What is a request for proposal?

Sets standards
States what is required in a proposal
States the standards of the required research
May identify potential Research Consultants specifically.
Benefits of the RFP
Formalize
research procurement
process

Provide Provide
control evaluation
function opportunity
RFPs
Provide Establish
monitoring performance
device expectations

4-2
Unethical Uses of RFPs

• Help sponsor plan project budget

• Gather cost estimates and design ideas for in-house
projects
• Create impression of competitive bid for sole-source
project

4-3
Activities in the RFP Process
Qualify potential vendors

Write and distribute RFP

Answer supplier questions

Evaluate submissions

Award contracts and start

Provide critique to all suppliers

4-4
RFP Components
Proposal administration information

Summary statement of problem

Technical section

Management section

Contracts and license section

Pricing section
4-5
The Research Proposal
Present
management question

Suggest data Discuss

collection Purpose research
and analysis efforts

Propose
necessary data
4-6
Exhibit 4-4
Proposal Complexity

4-7
Structuring the
Research Proposal
• Executive Summary • Research Qualifications
• Problem Statement • Budget
• Research Objectives • Schedule
• Literature Review • Facilities
• Importance/ Benefits of Study • Project Management
• Research Design • Bibliography
• Data Analysis • Appendices
• Nature/Form

4-8
Pricing Section
• Services • Facilities/ Equipment
• Data collection • Pilot tests
• Data analysis • Report preparations
• Client meetings • Computer models
• Travel • Project management
• Respondent survey • Questionnaire/
incentives reproduction costs
• Mail costs • Labor
• Telephone costs • Deliverables
• Design meetings
4-9
Evaluation Methods
• Ex Post Facto Evaluation
• If there is any measurement of the value of research, it is usually an after-the-fact event.
• Prior or Interim Evaluation
• A proposal to conduct a thorough management audit of operations in a company may be a
worthy one, but neither its costs nor its benei ts are easily estimated in advance.
• Option Analysis
• Some progress has been made in the development of methods for assessing the value of
research when management has a choice between well-defined options.
• It involves looking into the future to predict what will happen as a result of different actions
we might take and then recommending actions that will lead to the best outcomes
• Decision Theory
• When there are alternatives from which to choose, a rational way to approach the decision is
to try to assess the outcomes of each action.
Exploratory Data Analysis
• Exploratory data analysis is both a data analysis perspective and a set
of techniques

• In exploratory data analysis (EDA) the researcher has the flexibility to

respond to the patterns revealed in the preliminary analysis of the
data.

• Confirmatory data analysis is an analytical process guided by classical

statistical inference in its use of significance testing and confidence.
Frequency Tables and Graphs
Hypothesis
Testing
The Logic of Hypothesis Testing
2 kinds of hypothesis
• The null hypothesis (H0 ) is used for testing.
• It is a statement that no difference exists between the parameter and the
statistic being compared to it.
• A finding that is consistent with this type of hypothesis might be consistent
with other hypotheses too, and thus it does not demonstrate the truth of the
given hypothesis.
• Alternative hypothesis (HA ) holds that there has been a change
• The alternative hypothesis is the logical opposite of the null hypothesis.
• May take several forms
• “not the same”
• “greater than” or
• “less than”
Example
• Let us assume hybrid Toyota cars have maintained an average of
about 60 miles per gallon (mpg)
• Null Hypothesis
• There has been no change from the 60 mpg average
• Alternate Hypothesis
• The average mpg has changed from 60.
• The average mpg has increased (decreased) from 60.
• Testing the two forms of hypothesis
Testing the two forms of hypothesis
• A two-tailed test, or nondirectional test, considers two possibilities:
• The average could be more than 60 mpg, or it could be less than 60.
• To test this hypothesis, the regions of rejection are divided into two tails of
the distribution.

• A one-tailed test, or directional test,

• Places the entire probability of an unlikely outcome into the tail specified by
the alternative hypothesis.
Level of confidence and Level of Significance
• Level of Confidence
• C = 95%, 99%
• How confident are we about our decision?

• Level of Significance = alpha = 1 – C

• LOC = 95% Confidence
• C = 0.95
• Alpha (LOS) = 1 – 0.95
• Alpha = 0.05