Roll: 1302011493| MBA Semester III | MB0050 Page 1

MBA Finance - Semester III

MB-0050 Research Methodology
Roll No: 1302011493


Question 1: Briefly describe the different steps involved in a research process. Distinguish between
descriptive and causal research studies.

Answer 1: As per Fred Kerlinger Scientific research is a systematic controlled and critical investigation
of propositions about various phenomena.

The different steps involved in a research process are as follows:

The management dilemma: Any research starts with the need and desire to know more. It could
be the researcher himself or she or it could be a business manager who gets the study by done
by a researcher.

Defining the research problem: This is the first and the most critical step of the research
journey. Thus, there has to be complete clarity in the mind of the researcher regarding the
information he must collect.

Formulating the research hypotheses: In the model, we have drawn broken lines to link
defining the research problem stage to the hypotheses formulation stage.

Developing the research proposal: Research proposal is to develop a plan of investigation. This
is called the research proposal.

Research design formulation: Based on the orientation of the research, i.e., exploratory,
descriptive or causal, the researcher has a number of techniques for addressing the stated
objectives. These are termed in research as research designs.

Sampling design: It is not always possible to study the entire population. Thus, one goes about
studying a small and representative sub-group of the population. This sub-group is referred to as
the sample of the study.

Planning and collecting the data for research: The data collection methods may be classified
into secondary and primary data methods. Primary data is original and collected first hand while
secondary data is information that has been collected and compiled earlier.

Data refining and preparation for analysis: Once the data is collected, it must be refined and
processed in order to answer the research question(s) and test the formulated hypotheses.

Data analysis and interpretation of findings: This stage requires selecting the analytical tools for
testing the obtained information.eg: frequency analysis, percentages, arithmetic mean, t-test
and chi-square analysis.

The Difference between descriptive and causal research studies are as follows:

The main goal of descriptive research is to describe the data and what is being studied. The
annual census carried out by the Government of India is an example of descriptive research.
Causal research studies explore the effect of one thing on another and more specifically, the
effect of one variable on another.
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Question 2: Distinguish between primary and secondary methods of data collection. Explain the
Interview method of data collection.

Answer 2: Primary Methods of Data Collection :Primary sources are original sources from which the
researcher directly collects data that have not been previously collected e.g.., collection of data directly
by the researcher on brand awareness, brand preference, brand loyalty and other aspects of consumer
behavior from a sample of consumers by interviewing them,. Primary data are first-hand information
collected through various methods such as observation, interviewing, mailing etc. The important
methods are Observation, Interviewing, Mail Survey, Experimentation, Simulation & Project technique.

Secondary Methods of Data Collection: These are sources containing data which have been collected
and compiled for another purpose. The secondary sources consists of readily compendia and already
compiled statistical statements and reports whose data may be used by researchers for their studies
e.g., census reports , annual reports and financial statements of companies, Statistical statement,
Reports of Government Departments, Annual reports of currency and finance published by the Reserve
Bank of India, Statistical statements.

Primary Data Method Secondary Data Method
Collection Purpose
For the problem at hand For the other problem
Collection Process
Very Involved Rapid and Easy
Collection Cost
Collection Cost is High Collection cost is low
Collection Time
Collection time is long Collection time is short
Accuracy
As desired Not Known
Control
Complete No Control
Period
Up to date Dated


Interview method of data collection: Personal interviews are an excellent research method when there are
highly knowledgeable individuals whose expertise is needed for the understanding of an issue. Personal
interviews can also be used prior to survey design, prior to focus group design, or as a method of
understanding the specific technical nature of a project. Personal interviews allow for open conversation
between Responsive Management staff and individuals in a one-on-one setting. The use of personal
interviews provides researchers with insights, new hypotheses, and understanding through the process of
interaction. They allow for extensive probing, follow-up questions, discussion, and observation of emotional
reaction not possible in a quantitative study such as a telephone or mail survey. Personal interviews allow
analyses of thoughts, attitudes, behaviors, and opinions that have a high level of content validity. Personal
interviews are an appropriate qualitative data collection methodology in a variety of settings including
exploration of issues in sensitive areas such as internal agency evaluations or internal agency satisfaction
studies. Personal interviews allow participants to share qualitative information in a manner that allows freer
expression of ideas and opinions.

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Question 3: A) Discuss four types of measurement scales with examples.
B) Briefly explain the concepts of reliability, validity and sensitivity.

Answer 3: A) The term measurement means assigning numbers or some other symbols to the
characteristics of certain objects. Scaling is an extension of measurement.

Nominal scale: This is the lowest level of measurement. Here, numbers are assigned for the
purpose of identification of the objects. Any object which is assigned a higher number is in no
way superior to the one which is assigned a lower number.
Example: 1 What is your religion?
Hinduism (b) Sikhism (c) Christianity (d) Islam (e) Any other, (please specify)

Ordinal scale: 1. Rank the following attributes while choosing a restaurant for dinner. The most
important attribute may be ranked one, the next important may be assigned a rank of 2 and so
on. In the ordinal scale, the assigned ranks cannot be added, multiplied, subtracted or divided.

Interval scale: In the interval scale the difference of the score on the scale has meaningful
interpretation. It is assumed that the respondent is able to answer the questions on a
continuum scale. The mathematical form of the data on the interval scale may be written as Y =
a + b X Where a 0

Ratio scale: This is the highest level of measurement and takes care of the limitations of the
interval scale measurement, where the ratio of the measurements on the scale does not have a
meaningful interpretation. The ratio scale measurement can be converted into interval, ordinal
and nominal scale. But the other way round is not possible. Examples of the ratio scale data are
weight, distance travelled, income and sales of a company, to mention a few.

B)

Reliability: Reliability is concerned with the consistency, accuracy & predictability of the scale. It
refers to which a measurement process is free from random errors. The reliability of the scale
can be measured using Test- retest reliability, Split half reliability.

Validity: The Validity of a scale refers to the question whether we are measuring what we want to
measure. Validity of the scale refers to the extent to which the measurement process is free from
both systematic & random errors.


Sensitivity: Sensitivity refers to an instruments ability to accurately measure the variability in a
concept. A dichotomous response category such as agree or disagree does not allow the recording of
any attitude changes. A more sensitive measure with numerous categories on the scale may be
required.
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Question 4: A) Distinguish between (i) Schedules and Questionnaires (II) Open ended and closed
ended questions.

B) What are the conditions that merit the use of one over the other? Discuss by using suitable examples.
Answer 4: (i) Difference between Schedules and Questionnaires
Questionnaires are mailed to the respondent whereas Schedules are carried by the investigator
himself.
Questionnaires can be filled by the respondent whereas in case of schedule since the
investigator himself carries the schedules and the respondents response is accordingly taken.
A Questionnaire is filled by the respondent himself whereas the schedule is filled by the
investigator.

(II) Difference between Open ended and closed ended questions.

Closed-ended question there are a limited number of choices to choose from when answering,
whereas with an open-ended question the respondent can answer in their own words allowing
for a wide variety of answers.
Closed-ended question allows researchers to analyze the data at a much faster rate than the
open-ended question, because there is a limited number of a response.
Open-ended question allows for a variety of responses, so it takes a large amount of time to
categorize all these responses into workable data.
Close-ended questions in general yield higher percentages than open-ended question for
answers that are identical in both question forms.
Open-ended questions produce more missing data than close-ended.

A useful way of categorizing questionnaires is on the method of administration. Thus, the questionnaire
that has been prepared would necessitate a face-to-face interaction. In this case, the interviewer reads
out each question and makes a note of the respondents answers. This administration is called a
schedule. The other kind is the self-administered questionnaire, where the respondent reads all the
instructions and questions on his own and records his own statements or responses.

Method of Administration: Once the researcher has identified his information area; he needs to
specify how the information should be collected. The researcher usually has available to him a
variety of methods for administering the study. The main methods are personal schedule
(discussed earlier in the unit), self-administered questionnaire through mail, fax, e-mail and
web-based questionnaire. There are different preconditions for using one method over the
other.
Schedule Telephone Mall/Fax Mail Web based
Administrative control High Medium Low Low Low
Low Sensitive High Medium Low Low Low
New Concept High Medium Low Low Low
Large Sample Low Low High High High
Cost/ Time taken High Medium Medium Low Low
Questionnaire Structure Unstructured Either Structured Structured Structured
Sampling Control High Medium Medium Low Low
Response Rate High Medium Low Medium Low


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Question 5: A. What is the analysis of variance? What are the assumptions of the technique? Give a
few examples where the techniques could be used.
B. The following data represents the number of units produced by four operators during three
different shifts.

A B C D
I 10 8 12 13
II 10 12 14 15
III 12 10 11 14


Answer 5: Analysis of variance: A technique used to compare means of two or0 more samples (using
the F distribution). This technique can be used only for numerical data the test of hypothesis concerning
the equality of two population means using both the Z and t tests.

ASSUMPTIONS OF THE ANOVA
1. The error terms or residual effects, eij, are independent from observation to observation and are
randomly and normally distributed with zero mean and the same variance . This can be expressed as
eij are iN (0, ). 2 2
2. Variances of different samples are homogeneous.
3. Variances and means of different samples are not correlated, i.e., are independent.
4. The main effects (block and treatment) are additive.
Example: Suppose we want to compare the cholesterol contents of the four competing diet foods on
the basis of the following data (in milligrams per package) which were obtained for three randomly
taken 6-ounce packages of each of the diet foods:


We want to test whether the difference among the sample means can be attributed to chance at the 5
per cent level of significance.
Solution:-
Where, (i = 1, ... k and j = 1, 2,....n), xij = the jth observation of the ith sample (diet food), T = Grand
total of all the data, k = 4 (Number of diet foods), n = 3 (number of observations in each sample)

Where, Ti = Total of observations for the ith treatment.
In order to test the null hypothesis, H0 : against the alternative hypothesis, H1 : At
least two means are not equal

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B] Two-way analysis of variance and interpret the result.
T.1 = 10+10+12=32
T.2 = 8+12+10=30
T.3 = 12+14+11=37
T.4 = 13+15+14 =42

SSB = 1/3 [32x32 +30x30+37x37+42x42] 1/12 (141x141)

= 1/3 [1024+900+1369+1764] 1/12 (19881)

= 1/3 [5057] -1/12 (19881)

=1685.667 -1656.75

= 28.917



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Question 6: Basic principles of professional ethics. Ethical codes related to respondents

Answer 6:

A) Basic Principles of Professional Ethics

Professional Creed: The overall conduct of the researcher who has to be truthful during all
phases of the study whether in the conceptualization, conduction or presentation of the
research study.

At no stage should the researcher exaggerate or underplay the expenses or effort incurred in
the conduct of the study.

The respondent group being studied should be true representative of the identified respondent
population studied and not skewed and biased sample.

The data and the questionnaire completed should be on authentic, real time conduction with
actual respondent representative of the population under study and not fake completion done
by the field of investigators themselves.

The findings and results should be presented as they were found based on actual conduction
and under no circumstances must the researcher attempt to fudge or manipulate the results of
the study.

Professional Confidentiality: The researcher must bear the responsibility to maintain the
confidentiality of the research findings and not making public any aspects of the study in
apparent or camouflaged manner. This code of ethics applies both to the sponsoring client and,
respondent.


Professional Objectivity: As a true researcher and contributor to the existing body of
knowledge, the researcher must maintain the objectivity of an absolutely neutral reporter of
facts.

Designing the research objectives which must be based on facts and sound analysis rather than
simple opinion.

Collecting information by using a standard and not differential set of instructions.


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B) Ethical codes related to respondents


Study Disclosure: The researcher needs to have complete and transparent information
regarding the purpose of collection of data and what sort of information would be required
from the respondent.

Coercion and influence: The researcher should not at any stage, either before or during the data
collection stage, try to pressurize the respondent through persuasive influence or by forcing him
to share information.

Sensitivity and respect: There are certain issued like shoplifting or sexual orientation which are
not topics that can be managed in a structured, impersonal manner.

Experimentation and implication: In case the respondent is going to be part of the experimental
group subjected to any sort of treatment.

Agreement or Consent: The researcher has clearly communicated the purpose the nature and
likely Outcome of the study, it is advisable to make a mutual written or unwritten contract.



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