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Hypothesis
•An educated guess
•A claim or statement about a property of a population
Null hypothesis refers to a general statement or default position that there is no relationship between two
measured phenomena. It states that there is no statistical significance exists in a set of given observations. It
is necessary for the null hypothesis to have = sign

Examples
• Exercise is unrelated to weight loss.
• Exposure to classical music has no effect on IQ score.
• Extrovert and introverts are equally healthy.
• People exposed to sensitivity training are no more tolerant than those not exposed to sensitivity training.

H0: Tomato plants show no difference in growth rates when planted in compost rather than soil.
H1: Tomato plants exhibit a higher rate of growth when planted in compost rather than in soil.

H0: =  
H1: # > <

Examples for hypothesis formulation

1. A car dealership announces that the mean time for an oil change is less than 15 minutes
H0: µ ≥ 15 Minutes 2

H1: µ < 15 Minutes 1

2. It is believed that a candy machine makes chocolate bars that are on an average 5g. A worker claims that the
machine after maintenance no longer makes 5g bars.
H0: µ = 5g
H1: µ ≠ 5g

3. Doctors believe that the average teen sleeps on average no longer than 10 hours a day. A researcher believes that
teens on an average sleep longer.
H0: µ ≤ 10 Hours
H1: µ > 10 Hours

4. The school board claims that at least 60% of the students bring cell phone to class. A teacher believes this number
is too high and randomly samples 25 students to test at a level of 5%
H0: µ ≥ 0.60
H1: µ < 0.60

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The manager of an automobile dealership is considering a new bonus plan designed to increase
sales volume. Currently, the mean sales volume is 14 automobiles per month. The manager wants
to conduct a research study to see whether the new bonus plan increases sales volume. to collect
data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for
a one-month period.

a. develop the null and alternative hypotheses most appropriate for this situation.
b. comment on the conclusion when h0 cannot be rejected.
c. comment on the conclusion when h0 can be rejected.
a. H0: m 
Ha: m > Research hypothesis

b. There is no statistical evidence that the new bonus plan increases sales
volume.

c. The research hypothesis that m > 14 is supported. We can conclude that

the new bonus plan increases the mean sales volume.

The manager of the Danvers- Hilton Resort Hotel stated that the mean guest bill for a weekend
is Rs. 6000 or less. A member of the hotel’s accounting staff noticed that the total charges for
guest bills have been increasing in recent months. the accountant will use a sample of future
weekend guest bill to test the manager’s claim.

a) Which of the following statement is true to test the manager’s claim?

H0: m ≥ 6000 H0: m ≤ 6000 H0: m = 6000
Ha: m < 6000 Ha: m > 6000 Ha: m ≠ 6000
b) What conclusion is appropriate when H0 cannot be rejected?
c) What conclusion is appropriate when H0 can be rejected?
1. a. H0: m  6000 Manager’s claim.
Ha: m > 6000

b. We are not able to conclude that the manager’s claim is wrong.

c. The manager’s claim can be rejected. We can conclude that m > 6000.

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Research Design

Exploratory
designs
(Mostly qualitative in nature )
Research
Descriptive
designs Designs

Conclusive
designs
(Mostly quantitative in nature ) Casual
Designs

I Exploratory Research Design

Investigates issues or populations for which little is

known

Exploratory research is usually conducted when the researcher does not know much about the problem and needs additional information
or desires new or more recent information

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Ways of conducting Exploratory Research

– Secondary Data Analysis

– Experience Surveys
– Case Analysis
– Focus Groups
– Projective Techniques

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Focus Group Discussion (FGD)
• A small number of individuals are brought together to study and talk about some topic of interest.
• The discussion is co-ordinated by a moderator.
• The group usually is of 8-12 persons.
• While selecting these persons, care has to be taken to see that they should have a common
background and have similar experiences in buying.
• This is required because there should not be a conflict among the group members on the common
issues that are being discussed.

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FGD Process

Steps in the Development of the FGD Interview Guide

Development of the Guide

1. A welcome remark : introduces participants to the study and explains the purpose of the discussion, and
ground rules.
2. A warm-up session that helps participants to get to know the moderator, assistant, and each member of the
group.
3. Interview questions that consists of an introductory question, a guiding question, and a concluding question.
The goal is to select items that were representative of a larger domain, thereby providing general insight into
the performance or characteristics of this larger domain of items.
4. A conclusion by the researcher to wrap up the session and mark the end of the discussion.

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II Descriptive Research Design

• A statistical study to identify patterns or trends in a situation, but not the causal
linkages among its different elements.
• Descriptive studies help in generating hypothesis on which further research may be
based.

Descriptive Research Design - Types

Taking sample of different sections at a
Cross Sample time
15 samples each from age group of 1 –
Sectional Surveyed 5, 6-10, 11-15, 16-20
Design at T1
More variables, not taking more time

Same
Sample Sample
Longitudinal also
Surveyed
Design Surveyed
at T1
at T2

Time T1 T2
Making observation on key features of selected group over a long
period of time
Same variable taking more time

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Likert Scale

Semantic differential scale

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Likert scales vs Semantic Differential Scale

Likert scales you rate a specific statement that refers to a particular topic, while semantic differential lets you rate the topic
itself.
A Likert scale will provide you with the participants’ agreement or disagreement with the asked statements. A Semantic Differential scale
will provide you with information on where your participants’ view lies on a continuum between two contrasting adjectives.

Itemized scaling

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Rank order scale

Comparative scales
Compare Domino’s Pizza and Pizza hut on the basis of your satisfaction level (use 11 point scale where 1 is
extremely poor 6 average and 11 extremely good)

A Variety of menu options 1 2 3 4 5 6 7 8 9 10 11

B Value of money 1 2 3 4 5 6 7 8 9 10 11
C Speed of service 1 2 3 4 5 6 7 8 9 10 11
D Promotional offers 1 2 3 4 5 6 7 8 9 10 11
E Food quality 1 2 3 4 5 6 7 8 9 10 11
F Brand name 1 2 3 4 5 6 7 8 9 10 11
G Quality of service 1 2 3 4 5 6 7 8 9 10 11
H Friendliness of the salesperson on the phone 1 2 3 4 5 6 7 8 9 10 11
I Quality of packing 1 2 3 4 5 6 7 8 9 10 11

 Frame of reference
Non comparative – No frame of reference

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Graphing Rating Scale – continuous Scale

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Paired comparison
A B C D E
A - 0.6 0.30 0.60 0.35
B 0.40 - 0.28 0.70 0.40
C 0.70 0.72 - 0.65 0.10
D 0.40 0.30 0.35 - 0.42
E 0.65 0.60 0.90 0.58 -

Staple scale
Restaurant
+5 +5
+4 +4
+3 +3
+2 * +2
+1 +1
Quality of food Quality of service
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5*

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Constant sum rating scale

• You have 100points to distribute among the following

characteristics of a shop
------- Food Quality
------- Atmosphere
------- Service
------- Price
100

Cumulative scale – An Example

Place mention Yes or No against all statements
• I like eating out [ ]
• I like going to restaurants [ ]
• I like going to themed restaurants [ ]
• I like going to Chinese restaurants [ ]
• I like going to Beijing-style Chinese restaurants [ ]

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