Dept. of Commerce

M.Com. Semester-IV

Course: Business Research Methodology

Dr. E.Ahmad

(Books consulted: Res. Methodology by Kothari & Gaurav Garg (New Age) & Res. Meth. By Dr. Prasant Sarangi (Taxmann’s) & Google website

Syllabus

M.Com. Semester-IV (old course)

Unit – I : Introductory

Nature, Scope and Significance of Business Research Methodology

Unit – I : Introductory

…Cont.

Nature, Scope and Significance of Business Research Methodology

Research: Research is a scientific and systematic search for relevant subjects on specific topics. Through researches we have got a lot in the world. From the invention of wheel in ancient world to the modern world inventions of artificial intelligence, every thing has been made available to the society due to research. Thus research is an art of scientific investigation or a careful enquiry especially through search for new facts in any branch of knowledge.

Meaning and Definition of Business Research

Definitions:

McDaniel and Gates: ‘Business research is the planning, collection and analysis of data relevant to business decision-making and the communication of the results of this analysis to management’.

Zikmund: ‘It is a management tool that companies use to reduce uncertainty. It is a manager’s source of information about organizational and environmental conditions, and covers topics ranging from long-range planning to the most ephemeral tactical decisions’.

It is a systematic and objective process of gathering, recording and analyzing data for decision making. The research must be systematic, not haphazard. It must be objective, to avoid the distorting effects of personal bias. The aim of applied research is to facilitate managerial decision making. On the other hand, basic or pure research is used to test and build specific theories and concepts.

Nature of Business Research

1. Clearly defined objectives

2. Choose the right methodology

3. Promoting business

4. Covers region in which business operates

5. Judging problems

6. Flexibility

7. Help determine how to produce the

product

Significance of Business Research

• Estimating expenses of business

• Price determination of products & services

• Managing costs.

• Assisting managers in the decision-making

process.

• Evaluating market trends.

• Achieving competitive advantage.

Classification of Types of Research

Methods

General Classification .

• Quantitative Research “describes, infers, and resolves problems using numbers. Emphasis is placed on the collection of numerical data, the summary of those data and the drawing of inferences from the data”.

• Qualitative Research is based on words, feelings, emotions, sounds and other non-numerical and unquantifiable elements. It has been noted that “information is considered qualitative in nature if it cannot be analyzed by means of mathematical techniques.

Classification of Research Methods

on the basis of Work

• Exploratory Research

1. Survey of Literature 2. Experience Survey 3.Study of Case

• Conclusive Research

1.Descriptive Research 2. Experimental Research

• Modeling Research (Models)

1. Symbolic Model 2.Mathematical Model

• Applied Research

• Fundamental Research

Scientific Methods of Research

By scientific method of research, it is meant that research should be the interrelation of facts. The approach of Scientific Method is based on experimentation, observation and logical arguments. Elements of scientific methods research should consist of following:

(a) It relies on empirical evidences;

(b) It utilizes relevant concepts;

(c) It is committed to only objective considerations;

(d) The objective is to make a correct & adequate statement about the population;

(e) It results into probabilistic predictions;

(f) Its methodology is made known to all concerned;

(g) It aims at formulating most general doctrines.

Research Process

Research process is the series of actions or steps

necessary to effectively carryout research work.

Define

Research Problem

Formulate Hypothesis

Review the Literature

Research Design

Collection of data

Analysis of data

Interpret and report

Research Design

Research design is the arrangement of

conditions for collection and analysis of data

in a manner that aims to combine relevance to

the research purpose with economy in

procedure. In fact research design is the

conceptual structure with in which research is

conducted. It constitutes the blue print for

collection, measurement and analysis of data.

Concepts under Research Design

• Need for Research Design

• Features of a good Research Design

• Important Concepts relating to Research Design

Dependent & Independent Variables

Extraneous Variables

Control

Confounded Relationship

Research Hypothesis

Experimental & Control group

Treatments

Further readings: P.Sarangi, pp 51-60 & Kothari & Garg.

Unit – II Research Problem

• Selection & Formulation of Research Problem

• Defining the Scope and significance

• Research Methodology

Already taught. Further readings: Kothari & Garg,pp

22-26

HYPOTHESIS

DISCUSSION

• It is an instrument in research.

• It provides probability statement about the population parameters.

• Critical testing of Hypothesis is to be done. It may prove or may not disprove absolutely.

WHAT IS HYPOTHESIS?

In ordinary meaning hypothesis is merely an assumption or supposition.

But for researcher, it is a formal question that s/he intends to resolve.

For Ex. 1. ‘students who receive counseling will show increased creativity than students who do not receive counseling .’

2. ‘ Automobile A is performing as well as automobile B

WHAT IS HYPOTHESIS?

“Thus Hypothesis is 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 or accepted as highly probable in

the light of established facts.”

CHARACTERISTICS of

HYPOTHESIS

• Hypothesis should be clear and precise.

• Capable of being tested.

• Relationship between variables.

• Limited in scope and must be specific

• A simplified hypothesis.

• Consistent with most known facts.

WHAT IS HYPOTHESIS? Contnd…

Hypothesis : Types

Basically there are two types of hypotheses,

Null Hypothesis and Alternate Hypothesis

A Null hypothesis is a proposition which says that there is no statistical significance between the two variables in the population. Means to say that there is no significant difference between specified populations.

An Alternate hypothesis is one which says that there is a statistically significant relationship between two variables.

Null hypothesis and Alternate hypothesis are opposite to each other.

Difference between Null Hypothesis &

Alternate Hypothesis

Difference between Null Hypothesis & Alternate Hypothesis

Null hypothesis Alternate hypothesis

Denotes that there is no relationship

between two measured phenomena.

Denotes that a random cause may

influence the observed data or sample.

Denoted by H0. Denoted by H1 or Ha

It is the hypothesis that the researcher

is trying to disprove.

It is the hypothesis that the researcher

tries to prove.

Examples of Null & Alternate

Hypothesis Subject Null Hypothesis Alternate Hypothesis

Theory A & Theory B are to be

compared about their superiority

Both the theories are

equally good

Theory A is superior or

Theory B is inferior

Checking the water quality of a

river for one year

There is no change in

the water quality in the

first half of the year as

compared to the second

half.

The quality of the

water in the second

half is poor.

Lucky draw win Rajesh will won at least

Rs. 5000 in lucky draw

Rajesh will won at

less/mare than Rs.

5000 in lucky draw

Discussion about Testing of Null &

Alternate Hypothesis and Formulation

Suppose a hypothesis is to be tested that the population mean µ (mew) is

equal to the hypothesized mean µ0 αβ is equal to 100.

H0 : µ = µ0 = 100

In case the sample result does not support the null hypothesis it means that

something else is true. For the above given hypothesis when it can not be

accepted, a set of alternate hypothesis could be in the following forms:

Alternative

Hypothesis To be read as follows

H1 : µ ≠ µ0

…the population mean is not equal to 100

H1 : µ > µ0

…the population mean is greater than 100

H1 : µ < µ0 …the population mean is less than 100

Discussion about Testing of Null &

Alternate Hypothesis and Formulation, cntnd..

Alternative hypothesis is the one which one wishes to prove and the null hypothesis is the one which one wishes to disprove. Thus a null hypothesis represents the hypothesis we are trying to reject, and alternative represents all other possibilities.

Type-I & Type-II Errors Null hypothesis and alternate hypothesis are the statements

about the unknown population Parameters. So the testing of hypothesis should be in such a way that there is minimum errors or maximum accuracy in testing. For this there are two types of errors which are taken into consideration, type-I error & type-II error.

cntnd.

Discussion about Testing of Null &

Alternate Hypothesis and Formulation, cntnd..

A type I error occurs when the null hypothesis is true, but is rejected as false by the testing. A type II error occurs when the null hypothesis is false, but erroneously fails to be rejected. In other words we may reject H0 when H0 is true and we may accept H0 when in fact H0 is not true. Type-I error means rejection of hypothesis which should have been accepted and Type-II error means accepting the hypothesis which should have been rejected. All the possibilities in the decision making using hypothesis testing are represented in a tabular form: cntnd..

Discussion about Testing of Null &

Alternate Hypothesis and Formulation,

cntnd..

Possible Hypothesis Outcomes Actual situation

Decision

H0 True H0 False

Accept H0

No Error Type-II Error

Probability = 1- α Probability = β

Reject H0

Type-I Error

No Error

Probability = α Probability = 1- β