Research Project

INTRODUCTION
MEANING
Research in common sense of the term refers to a search for knowledge. Research is a part and parcel of human knowledge. The research is an original contribution to the existing stock of knowledge, making for its advancements. Study, comparison, observation and experiments are used for pursuit of truth. In other words, the search for knowledge through objective and systematic methods of finding solution to a problem is called RESEARCH. In modern times, research has become a corporate affair in which complex techniques of collecting and processing data is used which results in generalizations. It is used in a technical sense as it is an academic activity. It is both art and science of investigation. Research is often called as scientific thinking. Research is an essential and powerful tool in leading man towards progress.
DEFINITION
ACCORDING TO WEBSTERS INTERNATIONAL DICTIONARY
RESEARCH is defined as a careful critical enquiry or examination in seeking facts for principles, deligent investigation in order to ascertain something.
ACCORDING TO J.FRANCIS RUMMEL

RESEARCH is an endeavour to discover, develop and verify knowledge. It is an intellectual process that has developed over hundred of years, ever changing in purpose and form and always searching for truth.
ACCORDING TO D. SLESINGER RESEARCH is the manipulations of things, concepts or symbols for the purpose of generalising to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an are,
FEATURES
The research must be logical and objective. The research must be reliable and valid which can be established on the basis of evidence. The reliability and validity can be attained when the error of bias or sampling is minimised. The must be verifiable because verification presupposes the phenomenon of research being observed and measured. The research must be impartial because partiality leads to wrong information and fails to give fruitful results.
All the things should be well recorded and reported in research. Research is an essential and powerful tool in leading man towards progress.
Research lead to better ways of doing things by discovering new facts.
Research must be directed towards the solution of the problem. Research must emphasize on the development of generalisations, principles and theories that will be helpful in predicting future occurance.
Research must involve both primary and secondary data. Research requires experts knowledge. Research is a systematized efforts to gain knowledge.
OBJECTIVES
The purpose of research is to find out solution to the problems through the application of scientific methods and procedures. Research finds out the hidden truth which has not been discovered yet. Each research study has its own objectives which are: To attain new insights into a phenomenon. Any research study carried on with this objective is known as EXPLORATORY RESEARCH STUDY. To find out accurately the characteristics of a particular individual or a group or a situation. The studies with this object in view are called DESCRIPTIVE RESEARCH STUDY. To find out the frequency with which anything is associated with something else. The studies with this object are called as DIAGNOSTIC RESEARCH STUDY.
To test hypothesis of a casual relationship between variables. The studies with this object are called as HYPOTHESIS TESTING STUDY.
Critical and careful examination of the events during the research study. To gain familiarity with the phenomenon or the subject matter of the research study.
TYPES
EXPLORATORY
The objective of exploratory research is to gather preliminary information that will help define problem and suggest hypothesis. Exploratory research is a type of research conducted because a problem has not been clearly defined. This research provides a basis for general findings. Researcher and practitioners can explore the possibility of using general findings in future. Different types of exploratory researches are literature survey, experience survey.
RESEARCH:
DESCRIPTIVE RESEARCH: The objective

of descriptive research is to describe things. Descriptive research, also known as statistical research, describes data and characteristics about the phenomenon being studied. Descriptive research deals with specific predictions. It is also used to estimate the proportion of population who behave in a certain way. FOR EXAMPLE: why do middle income group go to FOOD WORLD to buy their products?
QUANTITATIVE
RESEARCH:
Quantitative research is based on the measurement of quantity and amount. It is applicable to phenomenon that can be expressed in terms of quantity. FOR EXAMPLE: 1) Studying what makes people work hard or be lazy. 2) Commercial research .
QUALITATIVE RESEARCH: Qualitative

research is especially important in the behavioural sciences where the aim is to discover the underlying motives, interests, personality and attitude of the human beings. Qualitative research is specially important in the behavioural sciences where the aim is to discover the underlying motives of human behaviour. Qualitative research is difficult to apply in practice. FOR EXAMPLE: Motivation research, attitude or opinion research.
CONCEPTUAL RESEARCH: Philosophers

generally use the conceptual research in doing research work. It is mainly related with some abstract ideas or theory. In this type of research work, the researcher should collect the data to prove or disapprove his hypothesis.
Empirical research is appropriate when proof certain variable affect other variable in some way is sought. It is
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EMPIRICAL
RESEARCH:
considered that evidence gathered through experiments or empirical studies provides the most powerful support possible for a given hypothesis. This research is used to study the effect of a set of factors on the response variable of a system of study. FOR EXAMPLE: Rating of the taste of a soft drink by respondents on 1 to 10 scale.
DIAGNOSTIC RESEARCH: This type of

research follows case study methods or in-depth approaches to reach the basic casual relationship. This research takes only a few samples and studies the phenomenon in depth and observes the effects.
BASIC RESEARCH: Gathering knowledge for

knowledges sake is known as basic research. It is not directly involved with practical problems. It does not have any commercial potential. There is no intention to apply this research in practice. The Tata Institute of Fundamental Research conducts such studies. Basic research means the investigation of problems to further and develop existing knowledge. It is mainly concerned with generalisations and formulations of theories. FOR EXAMPLE: Theory of relativity.
APPLIED RESEARCH: Applied research aims

at finding a solution to an immediate problem faced by a society, organisation, industry or business. This research deals with the real life situations. Applied
research has a practical problem emphasis. It brings out many new facts. FOR EXAMPLE: 1) Use of fibre glass body for Cars instead of metels. 2) To develop a new market for the product.
HISTORICAL RESEARCH: The name itself

indicates the meaning of the research. Historical study is a study of past records and data in order to understand the future trends and development of the organisation or market. There is no direct observation. The research has to depend on the conclusions or inferences drawn in the past. The main objective of this study is to derive explanation and generalization from the past trends in order to understand the present and anticipate the future. FOR EXAMPLE: Investors in the share market study the past records or prices of shares which he/she intends to buy.
ACTION RESEARCH: This type of research is

undertaken by direct action. Action research is conducted to solve problem. Initially the geographical location is identified a target sample is selected from among the population. Samples are distributed to selected samples and feedback is obtained from the respondent. This method is most common for industrial products, where a trial is must before regular usage of product. FOR EXAMPLE: Test marketing of a product.
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IMPORTANCE
Research helps in decision like: a) Basic and routine decisions. b) Personal and organisational decisions. c) Managerial, academic, social and welfare decisions. Research facilitates the process of thinking, analysis, evaluation and interpretation of business environment and the various business situations. Research helps in developing innovative ideas. Research helps in identifying the problem areas. Research helps in making economic policies, Research helps in performing business activities: a) Research helps to develop new products. b) Research helps to make modifications in existing products. c) Research establishes the relationship not only between in each functional area but also between various functional areas.
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Research is significant for social scientists in studying social relationship and seeking answers to various social problems. Research provides the basis for nearly all government policies in our economic system. Research helps in all the managerial functions like planning, forecasting, decision making etc. Research helps in management information system. Market and market analysis are also based on research.
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ABOUT THE TOPIC

INTRODUCTION
Inflation is mainly defined as, rise in prices of the commodities and services which has created a great hurdle for urban families in achieving the financial goals. It is one of the constraining factors for urban families in resource management. For instance with a general rate of inflation of 5% and a saving account having an interest rate of 7%, an investment of 1500 would grow to 2000 in a years time. The rise in prices along with the high cost of living adversely affects most of the urban families in the form of financial difficulties. The cost which is associated with the financial difficulties of the urban families is very important for the people who are mainly involved. When we talk about inflation, there is a need for adopting effective financial practises for coping up with the financial difficulties and stress problems among urban families. Thus this topic gives the view that the families (urban families) need to change their priorities
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or they have to reallocate their expenditure for adapting and adjusting to the rising prices and financial difficulties faced by them. Rising prices in consumer goods often compel the families to drastically change the consumption of their families and the composition of their families. Thus we can say that the effects and incidence of inflation differs from families to families and also between different levels which mainly include low income group, low middle income group, middle income group, higher middle income group and higher income group. But, there was a survey being conducted and it was told that nearly after 10 years or by around 2020 middle income group will vanish totally and they also told that people would be poor or would be rich that is only four income group level be there in existence and the cost of living will be very high. In todays scenario, due to inflation, most of the urban families are finding it very difficult to satisfy their needs in the salary what they are getting in their hands and this situation is mainly creating a great problem especially for low income group and low middle income group.
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RISING PRICES AND FINANCIAL MANAGEMENT PRACTICES OF URBAN FAMALIES OF INDIA
Inflation is defined as a significant and continuing rise in the general price level of goods and services - prices increasing over time. Deflation is the decrease of prices over time. Of course, prices do not inflate or deflate uniformly for all types of goods and services throughout all sectors of the U.S. economy. For example, the goods and services typically bought by consumers (individuals and families) are different than those bought by factories or foreign investors and the associated price changes may be different as well. Therefore, there are various ways to track price inflation and deflation, each way dependent upon the selected goods or services being considered. For the average individual or family, the most relevant measure of price change over time is the Consumer Price Index, (CPI). The CPI tracks the overall price change for a fixed basket of goods and services bought by a typical working-class urban family. When one wants to reflect the effects of inflation on the purchasing power of families and individuals, personal or household income and expenditure totals would be adjusted using the CPI.
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Additional indexes track price changes in other segments of the economy. The Producer Price Index tracks changes in the price of domestic goods bought by wholesalers, factories and businesses located in the United States. The Import and Export Price Indexes track price changes in agricultural, mineral, and manufactured goods bought from and sold to foreigners. However, there are indexes established to measure price changes for the U.S. economy as a whole. The most widely used measure of aggregate price change for the entire U.S. economy is the Implicit Price Deflator, (also referred to as the GDP Deflator or the Implicit Price Index.) This index is based on the Gross Domestic Product and therefore reflects price changes in all goods and services transactions in the United States, including the consumer, producer, investment, government and international sectors.
Question: How Does Inflation Impact affects the life of urban families of India? Answer: Inflation always hurts your standard of living. Rising prices means you have to pay more for the same goods and services. If your income increases at a slower rate as inflation, your standard of living declines even if you are making more. Inflation's main consequence is a subtle reduction in your standard of living. Inflation doesn't affect everything equally. Gas prices can double while your home loses value. This makes financial planning more difficult.
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Inflation is really bad for your retirement planning because your target has to keep getting higher and higher to pay for the same quality of life. In other words, your savings will buy less. As a result, you will need to save more today to pay for higher priced goods and services in the future. Since everything you buy today costs more, so you have less left-over income available to save. Inflation has another bad side-effect...once people start to expect inflation, they will spend now rather than later. That's because they know things will only cost more later. This consumer spending heats up the economy even more, leading to further inflation. This situation is known as spiraling inflation because it spirals out of control. Inflation is important if you are holding bonds or Treasury notes. These fixed price assets only give a fixed return each year. As inflation spirals faster than the return on these assets, they become less valuable. As they become less valuable, people rush to sell them, further depreciating their value. As their value becomes lower, the U.S. government is forced to offer higher interest rates to sell them at all.
URBAN FAMALIES COPING WITH THE RISING PRICES:
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This study examines how Indian urban households coped with rising prices over the period 19951996 to 1999 2000. It provides evidence of cost of living indices and the coping strategies of urban households belonging to different income groups. Although there has been a lively debate on inflation and related issues, most of the studies were macro studies, which have not paid explicit attention to the impact of rising prices on the coping and financial management responses of the affected families. This paper is a part of a larger cross-sectional study on the impact of rising prices on quality of life and financial management practices of Indian urban households belonging to five different income groups. This paper provides the evidence on cost of living indices and the coping strategies adopted by these households to combat an otherwise hostile economic environment. It found that the impact of cost of living indices differs across different income groups depending upon the composition of the consumption basket and the proportion of expenditure incurred on specific items of that basket. It is also observed that rational responses of households played an important role in coping with increased cost of living. The evidence suggests that a wide range of coping strategies is adopted by households such as consumption reallocation and seeking increased earning opportunities as part of their backward and forward coping strategies.
RISING PRICES BURDENING THE POOR AND MIDDLE CLASS:
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It is a matter of deep concern that the prices of almost all the essential commodities have shot up. Obviously, it has put a great burden on not just the poor but also on people belonging to the middle-class, whom the government says it will take care of. The increase in the prices of essential commodities like pulses, rice, and sugar as also medicines, etc has led to a massive increase in the average mans monthly expenditure. The government must, therefore, try and take steps to curtail inflation. We, the Left parties, have been constantly pressing on the government the need to strengthen the public distribution system (PDS). Otherwise, how will the common man, who brought this government into power with a lot of expectations, manage to survive? The government must also control and regulate the prices of essential drugs and medicines. After all, an ailment or a disease these days can lead to back-breaking expenditure for the patient and his or her family. In the Common Minimum Programme (CMP) of the government, we have raised the issue of price rise and that of health expenditure as well. So lets see how much the government will work towards both. So far, the government has shown no concern for the continuously rising prices of food items and other essential commodities. On the other hand, there has been an eagerness to push through policies that benefit foreign capital and big businesses. Foreign direct investment (FDI) has been allowed in vital sectors despite the Lefts opposition. We give the UPA poor marks on all these issues, including the petrol prices
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issue. For, an increase in the price of diesel will lead to a further increase in the prices of essential commodities. I want to make it clear that the refusal to review the taxation structure will also lead to an additional burden on consumers. I would also like to state that the Left parties will be meeting soon to take stock of the overall political situation and chalk out an appropriate course of action because oil prices and the rates of essential commodities are inter-linked. If one goes up, the other automatically goes up. The hike is simply unacceptable. Particularly at a time when the prices of essential commodities are on the rise. Such a rise will lead to a cascading inflationary spiral. The government claim that it is being forced to hike the prices of petroleum products because of the rise in international crude oil prices is untenable. The government should restructure the customs and excise tax structure on oil imports, instead of increasing the prices of petroleum products every now and then. If the UPA government is true to its commitments to the common man, then it should desist from undertaking another oil price hike which, in turn, will lead to a further hike in the prices of essential commodities. We want to reaffirm that the government must desist from taking an anti-people line and mend its ways before it is too late. As far as the Left parties are concerned, I would like to say that it is because of us that the government has put in place the National Rural Employment Guarantee (NREG) scheme at the right time. It is also because of consistent Left pressure that the government is promoting a lot of schemes, like the setting up of health
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centres in rural areas. Through these methods, we are trying to empower the rural population and help it improve its purchasing power. However, there is one grudge that we have against the government. It has failed to check private persons involved in the distribution of food grains and other essential commodities. It is because of these private individuals who buy commodities at a lesser price and later sell them at higher prices that inflation is taking place. We want the government to deal with them strictly.
FINANCIAL MANAGEMENT PRACTICES ADOPTED BY URBAN FAMALIES IN INDIA

An ultimate theoretical justification for the empirical study of consumers' financial management practices appears to be the need to verify that "good managers" will make more effective use of resources in meeting goals. Presumably, both objective measures of level of living, household net worth, etc. and subjective measures of perceived achievement and satisfaction should be affected by consumers' financial management practices. Before such predictions can be tested, though, it is necessary to identify the nature of consumers' financial management practices, devise measures for determining
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performance, and determine characteristics and situations associated with their use.
Five primary measures of family financial management were suggested by our literature review and developmental depth interviews: Budget: whether a budget is determined ac the beginning of a spending period; Savings Policy: whether savings are added to on regular (periodic) basis; Surplus Funds Policy: whether pre-planning occurs for funds left over after the payment of bills and other obligations: Special Accounts: whether special savings accounts are used to facilitate saving for specific purposes: Credit Transactions Analysis: whether credit card transactions are sorted to study spending Patterns.
FINANCIAL MANAGEMENT PRACTICES ADOPTED BY URBAN FAMALIES OF INDIA
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A second normative theme in family management and consumer economics -- that consumers "should" devise and utilize appropriate financial planning and control procedures regarding spending and saving The underlying rationale for prescribing specific financial practices seems to be that families engaging in such practices are expected to be more effective in achieving goals and in getting the greatest possible utility from their income
HOW RISING PRICES AFFECTS COMMON MAN:

Common man is the most price sensitive of all consumer categories. The rise and fall in prices has a lasting effect on the buying pattern of the common man. By Common man we mean the average consumers. Following are the affects of Rising prices on Common man: - The buying pattern of common man is now limited to only the necessities. - Modern living essentials have become a luxury for him. - All the members of the household have started to participate in the earnings. - Women have to leave houses and work - The social structure is changing for the common man - It has increased the gap between the have's and the have
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not's. - Common man is more prone now to complexes.
Distributional Impact: Who are the worst sufferers?

While everyone except speculators are adversely affected by the current inflation, some groups are more so than the rest. At a theoretical level, it has been postulated that inflation favours the profit earners (the rich, mostly) and robs the wage earners (the middle and low income groups). While incomes of the former group are mostly indexed to prices, incomes of the latter groups follow prices only after a lag, and even then they are often not compensated fully. Apart from this textbook rendition of the distributional impact of inflation, effective inflation faced by different socio-economic groups would be different also because of their different consumption patterns. We try to quantify the impact of the recent inflation on different income groups in India. As price rises are not uniform across commodity groups, effective inflation would depend on the consumption pattern of families. Since the commodity baskets of the lower income groups are different from those of the high income groups, effective inflation rates faced by them are also dissimilar. Periodical surveys from National Sample Survey Office (NSSO) provide data on the consumption pattern of different economic groups. NSSO data divides the population into Twelve Monthly Private Consumption Expenditure (MPCE) classes and the shares of different commodity groups in total expenditure are provided for each of these classes separately. The bottom four MPCE
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classes can be taken as the Low Income Group, while the top four can be considered as the High Income Group. The middle four MPCE classes can be taken to represent the Middle Income Group This has wider socioeconomic implications since the erosion in the purchasing power due to current inflation has been biased against the poor, decreasing their real per capita incomes disproportionately. This has been worsening the already widespread economic inequality in India and this is perhaps the most appalling impact of current inflation. We hope that the present commentary stirs up some thoughtful debate on the wider socioeconomic impact of the distributional effects of the specific type of inflation currently prevailing in India and that appropriate policies are formulated before the resultant inequality goes out of control.
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REASONS FOR CHOOSING THE TOPIC:

1. As it is a current topic prevailing in the economy and it is very important to study this topic. 2. To know the effect of rising prices on todays urban families as compared to the families of earlier. 3. As this topic is related to inflation and inflation is a very hot topic in todays era. 4. To know how families are adopting financial management practices in India and how frequently such practices are being adopted. 5. To know how much students are aware about the inflation, financial management practices and its effects.
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OBJECTIVE OF THE RESEARCH WORK:

Inflation is mainly defined as, rise in prices of the commodities and services which has created a great hurdle for urban families in achieving the financial goals. An ultimate theoretical justification for the empirical study of consumers' financial management practices appears to be the need to verify that "good managers" will make more effective use of resources in meeting goals. Presumably, both objective measures of level of living, household net worth, etc. and subjective measures of perceived achievement and satisfaction should be affected by consumers' financial management practices. Before such predictions can be tested, though, it is necessary to identify the nature of consumers' financial management practices, devise measures for determining performance, and determine characteristics and situations associated with their use. The objective of the research work is to know the effect of rising prices on the urban families in India and how the financial management practices are being adopted by the families to cope up with the effects of rising prices. Another objective is to examine whether the financial management practices adopted by the urban families helps in controlling the effect of rising prices on urban
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families in India. Inflation is mainly defined as, rise in prices of the commodities and services which has created a great hurdle for urban families in achieving the financial goals. It is a matter of deep concern that the prices of almost all the essential commodities have shot up. Obviously, it has put a great burden on not just the poor but also on people belonging to the middle-class, whom the government says it will take care of. The increase in the prices of essential commodities like pulses, rice, and sugar as also medicines, etc has led to a massive increase in the average mans monthly expenditure. The government must, therefore, try and take steps to curtail inflation.
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AREA OF THE RESEARCH WORK:

As my topic is rising prices and financial management practices of urban families in India so it is clear from the topic so geographically the area of my research work includes complete India. But being a student I cant take India as my sample because I need to limit my research study. Therefore I have taken Madhya Pradesh as my sample for research study. I have taken a part of Madhya Pradesh i.e. Bhopal. I have taken excellence college, Food Corporation of India, Bhopal and Nehru nagar as my sample in my research study. Further my sample consists of mainly the urban families of India. The urban families would mainly include lower income group, lower middle income group, middle income group, higher middle income group and higher income group which would mainly come in social area or social group. Further my sample would include the people who are earning i.e. age group between 20 to 50 years.
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HYPOTHESIS
MEANING
The word hypothesis is a compound of two words hypo and thesis and literary hypo means under or below and thesis means a reasoned theory or rational viewpoint. A hypothesis is a tentative generalisation about the area of scientific enquiry. A hypothesis thus looks forward. A hypothesis is a theory entertained in order to study the facts and examine the validity of the theory. In fact, hypothesis is a bridge in the process of inquiry or search which begins with some felt difficulty or problem and ends without the resolution of the problem or we can say that it is the necessary link between the theory and the investigation which leads towards the discovery of new knowledge. The truth of hypothesis involves observation, imaginative thinking, anticipation and deductive verification. The hypothesis may be any hunch of guess which becomes the basis for scientific inquiry. This guess or hunch is however not a shot in a dark. It is based upon some observations, explorations of the area and
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information gathered, and therefore is formulated on the basis of judgement.
DEFINITION
ACCORDING TO MILL:
Any supposition which we make in order to endeavour to deduce conclusions in accordance with facts which are known to be real, under the idea that if the conclusions to which the hypothesis leads is known truths, the hypothesis itself either must be or at least likely to be true.
ACCORDING TO COFFETY:
A hypothesis is an attempt at explanation: a provisional supposition made in order to explain scientifically some fact or phenomenon.
ACCORDING TO COHEN AND NAGEL:

The function of a hypothesis is to direct our search for the order among facts.
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FEATURES
The following are the features of hypothesis: Conceptual clearness: The hypothesis must be conceptually clear. Concept should be clearly defined and such definitions should be given which are commonly acceptable and communicable. Specific: Hypothesis must be specific. In other words all the operations and predictions indicated in the hypothesis must be clearly spelled out. Related to body of theory: Usually a student is tempted to do research on some interesting subject without finding out whether the research would really help to refute, qualify or support any existing theory. No subject can develop without building on an existing body of facts and theory. Observable: Hypothesis must be observable. In case it is not observable it is not possible to test their accord with empirical facts. Simple and brief: The hypothesis must be simple and brief. Simple the hypothesis, better it will be for both researcher as well as the research.
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Empirical referent: A hypothesis should be empirical referent. No usable hypothesis can have moral judgements. The concept in the hypothesis must have empirical correspondence.
Related to available techniques: A usable can be the one which is related to available technique. It is because theory and methods are not opposites. A theorist who does not know what techniques are available to test his hypothesis is in a poor way to formulate usable questions. Non-contradictoriness: A hypothesis must first and foremost be self-consistent and the conclusions derivable from it must not contradict. However, since scientists regard their theories as no more than hypothesis, any hypothesis contradictory to an excepted scientific theory need not be rejected.
Verifiable: Hypothesis must be verifiable, that is, its consequences must be stated in terms of determinate empirical operations. A hypothesis may not be fully verifiable because universal propositions cannot be demonstrated but it will be regarded verifiable if we know the evidence which will disprove it.
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NATURE
Hypothesis is a statement in a research, which the study might prove or disprove. A hypothesis helps a researcher in proceeding further and finding solution of a problem, he wants to study There can be no effective goal ahead without hypothesis.
It is with clear hypothesis that one comes to know the scope of the study, nature of data to be collected and the one to be discarded. The hypothesis helps in organising data collected in a very systematic manner and in fact it stands at the mid-point research, where he can go in either direction. A hypothesis provides a tentative solution to the question of how and why. In a scientific enquiry no step further can be taken unless and until there are well established hypothesis.
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Hypothesis must be a verbal statement in a declarative form that is something which can be expressed in words either in written form or oral form.
Hypothesis must have a forward or future reference that is hypothesis is future oriented. It is not something that brings a change in past but it has its impact on future or in other words it contributes to future. Hypothesis must be conceptual because it is based on the ideas or notions of the researcher. Hypothesis should have an empirical referent that is there must be something on which experiments and observations can be made for finding out the relationship between the variables.
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IMPORTANCE
A hypothesis thus states what we are looking for. When facts are assembled, ordered and seen in a relationship, they form a theory. The various facts in a theory may be logically analysed and relationships other than those stated may be deducted. At this point there is no knowledge as to whether such deductions are correct. The formulation of such a deduction, however, constitutes a hypothesis. T.H.Huxley makes this significant observation, those who refuse to go beyond facts rarely get as far as fact. Almost every great step has been made possible by the anticipation of nature, that is, by the invention of hypothesis which, though verifiable, often had very little to start with.
PROBLEMS IN FORMULATION
Hypothesis is of course essential for research study, but it is not easy to formulate good hypothesis. In the formulation of hypothesis many problems are involved. There are mainly three difficulties, which arise when thinks of for formulation of hypothesis:
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Absence of knowledge or clear theoretical framework. Lack of ability to logically use theoretical framework. Inability to phrase properly the hypothesis on account of lack of acquittance with available research technique.
ADVANTAGES
The following are the advantages of hypothesis: It is with the help of hypothesis, that it becomes easy to decide as to which type of data is to be collected and what type of data is simple to be ignored. Hypothesis makes it clear as to what is to be accepted, proved or disproved and that what is the main focus of the study.
It helps the investigator in knowing the direction in which he is to move without hypothesis it will be
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just dumping in the dark and not moving in the right direction. A clear idea about hypothesis means saving time, money and efforts which otherwise will be wasted, thereby botheration of trial and error will de saved. It helps in concentrating only on relevant factors and dropping irrelevant ones. Many irrelevant factors which otherwise get into the study can easily be ignored. A properly formulated hypothesis is always essential for drawing proper and reasonable conclusions. Careful hypothesis of the study is not only interesting for the society but also for the research. There is another advantage to researcher that he is prepared to retrace the step and to revise his hypothesis if keeps his mind open and flexible. Hypothesis is the pivot of the whole study. Without well formulated hypothesis the whole study is out of focus and it will be difficult to draw proper conclusions. In fact hypothesis is a necessary link between the theory and investigation which will result in the addition to the existing knowledge.
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HYPOTHESIS
ALTERNATIVE HYPOTHESIS:
Financial management practises helps in mitigating the problems of rising prices of urban families.
NULL HYPOTHESIS:
Financial management practises do not helps in mitigating the problems of rising prises of urban families.
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TYPES OF DATA
Different types of data are required in research. This can be classified into the following two types of information:
1)
PRIMARY DATA: Primary data are the actual

information which is received by researcher for study from the actual field of research. These data are attained by means of questionnaires, schedules, interview and observation. Such data are known as primary data because they are attained by researcher from the field of research directly and for the first time. Primary data are generally attained through two sources. The primary source is the facts of living persons life. The other source is connected events known through observations.
2)
SECONDARY DATA: Secondary data are the

information which is attained indirectly. The researcher does not attain them himself or directly. Such data are attained from published and unpublished material, from the individual and institutions through personal diaries, letters, and documents. The secondary data are also gathered through two types of sources. The first source is the personal documents such as diaries, letters and photographs. The other source is public documents
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such as books, records, reports published by private institutions in newspapers and magazines.
FACTORS
The factors which influence the selection of the method of collection of data are discussed below: (1) Factors affecting choice of method: It is clear from the above discussion that the methods of the collection of primary data and secondary data would not be exactly identical because in one case the data have to be originally collected while in case of secondary data the work is of the nature of compilation. The choice of method depends on the number of factors. Nature, object and the scope of enquiry are the most important determinants for the selection of methods. (2) Availability of finance : The selection of methods of data collection is also influenced by the financial budget allotted for the research problem when the researcher have meagre financial resources they will select the cheaper method in place of costly method for data collection. (3) Availability of time: The time is also an important factor for the selection of method of
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data collection. Some method involves a long duration of enquiry while with others the enquiry can be conducted in a shorter duration. The researcher should decide about the duration of its research study and accordingly the method of collecting data should be selected.
SELECTION OF APPROPRIATE METHOD OF DATA COLLECTION

The researcher must keep following factors in his mind while selecting the method of data collection: (1) Nature, object and scope of enquiry: The choice of selecting a data collection method is affected by the nature, object and scope of the inquiry. The method of data collection should be such that suits the type of enquiry that is being conducted by the researcher. (2) Availability of funds: The method of data collection is also affected by availability of funds, at the disposal of the researcher. If the researcher has limited funds, he will have to select a comparatively cheaper method. (3) Time element: The time element plays a very important role in deciding a particular method of data collection. Some methods take more time whereas others are collected in short period. The researcher has to decide the method of data
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collection keeping in mind the time at his disposal. (4) Accuracy required: The selection of an appropriate method of data collection is also influenced by the accuracy required in an investigation by the researcher.
METHODS OF COLLECTING PRIMARY DATA

OBSERVATION METHOD:
The observation method of collecting data is the most commonly used in research studies. It is the method under which data from the field is collected with the help of observation by the observer or by personally going to the field. This is the oldest method of study. The researcher has to be very tactful and cautious in his observations. According to P.V.YOUNG: Observation is defined as systematic viewing coupled with consideration of seen phenomenon.
FEATURES
1) It is an eye affair. Therefore, the researcher is expected to see everything very closely and carefully.
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2) Observation should have a definite aim because observation without aim is useless, purposeless and meaningless. 3) Planning is required in observation that is the researcher should take the necessary equipments and instruments with him. 4) It is the direct method of study. It is the method under which the investigator is personally required to observe the objects with his own eyes. 5) Primary data is the only data which is collected by the observation method. 6) It is the method which is characterised for its direct cause-effect relationship
ADVANTAGES
1) If the observation is done correctly then subjective bias is eliminated. 2) It is suitable for intensive investigation. 3) It gives satisfactory results when the researcher is completed unbiased.
DISADVANTAGES
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1) It involves enormous cost and usually requires a long time. 2) It provides very limited information. 3) Sometimes unforeseen factors may affect the observational task of research study.
TYPES OF OBSERVATION
1) Controlled observation: It is being increasingly felt that measurable data can be obtained with the help of controlled observation. It is generally carried on according to definite pre-arranged plans which might include considerable experimental procedure. In this observation method the researcher conducts his study by creating an artificial environment. 2) Uncontrolled observation: In this method the observation is made in natural course without extra influence, control or guidance or instructions from external agencies and factors. There is careful security of real life situations and no use of instruments of precision is made. 3) Participant observation: Participant observation or participant situation is the one when the observer participates in the activities of the group whose behaviour and experiences is to be observed. This
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procedure is used when the researcher can so disguise himself as to be accepted as a member of the group. 4) Non-participant observation: In non-participant observation, the observer does not actually participate but watches everything from a distant. He is very passive and does not try to influence activity in any manner. He however, keeps a penetrating eye on the events that takes place. The information is quite dependable and reliable.
INTERVIEW METHOD
An interview is a purposeful discussion between two or more people. Interview can help you gather valid and reliable data that are relevant to your research question and objective. Interview method is becoming increasingly popular. In this method the interviewer himself approaches the investigator, puts the question to him and tries to find out the answer. In this system there is direct contact between the respondent and the informant. According to P.V. Young: Interviewing is not a simple way to conversation between an interrogator and informant. Gestures, glances, facial expressions, pauses often reveal subtle feelings.
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According to Fred N. Kerlinger: The interview is face to face inter-personal situation in which one person, the interviewer asks a person being interviewed, the respondent, questions design to obtain answers pertinent to research problems.
OBJECTIVES
Interview method has following objectives: 1. To collect information about unknown facts through face to face contacts. 2. To understand the need of investigator and respondents about the research requirements. 3. To formulate hypothesis about a particular problem. 4. To collect information about qualitative facts. 5. To verify new ideas which the interviewer might have been entertaining about certain persons. 6. To provide an opportunity to observe things.
ADVANTAGES
1. Accurate information can be attained as researcher gets the first hand information. 2. It is a flexible mode of data collection. 3. It is easy to raise questions on the spot as there is direct contact between the researcher and the respondent.
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DISADVANTAGES
1. Emotions and feelings may create hindrance. 2. Language may become a barrier in communication between the researcher and the respondents. 3. It is a time consuming and expensive.
TYPES OF INTERVIEWS
1. Directive Interview: This is also known as guided or structured interview. In this method the interviewer directs the course of the interview. Normally, a predetermined list of questions is available and the respondent is required to give answers to those questions. The interviewer may use a schedule or a questionnaire. Market surveys, interviews by news paper correspondents are conducted on this basis. 2. Non Directive Interview: This type is also called uncontrolled, unguided or unstructured interviews. Though the subject matter and field of enquiry are certainly definite and pre-planned the interviewer free to arrange the form and order of questions. It includes question of open-ended form. 3. Focused Interview: This type of interview lies in between the directive and non-directive categories. It is neither fully standardised as in case of directive interview nor non-standardised as in case of nondirective interview. It is carefully structured but at
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the same time gives sufficient freedom to respondents to give their observation. 4. In-depth Interview: Here the respondent is encouraged to express his thoughts on the topic of research study. The interviewer must be able to recognise answers that are incomplete or superficial or to skilfully uncover attitudes, opinions, and motives of the respondents.
QUESTIONNAIRE
Questionnaire is the method of data collection which includes questions concerning different aspects of the subject of study. It is used in such cases where the subject of study is very wide and direct observation is not possible. Sometimes the questionnaires are delivered by hand to hand and at other times they are delivered through posts. Questionnaires may be sources of information only when the informers are well educated and prepared to cooperate with the research worker. According to Broaduss A questionnaires is a list of questions sent to a number of persons for their answers and which obtains standardised results that can be tabulated and treated statistically.
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According to Goode and Hatt The Questionnaire is a device for securing answers to questions by using a form that respondents fills by himself.
TYPES
There are mainly three types of questionnaires: 1. Structured Questionnaires: Structured Questionnaires pose a definite, concrete and preordained question. Additional questions may be thought of and asked only when some clarification is needed or additional information is sought from the respondent. Answers to these questions are normally very precise without any vagueness and ambiguity. For example, question on age, marital status, number of children. The structured questionnaire is further divided into two categories: (i). Closed-form questionnaire: Here, questions are set in such a manner that leaves only a few alternative answers. For example, yes or no, with a limited number of answers for respondents to choose from. (ii). Open ended questionnaire: Here, the respondent has the choice of using his own style, diction, expression of language, length and perception. The respondent is not restricted in his replies to the questions and his answers may be free and spontaneous. 2. Unstructured Questionnaire: These contain a set of questions that are not structured in advance. It gives sufficient scope for a variety of answers. It is used mainly for conducting interviews. Its merit is
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flexibility. It aims to secure the maximum possible information from the respondent. 3. Pictorial Questionnaires: In a pictorial questionnaire, alternative answer in the form of picture is given and the respondent is required to tick the picture concerned to indicate his selection.
ADVANTAGES
1. Low cost is involved in questionnaires. 2. Questionnaires are flexible and applicable to fairly large sample sizes. 3. It provides sufficient time to the respondent to reply.
DISADVANTAGES
1. Study of deep problem in details is not possible. 2. The questionnaire is not suitable in situations where spontaneous answers are needed. 3. The questionnaire may not be a right method where a respondents level of knowledge is uncertain.
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SCHEDULE
Schedules are a particular type of questionnaires. The schedule is filled by the enumerators who are specially, appointed for the purpose. This method requires the selection of enumerators for filling up schedules or assisting respondents to fill up schedules. The investigator should be carefully selected, trained and supervised. Besides, they should be honest, sincere and hard-working and should have patience and perseverance. A schedule also consists of a set of questions as in the questionnaires. The schedules are generally filled in the answers by the enumerators or the researchers. The researchers sit with the informant face to face and put to the latter the questions from the performed and records replies to them. ADVANTAGES 1. The reliability and validity is more. 2. The interviewer presents himself before the respondent for filling the set questions which leads to unbiased response clarifying the misunderstanding. 3. It helps in collecting additional information. 4. It helps in knowing the attitude of the respondents. DISADVANTAGES 1. Expensive, time and energy consuming. 2. It possess administrative problem for the selection, training and supervision of the enumerator.
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METHOD OF COLLECTING SECONDARY DATA

1. Official publication of the central, state and the local government. 2. Various publications of foreign governments or international bodies like U.N.O, IMF, IBRD and its subsidiary bodies. 3. Books, magazines and newspaper. 4. Technical and trade journals like The Economical, The Indian Journal of Economics. The commerce, the capital etc. 5. Reports and publication of various associations connected with trade, business, industry, banks, stock exchanges etc. 6. Reports submitted by economists, research scholars, university bureaus and various other educational associations etc. 7. Public records and statistics, historical documents and other sources of published information. The sources of unpublished data are varied and they may be found in dairies, letters, unpublished bibliographies
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research workers, trade associations, chamber of commerce labour bureaus other public or private individuals and organisations.
CHARACTERISTICS OF SECONDARY DATA:
1. RELIABILITY OF DATA: The researcher should find out the reliability of data and the reliability can be tested by finding out: i. ii. iii. iv. v. Who collected the data? What were the sources of data? Are both the compiler and the source dependable? Were they collected by using proper methods? At what time were they collected?
vi. Was there any bias on the part of the compiler? vii. What degree of accuracy was desired by the compiler? Was it achieved?
2. SUITABILITY OF DATA: The data that is suitable for one enquiry may not be necessarily found suitable in another enquiry. The researcher must find out whether the data are suitable for analyzing his research work. The
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researcher must carefully scrutinize the definition of various terms, concepts and units of collection used of the time of collecting the data from primary source originally.
3. ADEQUACY OF DATA: The data may be found reliable and suitable but they may be inadequate for the purpose of enquiry. Again, the degree of accuracy achieved in the data may be found to be inadequate for the purpose of investigation in which they are proposed to be used.
TOOLS USED FOR DATA COLLECTION IN RESEARCH WORK:

1. Questionnaire method. 2. Books related to the topic of research work. 3. Observation method. 4. online information
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INTERPRETATION
MEANING: Interpretation means the task of drawing
interferences from the collected facts after analytical and experimental studies have been accomplished. In other words it is search for broader meaning of research findings. There are two aspects of the process of interpretation which are: (1). By interpretation efforts are made to establish continuity in research through linking the results of a given research work with those of others. (2). Interpretation helps in establishing some explanatory concepts.
DEFINITION: According to professor C William

Emory Interpretation is concerned with relationship within the collected data, particularly overlapping analysis. Interpretation also extends beyond the data of study to include the results of other research, theory and hypothesis.
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IMPORTANCE OF INTERPRETATION
The use of research is only possible if the results are interpreted correctly. Its importance emerges out of the following reasons: 1. Through interpretation the researcher shall be able to link the results of research to other studies in the same or related field. 2. Interpretation helps to establish new concepts which will guide future research. 3. Only through interpretation research can become significant. 4. The interpretation of the findings of exploratory research helps in creating hypothesis which will result in further research.
NEED
1. Through the process of interpretation a researcher can well understand the abstract principle that is involved in its findings. 2. Interpretation establishes an explanatory concept that provides the basis for future research studies. 3. It encourages and opens new avenues of intellectual adventure and stimulates the quest for knowledge. 4. The process of interpretation leads to the appreciation of research work accomplished by researcher. Findings are made available and their real significance is understood through interpretation only. 5. The interpretation of the finding of exploratory research study is converted into the hypothesis for
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experimental research. This sort of information is called post-factum interpretation.
PRECAUTION
1. The data which is going to be interpreted must be appropriate, reliable and adequate. Proper statistical analysis must have been performed on the data. 2. The researcher must avoid errors in interpretation which arise due to false generalisations or wrong interpretation of the findings. 3. The relationship between the analysis and interpretation must not be undermined as the correct interpretation will demand upon a proper analysis of the data. 4. The researcher must look beneath the surface and beyond obvious interpretations to find the real cause of the problem. 5. While interpreting the results the researcher must remember the link that should run through the study binding the hypothesis to the observations and finally to the interpretations. The interpretations must retain the focus of the research.
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TECHNIQUES
The techniques of the Interpretation consist of the following steps: 1. The researcher should give reasonable explanations of relations and the lines of relationship which he has found while studying his research problem. With the help of interpretation generalisations is done and concepts are formulated. 2. Extraneous information may be collected during research study and such information must be considered while interpreting the final results of such study. It makes the understanding of the problem easy. 3. Before Interpretation the researcher should have consultation with the experienced and research minded people, which will lead to correct interpretation. It enhances the utility of research results. 4. The relevant factors affecting the research problem should be studied in depth before the interpretation task is accomplished by the researcher. It will help in avoiding false generalisations.
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PREREQUISITES FOR GOOD INTERPRETATION

1. While drawing inferences from the analysis of data, the researcher has to ensure that the inferences are free from any biases and mistakes that may arise due to both subjective and objective factors. 2. The researcher should also check for personal bias while interpreting the results. 3. The researcher must remain vigilant about all such things so that false generalisations may not take place. 4. He should be well-equipped with statistical measures and must know their correct use for drawing inferences concerning his study. 5. The researcher must always keep in view that the task of interpretation is very much intertwined with analysis and cannot be separated. 6. He should take precaution about the reliability of data, computational checks, validation and comparison of results. 7. The researcher should also pay attention to the hidden factors underlying the results.
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ANALYSIS OF QUESTIONNAIRE
Q1) Do you think that urban families face problems in achieving their financial goals?
Serial no A B C D
Option Very often Sometimes Rarely Never
Answers 4 42 12 2
Percentage 6.67 70 20 3.33
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45 40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 4 respondents choose option A, 42 respondents choose the option B, 12 respondents choose the option C and 2 respondents choose the option D out of 60 respondents so we can interpret that most of think that urban families face difficulty in achieving their financial goals.
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Q2) Do you think so rising prices affects the cost of living of urban families?
Serial no A B C D
Option Very high High Moderate Low
Answers 6 20 30 4
Percentage 10 33.33 50 6.67
63
30
25
20
15
10
0 A B C D
INTERPRETATION: 6 respondents choose option A, 20 respondents choose the option B, 30 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and 50% of the respondents think that rising prices moderately affect the cost of living of the urban families.
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Q3) Do you think so that impact and incidence of inflation differs across families with differing income level?
Serial no A B C D
Option Answers Yes 46 No 2 To some 10 extent Cant say 2
Percentage 76.67 3.33 16.67 3.33
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50 45 40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 46 respondents choose option A, 2 respondents choose the option B, 10 respondents choose the option C and 2 respondents choose the option D out of 60 respondents and thus we can say, 76.67% of the respondents think that impact and incidence of inflation differs across families with different income level.
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Q4) Do you think that planning is necessary before doing expenditures on commodities?
Serial no A B C D
Answers 38 16 6 0
Percentage 63.33 26.67 10 0
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40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 38 respondents choose option A, 16 respondents choose the option B, 6 respondents choose the option C and no respondents choose the option D out of 60 respondents and thus we can say 63.33% of the respondents very often say that planning is necessary before doing expenditure on commodities.
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O5) Do you think that actual expenditure exceeds planned expenditure every month?
Serial no A B C D
Option Strongly agree Agree Disagree Strongly disagree
Answers 10 36 10 4
Percentage 16.67 60 16.67 6.67
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40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 10 respondents choose option A, 36 respondents choose the option B, 10 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 60% of the respondents agree that actual expenditure exceeds the planned expenditure every month.
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Q6) Do you think that increase in the prices of necessary goods causes burden on different income groups?
Serial no A B C D
Option Agree Disagree Not sure No opinion
Answers 48 4 4 4
Percentage 80 6.67 6.67 6.67
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50 45 40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 48 respondents choose option A, 4 respondents choose the option B, 4 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 80% of the respondents agreed that increase in prices of necessary goods cause burden on different income groups.
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Q7) Do you think that government is taking any measures for controlling the rising prices in India?
Serial no A B C D
Percentage 30 23.33 40 6.67
73
25
20
15
10
0 A B C D
INTERPRETATION: 18 respondents choose option A, 14 respondents choose the option B, 24 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 30% of the respondents think that government is taking measures for controlling the rising prices in India.
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Q8) Do you think so that rise in prices affect the demand for the commodities?
Serial no A B C D
Option Positive Negative Sometimes Dont know
Answers 16 8 32 4
Percentage 26.67 13.33 53.33 6.67
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35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 16 respondents choose option A, 8 respondents choose the option B, 32 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 53.33% of the respondents think that rise in prices affects sometimes the demand for the commodities.
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Q9) Do you think financial management is a serious issue for urban families in India?
Serial no A B C D
Percentage 63.33 0 30 6.67
77
40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 38 respondents choose option A, no respondents choose the option B, 18 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 63.33% of the respondents think that financial management is a serious issue for urban families in India.
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Q10) Do you think rising prices of consumer goods compel the families to alter their consumption and savings?
Serial no A B C D
Option Very highly Highly Moderately Low
Answers 8 26 22 4
Percentage 13.33 43.33 36.67 6.67
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30
25
20
15
10
0 A B C D
INTERPRETATION: 8 respondents choose option A, 26 respondents choose the option B, 22 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 43.33% of the respondents think that rising prices of consumer goods highly compel the families to alter their consumption and savings.
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Q11) Do you think that cost associated with the financial difficulty is significant for urban families or not?
Serial no A B C D
Answers 8 38 14 0
Percentage 13.33 63.33 23.33 0
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40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 8 respondents choose option A, 38 respondents choose the option B, 14 respondents choose the option C and no respondents choose the option D out of 60 respondents and thus we can say 63.33% of the respondents think that the cost associated with the financial difficulty is sometimes significant for urban families.
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Q12) Do you think prescribed financial management practices are effective in producing positive results for urban families?
Serial no A B C D
Option Strongly agree Agree Disagree Strongly disagree
Answers 6 44 8 2
Percentage 10 73.33 13.33 3.33
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45 40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 6 respondents choose option A, 44 respondents choose the option B, 8 respondents choose the option C and 2 respondents choose the option D out of 60 respondents and thus we can say 73.33% of the respondent agree that prescribed management practices are effective in producing positive results for urban families.
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Q13) Do you think rising prices and financial management practices of urban families in India is more subjective rather than objective in nature?
Serial no A B C D
Option Agree Disagree Not sure No opinion
Answers 32 4 20 4
Percentage 53.33 6.67 33.33 6.67
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35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 32respondents choose option A, 4 respondents choose the option B, 20 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 53.33% of the respondents agree that rising prices and financial management practices of urban families in India is more subjective rather than objective.
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Q14) According to you the level of satisfaction with the current financial situation is?
Serial no A B C D
Option Answers Good 12 Bad 4 Not sure 6 Needs 38 improvement
Percentage 20 6.67 10 63.33
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40 35 30 25 20 15 10 5 0 A B C D
INTERPRETATION: 12respondents choose option A, 4 respondents choose the option B, 6 respondents choose the option C and 38 respondents choose the option D out of 60 respondents and thus we can say 63.33% of the respondents say that the level of satisfaction with the current financial situation needs improvement.
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Q15) Do you think financial planning practices are more frequently adopted by urban families for financial management compared to controlling?
Serial no A B C D
Percentage 26.67 6.67 50 16.67
89
30
25
20
15
10
0 A B C D
INTERPRETATION: 16 respondents choose option A, 4 respondents choose the option B, 30 respondents choose the option C and 10 respondents choose the option D out of 60 respondents and thus we can say 50% of the respondents say that urban families adopt financial planning practices to greater extent as compared to controlling.
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Q16) Do you think that all the income groups mentioned above follow the financial management practices in India?
Serial no A B C D
Answers 18 22 18 2
Percentage 30 36.67 30 3.33
91
25
20
15
10
0 A B C D
INTERPRETATION: 18 respondents choose option A, 22 respondents choose the option B, 18 respondents choose the option C and 2 respondents choose the option D out of 60 respondents and thus we can say 30% of the respondents say that all the income group follow the financial management practices very often and other 30% say that they follow rarely.
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Q17) According to you what kind of relationship exists between the variables i.e. rising prices and financial management practices of urban families in India?
Serial no A B C D
Option Positive Negative No relationship Dont know
Answers 16 12 26 6
Percentage 26.67 20 43.33 10
93
30
25
20
15
10
0 A B C D
INTERPRETATION: 16 respondents choose option A, 12 respondents choose the option B, 26 respondents choose the option C and 6 respondents choose the option D out of 60 respondents and thus we can say 43.33% of the respondents think that there is no relationship between rising prices and financial management practices of urban families in India.
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Q18) Do you think that government increases tax rates when the prices increase for their earnings?
Serial no A B C D
Percentage 33.33 13.33 46.67 6.67
95
30
25
20
15
10
0 A B C D
INTERPRETATION: 20 respondents choose option A, 8 respondents choose the option B, 28 respondents choose the option C and 4 respondents choose the option D out of 60 respondents and thus we can say 46.67% of the respondents think government increases tax rates to some extent when the prices increase for their earnings.
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Q19) Do you think financial management practices affects the quality of education of urban families?
Serial no A B C D
Percentage 46.67 10 43.33 0
97
30
25
20
15
10
0 A B C D
INTERPRETATION: 28 respondents choose option A, 6 respondents choose the option B, 26 respondents choose the option C and no respondent choose the option D out of 60 respondents and thus we can say 46.67% of the respondents think that financial management practices affects the quality of education of the urban families.
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Q20) Do you think financial management tools are the indicators of urban living standard?
Serial no A B C D
Option Answers Yes 22 No 4 Partially 20 In some 14 cases
Percentage 36.67 6.67 33.33 23.33
99
25
20
15
10
0 A B C D
INTERPRETATION: 22 respondents choose option A, 4 respondents choose the option B, 20 respondents choose the option C and 14 respondents choose the option D out of 60 respondents and thus we can say 36.67% of the respondents think that financial management tools are the indicators of urban living standard.
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Q21) According to you which condition is better inflation or deflation? The condition is inflation is found to be better by most of the respondents over deflation and this conclusion could be drawn from the following reasons given below:
Rising prices leads to increase in salaries which finally increase the purchasing power of people. Economic condition of the people improves after inflation. Inflation increases the overall standard of the people. Inflation helps the economy to grow and expand. It helps the producers to enjoy profits.
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Q22) what are the reasons behind the financial failure of the lower income group? Following can be the reasons behind the financial failure of the lower income group given by the respondents:
Lack of proper planning and awareness among people. Uncontrollable drives for maintaining the standard of living. Undeveloped employment opportunities. Increase in price of commodity without increase in the income of lower income group. Low literacy rate. Poor development of our country.
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Q23) According to you who takes the decision regarding various financial management task in the family and why? Most of the respondents have given the similar answer regarding the person who takes the decision can be seen as under: The head of the family or the father or mother or both takes the decision regarding various financial management tasks in the family as they have lot of experience and knows how to manage the finance or has knowledge about the financial matter. Today, all the members are involved in taking decision regarding various financial management tasks in the family as necessities differ from person to person.
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Q24) What is the perception of different income groups towards the financial management practices in India?
Different people have different perceptions regarding financial management practices in India which can be concluded as: Some blame the government for the management of financial practice in India.
Some has a perception that they need to be developed more according to the financial requirements of different income groups prevailing in the economy. Lower income group has to plan strictly to manage their finance whereas higher income group dont need to place in most of the cases. No proper implementation of the financial management practices are introduced in India. Most of them have a negative perception as they think financial management practices are one of the major reasons of India being a stagnant economy.
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Q25) How can social organisations help the urban families to cope up with the financial problems?
This can be concluded by the following suggestions given by the respondents as: By helping them to prepare their budget. Making them aware by organising seminars and workshops. By providing financial assistance through donations, charity and gifts. By providing them with the proper information regarding the current financial practices prevailing in the economy. By telling them about how to spend every rupee in an appropriate and economic manner.
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CHI-SQUARE TEST
The chi-square test is one of the, several tests of significance developed by statisticians. It is a statistical measure used in the context of sampling analysis for comparing the variance to a theoretical variance. Chisquare test is also called as non-parametric test. Thus chisquare is the measure of actual divergence of the observed and expected frequency. The chi-square is applicable to the larger number of problems
CHARACTERISTICS
The chi-square test is the non-parametric test and it has the following characteristics: 1. The chi-square test is based on the observed frequencies only and not on the parameters like and standard deviation. 2. It is a technique for testing the hypothesis and not used for the purpose of estimation. 3. This test of hypothesis has characteristic of addition or additive property. 4. It is a useful test for research and is used to complex contingency table with several classes. 5. The test involves less mathematical details and there is need of any parameter values like mean and standard deviation.
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USES OF CHI-SQUARE TEST

1. It can be used to determine if categorical data show dependency or if two classifications are independent. 2. It can also be used to make comparisons between theoretical populations and actual data when categories are used. 3. It can also be used to study the, divergence of actual and expected frequencies and from this value coefficient of contingency is calculated to find out if there is any association between the attributes in questions.
BENEFITS OF CHI-SQUARE TEST

1.
TEST THE GOODNESS OF FIT: As a test of goodness of fit, chi-square helps us to know how well does the assumed theoretical distribution such as Binomial distribution, Poisson distribution fit to the observed data. If the calculated value of x2 is less than the table value at a certain level of significance, the fit is considered to be a good one and on the contrary if the calculated value of x2 is more than the table value, the fit is not considered to be a good one.
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2.
TEST OF INDEPENDENCE: As a test of independence, x2 test helps us in explaining whether or not two attributes are associated. if the calculated value of x2 is less than the table value at a certain level of significance then we can conclude that attributes are not associated and on contrary calculated value of x2 is greater than the table value then we conclude that the attributes are associated .
3. TEST OF HOMOGENEITY: The chi-square value is used to judge the significance of population variance. It measures actual difference between the expected and the observed frequencies and as such there is no difference between actual and observed frequency the values of chi-square is 0 and if there is any difference then the value of chi-square under different conditions are usually available in the shape of tables.
CONDITIONS
While applying the chi-square test the following conditions should be satisfied: 1. The number of observations or items must be reasonably large. It is necessary because if the number of items is small the valves (O-E) of observed and expected frequencies would not be
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2. 3. 4. 5.
normally distributed. The items or observations should not be less than 50. Expected frequency should not be very small. It should not be less than 5. Observations recorded and used are collected on a random basis. All the items in sample must be independent. The constraints used in the form of linear equations in the cell frequencies of contingencies of a contingency table should be linear.
MISUSE OF CHI-SQUARE TEST

The following are some of improper applications or misuse of the chi-square test: 1. The frequency of non-occurrence should be neglected by the researcher. 2. The researcher should not fail to equalize the sum of the observed and sum of the expected frequency of the sample under study. 3. The determination of the degree of freedom should be calculated correctly like (c-1) (r-1) or (n-1). 4. The computation of the value of chi-square and the table value should be done correctly by researcher.
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APPLICATION OF CHISQUARE TEST OF THE PROJECT REPORT:
1. Framing of hypothesis both null and alternative. Where, null hypothesis is denoted by Ho alternative hypothesis is denoted by Ha. 2. Calculation of expected frequency. Ei = Ri * Ci / n Where Ei = expected frequency. Ri = sum total of row in which the Frequency is lying. Ci = sum total of column in which The frequency is lying. n = total sample size
3.
Calculate the value of X2 : X2 = (Oi Ei) 2 / Ei Where X2 = chi-square Oi = observed frequency Ei = expected frequency
4. Find the value of chi-square at 5% level of significance. 5. Calculate degree of freedom

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d = (r-1)*(c-1) 6. Check the table value of the chi-square at 5% level of significance and specific degree of freedom. 7. Obtain the real value of chi-square 8. Compare the real or the obtained value and the table value. 9. If the table value is greater than obtained value then null hypothesis is accepted and if table value is less than the obtained value then null hypothesis is rejected. 10. Drawing of conclusions.
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ANALYSIS SHEET
QUESTIONS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL A 4 6 46 38 10 48 18 16 38 8 8 6 32 12 16 18 16 20 28 22 410 B 42 20 2 16 36 4 14 8 0 26 38 44 4 4 4 22 12 8 6 4 314 C 12 30 10 6 10 4 24 32 18 22 14 8 20 6 30 18 26 28 26 20 364 D 2 4 2 0 4 4 4 4 4 4 0 2 4 38 10 2 6 4 0 14 112
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PRACTICAL ANALYSIS
POSITIVE (A) NO RELATIONSHIP DONT KNOW 410 (C) 364 774 HYPOTHESIS ALTERNATIVE: Financial management practices helps in mitigating the problems of rising prices of urban families. NULL: Financial management practices do not help in mitigating the problems of rising prices of urban families. NEGATIVE (B) 314 (D) 112 426 724 476 1200
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OPTION A B C D TOTAL
Oi 410 314 364 112
Ei 467 257 307 169
(Oi-Ei) (Oi-Ei)2 (OiEi)2/ Ei -57 3249 6.975 57 3249 12.642 57 3249 10.583 -57 3249 19.224 49.406
ODSERVRD VALUE = 49.406 TABLE VALUE = 3.841 The table value of the X2 at 5% level of significance and 1 degree of freedom is 3.184 Since your table value is less than your obtained value therefore your null hypothesis is rejected.
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WORKING NOTES
Calculation of expected frequency: A) Ri*Ci/n = 724*774/1200 = 467 B) Ri*Ci/n = 724*426/1200 = 257 C) Ri*Ci/n = 476*774/1200 = 307 D) Ri*Ci/n = 476*426/1200 = 169 Calculation of degree of freedom: d = (r-1)*(c-1) (2-1)*(2-1) 1*1 1
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CONCLUSION:
As the null hypothesis has been rejected therefore it can be concluded that financial management practices helps in mitigating the problems of rising prices of urban families in India. Thus we can say that most of the families are adopting financial management practices in India and therefore they are able to cope up with the effect of rising prices. An ultimate theoretical justification for the empirical study of consumers' financial management practices appears to be the need to verify that "good managers" will make more effective use of resources in meeting goals. Presumably, both objective measures of level of living, household net worth, etc. and subjective measures of perceived achievement and satisfaction should be affected by consumers' financial management practices. Before such predictions can be tested, though, it is necessary to identify the nature of consumers' financial management practices, devise measures for determining performance, and determine characteristics and situations associated with their use. So we can say that price rises are not uniform across commodity groups, effective inflation would depend on the consumption pattern of families. Since the commodity baskets of the lower income groups are different from those of the high income groups, effective inflation rates faced by them are also dissimilar.
116
BIBLIOGRAPHY
s.no Title 1 2 3 4 5 6 Publicatio n Research Education Methodology al Research R. Prentice Methodology Panneersel hall of van India. Business S.N. Excel Research Murthy books Methods Research C.M. RSBA Methodology Chaudhry Business Donald Tata Mc Research R Cooper Graw Hill Methods Research D.K. Excel Methodology Bhattachar books ya Author name Dr.kumar Suggested matter Introduction Chi-square Interpretation Hypothesis Collection Of data Interpretation
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QUESTIONNAIRE
INSTITUTE FOR EXCELLENCE IN HIGHER EDUCATION BHOPAL
(NAAC Accredited A Grade Institute) For partial fulfilment of degree of Bachelor of Commerce- Management Honours. Topic: RISING PRICES AND FINANCIAL MANAGEMENT PRACTICES OF URBAN FAMALIES IN INDIA. Name of respondent: Occupation: Gender:
Note : The information collected by the way of questionnaire is meant for academic purposes and so kindly fill in the requisite information.
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INTRODUCTION

ACCORDING TO J.FRANCIS RUMMEL

Research lead to better ways of doing things by discovering new facts.

DESCRIPTIVE RESEARCH: The objective

QUALITATIVE RESEARCH: Qualitative

CONCEPTUAL RESEARCH: Philosophers

DIAGNOSTIC RESEARCH: This type of

BASIC RESEARCH: Gathering knowledge for

APPLIED RESEARCH: Applied research aims

HISTORICAL RESEARCH: The name itself

ACTION RESEARCH: This type of research is

ABOUT THE TOPIC

RISING PRICES AND FINANCIAL MANAGEMENT PRACTICES OF URBAN FAMALIES OF INDIA

URBAN FAMALIES COPING WITH THE RISING PRICES:

RISING PRICES BURDENING THE POOR AND MIDDLE CLASS:

FINANCIAL MANAGEMENT PRACTICES ADOPTED BY URBAN FAMALIES IN INDIA

FINANCIAL MANAGEMENT PRACTICES ADOPTED BY URBAN FAMALIES OF INDIA

HOW RISING PRICES AFFECTS COMMON MAN:

not's. - Common man is more prone now to complexes.

Distributional Impact: Who are the worst sufferers?

REASONS FOR CHOOSING THE TOPIC:

OBJECTIVE OF THE RESEARCH WORK:

AREA OF THE RESEARCH WORK:

information gathered, and therefore is formulated on the basis of judgement.

ACCORDING TO COHEN AND NAGEL:

PRIMARY DATA: Primary data are the actual

SECONDARY DATA: Secondary data are the

SELECTION OF APPROPRIATE METHOD OF DATA COLLECTION

METHODS OF COLLECTING PRIMARY DATA

METHOD OF COLLECTING SECONDARY DATA

CHARACTERISTICS OF SECONDARY DATA:

TOOLS USED FOR DATA COLLECTION IN RESEARCH WORK:

DEFINITION: According to professor C William

experimental research. This sort of information is called post-factum interpretation.

PREREQUISITES FOR GOOD INTERPRETATION

Option Very often Sometimes Rarely Never

Percentage 6.67 70 20 3.33

Option Very high High Moderate Low

Percentage 10 33.33 50 6.67

Option Answers Yes 46 No 2 To some 10 extent Cant say 2

Percentage 76.67 3.33 16.67 3.33

Option Very often Sometimes Rarely Never

Percentage 63.33 26.67 10 0

Option Strongly agree Agree Disagree Strongly disagree

Percentage 16.67 60 16.67 6.67

Option Agree Disagree Not sure No opinion

Percentage 80 6.67 6.67 6.67

Option Answers Yes 18 No 14 To some 24 extent Cant say 4

Percentage 30 23.33 40 6.67

Option Positive Negative Sometimes Dont know

Percentage 26.67 13.33 53.33 6.67

Option Answers Yes 38 No 0 To some 18 extent Cant say 4

Percentage 63.33 0 30 6.67

Option Very highly Highly Moderately Low

Percentage 13.33 43.33 36.67 6.67

Option Very often Sometimes Rarely Never

Percentage 13.33 63.33 23.33 0

Option Strongly agree Agree Disagree Strongly disagree

Percentage 10 73.33 13.33 3.33

Option Agree Disagree Not sure No opinion

Percentage 53.33 6.67 33.33 6.67

Option Answers Good 12 Bad 4 Not sure 6 Needs 38 improvement

Percentage 20 6.67 10 63.33