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MBA RMM Unit 1

The document discusses research methodology and defines research as a systematic inquiry to discover or revise facts and theories. It describes the purpose of research as building knowledge for socioeconomic development. The document also differentiates between research methods and methodology, and discusses quantitative and qualitative approaches as well as descriptive, analytical, applied and fundamental types of research.

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Revanth Kumar
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0% found this document useful (0 votes)
30 views

MBA RMM Unit 1

The document discusses research methodology and defines research as a systematic inquiry to discover or revise facts and theories. It describes the purpose of research as building knowledge for socioeconomic development. The document also differentiates between research methods and methodology, and discusses quantitative and qualitative approaches as well as descriptive, analytical, applied and fundamental types of research.

Uploaded by

Revanth Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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UNIT-I

Research Methodology
1.1 INTRODUCTION

Research is a part of any systematic knowledge. It has occupied the realm of human
understanding in some form or the other from times immemorial. The thirst for new areas of
knowledge and the human urge for solutions to the problems have developed a faculty for
search, research and re-research in him/her. Research has now become an integral part of all
the areas of human activity.

All societies from the primitive to the most modern sophisticated societies have progressed
only on the acquisition of knowledge and its application, depending upon their capability to
understand their environments and control them through concerted efforts. Initially
knowledge acquisition was more on the basis of observation, experience, learning by trial and
error, simple logics of deduction and inference, etc. But with the increasing ability to conduct
research and getting positive results and the ability to apply them in solving problems,
although confined to a few individuals, human societies were slowly advancing materially.

With science and technology opening up new directions of growth and development,
methods of research have become a mode of acquiring knowledge through scientific
methods. It was largely an individual flair that pushed up the frontiers of knowledge though
with very limited facilities for research. In many universities, research became one of their
important functions, besides their teaching, training, and publications. Increasing pursuit of
research has resulted in the growth of a body of literature over the years on research
methodology, which has now developed into a subject in its own right.

In the course of time, institutions, associations and cognate bodies, have been established to
deal with various development problems through research, with financial aids from
governments and industry. Today there are research institutions, which have been set up to
deal exclusively with research in different subjects, including library and information
science.

1.2 DEFINITION OF RESEARCH

According to the Random House Dictionary of the English Language, Research is a


systematic inquiry into a subject in order to discover or revise facts, theories, etc.

In the Encyclopaedia of Social Sciences, Research is defined as “the manipulation of things,


concepts or symbols for the purpose of generalization to extend, correct or verify knowledge
whether that knowledge aids in the construction of a theory or in practice of an art.”

Best and Kahn, in their book Research in Education define research “as the systematic and
objective analysis and recording of controlled observations that may lead to the development
of generalization, principles or theories, resulting in prediction and possibly ultimate control
of events.
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Cook outlines research as an honest, exhaustive, intelligent searching for facts and their
meanings or implications, with reference to a problem. He sees the word ‘Research’ as an
acronym, each letter of the word, standing for a particular aspect as given below:

R = Rational way of thinking


E = Expert and Exhaustive treatment
S = Search and solution
E = Exactness
A = Analysis
R = Relationship of facts
C = Critical observation, Careful planning, Constructive attitude
and Condensed generalisation
H = Honesty and Hard working
Ranganathan describes research to represent a critical and exhaustive investigation to
discover new facts, to interpret them in the light of known ideas, theories and laws, to revive
the current laws and theories in the light of the newly discovered facts to apply the
conclusion to practical purpose.

The substance of all these samples of definitions of research can be broadly summed up. To
restate, the substantive phrases that stand out in all these definitions of research are that
research is an activity as characterised below: An intellectual activity of a high order;

i. An investigation of a phenomenon, event or activity;


ii. Aims to discover data and facts and their interpretations;
iii. To arrive at conclusions to formulate new theories and laws or revise the
already established theories and laws;
iv. To communicate the results for peer review; and
v. To be accepted or rejected before adding this new knowledge to the already
existing general pool of knowledge.
1.3 PURPOSE OF RESEARCH

The purpose of research is to build up an infrastructure for creating new knowledge to


develop a knowledge reservoir. The application of this knowledge is for socioeconomic and
cultural development of a country to provide material well-being of societies.

1.3.1 Research Methods versus Methodology:


Research methods include all those techniques/methods that are adopted for conducting
research. Thus, research techniques or methods are the methods that the researchers adopt
for conducting the research studies.
On the other hand, research methodology is the way in which research problems are solved
systematically. It is a science of studying how research is conducted scientifically. Under it,
the researcher acquaints himself/herself with the various steps generally adopted to study
a research problem, along with the underlying logic behind them. Hence, it is not only
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important for the researcher to know the research techniques/ methods, but also the
scientific approach called methodology.
1.3.2 Research Approaches:
There are two main approaches to research, namely quantitative approach and qualitative
approach. The quantitative approach involves the collection of quantitative data, which are
put to rigorous quantitative analysis in a formal and rigid manner. This approach further
includes experimental, inferential, and simulation approaches to research. Meanwhile, the
qualitative approach uses the method of subjective assessment of opinions, behaviour and
attitudes. Research in such a situation is a function of the researcher’s impressions and
insights. The results generated by this type of research are either in non-quantitative
form or in the form which cannot be put to rigorous quantitative analysis. Usually, this
approach uses techniques like indepth interviews, focus group interviews, and projective
techniques.
1.3.3 Types of Research:
There are different types of research. The basic ones are as follows.
1. Descriptive Versus Analytical:
Descriptive research consists of surveys and fact-finding enquiries of different types. The
main objective of descriptive research is describing the state of affairs as it prevails at the
time of study. The term ‘ex post facto research’ is quite often used for descriptive research
studies in social sciences and business research. The most distinguishing feature of this
method is that the researcher has no control over the variables here. He/she has to only
report what is happening or what has happened. Majority of the ex post facto research
projects are used for descriptive studies in which the researcher attempts to examine
phenomena, such as the consumers’ preferences, frequency of purchases, shopping, etc.
Despite the inability of the researchers to control the variables, ex post facto studies may
also comprise attempts by them to discover the causes of the selected problem. The methods
of research adopted in conducting descriptive research are survey methods of all kinds,
including correlational and comparative methods. Meanwhile in the Analytical research, the
researcher has to use the already available facts or information, and analyse them to make a
critical evaluation of the subject.
2. Applied Versus Fundamental:
Research can also be applied or fundamental in nature. An attempt to find a solution to an
immediate problem encountered by a firm, an industry, a business organisation, or the
society is known as applied research. Researchers engaged in such researches aim at
drawing certain conclusions confronting a concrete social or business problem.
On the other hand, fundamental research mainly concerns generalizations and formulation
of a theory. In other words, “gathering knowledge for knowledge’s sake is termed ‘pure’ or
‘basic’ research” (Young in Kothari, 1988). Researches relating to pure mathematics or
concerning some natural phenomenon are instances of Fundamental Research. Likewise,
studies focusing on human behaviour also fall under the category of fundamental research.
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Thus, while the principal objective of applied research is to find a solution to some pressing
practical problem, the objective of basic research is to find information with a broad base of
application and add to the already existing organized body of scientific knowledge.
3. Quantitative Versus Qualitative:
Quantitative research relates to aspects that can be quantified or can be expressed in terms
of quantity. It involves the measurement of quantity or amount. Various available statistical
and econometric methods are adopted for analysis in such research. Which includes
correlation, regressions and time series analysis etc,.
On the other hand, Qualitative research is concerned with qualitative phenomena, or more
specifically, the aspects related to or involving quality or kind. For example, an important
type of qualitative research is ‘Motivation Research’, which investigates into the reasons
for certain human behaviour. The main aim of this type of research is discovering the
underlying motives and desires of human beings by using in-depth interviews. The other
techniques employed in such research are story completion tests, sentence completion
tests, word association tests, and other similar projective methods. Qualitative research is
particularly significant in the context of behavioural sciences, which aim at discovering
the underlying motives of human behaviour. Such research helps to analyse the various
factors that motivate human beings to behave in a certain manner, besides contributing to
an understanding of what makes individuals like or dislike a particular thing. However, it is
worth noting that conducting qualitative research in practice is considerably a difficult task.
Hence, while undertaking such research, seeking guidance from experienced expert
researchers is important.
4. Conceptual Versus Empirical:
The research related to some abstract idea or theory is known as Conceptual Research.
Generally, philosophers and thinkers use it for developing new concepts or for reinterpreting
the existing ones. Empirical Research, on the other hand, exclusively relies on the
observation or experience with hardly any regard for theory and system. Such research is
data based, which often comes up with conclusions that can be verified through experiments
or observation. Empirical research is also known as experimental type of research, in which
it is important to first collect the facts and their sources, and actively take steps to stimulate
the production of desired information. In this type of research, the researcher first
formulates a working hypothesis, and then gathers sufficient facts to prove or disprove the
stated hypothesis. He/she formulates the experimental design, which according to him/her
would manipulate the variables, so as to obtain the desired information. This type of research
is thus characterized by the researcher’s control over the variables under study. In simple
term, empirical research is most appropriate when an attempt is made to prove that certain
variables influence the other variables in some way. Therefore, the results obtained by using
the experimental or empirical studies are considered to be the most powerful evidences for
a given hypothesis.
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5. Other Types of Research:
The remaining types of research are variations of one or more of the afore-mentioned
type of research. They vary in terms of the purpose of research, or the time required to
complete it, or may be based on some other similar factor. On the basis of time, research
may either be in the nature of one-time or longitudinal time series research. While the
research is restricted to a single time-period in the former case, it is conducted over several
time-periods in the latter case. Depending upon the environment in which the research is
to be conducted, it can also be laboratory research or field-setting research, or simulation
research, besides being diagnostic or clinical in nature. Under such research, in-depth
approaches or case study method may be employed to analyse the basic causal relations.
These studies usually undertake a detailed in-depth analysis of the causes of certain events
of interest, and use very small samples and sharp data collection methods. The research may
also be explanatory in nature. Formalized research studies consist of substantial structure and
specific hypotheses to be verified. As regards to historical research, sources like historical
documents, remains, etc. Are utilized to study past events or ideas. It also includes
philosophy of persons and groups of the past or any remote point of time.
Research has also been classified into decision-oriented and conclusion-oriented categories.
The decision-oriented research is always carried out as per the need of a decision maker and
hence, the researcher has no freedom to conduct the research according to his/her own
desires. On the other hand, in the case of Conclusion-oriented research, the researcher is
free to choose the problem, redesign the enquiry as it progresses and even change
conceptualization as he/she wishes to. Operations research is a kind of decision-oriented
research, where in scientific method is used in providing the departments, a quantitative basis
for decision-making with respect to the activities under their purview.
1.4 Importance Of Knowing How To Conduct Research:
The importance of knowing how to conduct research is listed below:
(i) The knowledge of research methodology provides training to new researchers and enables
them to do research properly. It helps them to develop disciplined thinking or a ‘bent of
mind’ to objectively observe the field;
(ii) The knowledge of doing research inculcates the ability to evaluate and utilize the
research findings with confidence;
(iii) The knowledge of research methodology equips the researcher with the tools that help
him/her to make the observations objectively; and

(iv) The knowledge of methodology helps the research consumers to evaluate research and
make rational decisions.

1.4.1 Qualities of a Researcher:


It is important for a researcher to possess certain qualities to conduct research. First and
foremost, he being a scientist should be firmly committed to the ‘articles of faith’ of the
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scientific methods of research. This implies that a researcher should be a social science
person in the truest sense. Sir Michael Foster cited by (Wilkinson and Bhandarkar, 1979)
identified a few distinct qualities of a scientist. According to him, a true research scientist
should possess the following qualities:

(1) First of all, the nature of a researcher must be of the temperament that vibrates in
unison with the theme which he is searching. Hence, the seeker of knowledge must be
truthful with truthfulness of nature, which is much more important, much more exacting
than what is sometimes known as truthfulness. The truthfulness relates to the desire for
accuracy of observation and precision of statement. Ensuring facts is the principle rule of
science, which is not an easy matter. The difficulty may arise due to untrained eye, which
fails to see anything beyond what it has the power of seeing and sometimes even less than
that. This may also be due to the lack of discipline in the method of science. An
unscientific individual often remains satisfied with the expressions like approximately,
almost, or nearly, which is never what nature is. A real research cannot see two things which
differ, however minutely, as the same.

(2) A researcher must possess an alert mind. Nature is constantly changing and revealing
itself through various ways. A scientific researcher must be keen and watchful to notice such
changes, no matter how small or insignificant they may appear. Such receptivity has to be
cultivated slowly and patiently over time by the researcher through practice. An individual
who is ignorant or not alert and receptive during his research will not make a good
researcher. He will fail as a good researcher if he has no keen eyes or mind to observe the
unusual changes behind the routine. Research demands a systematic immersion into the
subject matter by the researcher grasp even the slightest hint that may culminate into
significant research problems. In this context, Cohen and Negal cited by (Selltiz et al, 1965;
Wilkinson and Bhandarkar, 1979) state that “the ability to perceive in some brute experience
the occasion of a problem is not a common talent among men… it is a mark of scientific
genius to be sensitive to difficulties where less gifted people pass by untroubled by doubt”.
3. Scientific enquiry is pre-eminently an intellectual effort. It requires the moral quality of
courage, which reflects the courage of a steadfast endurance. The process of conducting
research is not an easy task. There are occasions when a research scientist might feel
defeated or completely lost. This is the stage when a researcher would need immense
courage and the sense of conviction. The researcher must learn the art of enduring
intellectual hardships. In the words of Darwin, “It’s dogged that does it”.

In order to cultivate the afore-mentioned three qualities of a researcher, a fourth one may be
added. This is the quality of making statements cautiously. According to Huxley, the
assertion that outstrips the evidence is not only a blunder but a crime (Thompson, 1975). A
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researcher should cultivate the habit of reserving judgment when the required data are
insufficient.

1.5 Significance of Research:


According to a famous Hudson Maxim, “All progress is born of inquiry. Doubt is often
better than overconfidence, for it leads to inquiry, and inquiry leads to invention”. It brings
out the significance of research, increased amount of which makes the progress possible.
Research encourages scientific and inductive thinking, besides promoting the development of
logical habits of thinking and organisation. The role of research in applied economics in the
context of an economy or business is greatly increasing in modern times. The
increasingly complex nature of government and business has raised the use of research in
solving operational problems. Research assumes significant role in the formulation of
economic policy for both, the government and business. It provides the basis for almost
all government policies of an economic system. Government budget formulation, for
example, depends particularly on the analysis of needs and desires of people, and the
availability of revenues, which requires research. Research helps to formulate alternative
policies, in addition to examining the consequences of these alternatives. Thus, research
also facilitates the decision-making of policy-makers, although in itself is not a part of
research. In the process, research also helps in the proper allocation of a country’s scarce
resources.

Research is also necessary for collecting information on the social and economic structure of
an economy to understand the process of change occurring in the country. Collection of
statistical information, though not a routine task, involves various research problems.
Therefore, large staff of research technicians or experts is engaged by the government these
days to undertake this work. Thus, research as a tool of government economic policy
formulation involves three distinct stages of operation:
(i) investigation of economic structure through continual compilation of facts; (ii)
diagnosis of events that are taking place and analysis of the forces underlying them; and (iii)
the prognosis i.e., the prediction of future developments (Wilkinson and Bhandarkar, 1979).

Research also assumes significance in solving various operational and planning problems
associated with business and industry. In several ways, operations research, market
research and motivational research are vital and their results assist in taking business
decisions. Market research refers to the investigation of the structure and development
of a market for the formulation of efficient policies relating to purchases, production and
sales. Operational research relates to the application of logical, mathematical, and
analytical techniques to find solution to business problems, such as cost minimization or
profit maximization, or the optimization problems. Motivational research helps to determine
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why people behave in the manner they do with respect to market characteristics. More
specifically, it is concerned with the analysis of the motivations underlying consumer
behaviour. All these researches are very useful for business and industry, and are
responsible for business decision-making.

Research is equally important to social scientists for analyzing the social relationships
and seeking explanations to various social problems. It gives intellectual satisfaction of
knowing things for the sake of knowledge. It also possesses the practical utility for the
social scientist to gain knowledge so as to be able to do something better or in a more
efficient manner. The research in social sciences is concerned with both knowledge for its
own sake, and knowledge for what it can contribute to solve practical problems.

1.6Research Process:
Research process consists of a series of steps or actions required for effectively conducting
research. The following are the steps that provide useful procedural guidelines regarding
the conduct of research:
(1) Formulating the research problem;
(2) Extensive literature survey;
(3) Developing hypothesis;
(4) Preparing the research design;
(5) Determining sample design;
(6) Collecting data;
(7) Execution of the project;
(8) Analysis of data;
(9) Hypothesis testing;
(10) Generalization and interpretation, and
(11) Preparation of the report or presentation of the results. In other words, it
involves the formal write-up of conclusions.

1.7 Research Problem:


The first and foremost stage in the research process is to select and properly define the
research problem. A researcher should first identify a problem and formulate it, so as to
make it amenable or susceptible to research. In general, a research problem refers to an
unanswered question that a researcher might encounter in the context of either a theoretical or
practical situation, which he/she would like to answer or find a solution to. A research
problem is generally said to exist if the following conditions emerge (Kothari, 1988):

(a) There should be an individual or an organisation, say X, to whom the Problem can be
attributed. The individual or the organization is situated in an environment Y, which is
governed by certain uncontrolled variables Z;
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(b) There should be at least two courses of action to be pursued, say A1 and A2. These
courses of action are defined by one or more values of the controlled variables. For
example, the number of items purchased at a specified time is said to be one course of
action.

(c ) There should be atleast two alternative possible outcomes of the said courses of action,
say B1 and B2. Of them, one alternative should be preferable to the other. That is, atleast one
outcome should be what the researcher wants, which becomes an objective.

(d) The courses of possible action available must offer a chance to the researcher to achieve
the objective, but not the equal chance. Therefore, if P(Bj / X, A, Y) represents the
probability of the occurrence of an outcome Bj when X selects Aj in Y, then P(B1 / X,
A1,Y) ≠ P (B1 / X, A2, Y). Putting it in simple words, it means that the choices must not
have equal efficiencies for the desired outcome.

Above all these conditions, the individual or organisation may be said to have arrived at the
research problem only if X does not know what course of action to be taken is the best. In
other words, X should have a doubt about the solution. Thus, an individual or a group of
persons can be said to have a problem if they have more than one desired outcome. They
should have two or more alternative courses of action, which have some but not equal
efficiency. This is required for probing the desired objectives, such that they have doubts
about the best course of action to be taken. Thus, the components of a research problem
may be summarised as:
(i) There should be an individual or a group who have some difficulty or problem.
(ii) There should be some objective(s) to be pursued. A person or an organization
who wants nothing cannot have a problem.
(iii) There should be alternative ways of pursuing the objective the researcher wants
to pursue. This implies that there should be more than one alternative means available
to the researcher. This is because if the researcher has no choice of alternative
means, he/she would not have a problem.
(iv) There should be some doubt in the mind of the researcher about the choice of
alternative means. This implies that research should answer the question relating to
the relative efficiency or suitability of the possible alternatives.
(v) There should be a context to which the difficulty relates.
Thus, identification of a research problem is the pre-condition to conducting research.
A research problem is said to be the one which requires a researcher to find the best
available solution to the given problem. That is, the researcher needs to find out the best
course of action through which the research objective may be achieved optimally in the
context of a given situation. Several factors may contribute to making the problem
complicated. For example, the environment may alter, thus affecting the efficiencies of the
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alternative courses of action taken or the quality of the outcomes. The number of alternative
courses of action might be very large and the individual not involved in making the decision
may be affected by the change in environment and may react to it favorably or unfavorably.
Other similar factors are also likely to cause such changes in the context of research, all
of which may be considered from the point of view of a research problem.
1.7 Hypothesis
“Hypothesis may be defined as a proposition or a set of propositions set forth as an
explanation for the occurrence of some specified group of phenomena either asserted
merely as a provisional conjecture to guide some investigation in the light of established
facts” (Kothari, 1988). A research hypothesis is quite often a predictive statement, which is
capable of being tested using scientific methods that involve an independent and some
dependent variables. For instance, the following statements may be considered:
i. “Students who take tuitions perform better than the others who do not
receive tuitions” or,
ii. “The female students perform as well as the male students”.
These two statements are hypotheses that can be objectively verified and tested. Thus, they
indicate that a hypothesis states what one is looking for. Besides, it is a proposition that can
be put to test in order to examine its validity.

1.7.1 Characteristics o f Hypothesis


A hypothesis should have the following characteristic features:-
i. A hypothesis must be precise and clear. If it is not precise and clear, then the
inferences drawn on its basis would not be reliable.
ii. A hypothesis must be capable of being put to test. Quite often, the research
programmes fail owing to its incapability of being subject to testing for validity.
Therefore, some prior study may be conducted by the researcher in order to make a
hypothesis testable. A hypothesis “is tested if other deductions can be made from
it, which in turn can be confirmed or disproved by observation” (Kothari, 1988).
iii. A hypothesis must state relationship between two variables, in the case of
relational hypotheses.
iv. A hypothesis must be specific and limited in scope. This is because a simpler
hypothesis generally would be easier to test for the researcher. And therefore, he/she
must formulate such hypotheses.
v. As far as possible, a hypothesis must be stated in the simplest language, so as to make
it understood by all concerned. However, it should be noted that simplicity of a
hypothesis is not related to its significance.
vi. A hypothesis must be consistent and derived from the most known facts. In other
words, it should be consistent with a substantial body of established facts. That is, it
must be in the form of a statement which is most likely to occur.
vii. A hypothesis must be amenable to testing within a stipulated or reasonable period of
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time. No matter how excellent a hypothesis, a researcher should not use it if it
cannot be tested within a given period of time, as no one can afford to spend a life-
time on collecting data to test it.
viii. A hypothesis should state the facts that give rise to the necessity of looking for an
explanation. This is to say that by using the hypothesis, and other known and accepted
generalizations, a researcher must be able to derive the original problem condition.
Therefore, a hypothesis should explain what it actually wants to explain, and for this it
should also have an empirical reference.

1.7.2 Concepts Relating to Testing of Hypotheses


Testing of hypotheses requires a researcher to be familiar with various concepts concerned
with it such as:
Null Hypothesis and Alternative Hypothesis:
In the context of statistical analysis, hypotheses are of two types viz., null hypothesis and
alternative hypothesis. When two methods A and B are compared on their relative
superiority, and it is assumed that both the methods are equally good, then such a
statement is called as the null hypothesis. On the other hand, if method A is considered
relatively superior to method B, or vice-versa, then such a statement is known as an
alternative hypothesis. The null hypothesis is expressed as H0, while the alternative
hypothesis is expressed as Ha. For example, if a researcher wants to test the hypothesis that
the population mean (μ) is equal to the hypothesized mean (H0) = 100, then the null
hypothesis should be stated as the population mean is equal to the hypothesized mean
100. Symbolically it may be written as:-
H0:= μ = μH0 = 100
If sample results do not support this null hypothesis, then it should be concluded that
something else is true. The conclusion of rejecting the null hypothesis is called as
alternative hypothesis H1. To put it in simple words, the set of alternatives to the null
hypothesis is termed as the alternative hypothesis. If H0 is accepted, then it implies that Ha
is being rejected. On the other hand, if H0 is rejected, it means that Ha is being accepted.
For H0: μ = μ H0 = 100, the following three possible alternative hypotheses may be
considered:

Alternative hypothesis To be read as follows


The alternative hypothesis is that the
H1: μ ≠ μ H0
population mean is not equal to 100, i.e., it
could be greater than or less than 100
The alternative hypothesis is that the
H1 : μ > μ H0
population mean is greater than 100

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The alternative hypothesis is that the
H1 : μ < μ H0
population mean is less than 100
Before the sample is drawn, the researcher has to state the null hypothesis and the
alternative hypothesis. While formulating the null hypothesis, the following aspects need to
be considered:
A. Alternative hypothesis is usually the one which a researcher wishes to prove,
whereas the null hypothesis is the one which he/she wishes to disprove. Thus, a null
hypothesis is usually the one which a researcher tries to reject, while an alternative
hypothesis is the one that represents all other possibilities.
B. The rejection of a hypothesis when it is actually true involves great risk, as it
indicates that it is a null hypothesis because then the probability of rejecting it
when it is true is α (i.e., the level of significance) which is chosen very small.
C. Null hypothesis should always be specific hypothesis i.e., it should not state about or
approximately a certain value.
1.7.3 The Level Of Significance:
In the context of hypothesis testing, the level of significance is a very important concept. It
is a certain percentage that should be chosen with great care, reason and insight. If for
instance, the significance level is taken at 5 per cent, then it means that H0 would be rejected
when the sampling result has a less than 0.05 probability of occurrence when H0 is true. In
other words, the five per cent level of significance implies that the researcher is willing to
take a risk of five per cent of rejecting the null hypothesis, when (H0) is actually true. In sum,
the significance level reflects the maximum value of the probability of rejecting H0 when it
is actually true, and which is usually determined prior to testing the hypothesis.
1.7.4 Test Of Hypothesis Or Decision Rule:
Suppose the given hypothesis is H0 and the alternative hypothesis H1, then the researcher
has to make a rule known as the decision rule. According to the decision rule, the researcher
accepts or rejects H0. For example, if the H0 is that certain students are good against the
H1 that all the students are good, then the researcher should decide the number of items to
be tested and the criteria on the basis of which to accept or reject the hypothesis.
1.7.5 Type I And Type II Errors:
As regards the testing of hypotheses, a researcher can make basically two types of errors.
He/she may reject H0 when it is true, or accept H0 when it is not true. The former is called
as Type I error and the latter is known as Type II error. In other words, Type I error implies
the rejection of a hypothesis when it must have been accepted, while Type II error implies
the acceptance of a hypothesis which must have been rejected. Type I error is denoted
by α (alpha) and is known as α error, while Type II error is usually denoted by β (beta)
and is known as β error.
One-Tailed and Two-Tailed Tests:
These two types of tests are very important in the context of hypothesis testing. A two-
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tailed test rejects the null hypothesis, when the sample mean is significantly greater or
lower than the hypothesized value of the mean of the population. Such a test is suitable
when the null hypothesis is some specified value, the alternative hypothesis is a value
that is not equal to the specified value of the null hypothesis.
1.8 Procedure o f Hypothesis Testing:
Testing a hypothesis refers to verifying whether the hypothesis is valid or not. Hypothesis
testing attempts to check whether to accept or not to accept the null hypothesis. The
procedure of hypothesis testing includes all the steps that a researcher undertakes for
making a choice between the two alternative actions of rejecting or accepting a null
hypothesis. The various steps involved in hypothesis testing are as follows:
1) Making a Formal Statement:
This step involves making a formal statement of the null hypothesis (H0) and the alternative
hypothesis (Ha). This implies that the hypotheses should be clearly stated within the purview
of the research problem. For example, suppose a school teacher wants to test the
understanding capacity of the students which must be rated more than 90 per cent in terms of
marks, the hypotheses may be stated as follows:

Null Hypothesis H0 : = 100 Alternative Hypothesis H1 : > 100


2) Selecting A Significance Level:
The hypotheses should be tested on a pre-determined level of significance, which should be
specified. Usually, either 5% level or 1% level is considered for the purpose. The factors
that determine the levels of significance are: (a) the magnitude of difference between the
sample means; (b) the sample size: (c) the variability of measurements within samples; and
(d) whether the hypothesis is directional or non-directional (Kothari, 1988). In sum, the
level of significance should be sufficient in the context of the nature and purpose of
enquiry.

3) Deciding The Distribution To Use:


After making decision on the level of significance for hypothesis testing, the researcher has
to next determine the appropriate sampling distribution. The choice to be made generally
relates to normal distribution and the t-distribution. The rules governing the selection of the
correct distribution are similar to the ones already discussed with respect to estimation.

4) Selection o f a Random Sample and Computing An Appropriate Value:


Another step involved in hypothesis testing is the selection of a random sample and then
computing a suitable value from the sample data relating to test statistic by using the
appropriate distribution. In other words, it involves drawing a sample for furnishing
empirical data.

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5) Calculation of the Probability:
The next step for the researcher is to calculate the probability that the sample result would
diverge as far as it can from expectations, under the situation when the null hypothesis
is actually true.
6) Comparing the Probability:
Another step involved consists of making a comparison of the probability calculated with
the specified value of α, i.e. The significance level. If the calculated probability works
out to be equal to or smaller than the α value in case of one-tailed test, then the null
hypothesis is to be rejected. On the other hand, if the calculated probability is greater,
then the null hypothesis is to be accepted. In case the null hypothesis H0 is rejected, the
researcher runs the risk of committing the Type I error. But, if the null hypothesis H0 is
accepted, then it involves some risk (which cannot be specified in size as long as H0 is
vague and not specific) of committing the Type II error.

Practice Questions
1. Define research and what are the objectives of research?
2. State the significance of research.
3. What is the importance of knowing how to do research?
4. Briefly outline research process.
5. Highlight the different research approaches.
6. Explain the different types of research.
7. What is a research problem?
8. Outline the features of research design.
9. Discuss the features of a good research design.
10. Describe the different types of research design.
11. Explain the significance of research design.
12. Define hypothesis and what are the characteristic features of a hypothesis?
13. Distinguish between null and alternative hypothesis.
14. Differentiate type i error and type ii error.
15. Define the concept of sampling design and describe the steps involved in sampling
design.
***

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