622(df=1) p=0.000(sig(p)<alpha). Hence, null hypothesis is rejected.

There was a statistically significant relationship determined by linear regression (F (1) =73.622,
sig(p)=0.00. p<0.05.

HYPOTHESIS-3

(CORRELATION)

NULL HYPOTHESIS-Satisfaction level of students with the college’s facilities is not related to total
monthly spending.

ALTERNATIVE HYPOTHESIS- Satisfaction level of students with the college’s facilities is related
to total monthly spending.

Rule for rejecting null hypothesis-sig(p)<=α

A Pearson product-moment correlation was run to determine the relationship between satisfaction level
of students with the college’s facilities and total monthly spending. There was a weak, positive
correlation between satisfaction level and, which was not statistically significant (r = .119, n = 102, p =
.233). Hence, null hypothesis is accepted.

14
HYPOTHESIS-4

(INDEPENDENT T-TEST)

NULL HYPOTHESIS- Gender is not significantly related with total monthly spending.

ALTERNATIVE HYPOTHESIS- Gender is significantly related with total monthly spending.

Rule for rejecting null hypothesis-sig(p)<=α

Confidence Interval=95% (Alpha=0.05)

Levenes Test (F=2.348, 100, p=0.129 >Alpha) t=-1.512, Mean(M)=8824.31, Mean(F)=7014.97, df=100

Sig(p)>0.05. Hence, null hypothesis is accepted. There is no significant relationship between gender and
monthly spending as tested by independent t-test.

HYPOTHESIS-5

(ANNOVA)

NULL HYPOTHESIS- Age is not significantly related with total monthly spending.

ALTERNATIVE HYPOTHESIS- Age is significantly related with total monthly spending.

Rule for rejecting null hypothesis-sig(p)<=α

There was a statistically significant relationship between students with higher pocket money and their
total monthly spending as determined by one-way ANOVA
(F (3,98) =0.508, p = .678). P< 0.05, Hence, null hypothesis is accepted. There is no statistically
significant relationship between age and total monthly spending.

15
 CHAPTER 3
Conclusion
1. After applying ANNOVA value of p is less than the significant value (p=.000), hence null
hypothesis is rejected. Therefore, there is a significant relationship between students with higher
pocket money and their total monthly spending.
2. Based on the linear regression we can conclude that null hypothesis is rejected. Therefore, spending
on recreational activities has a significant relationship with total monthly spending.
3. Based on the Pearson product-moment study there was a weak positive correlation which was not
statistically significant, hence null hypothesis was accepted. Therefore, satisfaction level with the
college facilities is not related to total monthly spending.
4. After applying independent t test, it was observed that null hypothesis was accepted (p=.129>.05).
Therefore, gender is not related with total monthly spending.
5. Results from ANNOVA shows that p=.678>0.05, hence null hypothesis is accepted. Therefore, age
is not significantly related with total monthly spending.

Limitations
1. The scope of study is limited to IMT Nagpur campus. So, the results are based upon the perception
and values of one particular set of people.
2. Male response amounts to 70% of all the response for the study. Hence it might be biased by the
approach of on particular gender.
3. Time period for the research was also significantly short, this will give the current scenario of the
situation and therefore could lead to invalid conclusions.

Future work
The research was conducted with the aim to find out the spending pattern amongst the students at IMT
Nagpur. The purpose of this research was to find out how the basic facilities provided by the college can
be improved based on the students’ response and their monthly spending on the substitutes of these
facilities. The study and the results can be presented to the college administration. This would help them
to understand what all facilities need improvement depending upon the level of response from students.
Basic provisions like food and water is something that college administration needs to work upon, and
our research can help them what is the actual level of their service and what level of service they need to
provide.

16
BIBLIOGRAPHY

 https://www.mymoneycoach.ca/budgeting/what-is-a-budget-planning-forecasting
 https://www.theguardian.com/money/2008/aug/14/studentfinance.students
 https://statistics.laerd.com/spss-tutorials/independent-t-test-using-spss-statistics.php
 https://statistics.laerd.com/spss-tutorials/pearsons-product-moment-correlation-using-
spss-statistics.php

17
 APPENDIX-

1.CODEBOOK USED

Stay in hostel 1=yes, 2=no Missing values-

none
Source of pocket 1=parents income, 2=loan, 3=personal savings, 4=part time job Missing values-
money none
Amount of pocket 1=3000 or below, 2=3001-4999, 3=5000-6999, 4=7000-9999, Missing values-
money received 5=10000 and above none
Satisfaction level of 1=very dissatisfied, 2=somewhat dissatisfied, 3=neither Missing values-
transport dissatisfied nor satisfied, 4=somewhat satisfied, 5=very satisfied none
Transportation Monthly Transportation expense Missing values-
none
Food and beverage Monthly Food and beverage expense Missing values-
none
Entertainment Monthly Entertainment expense Missing values-
none
Recreation Monthly Recreation expense Missing values-
none
Certification Monthly Certification expense Missing values-
none
Shopping Monthly Shopping expense Missing values-
none
General expense Monthly General expense Missing values-
none
Satisfaction level of 1=very dissatisfied, 2=somewhat dissatisfied, 3=neither Missing values-
mess facilities dissatisfied nor satisfied, 4=somewhat satisfied, 5=very satisfied none
Type of family 1=nuclear, 2=joint Missing values-
none
Age of the 1=below 21 years, 2=21-23 years, 3=24-26 years, 4=above 26 Missing values-
respondents years none
Gender of 1=female, 2=male Missing values-
respondents none
Occupation of 1=govt service, 2=private service, 3=professional, 4=business, Missing values-
father 5=retired, 6=homemaker none
Occupation of 1=govt service, 2=private service, 3=professional, 4=business, Missing values-
mother 5=retired, 6=homemaker none
Area of residence 1=urban, 2=semi-urban, 3=rural Missing values-
of respondent none
Annual income of 1=500000 or below, 2=500001 to 1000000, 3=1500001 to Missing values-
family 2000000, 4=2000001 and above none
Satisfaction level of 1=very dissatisfied, 2=somewhat dissatisfied, 3=neither Missing values-
the respondent dissatisfied nor satisfied, 4=somewhat satisfied, 5=very satisfied none

18
 2.QUESTIONNAIRE USED

1. Have you stayed in a hostel before? [Categorical Scale]

a) Yes
b) No
2. Your source of monthly pocket money is: [Categorical Scale]
a) Parents Income
b) Loan
c) Personal Savings
d) Part time job
3. Your monthly pocket money is: [Numerical Scale]
a) ₹ 3000 or below
b) ₹ 3001- ₹ 4999
c) ₹ 5000 - ₹ 6999
d) ₹ 7000 - ₹ 9999
e) ₹ 10000 or above
4. Your monthly transport expenses are (please specify in round figures approx.):
_____________ [Numerical Scale; Monthly Spending]
5. Your monthly Food & Beverage expenses are (please specify in round figures
approx.): _____________ [Numerical Scale; Monthly
Spending]
6. Your monthly Entertainment expenses are (please specify in round figures approx.):
_____________ [Numerical Scale; Monthly Spending]
7. Your monthly Recreation expenses (alcohol, cigarettes, pubs and restaurants etc.) are
(please specify in round figures approx.): _______ [Numerical Scale; Monthly Spending]
8. Your monthly Certifications expenses are (please specify in round figures approx.): -
______________ [Numerical Scale; Monthly Spending]
9. Your monthly Online Shopping expenses are: (please specify in round figures
approx.): -______________ [Numerical Scale;
Monthly Spending]
10.Your monthly General expenses (Laundry etc.) are (please specify in round figures
approx.): _________ [Numerical Scale; Monthly Spending]
11.On a scale of 1 to 5 (1 being very dissatisfied and 5 being very satisfied), how
satisfied are you with the transportation facilities: [Likert Scale;
Deficiency in Services]
a) Very dissatisfied (1)
b) Somewhat dissatisfied (2)
c) Neither dissatisfied nor satisfied (3)
d) Somewhat satisfied (4)
e) Very satisfied (5)

12.On a scale of 1 to 5 (1 being very dissatisfied and 5 being very satisfied), how satisfied
are you with the mess facilities: [Likert Scale; Deficiency in Services]

a) Very dissatisfied (1)

b) Somewhat dissatisfied (2)

19
 c) Neither dissatisfied nor satisfied (3)
d) Somewhat satisfied (4)
e) Very satisfied (5)
13.To which type of family do you belong? [Categorical Scale]

a) Nuclear
b) Joint
14.Your age is: [Categorical Scale; Age of the Student]

a) Below 21 years
b) 21 – 23 years
c) 24-26 years
d) Above 26 years
15.Your gender is: [Categorical Scale]

a) Female
b) Male
16.Your father’s occupation is: [Categorical Scale]

a) Government Service
b) Private Service
c) Professional
d) Business
e) Retired
f) Home Maker
17.Your mother’s occupation? [Categorical Scale]

a) Government Service
b) Private Service
c) Professional
d) Business
e) Retired
f) Home Maker
18.To which area of residence do you belong? [Categorical Scale]

a) Urban
b) Semi-Urban
c) Rural
19.What is your family’s annual income? [Numerical Scale]

a) ₹ 500,000 or below
b) ₹ 500,001 - ₹ 1000,000
c) ₹ 1000,001 - ₹ 1500,000
d) ₹ 1500,001 - ₹ 2000,000
e) ₹ 2000,001 or above

3.SNAPSHOTS OF SPSS RESULTS USED

HYPOTHESIS-1

20
 ANOVA
total spending of the student

Sum of Squares df Mean Square F Sig.

Between Groups 1.621E9 4 4.053E8 26.551 .000

Within Groups 1.481E9 97 1.526E7
Total 3.102E9 101

Post Hoc Tests

Multiple Comparisons
total spending of the student
LSD

(I) amount of pocket (J) amount of pocket Mean 95% Confidence Interval
money received money received Difference (I-J) Std. Error Sig. Lower Bound Upper Bound

3000 or below 3001-4999 -824.030 1216.678 .500 -3238.80 1590.74

5000-6999 -2561.762* 1202.642 .036 -4948.67 -174.85

dimension3

7000-9999 -7170.739* 1530.220 .000 -10207.80 -4133.68

10000 and above -11834.375* 1404.118 .000 -14621.16 -9047.59

3001-4999 3000 or below 824.030 1216.678 .500 -1590.74 3238.80

5000-6999 -1737.732 1009.309 .088 -3740.93 265.47
dimension3

7000-9999 -6346.708* 1383.448 .000 -9092.47 -3600.95

10000 and above -11010.345* 1242.539 .000 -13476.44 -8544.25

5000-6999 3000 or below 2561.762* 1202.642 .036 174.85 4948.67

dimen
3001-4999 1737.732 1009.309 .088 -265.47 3740.93
dimension3

sion2
7000-9999 -4608.977* 1371.121 .001 -7330.27 -1887.68

10000 and above -9272.613* 1228.799 .000 -11711.44 -6833.79

7000-9999 3000 or below 7170.739* 1530.220 .000 4133.68 10207.80

3001-4999 6346.708* 1383.448 .000 3600.95 9092.47

dimension3

5000-6999 4608.977* 1371.121 .001 1887.68 7330.27

10000 and above -4663.636* 1550.861 .003 -7741.67 -1585.61

10000 and above 3000 or below 11834.375* 1404.118 .000 9047.59 14621.16

3001-4999 11010.345* 1242.539 .000 8544.25 13476.44

dimension3

5000-6999 9272.613* 1228.799 .000 6833.79 11711.44

7000-9999 4663.636* 1550.861 .003 1585.61 7741.67

*. The mean difference is significant at the 0.05 level.

HYPOTHESIS-2

21
HYPOTHESIS-3

22
HYPOTHESIS-4

23
T-Test

HYPOTHESIS-5

Onaway

24