BRM Mba 4
BRM Mba 4
BRM Mba 4
STUDIES, RATLAM
Notes
DEPARTMENT OF MANAGEMENT
MBA -1V
Business Research Methods
Prepared By:-
Prof. Mradula Upadhyay
Asst. Professor
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Syllabus
UNIT- I
Problem formulation and statement of research, Research process,
Research design - exploratory research, descriptive research and experimental research
Designs. Decision Theory and decision Tree.
UNIT - I1
Methods of data collection, observational and survey methods.
Questionnaire Design, attitude measurement techniques.
UNTT-III
Administration of surveys, sample design, selecting an appropriate
Statistical technique. Tabulation and analysis of data, scaling techniques. Hypothesis
Testing: Chi - square, t test & ANOVA
UNIT – IV
Research Report Writing. Elementary Idea about Statistical Software packages
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UNIT – I
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PROBLEM FORMULATION
Concept of research problem
A research problem is a statement about an area of concern, a condition to be improved,
a difficulty
to be eliminated, or a troubling question that exists in scholarly literature, in
theory, or in practice that points to the need for meaningful understanding and
deliberate investigation. In some social science disciplines the research
problem is typically posed in the form of a question. A research problem does
not state how to do something, offer a vague or broad proposition, or present a
value question. McGuigan stated that problem exists on when there is no
available answer of some question or problem is a question for solution.
According to Kerlinger- “a problem is an interrogative sentence or statement
that asks: what relation exists between two or more variables?”
Problem definition may include information on -
a. Magnitude: What is the incidence and prevalence of the problem?
b. Time Frame: When does it occur? Is it current?
c. Geographic area: Where does the problem generally occur?
d. Population: Does the problem affect certain groups of people? If so, what
are their characteristics?
e. Why: What are the probable reasons for the problem? Is there agreement or
conflict over these reasons?
f. Solutions: What solutions have already been tried? How successful have
they been? What untried solutions might there be?
g. Unanswered Questions: What parts of the problem need further research?
Creating a research question is a task. Good research questions are formed and worked
on, and are rarely simply found. You start with what interests you, and you refine it until
it is workable. Good research questions are-
Relevant: Arising from issues raised in literature and/or practice, the question
will be of academic and intellectual interest.
Manageable: You must be able to access your sources of data (be they
documents or people), and to give a full and nuanced answer to your question.
Fit for assessment: Remember, you must satisfy the learning outcomes of your
course. Your question must be open to assessment, as well as interesting.
Clear and simple: A clear and simple research question will become more
complex as your research progresses. Start with an uncluttered question then
unpeel the layers in your reading and writing.
Who: Who does the problem affect? Specific groups, organizations, customers, etc.
What: What are the boundaries of the problem, e.g. organizational, work flow,
geographic, customer, segments, etc. - What is the issue? - What is the impact
of the issue? - What impact is the issue causing? - What will happen when it is
fixed? - What would happen if we didn’t solve the problem?
When: When does the issue occur? - When does it need to be fixed?
Where: Where is the issue occurring? Only in certain locations, processes, products, etc.
Why: Why is it important that we fix the problem? - What impact does it have
on the business or customer? - What impact does it have on all stakeholders,
e.g. employees, suppliers, customers, shareholders, etc.
Each of the answers will help to zero in on the specific issue(s) and frame the
‘issue statement’. Your problem statement should be solveable. That is, it
should take a reasonable amount of time to formulate, try and deploy a
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potential solution.
Research
Research is defined as the creation of new knowledge and/or the use of existing
knowledge in a new and creative way so as to generate new concepts,
methodologies and understandings. This could include synthesis and analysis
of previous research to the extent that it leads to new and creative outcomes
Research Process
Dissertation markers expect the explanation of research process to be included
in Methodology chapter. A typical research process comprises the following
stages:
1. Selecting the research area. You are expected to state that you have
selected the research area due to professional and personal interests in the area
and this statement must be true. The importance of this first stage in the
research process is often underestimated by many students. If you find research
area and research problem that is genuinely interesting to you it is for sure that
the whole process of writing your dissertation will be much easier. Therefore, it
is never too early to start thinking about the research area for your dissertation.
2. Formulating developing hypotheses. The choice between the formulation
of research questions and the development of hypotheses depends on
your research approach as it is discussed further below in more details.
Appropriate research aims and objectives or hypotheses usually result from
several attempts and revisions and these need to be mentioned in Methodology
chapter. It is critically important to get your research questions or hypotheses
confirmed by your supervisor before moving forward with the work.
3. Conducting the literature review. Literature review is usually the longest
stage in the research process. Actually, the literature review starts even before
the formulation of research aims and objective; because you have to check if
exactly the same research problem has been addressed before. Nevertheless, the
main part of the literature review is conducted after the formulation of research
aim and objectives. You have to use a wide range of secondary data
sources such as books, newspapers, magazines, journals, online articles etc.
4. Selecting methods of data collection. Data collection method(s) need to be
selected on the basis of critically analysing advantages and disadvantages
associated with several alternative data collection methods. In studies involving
primary data collection, in-depth discussions of advantages and disadvantages
of selected primary data collection method(s) need to be included in
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methodology.
5. Collecting the primary data. Primary data collection needs to be preceded
by a great level of preparation and pilot data collection may be required in case
of questionnaires. Primary data collection is not a compulsory stage for all
dissertations and you will skip this stage if you are conducting a desk-based
research.
6. Data analysis. Analysis of data plays an important role in the achievement
of research aim and objectives. Data analysis methods vary between secondary
and primary studies, as well as, between qualitative and quantitative studies.
7. Reaching conclusions. Conclusions relate to the level of achievement of
research aims and objectives. In this final part of your dissertation you will
have to justify why you think that research aims and objectives have been
achieved. Conclusions also need to cover research limitations and suggestions
for future research.
8. Completing the research. Following all of the stages described above, and
organizing separate chapters into one file leads to the completion of the first
draft. The first draft of your dissertation needs to be prepared at least one
month before the submission deadline. This is because you will need to have
sufficient amount of time to address feedback of your supervisor.
4. Generalizability: It means how best the data collected from the samples
can be utilized for drawing certain generalisations applicable to a large group
from which sample is drawn. Thus a research design helps an investigator to
generalize his findings provided he has taken due care in defining the
population, selecting the sample, deriving appropriate statistical analysis etc.
while preparing the research design. Thus a good research design is one which
is methodologically prepared and should ensure that:
a) The measuring instrument can yield objective, reliable and valid data.
b) The population is clearly defined.
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3. Review of the literature-to review the different stages of the project the
literature should be surveyed and reviewed critically.
5. Scope of the study- The scope of the study should be defined by the
research design in general terms and the study should be linked with it.
Geographical and functional dimensions should be considered by it.
1I. Data interpretation- Methods for analysis and interpretation of data should
be adopted by the researcher. Results for significance should be drawn on the
basis of test and a relation with previous findings should be established.
Exploratory Research
Exploratory research is conducted on problems that have not been investigated
clearly and there is not much information available on it. the purpose of
conducting exploratory researches is to develop more understanding about the
problem and there is no surety that the research will provide any conclusive
outcomes.
Exploratory researches begins on the basis of a general idea and the outcomes
of the research are used to find out related issues with the topic of the research,
which can be used for future research on the same topic. In exploratory
research, the process of the research varies according to the finding of new
data or insight. Exploratory researches is conducted in the beginning phase of
the problem.
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important for a researcher to analyze all variables of the existing case to use in
his research. This method is preferred by health organizations and social
science sectors to conduct research. For example, Doctors using the cases
performed by a successful doctor to improve their own practice.
The above was all the information about Exploratory research insights.
Experimental research
Definition:
Experimental research is research conducted with a scientific approach using
two sets of variables. The first set acts as a constant, which you use to measure
the differences of the second set.
If you don’t have enough data to support your decisions, you must first
determine the facts. Experimental research gathers the data necessary to help
you make better decisions.
Any research conducted under scientifically acceptable conditions uses
experimental methods. The success of experimental studies hinges on
researchers confirming the change of a variable is based solely on the
manipulation of the constant variable. The research should establish a notable
cause and effect.
You can conduct experimental research in the following situations:
Time is a vital factor in establishing a relationship between cause and effect.
Invariable behaviour between cause and effect.
You wish to understand the importance of the cause and effect.
Descriptive research
Definition: Descriptive research is defined as a research method that describes
the characteristics of the population or phenomenon studied. This methodology
focuses more on the “what” of the research subject than the “why” of the
research subject.
The descriptive research method primarily focuses on describing the nature of a
demographic segment, without focusing on “why” a particular phenomenon
occurs. In other words, it “describes” the subject of the research, without
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For example, an apparel brand that wants to understand the fashion purchasing
trends among New York buyers will conduct a demographic survey of this
region, gather population data and then conduct descriptive research on this
demographic segment. The study will then uncover details on “what is the
purchasing pattern of New York buyers,” but not cover any investigative
information about “why” the patterns exits. Because for the apparel brand
trying to break into this market, understanding the nature of their market is the
study’s objective.
UNIT – II
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Questionnaire
This method of data collection is quite popular, particularly in case of big enquiries. It is being
adopted by private individuals, research workers, private and public organisations and even by
governments.
In this method a questionnaire is sent (usually by post) to the persons concerned with a request to
answer the questions and return the questionnaire. A questionnaire consists of a number of
questions printed or typed in a definite order on a form or set of forms
Advantages of Questionnaire Method
1. There is low cost even when the universe is large and is widely spread geographically.
2. It is free from the bias of the interviewer; answers are in respondents’ own words.
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3. Respondents have adequate time to give well thought out answers.
4. Respondents, who are not easily approachable, can also be reached conveniently.
5 Large samples can be made use of and thus the results can be made more dependable and
reliable.
Disadvantages of Questionnaire Method
1. Low rate of return of the duly filled in questionnaires; bias due to no-response is often
indeterminate.
2. It can be used only when respondents are educated and cooperating.
3. The control over questionnaire may be lost once it is sent.
4. There is inbuilt inflexibility because of the difficulty of amending the approach once
questionnaires have been despatched.
5. There is also the possibility of ambiguous replies or omission of replies altogether to certain
questions; interpretation of omissions is difficult.
6. It is difficult to know whether willing respondents are truly representative.
7. This method is likely to be the slowest of all.
Characteristics of a Questionnaire
There are different types of questions that one can ask in a questionnaire depending upon the
type of information they want to gather using questionnaires. For example, if you wish to collect
exploratory information, then you are required to ask qualitative questions.
However, the following are the characteristics that remain constant irrespective of the type of
questions you ask in your questionnaire.
1. Sequence of questions
A proper series of questions should be followed to increase the rate of response to the questions.
Therefore, it is necessary to develop a structured sequence of questions that contain questions in
the sequence.
The sequence of questions is like screening questions, warm-up questions, skip questions,
transition questions, complex questions, and classification questions, etc.
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For example, if you want to design a questionnaire for motivation and buying experience then
you are required to ask questions firstly related to demographics, and questions related to the
time spent in the different sections of the store and lastly about their motivation behind every
purchase.
2. Uniformity
The uniformity of questions is essential to keep respondents involved in the questionnaire until
the end. Consistency of questions plays an important role, especially when you want to collect
information about personal opinions, demographic data, or facts from the respondents.
Better responses can be obtained only by keeping the uniformity and standardized format of the
questionnaire. This helps in the statistical analysis of the data.
If you are putting random questions together, then it will become difficult for you to analyze the
responses of those questions.
3. Exploratory
Exploratory characteristics of the questionnaire help you in collecting qualitative data. You can
ask any question as long as it is related to the subject. The exploratory nature of a questionnaire
helps you in getting detailed information about the topic.
For example, you can send questionnaires to women to learn about their spending habits. You
can ask different types of questions, such as close-ended or open-ended questions, to obtain
different outcomes.
4. Easy to understand
A good survey is easy to understand. It should be designed in such a way so that everyone can
read and understand the questions irrespective of their education level. This is an essential
characteristic of a questionnaire.
Survey research definition
Survey Research is defined as the process of conducting research using surveys that researchers
send to survey respondents. The data collected from surveys is then statistically analysed to draw
meaningful research conclusions.
In the 21st century, every organization’s eager to understand what their customers think about
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their products or services and make better business decisions. Researchers can conduct research
in multiple ways, but surveys are proven to be one of the most effective and trustworthy research
methods. An online survey is a method for extracting information about a significant business
matter from an individual or a group of individuals. It consists of structured survey questions that
motivate the participants to respond,
Creditable survey research can give these businesses access to a vast information bank.
Organizations in media, other companies, and even governments rely on survey research to
obtain accurate data.
The traditional definition of survey research is a quantitative method for collecting information
from a pool of respondents by asking multiple survey questions. This research type includes the
recruitment of individuals, collection, and analysis of data. It’s useful for researchers who aim at
communicating new features or trends to their respondents.
Generally, it’s the primary step towards obtaining quick information about mainstream topics
and conducting more rigorous and detailed quantitative research methods like surveys/polls or
qualitative research methods like focus groups/on-call interviews can follow. There are many
situations where researchers can conduct research using a blend of both qualitative and
quantitative strategies.
and due to this, more and more respondents feel free to put forth their feedback through
these mediums.
Present a medium for discussion: A survey can be the perfect platform for respondents
to provide criticism or applause for an organization. Important topics like product quality
or quality of customer service etc. can be put on the table for discussion. A way you can
do it is by including open-ended questions where the respondents can write their
thoughts. This will make it easy for you to correlate your survey to what you intend to do
with your product or service.
Strategy for never-ending improvements: An organization can establish the target
audience's attributes from the pilot phase of survey research. Researchers can use the
criticism and feedback received from this survey to improve the product/services. Once
the company successfully makes the improvements, it can send out another survey to
measure the change in feedback keeping the pilot phase the benchmark. By doing this
activity, the organization can track what was effectively improved and what still needs
improvement.
Importance of Survey techniques
The need and importance of survey techniques can be expressed as follows :
(1) Curiosity: An human being is always curious for executing a specific work. In his day-to-day
life he thinks of doing or not doing that work. Different alternatives are prepared by him and he
is always curious to know the usefulness of those alternatives. This curiosity leads him to adopt
survey techniques and to arrive at important decisions.
(2) Knowledge of Effects: It is an human tendency to know effect in respect of a certain work. If
any event takes place in business then an human being is enclined to know the effect of that
event. Research work is also adopted in this respect.
(3) Knowledge of Causes: For daily activities every human-being is expected to be aware of the
different circumstances which may create various problems. For an economist it is necessary to
know the causes of these problems- By the analysis of causes favourable atmosphere can be
created.
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(4) Knowledge of New Conditions: In everyday life of a human being daily new conditions are
created that creates new problems also. These new conditions become 0the area of research for
the human-being.
(5) Research Methodology: Survey techniques generate research methodology and the follow-
up of which makes the research more accurate and useful. The new problems of business area
and new techniques create the importance of research methodology.
(6) Feelings of Impartiality: The chief objective of survey techniques is to create the
atmosphere of impartiality. The research work is significant only when the researcher is not
biased. The research should not reflect the bias and prejudice of research.
(7) Helpful in the Integration and Collection of Knowledge: With the help of survey
techniques the researcher can judge the relevancy of data. By the analysis of data various facts
are discovered which helps in the integration and collection of knowledge.
(8) Useful in Content Analysis: Complex problems can be solved by research. For example,
while studying trade cycles an economist analyses minute and complicated facts questionnaire
and uses schedules. Therefore survey techniques are useful in content analysis.
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UNIT – III
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Meaning of sampling
In the Research Methodology, practical formulation of the research is very much important and
so should be done very carefully with proper concentration and in the presence of a very good
guidance.
But during the formulation of the research on the practical grounds, one tends to go through a
large number of problems. These problems are generally related to the knowing of the features of
the universe or the population on the basis of studying the characteristics of the specific part or
some portion, generally called as the sample.
So now sampling can be defined as the method or the technique consisting of selection for the
study of the so called part or the portion or the sample, with a view to draw conclusions or the
solutions about the universe or the population.
According to Mildred Parton, “Sampling method is the process or the method of drawing a
definite number of the individuals, cases or the observations from a particular universe, selecting
part of a total group for investigation.”
• Law of Statistical Regularity – This law comes from the mathematical theory of probability.
According to King,” Law of Statistical Regularity says that a moderately large number of the
items chosen at random from the large group are almost sure on the average to possess the
features of the large group.”
According to this law the units of the sample must be selected at random.
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• Law of Inertia of Large Numbers – According to this law, the other things being equal – the
larger the size of the sample; the more accurate the results are likely to be.
Characteristics of a Good Sample
(1) Goal-oriented: A sample design should be goal oriented. It is means and should be oriented
to the research objectives and fitted to the survey conditions.
(2) Accurate representative of the universe: A sample should be an accurate representative of
the universe from which it is taken. There are different methods for selecting a sample. It will be
truly representative only when it represents all types of units or groups in the total population in
fair proportions. In brief sample should be selected carefully as improper sampling is a source of
error in the survey.
(3) Proportional: A sample should be proportional. It should be large enough to represent the
universe properly. The sample size should be sufficiently large to provide statistical stability or
reliability. The sample size should give accuracy required for the purpose of particular study.
(4) Random selection: A sample should be selected at random. This means that any item in the
group has a full and equal chance of being selected and included in the sample. This makes the
selected sample truly representative in character.
(5) Economical: A sample should be economical. The objectives of the survey should be
achieved with minimum cost and effort.
(6) Practical: A sample design should be practical. The sample design should be simple i.e. it
should be capable of being understood and followed in the fieldwork.
(7) Actual information provider: A sample should be designed so as to provide actual
information required for the study and also provide an adequate basis for the measurement of its
own reliability.
In brief, a good sample should be truly representative in character. It should be selected at
random and should be adequately proportional. These, in fact, are the
1. Type of universe: The first step in developing any sample design is to clearly define the
set of objects, technically called the Universe, to be studied. The universe can be finite or
infinite. In finite universe the number of items is certain, but in case of an infinite
universe the number of items is infinite, i.e., we cannot have any idea about the total
number of items. The population of a city, the number of workers in a factory and the like
are examples of finite universes, whereas the number of stars in the sky, listeners of a
specific radio programme, throwing of a dice etc. are examples of infinite universes.
2. Sampling unit: A decision has to be taken concerning a sampling unit before selecting
sample. Sampling unit may be a geographical one such as state, district, village, etc., or a
construction unit such as house, flat, etc., or it may be a social unit such as family, club,
school, etc., or it may be an individual. The researcher will have to decide one or more of
such units that he has to select for his study.
3. Source list: It is also known as ‘sampling frame’ from which sample is to be drawn. It
contains the names of all items of a universe (in case of finite universe only). If source
list is not available, researcher has to prepare it. Such a list should be comprehensive,
correct, reliable and appropriate. It is extremely important for the source list to be as
representative of the population as possible.
4. Size of sample: This refers to the number of items to be selected from the universe to
constitute a sample. This a major problem before a researcher. The size of sample should
neither be excessively large, nor too small. It should be optimum. An optimum sample is
one which fulfills the requirements of efficiency, representativeness, reliability and
flexibility. While deciding the size of sample, researcher must determine the desired
precision as also an acceptable confidence level for the estimate. The size of population
variance needs to be considered as in case of larger variance usually a bigger sample is
needed. The size of population must be kept in view for this also limits the sample size.
The parameters of interest in a research study must be kept in view, while deciding the
size of the sample. Costs too dictate the size of sample that we can draw. As such,
budgetary constraint must invariably be taken into consideration when we decide the
sample size.
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5. Parameters of interest: In determining the sample design, one must consider the
question of the specific population parameters which are of interest. For instance, we may
be interested in estimating the proportion of persons with some characteristic in the
population, or we may be interested in knowing some average or the other measure
concerning the population. There may also be important sub-groups in the population
about whom we would like to make estimates. All this has a strong impact upon the
sample design we would accept.
6. Budgetary constraint:
Cost considerations, from practical point of view, have a major impact upon decisions
relating to not only the size of the sample but also to the type of sample. This fact can
even lead to the use of a non-probability sample.
7. Sampling procedure: Finally, the researcher must decide the type of sample he will use
i.e., he must decide about the technique to be used in selecting the items for the sample.
In fact, this technique or procedure stands for the sample design itself. There are several
sample designs (explained in the pages that follow) out of which the researcher must
choose one for his study. Obviously, he must select that design which, for a given sample
size and for a given cost, has a smaller sampling error.
Probability Sampling
For a sampling method to be considered probability sampling, it must utilize some form
of random selection.
In other words, researchers must set up some process or procedure that ensures, with
confidence, that the different units in their sample population have equal probabilities of
being chosen.
For example, if a researcher is dealing with a population of 100 people, each person in
the population would have the odds of 1 out of 100 for being chosen. This differs from
non-probability sampling, in which each member of the population would not have the
same odds of being selected.
If you’re not an experienced researcher, chances are that you’re more familiar with
probability sampling than you think.
Remember the times in grade school that your class pulled a name out of a hat in order to
determine who would give their presentation first? That’s probability sampling at work.
However, researchers today tend to use computers as the primary mechanism for
generating random numbers used in random selection.
Probability sampling allows researchers to create a sample that is accurately
representative of the real-life population of interest.
To perform simple random sampling, all a researcher must do is ensure that all members
of the population are included in a master list, and that subjects are then selected
randomly from this master list.
While simple random sampling creates samples that are highly representative of the
population, it can be time consuming and tedious when creating large samples.
Stratified Random Sampling
Stratified random sampling is also referred to as proportional random sampling.
In stratified random sampling, the subjects are initially grouped into different
classifications such as gender, level of education, or socioeconomic status. It’s important
to note that these classifications should not have any overlapping subjects.
From here, researchers randomly select the final list of subjects from the different defined
categories to ensure a well rounded sample.
This method of probability sampling is best used when the goal of the research is to study
a particular subgroup within a greater population. It also results in more precise statistical
outcomes than simple random sampling.
Stratified random sampling creates layers within a sample that are extremely accurate
when it comes to representing the layers with the population, but it too can be time
consuming and tedious while creating larger samples.
Systematic Random Sampling
Systematic random sampling is often compared to an arithmetic progression in which the
difference between any two consecutive numbers is of the same value.
For example, if you are a researcher examining a clinic that has 100 patients, the first step
in systematic random sampling is to pick an integer that is less than the total number of
the population. This will be the first subject.
For the sake of this example let’s pick subject number 4.
The next step is to choose another integer, which will be the number of individuals
between subjects.
Let’s say we choose 6 in this example.
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By carrying out the processes above, the subjects for our study would be patients 4, 10,
16, 22, 28, etc.
Systematic random sampling allows researchers to create samples without using a
random number generator, but the outcomes are not quite as random as they would be if a
software program was used instead.
Non-probability sampling
Definition: Non-probability sampling is defined as a sampling technique in which the
researcher selects samples based on the subjective judgment of the researcher rather than
random selection. It is a less stringent method. This sampling method depends heavily on
the expertise of the researchers. It is carried out by observation, and researchers use it
widely for qualitative research.
Non-probability sampling is a sampling method in which not all members of the
population have an equal chance of participating in the study, unlike probability
sampling. Each member of the population has a known chance of being selected. Non-
probability sampling is most useful for exploratory studies like a pilot survey (deploying
a survey to a smaller sample compared to pre-determined sample size). Researchers use
this method in studies where it is impossible to draw random probability sampling due to
time or cost considerations.
Types of non-probability sampling methods:
Convenience sampling:
Convenience sampling is a non-probability sampling technique where samples are
selected from the population only because they are conveniently available to the
researcher. Researchers choose these samples just because they are easy to recruit, and
the researcher did not consider selecting a sample that represents the entire population.
Ideally, in research, it is good to test a sample that represents the population. But, in some
research, the population is too large to examine and consider the entire population. It is
one of the reasons why researchers rely on convenience sampling, which is the most
common non-probability sampling method, because of its speed, cost-effectiveness, and
ease of availability of the sample.
Consecutive sampling:
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Quota sampling:
Hypothetically consider, a researcher wants to study the career goals of male and female
employees in an organization. There are 500 employees in the organization, also known
as the population. To understand better about a population, the researcher will need only
a sample, not the entire population. Further, the researcher is interested in particular strata
within the population. Here is where quota sampling helps in dividing the population into
strata or groups.
Judgmental or Purposive sampling:
In the judgmental sampling method, researchers select the samples based purely on the
researcher’s knowledge and credibility. In other words, researchers choose only those
people who they deem fit to participate in the research study. Judgmental or purposive
sampling is not a scientific method of sampling, and the downside to this sampling
technique is that the preconceived notions of a researcher can influence the results. Thus,
this research technique involves a high amount of ambiguity.
Snowball sampling:
Snowball sampling helps researchers find a sample when they are difficult to locate.
Researchers use this technique when the sample size is small and not easily available.
This sampling system works like the referral program. Once the researchers find suitable
subjects, he asks them for assistance to seek similar subjects to form a considerably good
size sample.
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Businesses use means to compare the average daily sales of a product between January
and February.
In data science, mean is an essential metric in exploratory data analysis (EDA) and is an
input to all kinds of advanced modeling. Mean works behind the scene in calculating
RMSE (Root Mean Squared Error), MAE (Mean Absolute Error) accuracy metrics in
classification or regression algorithms.
Limitations of mean
Although arithmetic means is the most widely known measure of Central Tendency, it is
not a robust metric; it can be highly sensitive to outliers.
Let’s consider the following two cases. On the left, the average of the four values is
perfectly in the middle of the dataset. However, on the right, just one outlier data (16)
changed the “centre of gravity” and dragged the mean to further right. To overcome this
limitation of arithmetic mean, we have another measure of central tendency — Median.
Let’s say we have a list of five numbers [4, 6, 2, 10, 7] and we want to find the median.
The process is simple:
1. Data: [4, 6, 2, 10, 7]
2. Order the list: [2, 4, 6, 7, 10]
3. Find the number at the center: 6 (median)
But what if we have even numbers in the list [4, 7, 6, 2, 10, 8]? Now there are two values
in the middle, so in this case the solution is to take an average of them:
1. Data: [4, 7, 6, 2, 10, 8]
2. Order the list: [2, 4, 6, 7, 8, 10]
3. Find two numbers at the center: [6, 7]
4. Take an average: 6.5 (median)
simply say that half the population has higher and the remaining half has lower than
$100k income in the county.
However, there is an obvious disadvantage. Median uses the position of data points rather
than their values. That way some valuable information is lost and we have to rely on
other kinds of measures such as measures of dispersion (next section) to get more
information about the data.
Use cases
Some applications of median are well-known. Have you noticed that the US Census
Bureau reports household income as “Median household income”? Or Bureau of Labor
Statistics reporting wages of Americans as “Median wage”? That is because the large
number of data collected through surveys or census are highly dispersed having both
extremely small and large values. In such cases, median is a better measure of the center
of distributions than mean is.
Figure: Average and median wages in the US. (Source: Social Security
Administration; accessed: July 19, 2020)
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3. Mode
In a list of numbers — say, [2, 3, 4, 4] — the most frequently occurring one is 4;
that’s mode. It can apply to text data as well, for example, the mode of the set {“John”,
“Kelly”, “Nadia”, “John”, “Michael”} is “John”, because it appears twice in this set of
names.
A distribution can have more than one mode as in the list [2, 2, 3, 4, 4]; it’s
called bimodal distribution of a discrete variable. Along this logic, a distribution with
more than two modes are called multimodal distribution.
Use cases
Understanding mode of a distribution is important because frequently occurring values
are more likely to be picked up in a random sample.
What’s the most frequently occurring first name in a city? Mode has the answer.
Understanding mode helps with many more such problems in the field of Natural
Language Processing (NLP).
Mode can help a grocery chain figure out which product is selling the most on different
days of the week, month or year.
Measures of Spread or dispersion
A measure of spread, sometimes also called a measure of dispersion, is used to describe
the variability in a sample or population. It is usually used in conjunction with a measure
of central tendency, such as the mean or median, to provide an overall description of a set
of data.
Why is it important to measure the spread of data?
There are many reasons why the measure of the spread of data values is important, but
one of the main reasons regards its relationship with measures of central tendency. A
measure of spread gives us an idea of how well the mean, for example, represents the
data. If the spread of values in the data set is large, the mean is not as representative of
the data as if the spread of data is small. This is because a large spread indicates that there
are probably large differences between individual scores. Additionally, in research, it is
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often seen as positive if there is little variation in each data group as it indicates that the
similar.
We will be looking at the range, quartiles, variance, and standard deviation.
Range
The range is the difference between the highest and lowest scores in a data set and is the
simplest measure of spread. So we calculate range as:
Range = maximum value - minimum value
For example, let us consider the following data set:
2 5 4 6 5 5 6 5 8 2
3 6 5 5 9 5 2 4 5 5
The maximum value is 85 and the minimum value is 23. This results in a range of 62,
which is 85 minus 23. Whilst using the range as a measure of spread is limited, it does set
the boundaries of the scores. This can be useful if you are measuring a variable that has
either a critical low or high threshold (or both) that should not be crossed. The range will
instantly inform you whether at least one value broke these critical thresholds. In
addition, the range can be used to detect any errors when entering data. For example, if
you have recorded the age of school children in your study and your range is 7 to 123
years old you know you have made a mistake!
Variance
The term variance refers to a statistical measurement of the spread between numbers in a
data set. More specifically, variance measures how far each number in the set is from the
mean and thus from every other number in the set. Variance is often depicted by this
symbol: σ2. It is used by both analysts and traders to determine volatility and market
security. The square root of the variance is the standard deviation (σ), which helps
determine the consistency of an investment's returns over a period of time.
In statistics, variance measures variability from the average or mean. It is calculated by
taking the differences between each number in the data set and the mean, then squaring
the differences to make them positive, and finally dividing the sum of the squares by the
number of values in the data set.
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Standard Deviation
The standard deviation is a measure of the spread of scores within a set of data. Usually,
we are interested in the standard deviation of a population. However, as we are often
presented with data from a sample only, we can estimate the population standard
deviation from a sample standard deviation. These two standard deviations - sample and
population standard deviations - are calculated differently. In statistics, we are usually
presented with having to calculate sample standard deviations, and so this is what this
will focus on, although the formula for a population standard deviation will also be
shown.
When to use the sample or population standard deviation
We are normally interested in knowing the population standard deviation because our
population contains all the values we are interested in. Therefore, you would normally
calculate the population standard deviation if: (1) you have the entire population or (2)
you have a sample of a larger population, but you are only interested in this sample and
do not wish to generalize your findings to the population. However, in statistics, we are
usually presented with a sample from which we wish to estimate (generalize to) a
population, and the standard deviation is no exception to this. Therefore, if all you have is
a sample, but you wish to make a statement about the population standard deviation from
which the sample is drawn, you need to use the sample standard deviation. Confusion can
often arise as to which standard deviation to use due to the name "sample" standard
deviation incorrectly being interpreted as meaning the standard deviation of the sample
itself and not the estimate of the population standard deviation based on the sample.
Examples of when to use the sample or population standard deviation
Q. A teacher sets an exam for their pupils. The teacher wants to summarize the results the
pupils attained as a mean and standard deviation. Which standard deviation should be
used?
A. Population standard deviation. Why? Because the teacher is only interested in this
class of pupils' scores and nobody else.
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Q. A researcher has recruited males aged 45 to 65 years old for an exercise training study
to investigate risk markers for heart disease (e.g., cholesterol). Which standard deviation
would most likely be used?
A. Sample standard deviation. Although not explicitly stated, a researcher investigating
health related issues will not simply be concerned with just the participants of their study;
they will want to show how their sample results can be generalised to the whole
population (in this case, males aged 45 to 65 years old). Hence, the use of the sample
standard deviation.
Q. One of the questions on a national consensus survey asks for respondents' age. Which
standard deviation would be used to describe the variation in all ages received from the
consensus?
A. Population standard deviation. A national consensus is used to find out information
about the nation's citizens. By definition, it includes the whole population. Therefore, a
population standard deviation would be used.
MEASURES OF SHAPE
Measures of Shape as a descriptive statistics provide us ways to understand how the data
points in a dataset are distributed and help us to understand the patterns that may be
concealed and can be understood once the data is plotted on the graph. In this, the data
along with the various shapes that it can have are explored. It is important to note that the
shape of only certain kind data can be explained such as that of quantitative data that
follows a logical order and have some sort of ’weight’ whereas Qualitative data cannot be
used, as its values don’t have any ‘weight’ to them.
The shape of the data can be understood by considering how the data points are
distributed in the space. This distribution can be categorised into Symmetrical
Distribution(eg. Normal Distribution) and Asymmetrical Distribution (Skewed
Distribution). In this each of such distributions are explored.
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Symmetric Distribution
A Distribution can be called Symmetrical when the two sides of the distribution are a
mirror images of each other, so if you separate the distribution from the mean, what you
see on the left side of the distribution is exactly what you see on the right side of the
distribution.
Examples of Symmetric Distributions are U-shaped distribution, Rectangular
Distribution, Normal Distribution etc.
U-shaped distribution
Rectangular Distribution
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Most of the Symmetric Distributions are unimodal i.e. they have one peak, while the
other kind is of bimodal or multi-modal where there is more than one peak in the
distribution which is because there is more than one mode in the dataset, however, the
mean and the median are same in such distributions. In this, however, only one kind of
Symmetric Distribution is discussed which is the Normal Distribution.
Normal Distribution
A Normal Distribution is a kind of a Symmetric Distribution where the mean, median
and mode coincide with each other. The key features to identify a normal distribution or
the characteristics that make a distribution ‘Normal’ are as follows-
Firstly– It is symmetrical, as explained above, the left and right side of the distribution
are mirror images of each other when the distribution is divided from the middle where
the mean, median and Mode coincide.
Secondly– Mean, Median and Mode coincide at the centre when such a data is plotted on
a graph and because such a distribution is highest in the middle, it has a bell-shaped curve
when a histogram is constructed. Such a distribution is unimodal i.e. there is only
one value that gets repeated the highest time.
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Lastly- The tails of the curve (upper and lower tails) never touch the baseline (x-axis)
making the distribution asymptotic.
Each of these three characteristics of the normal distribution is very critical in statistics as
they allow us to compute probabilities and also play a major role in Inferential Statistics.
When all these 3 characteristics are taken into account, we can draw some conclusions
such as that most of the data is around the centre and the values get perpetually extreme
and rare when we move away from the centre on either of the sides. This brings us to
the Empirical Rule or the Three Sigma Rule that allows us to say that when the data is
normally distributed.
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Asymmetric Distribution
If the collected sample data is systematically biased and includes data points that have
certain particular characteristics then this causes the distribution to become asymmetrical.
In Asymmetric Distribution, the two sides do not mirror each other.
Skewed Distribution
Skew is a characteristic often used to describe the distribution of values and in
Asymmetric Distributions, the distribution can be skewed either Positively or Negatively
and this happens when the more frequent values get cluttered around the high or low ends
of the x-axis. Such a shape is one of the most common shapes when a distribution
deviates from the normal distribution. In such a situation, the mean, median and mode do
not coincide with each other. The easiest way of identifying whether a distribution is
skewed or not is to construct a histogram and look at the shape of the distribution. If it is
skewed then it can either be a positively or can be a Negatively Skewed Distribution.
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Negatively Skewed Distribution
A distribution is Negatively Skewed when the median of the distribution is higher than
the mean and most of the scores occur at the higher end of the distribution while few
scores are at the lower end. Any Probabilities based on such a distribution will
overestimate the actual number of scores at the lower end of this skewed distribution
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while underestimating the number of scores at the higher end of the distribution. If we
plot such a distribution on a histogram then the tail on the left side of the histogram is
longer than the right side with the mean being on the left and median on the right and is
the reason that Positively Skewed Distribution is also known asLeft Skewed Distribution.
Therefore the distribution is Negatively Skewed when the mean is smaller than the
median (making mean to be on the left of median), few scores at the high end creating an
elongated tail at the lower end of the distribution.
Typical Examples of skewed distribution can be of a surprise test of maths which if turns
out to be very tough, causes a lot of students in the class to not score good marks and
when the marks of such students are plotted, the shape of the distribution will indicate a
Right-Skewed distribution. On the other hand, if the exam turns out to be very easy and
all the students score extremely high marks then such a distribution will be a Left Skewed
Distribution.
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Other Shapes of Distribution
Apart from the Normal and Skewed, there are other shapes of distribution also which
have been discussed very briefly below.
Kurtosis
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Like skewness, Kurtosis is a descriptor of shape and it describes the shape of the of the
distribution in terms of height or flatness. Some of the types of Kurtosis are
Leptokurtic, Platykurtic and Mesokurtic.
Leptokurtic
When there is a positive excess of kurtosis, the shape of the distribution is called
Leptokurtic. To understand this in terms of shape, it has fatter tails and if compared to a
normal distribution it has a similar peak (to be precise, such a distribution has higher peak
than what is found in a normal bell-shaped distribution and significantly higher if
compared to a Platykurtic distribution) and has values clustered around the centre (mean).
Example- If you are asked to collect a sample to find out the average price of the car that
people own in Delhi and you decide to go only in the upper-middle-class localities, then
the shape of such a sample’s distribution will be Leptokurtic.
Platykurtic
When there is a negative excess of kurtosis, the shape of the distribution is called
Platykurtic.
The data points are highly dispersed along the X-axis that results in thinner tails when
compared to a normal distribution and has very few values clustered around the centre
(mean). Such a distribution will have little central tendency.
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Example- You are asked to go to 15 districts or localities of your city to collect a sample
to find out the average income of the state. You decide to go to each district and find the
average income of each district by randomly choosing 40 people and finding their annual
income. But when the samples were finally plotted on a histogram, the shape of the
distribution seemed to be Platykurtic, because all the 15 districts you chose to go were
where government households were located where income of people fell in the middle-
income band with all having more or less the same average income causing the shape of
your distribution to become flatter than the normal.
Mesocratic
This is when the distribution is normal. Here the tails of the distribution are neither too
thin nor they are too thick and also the scores are equally divided with scores neither
being clustered around the centre nor being too scattered.
Bi-Modal and Multi-modal Distributions
A Typical normal distribution only has one peak. There can be a distribution which has
more than one mode and in such scenarios, the distribution can be Bi-Modal (if there are
two peaks) and Multimodal (if there are more than 2 peaks). Such peaks may indicate
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different groups that might be present in the data or it may also mean that the data is
Sinusoidal (shape in the form of a wave).
The shape of distribution plays a very important role, as it is the shape of the distribution
that makes it possible to draw inferences about the population from the sample data.
Having a good understanding of the shape of the distribution is crucial in understanding
how many inferential statistics work. In this blog post, what a normal distribution is and
what other kinds of shapes a data can take other than the well-known bell-shaped curve
etc. were discussed. With the understanding of this section, you are ready to proceed
to Inferential Statistics.
Tabulation Meaning:
Tabulation is a systematic & logical presentation of numeric data in rows and columns to
facilitate comparison and statistical analysis. It facilitates comparison by bringing related
information close to each other and helps in further statistical analysis and interpretation.
In other words, the method of placing organised data into a tabular form is called as
tabulation. It may be complex, double or simple depending upon the nature of
categorisation.
Objectives Of Tabulation:
(1) To Simplify the Complex Data
It reduces the bulk of information, i.e. raw data in a simplified and meaningful form so
that it could be easily by a common man in less time.
(2) To Bring Out Essential Features of the Data
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(iv) Stub:
Stub refers to the headings of rows.
(v) Body
This is the most important part of a table. It contains a number of cells. Cells are formed
due to the intersection of rows and column. Data are entered in these cells.
(vi) Head Note:
The head-note (or prefatory note) contains the unit of measurement of data. It is usually
placed just below the title or at the right hand top corner of the table.
(vii) Foot Note
A foot note is given at the bottom of a table. It helps in clarifying the point which is not
clear in the table. A foot note may be keyed to the title or to any column or to any row
heading. It is identified by symbols such as *,+,@,£ etc.
Source Note:
The source note shows the source of the data presented in the table. Reliability and
accuracy of data can be tested to some extent from the source note. It shows the name of
the author, title, volume, page, publisher’s name, year and place of publication of the
book or journal from which data are complied.
(12) If due to some cause the data is not available for some column of the table, the mark
dash (-) should be given at Such a place and then N.A should be written.
(13) If the material can not determined under the class factor then a miscellaneous
column should be made for such a material.
(14) Below the table it should be written that data have been received somewhere else. If
the data of every column have been received from different sources, description of each
should be given as well
All the above facts have been determined on the basis of guidance but a good table
construction is always perfectly dependent on general knowledge and personal
experience
Types of Tables
Statistical tables can be classified under two general categories, namely, general tables
and summary tables.
General tables contain a collection of detailed information including all that is relevant to
the subject or theme. The main purpose of such tables is to present all the information
available on a certain problem at one place for easy reference and they are usually placed
in the appendices of reports.
Summary tables are designed to serve some specific purposes. They are smaller in size
than general tables, emphasize on some aspect of data and are generally incorporated
within the text. The summary tables are also called derivative tables because they
are derived from the general tables. The information contained in the summary table aims
at analysis and inference. Hence, they are also known as interpretative tables.
The statistical tables may further be classified into two broad classes namely simple
tables and complex tables.
Simple table
A simple table summarizes information on a single characteristic and is also called a
univariate table.
Example 3.8
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The marks secured by a batch of students in a class test are displayed in Table 3.8
This table is based on a single characteristic namely marks and from this table one may
observe the number of students in each class of marks. The questions such as the number
of students scored in the range 50 – 60, the maximum number of students in a specific
range of marks and so on can be determined from this table.
Complex table
A complex table summarizes the complicated information and presents them into two or
more interrelated categories. For example, if there are two coordinate factors, the table is
called a two-way table or bivariate table; if the number of coordinate groups is three, it is
a case of three-way tabulation, and if it is based on more than three coordinate groups, the
table is known as higher order tabulation or a manifold tabulation.
Example 3.9
Table 3.9 is an illustration for a two-way table, in which there are two characteristics,
namely, marks secured by the students in the test and the gender of the students. The
table provides information relating to two interrelated characteristics, such as marks and
gender of students. It is observed from the table that 26 students have scored marks in the
range 40 – 50 and among them students, 16 are males and 10 are females.
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Example 3.10
Table 3.10 is an example for a three – way table with three factors, namely, marks,
gender and location.
From this table, one may get information relating to the distribution of students according
marks, gender and geographical location from where they hail.
Manifold Table-Under the process of manifold table, several qualities of data have been
described altogether. Thus this type of table produces three more characteristics of data.
For example, the students have been shown in the table on the basis of marriage situation,
residence sex and the students.
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2. Ordinal Scale
Ordinal scales are the simplest attitude measuring scale used in Marketing Research. It is
more powerful than a nominal scale in that the numbers possess the property of rank
order. The ranking of certain product attributes/benefits as deemed important by the
respondents is obtained through the scale.
Example 1: Rank the following attributes (1 - 5), on their importance in a microwave
oven.
1. Company Name
2. Functions
3. Price
4. Comfort
5. Design
The most important attribute is ranked 1 by the respondents and the least important is
ranked 5. Instead of numbers, letters or symbols too can be used to rate in a ordinal scale.
Such scale makes no attempt to measure the degree of favourability of different rankings.
Median and mode are meaningful for ordinal scale.
3. Interval Scale
Herein the distance between the various categories unlike in Nominal, or numbers unlike
in Ordinal, are equal in case of Interval Scales. The Interval Scales are also termed as
Rating Scales. An Interval Scale has an arbitrary Zero point with further numbers placed
at equal intervals. A very good example of Interval Scale is a Thermometer.
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Illustration 1 - How do you rate your present refrigerator for the following qualities.
Well
Company Less
1 2 3 4 5 Known
Name Known
Many
Functions Few 1 2 3 4 5
High
Price Low 1 2 3 4 5
Good
Design Poor 1 2 3 4 5
Very
Overall Very
Dis
Satisfactio 1 2 3 4 5 Satisfie
Satisfie
n d
d
Such a scale permits the researcher to say that position 5 on the scale is above position 4
and also the distance from 5 to 4 is same as distance from 4 to 3. Such a scale however
does not permit conclusion that position 4 is twice as strong as position 2 because no zero
position has been established. The data obtained from the Interval Scale can be used to
calculate the Mean scores of each attributes over all respondents. The Standard Deviation
(a measure of dispersion) can also be calculated.
4. Ratio Scale
Ratio Scales are not widely used in Marketing Research unless a base item is made
available for comparison. In the above example of Interval scale, a score of 4 in one
quality does not necessarily mean that the respondent is twice more satisfied than the
respondent who marks 2 on the scale. A Ratio scale has a natural zero point and further
numbers are placed at equally appearing intervals. For example scales for measuring
physical quantities like - length, weight, etc.
The ratio scales are very common in physical scenarios. Quantified responses forming a
ratio scale analytically are the most versatile. Rati scale possess all he characteristics of
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an internal scale, and the ratios of the numbers on these scales have meaningful
interpretations. Data on certain demographic or descriptive attributes, if they are obtained
through open-ended questions, will have ratio-scale properties. Consider the following
questions :
Q 1) What is your annual income before taxes? ______
0 1 5 7
(poor (bad (neither good (good
quality) quality) nor bad) quality)
BRAND 1
This is also known as continuous rating scale. The customer can occupy any position.
Here one attribute is taken ex-quality of any brand of ice-cream.
Poor Good
BRAND 2
This line can be vertical or horizontal and scale points may be provided. No other
indication is there on the continuous scale. A range is provided. To quantify the responses
to question that “indicate your overall opinion about ice-ream Brand 2 by placing a tick
mark at appropriate position on the line”, we measure the physical distance between the
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left extreme position and the response position on the line.; the greater the distance, the
more favourable is the response or attitude towards the brand.
Its limitation is that coding and analysis will require substantial amount of time, since we
first have to measure the physical distances on the scale for each respondent.
2. Itemized Rating Scales
These scales are different from continuous rating scales. They have a number of brief
descriptions associated with each category. They are widely used in Marketing Research.
They essentially take the form of the multiple category questions. The most common are
- Likert, Sementic, Staple and Multiple Dimension. Others are - Thurston and Guttmann.
Likert Scale
It was developed Rensis Likert. Here the respondents are asked to indicate a degree of
agreement and disagreement with each of a series of statement. Each scale item has 5
response categories ranging from strongly agree and strongly disagree.
5 2 1
4 3
Strongly Disagre Strongly
Agree Indifferent
agree e disagree
Each statement is assigned a numerical score ranging from 1 to 5. It can also be scaled as
-2 to +2.
-2 -1 0 1 2
For example quality of Mother Diary ice-cream is poor then Not Good is a negative
statement and Strongly Agree with this means the quality is not good.
Each degree of agreement is given a numerical score and the respondents total score is
computed by summing these scores. This total score of respondent reveals the particular
opinion of a person.
Likert Scale are of ordinal type, they enable one to rank attitudes, but not to measure the
difference between attitudes. They take about the same amount of efforts to create as
Thurston scale and are considered more discriminating and reliable because of the larger
range of responses typically given in Likert scale.
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A typical Likert scale has 20 - 30 statements. While designing a good Likert Scale, first a
large pool of statements relevant to the measurement of attitude has to be generated and
then from the pool statements, the statements which are vague and non-discriminating
have to be eliminated.
Thus, likert scale is a five point scale ranging from ’strongly agreement’to ’strongly
disagreement’. No judging gap is involved in this method.
Semantic Differential Scale
This is a seven point scale and the end points of the scale are associated with bipolar
labels.
1 7
Unpleasant 2 3 4 5 6 Pleasant
Submissive Dominant
Suppose we want to know personality of a particular person. We have options-
1. Unpleasant/Submissive
2. Pleasant/Dominant
Bi-polar means two opposite streams. Individual can score between 1 to 7 or -3 to 3. On
the basis of these responses profiles are made. We can analyse for two or three products
and by joining these profiles we get profile analysis. It could take any shape depending
on the number of variables.
Profile Analysis
---------------/---------------
----------/--------------------
--------/----------------------
Mean and median are used for comparison. This scale helps to determine overall
similarities and differences among objects.
When Semantic Differential Scale is used to develop an image profile, it provides a good
basis for comparing images of two or more items. The big advantage of this scale is its
simplicity, while producing results compared with those of the more complex scaling
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methods. The method is easy and fast to administer, but it is also sensitive to small
differences in attitude, highly versatile, reliable and generally valid.
b. Stapel’s Scale
It was developed by Jan Stapel. This scale has some distinctive features:-
1. Each item has only one word/phrase indicating the dimension it
represents.
2. Each item has ten response categories.
3. Each item has an even number of categories.
4. The response categories have numerical labels but no verbal labels.
For example, in the following items, suppose for quality of ice cream, we ask respondents
to rank from +5 to -5. Select a plus number for words which best describe the ice cream
accurately. Select a minus number for words you think do not describe the ice cream
quality accurately. Thus, we can select any number from +5,for words we think are very
accurate, to -5,for words we think are very inaccurate. This scale is usually presented
vertically.
+5
+4
+3
+2
+1
High Quality
-1
-2
-3
-4
-5
This is a unipolar rating scale.
c. Multi Dimensional Scaling
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It consists of a group of analytical techniques which are used to study consumer attitudes
related to perceptions and preferences. It is used to study-
1. The major attributes of a given class of products perceivedby the
consumers in considering the product and by which they compare the
different ranks.
2. To study which brand competes most directly with each other.
3. To find out whether the consumers would like a new brand with a
combination of characteristics not found in the market.
4. What would be the consumers ideal combination of product attributes.
5. What sales and advertising messages are compatible with consumers
brand perceptions.
It is a computer based technique. The respondents are asked to place the various brands
into different groups like similar, very similar, not similar, and so on. A goodness of fit is
traded off on a large number of attributes. Then a lack of fit index is calculated by
computer program. The purpose is to find a reasonably small number of dimensions
which will eliminate most of the stress. After the configuration for the consumer’s
preference has been developed, the next step is to determine the preference with regards
to the product under study. These techniques attempt to identify the product attributes
that are important to consumers and to measure their relative importance.
This scaling involves a unrealistic assumption that a consumer who compares different
brands would perceive the differences on the basis of only one attribute. For example,
what are the attributes for joining M.Com course. The responses may be -to do PG, to go
into teaching line,to get knowledge, appearing in the NET. There are a number of
attributes, you can not base decision on one attribute only. Therefore, when the
consumers are choosing between brands, they base their decision on various attributes. In
practice, the perceptions of the consumers involve different attributes and any one
consumer perceives each brand as a composite of a number of different attributes. This is
a shortcoming of this scale.
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They are very commonly used in political science, anthropology, public opinion, research
and psychology.
T-test
Definition
The t-test is a test in statistics that is used for testing hypotheses regarding the mean of a
small sample taken population when the standard deviation of the population is not
known.
• The t-test is used to determine if there is a significant difference between the
means of two groups.
• The t-test is used for hypothesis testing to determine whether a process has an
effect on both samples or if the groups are different from each other.
• Basically, the t-test allows the comparison of the mean of two sets of data and the
determination if the two sets are derived from the same population.
• After the null and alternative hypotheses are established, t-test formulas are used
to calculate values that are then compared with standard values.
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where x̅ is the mean of the sample, and µ is the assumed mean, σ is the standard
deviation, and n is the number of observations.
T-test for the difference in mean:
where x̅1 and x̅2 are the mean of two samples and σ1 and σ2 is the standard deviation of
two samples, and n1 and n2 are the numbers of observation of two samples.
One sample t-test (one-tailed t-test)
• One sample t-test is a statistical test where the critical area of a distribution is one-
sided so that the alternative hypothesis is accepted if the population parameter is either
greater than or less than a certain value, but not both.
• In the case where the t-score of the sample being tested falls into the critical area
of a one-sided test, the alternative hypothesis is to be accepted instead of the null
hypothesis.
• A one-tailed test is used to determine if the population is either lower than or
higher than some hypothesized value.
• A one-tailed test is appropriate if the estimated value might depart from the
sample value in either of the directions, left or right, but not both.
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• For this test, the null hypothesis states that there is no difference between the true
mean and the assumed value whereas the alternative hypothesis states that either the
assumed value is greater than or less than the true mean but not both.
• For instance, if our H0: µ0 = µ and Ha: µ < µ0, such a test would be a one-sided
test or more precisely, a left-tailed test.
• Under such conditions, there is one rejection area only on the left tail of the
distribution.
• If we consider µ = 100 and if our sample mean deviates significantly from 100
towards the lower direction, H0 or null hypothesis is rejected. Otherwise, H0 is accepted
at a given level of significance.
• Similarly, if in another case, H0: µ = µ0 and Ha: µ > µ0, this is also a one-tailed
test (right tail) and the rejection region is present on the right tail of the curve.
• In this case, when µ = 100 and the sample mean deviates significantly from 100 in
the upward direction, H0 is rejected otherwise, it is to be accepted.
Two sample t-test (two-tailed t-test)
• Two sample t-test is a test a method in which the critical area of a distribution is
two-sided and the test is performed to determine whether the population parameter of the
sample is greater than or less than a specific range of values.
• A two-tailed test rejects the null hypothesis in cases where the sample mean is
significantly higher or lower than the assumed value of the mean of the population.
• This type of test is appropriate when the null hypothesis is some assumed value,
and the alternative hypothesis is set as the value not equal to the specified value of the
null hypothesis.
• The two-tailed test is appropriate when we have H0: µ = µ0 and Ha: µ ≠ µ0 which
may mean µ > µ0 or µ < µ0.
• Therefore, in a two-tailed test, there are two rejection regions, one in either
direction, left and right, towards each tail of the curve.
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• Suppose, we take µ = 100 and if our sample mean deviates significantly from 100
in either direction, the null hypothesis can be rejected. But if the sample mean does not
deviate considerably from µ, the null hypothesis is accepted.
Independent t-test
• An Independent t-test is a test used for judging the means of two independent
groups to determine the statistical evidence to prove that the population means are
significantly different.
• Subjects in each sample are also assumed to come from different populations, that
is, subjects in “Sample A” are assumed to come from “Population A” and subjects in
“Sample B” are assumed to come from “Population B.”
• The populations are assumed to differ only in the level of the independent
variable.
• Thus, any difference found between the sample means should also exist between
population means, and any difference between the population means must be due to the
difference in the levels of the independent variable.
• Based on this information, a curve can be plotted to determine the effect of an
independent variable on the dependent variable and vice versa.
T-test applications
• The T-test is used to compare the mean of two samples, dependent or
independent.
• It can also be used to determine if the sample mean is different from the assumed
mean.
• T-test has an application in determining the confidence interval for a sample
mean.
ANOVA
Definition
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• Here, measurements are taken for each factor separately, and thus the
measurements may or may not repeated values.
• The primary purpose of two-way ANOVA is to determine if there is a relation
between the independent factors and the dependent factor.
• This technique helps us to determine if the effect of the independent factor on the
dependent factor is influenced by the other independent factor or not.
ANOVA Examples
• One example of one-way ANOVA is the analysis of the exam performance of
students based on their test anxiety.
• One example of the classification of agricultural products on the basis of different
seeds and different fertilizers used. Here, the agricultural output is the dependent factor,
whereas seeds and fertilizers are independent factors.
Applications or uses of ANOVA
• ANOVA is a useful technique for researches in various fields like economics,
biology, education, psychology, sociology, business/ industry, and several other
disciplines.
• ANOVA can be used in the agricultural field to determine the relationship
between agricultural production and the types of fertilizers used.
• It can also be used to compare the gas mileage given by different automobiles.
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UNIT –IV
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A research report is a well-crafted document that outlines the processes, data, and findings of a
systematic investigation. It is an important document that serves as a first-hand account of the
research process, and it is typically considered as an objective and accurate source of
information.
In many ways, a research report can be considered as a summary of the research process that
clearly highlights findings, recommendations, and other important details. Reading a well-
written research report should provide you with all the information you need about the core areas
of the research process.
1. Decision-Making Tool
Today’s complex business organizations require thousands of information. Reports
provide the required information a large number of important decisions in business or any
other area are taken on the basis of the information presented in the reports. This is one of
the great importance of the report.
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2. Investigation
Whenever there is any problem, a committee or commission or study group investigates
the problem to find out the reason behind the problem and present the findings with or
without the recommendation in the form of a report. It is another importance of the
report.
3. Evaluation
Large-scale organizations are engaged in multidimensional activities. It is not possible for
a single top executive to keep a personal watch on what others are doing. So, the
executive depends on reports to evaluate the performance of various departments or units.
4. Quick Location
There is no denying the fact that business executives need information for quick decision-
making. As top executives are found to be busy for various purposes), they need vital
sources of information. Such sources can be business reports.
5. Development of skill
Report writing skill develops the power of designing, organization coordination,
judgment, and communication.
7. Professional Advancement
The report also plays a major role in professional achievement. For promotion to the rank
and file position, satisfactory job performance is enough to help a person. But for
promotion to a high-level position, intellectual ability is highly required. Such ability can
be expressed through the report submitted to a higher authority.
8. Proper Control
Whether activities are happening according to plan or not is expressed through a report.
So, controlling activities are implemented based on the information of a report.
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9. A managerial Tool
Various reports make activities easy for managers. For planning, organizing,
coordinating, motivating, and controlling, the manager needs help from a report which
acts as a source of information.
A good report contains all the features which it should have. All the qualities or characteristics of a good
report should be ideally known by a good reporter so that his/her report becomes a good one.By the way,
A good report must have the following qualities:
1. Precision
In a good report, the report writer is very clear about the exact and definite purpose of writing the report.
His investigation, analysis, recommendations and others are directed by this central purpose. Precision of
a report provides the unity to the report and makes it a valuable document for best usage.
2. Accuracy of Facts
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3. Relevancy
The facts presented in a report should not be only accurate but also be relevant. Irrelevant facts make a
report confusing and likely to be misleading to make a proper decision.
4. Reader-Orientation
While drafting any report, it is necessary to keep in mind about the person who is going to read it. That's
why a good report is always reader oriented. Reader's knowledge and level of understanding
should be considered by the writer of the report. Well, reader-oriented information
qualifies a report to be a good one.
5. Simple Language
Simplicity is the best for anything. It is just another essential feature of a good report.
A good report is written in simple language avoiding vague and unclear words. The
language of the report should not be influenced by the writer's emotion or goal. The
message of a good report should be self-explanatory.A good reporter should be
careful of using simple sentences instead of using a complex sentence in the narration
of facts.
6. Conciseness
A good report should be concise but it does not mean that a report can never be long. Rather it means that
a good report or a business report is one that transmits maximum information with minimum words. It
avoids unnecessary detail and includes everything which are significant and necessary to present proper
information.
7. Grammatical Accuracy
A good report is free from errors. Any faulty construction of a sentence may make its meaning different
to the reader's mind. And sometimes it may become confusing or ambiguous. If a report is not accurate
grammatically, then it will lost its usefulness to its users. So, while writing a report, a reporter should
keep in head about the grammatical accuracy of his writing.
8. Unbiased Recommendation
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Recommendation on report usually make effect on the reader mind. So if recommendations are made at
the end of a report, they must be impartial and objective. They should come as logical conclusion for
investigation and analysis. A reporter should try to use universal and proven truth in his report rather than
using the concept which is not yet established or completed.
9. Clarity
Clarity depends on proper arrangement of facts. A good report is absolutely clear. Reporter should make
his purpose clear, define his sources, state his findings and finally make necessary recommendation. To
be an effective communicationthrough report, A report must be clear to understand for
making communication success.
Presentation of a report is also a factor which should be consider for a good report. A good report
provides a catchy and smart look and creates attention of the reader. Structure, content, language, typing
and presentation style of a good report should be attractive to make a clear impression in the mind of its
reader.
12. Positivity
A good report should have the positivity. It should narrate the positive statement instead of showing
negative one. Showing positivity in report helps to observe the issue positively which is covered in a
report.
13. Summary
A good report should have a summary by which the reader of the report can take a decision at all or stand
on a decision what to do next in such condition. A summary can reflect the whole picture at a glance. So,
it has a large impact.
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So, writing a summary is an important feature of a good report. A good reporter should not forget this.
The inclusion of above factors, features or characteristics, make a good report to
be effective and fruitful. It also helps to achieve the report goal.
A reporter who is making the report, always should be careful about those factors to make his report a
good one.
Contents of a Report
Report or study of research has to contain certain or the report' may be classified The subject matter or
things and studied under the following heads:
1.Introduction :Study of every problem has purpose. The introductory part of the report should contain
introduction and description about the problem and the project. It should, contain a description of the
agency, personnel and other aspects of the research. If the problem is being studied for removal of certain
social or political evils, it should also be mentioned. This part should contain a description of the
following:
(a) Purpose of study,
(b) Sponsoring agency personnel
(c) Statement of the problem with which the study is Concerned.
(d) The research procedure, the study design, the nature of the sample and the data collection
techniques.
2. Analysis and inferences- This is the most important aspect of the report that contains the analysis
of the data collected and the inferences drawn from the data. The inferences are based upon logic and
statistics. Report should not only contain the inferences or generalizations but also the logic or the
statistics of the basis on which the inferences have been drawn. It means that proofs, whether
numerical or logical, must be given in support of the theory or the generalization that has been drawn
or formulated.
The writer of the report should explain all the doubts and weaknesses that maybe pointed out about
the report It is the report that goes to laymen and the general readers, report. They are not aware of
the data collected or the sources through which the data have been collected. They have to judge
things from the report and therefore, the report should be logical and convincing.
3.Extent of the success achieved- The report must explain as to what extent the success has been
achieved. It has to be remembered that the report of the social research is not the report of study
conducted about some natural physical phenomena. The result of the social research, in spite of all the
precautions, cannot be said to be 100% valid and accurate. If the report contains the extent of the
success achieved and the limits to which success has been achieved, people do not try to expect too
much either from the report or from the study that has been carried out.
4. Statistical diagrammatic and graphic presentation of the data - This report has to be not only
accurate but also attractive. Apart from it, in order to convince the readers in regard to the basis of the
inferences, statistical data have to be given. Apart from it, the readers want to look at the results at a
glance. This thing can be possible only when the data collected have been presented with the help of
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diagrams. graphs etc. The method of statistical analysis should also be employed. This marks the
analysis of the data easy and also helps the understanding of the results. In fact, statistics and
diagrams not only add to the attractiveness of the report but. also to the accuracy and the validity of
the result.
5.Results-The basic rule in presenting findings is to give all the evidence relevant to the research
question. A bare statement of the findings is not enough, usually the reader is interested in their
implications for the general understanding:
6. Appendices and foot-notes- The report contains statements and references from the original
documents. On the basis of it, the generalizations have been formulated. Questionnaire, schedule and
other forms of statements are given in the report as appendices. Apart from in the statements of the
original documents are also given as appendices. In short, all the things that help the formulation of
the generalizations but cannot be included in the body of the report, are given as appendices. These
appendices not only add to the value and reliability of the report, but also present the basis on which
the report has been written and the inferences or generalizations have been drawn.
Foot-notes, more or less serve the same purpose as the appendices, The only difference between the
two is that appendices are generally enclosed at the end of the report while, foot-notes are given along
with the chapter or the para which deals with the subject to which the foot notes refer. Foot-notes are
used as reference-guides or brief explanations of the points discussed.
In giving foot-notes, the investigator or the writer of the report should be cautious as not to give
too many of them. They would make the report complex and destroy the very lucidity or clarity of the
report.
7. Suggestions- The investigator has to give suggestions. These suggestions are generally given either
at the end of the report or at the end of each chapter. Social research is undertaken with some
objective which is generally the solution of certain problems. The report shall be meaningless if it
does not contain suggestions for the solution of the problems. These suggestions are expected to be
given in a practical shape. It is generally felt that suggestions are invariably given when the
research or study is undertaken which is not purely research. This is not a correct approach;
suggestions should be given even when the study has been undertaken for purely research purpose.
There shall, however, be difference in the suggestions that are given in the report which has a
practical object and in the research that is conducted purely for research purpose.
Suggestions should be practical and based on logic, reasoning and fact. They should be
comprehensive and exhaustive and should rule out the difficulties that are likely to arise in their
implementation. It means that the suggestions should be such that they can be actually implemented.
Working on data is a complex and time consuming process, but this software can easily
handle and operate information with the help of some techniques. These techniques are used
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to analyze, transform, and produce a characteristic pattern between different data variables. In
addition to it, the output can be obtained through graphical representation so that a user can
easily understand the result.
1.Data Transformation: This software are used to convert the format of the data. After
changing the data type, it integrates same type of data in one place and it becomes easy to
manage it. You can insert the different kind of data into it and it will change its structure as
per the system specification and requirement. It means that even if you change the operating
system.
2. Reduces errors in sampling Statistical analysis software has access to a larger database
and offers easy customization. These two attributes combined together allow businesses to
ensure that the correct data is assessed and the ensuing figures are unbiased and conclusive.
Additionally, the software also analyzes the figures and information pre-existing in the
business. As most statistical software are automated, there is no need to input data manually
repeatedly, cutting down the workload.
3. simplified solution: The statistical analysis software understands the need to create
solutions that are easy to understand while maintaining the accuracy of the result. The
software knows when to assess the group mean or the median as well as whether to assert a
linear relationship to data or nonlinear. The best statistical analysis software offers features
such as multivariate analysis, regression analysis, statistical process control, etc. to handle the
workings of the data. These features control the process to avoid omitting crucial data while
simultaneously keeping the result intelligible
7.To understand T-tests: It helps to understand the difference between two sample types, and
researchers apply this method to find out the difference in the interest of two kinds of groups.
This test can also understand if the produced output is meaningless or useful.
SPSS
SPSS stands for “Statistical Package for the Social Sciences”. It is an IBM tool. This tool first
launched in 1968. This is one software package. This package is mainly used for statistical
SPSS is mainly used in the following areas like healthcare, marketing, and educational research,
It provides data analysis for descriptive statistics, numeral outcome predictions, and identifying
groups. This software also gives data transformation, graphing and direct marketing features to
Why SPSS?
They came under IBM SPSS Statistics, and most of the users refer to it as SPSS only. It is
straight forward, and its English-like command language helps the user to go through the
flow.SPSS introduces the following four programs that help researchers with their complex data
analysis needs.
SPSS’s statistics program - gives a large amount of basic statistical functionality; some include
Modeller Program-Researchers are able to build and validate predictive models with the help of
Text Analytics for Surveys Program-It gives robust feedback analysis. which in turn get a
Visualization Designer-Researchers found this visual designer data to create a wide variety of
Features of SPSS
The data from any survey collected via Survey Gizmo gets easily exported to SPSS for
In SPSS, data gets stored in.SAV format. These data mostly comes from surveys. This
makes the process of manipulating, analyzing and pulling data very simple.
SPSS have easy access to data with different variable types. These variable data is easy to
understand. SPSS helps researchers to set up model easily because most of the process is
automated.
After getting data in the magic of SPSS starts. There is no end to what we can do with
this data.
SPSS has a unique way to get data from critical data also. Trend analysis, assumptions,
SPSS offers you in-depth statistical capabilities for analyzing the exact outcome.
SPSS helps us to design, plotting, reporting and presentation features for more clarity.
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