Dr.

Ruchi Jain
Business Research Methods (KMBN 203)

UNIT 5

DATA ANALYSIS

Data Analysis include certain operations such as editing, coding, computing of the scores,
preparation of master charts, etc. A researcher has to make his plan for each and every stage of
the research process. As such, a good researcher makes a perfect plan of processing and
analysis of data.

1. Editing of data: – This aspect plays a very vital role in the detection of the errors and
omissions and then helps to correct these errors. By this step, there occurs a large amount of
increase in the degree of accuracy, consistency and homogeneity. By this method, coding and
tabulation of the data is done and also scrutiny in a very careful manner of the completed
questionnaires takes place.
Editing of the data can be done in the following two stages:-
• Field Editing – In this step, the reporting firms are reviewed by the investigator and then the
translation of what the latter has noted in the abbreviated form takes place. This stage of
editing, views writing of the individuals and proper care is taken during this step, in order to
avoid correction of the errors simply by the guess work.
• Central Editing – This step is done after the completion and the return of all the forms of
schedules to the headquarters. In this type of editing, edition of all the forms is done carefully
and thoroughly by a single person only in a small study and by a small group of persons in case
of a large study. The errors may be corrected by the editor and he should be aware of the
various instructions and the codes that are given to the interviewers while editing.

2. Coding of Data: – This step involves assignment of some symbols, either alphabetical or
numerals or both, to the answers.By doing this coding of the data, analysation of the data can
be performed in a much efficient manner but a very vital point to be kept in mind here is that
there should be no errors while assigning the codes or should be at the minimum possible level.

3. Classification of Data: – The step of classification in general terms can be defined as the
arrangement of the data into groups and classes depending on the resemblance and the
similarities. With the help of the classification of the data, the entire data can be condensed
and this condensation can be done in such an elegant way that the various important
characteristics can be very easily noticed. The various features of the variables can be
compared and the data in a tabular form can be prepared.
With the classification of the data, one can highlight the salient characteristics of the data at a
glance.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Types of Classification –
a. Geographical Classification – Here classification of data takes place on the basis of a
particular area or a particular region. For e.g. when we consider production of wheat state wise,
this type of classification refers to the geographical classification.
b. Chronological classification – This type of classification involves classification of the data on
the basis of the time of its occurrence.
c. Qualitative classification – Here classification of data takes place on the basis of some of the
features, which are not having the ability of measurement. In a dichotomous or a simple type of
the classification the division of the attribute or the feature takes place and two classes are
formed after the division. One has the ability of possessing the attribute while the other does
not possess the attribute.
d. Quantitative classification – In quantitative classification, the classification is done based on
the attributes or the features that can be measured. Quantitative data can be further divided
into two stages, namely discrete and continuous.
For a classification to be good in nature and working, it must possess the following set of
features –
1. Data should be classified in such a way that it can be easily altered or changed with time,
depending on the various situations and environment.
2. Classification of the data should be such that the data should be objective oriented.
3. A classification should never be rigid in nature, as in the case of the presence of rigidity, the
classification of the data will not be able to correct the results.
4. Data classification should always be simple in nature and should also be very clear.
5. Should also be homogeneous i.e. data being kept in a particular class should be
homogeneous in nature.
6. Stability forms a very major and a critical feature that should be present in a classification for
it to be a good one. Stability in classification can be only achieved if minimum numbers of the
changes are done in the data.

4. Tabulation of the Data – Classification of the data and the tabulation of the data have been
observed to be interrelated. In this step of the tabulation of the data, data after it has been
classified is then arranged in the form of the tables.
In general terms, it can be said that the tabulation of the data involves orderly arrangement of
the data in columns and the rows and this step takes place after the classification of data has
been done.
This step acts as the final step in the collection and compilation of the data and tabulating helps
a great deal in the condensation of the data and also in the analysis of the relations, trends etc..
Tabulation can be of two types simple or complex.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

 Simple tabulation has the ability to answer questions based on one characteristic of the
data.
 Complex tabulation two way tables or the three way tables are obtained two way tables
are those which are having the ability to give information about two characteristics of
the data and in the same way the three way tables are those which give information
about three features of the data.
But a very essential point to be kept in mind here is that in both these tables the characteristics
should be interrelated.

Characteristics of a table

1.Should be given a particular number, distinct in nature which will help in its easy reference.
2.Should have a clear and concise title and the title should always be above the body of the
table.
3.Should be given captions and stubs, which should be clear and concise and easy to follow.
4.Units of measurements that may be used should always be indicated.
5.Should be relevant to the requirements of the research study.
6.Should be logical, clear and simple.
7.No abbreviations should be used and ditto marks should not be used in the table.
8.Information about the source from where the data has been taken should be provided at the
bottom of the table.
9.Should be very accurate in nature.
10.Explanatory footnotes with the help of reference symbols should be provided beneath the
table.
11.Usually the columns are separated from one another by lines which make the table more
readable and attractive. Lines are always drawn at the top and bottom of the table and below
the captions.
12.There should be thick lines to separate the data under one class from the data under
another class and the lines separating the sub-divisions of the classes should be comparatively
thin lines.
13.The columns may be numbered to facilitate reference.
14.It is generally considered better to approximate figures before tabulation as the same would
reduce unnecessary details in the table itself.
15.It is important that all column figures be properly aligned. Decimal points and (+) or (–) signs
should be in perfect alignment.
16.Table should be made as logical, clear, accurate and simple as possible. If the data happen to
be very large, they should not be crowded in a single table for that would make the table
unwieldy and inconvenient.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

FREQUENCY AND FREQUENCY TABLES

The frequency of a particular data value is the number of times the data value occurs.

For example, if four students have a score of 80 in mathematics, and then the score of 80 is
said to have a frequency of 4. The frequency of a data value is often represented by f.

A frequency table is constructed by arranging collected data values in ascending order of

magnitude with their corresponding frequencies.

Example

The marks awarded for an assignment set for a Year 8 class of 20 students were as follows:
6 7 5 7 7 8 7 6 9 7
4 10 6 8 8 9 5 6 4 8

Present this information in a frequency table.

Solution:

To construct a frequency table, we proceed as follows:

Step 1:

Construct a table with three columns. The first column shows what is being arranged in
ascending order (i.e. the marks). The lowest mark is 4. So, start from 4 in the first column as
shown below.

Step 2:

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Go through the list of marks. The first mark in the list is 6, so put a tally mark against 6 in the
second column. The second mark in the list is 7, so put a tally mark against 7 in the second
column. The third mark in the list is 5, so put a tally mark against 5 in the third column as
shown below.

We continue this process until all marks in the list are tallied.

Step 3:

Count the number of tally marks for each mark and write it in third column. The finished
frequency table is as follows:

In general:

We use the following steps to construct a frequency table:

Step 1:

Construct a table with three columns. Then in the first column, write down all of the data
values in ascending order of magnitude.

Step 2:

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

To complete the second column, go through the list of data values and place one tally mark at
the appropriate place in the second column for every data value. When the fifth tally is
reached for a mark, draw a horizontal line through the first four tally marks as shown for 7 in
the above frequency table. We continue this process until all data values in the list are tallied.

Step 3:

Count the number of tally marks for each data value and write it in the third column

Class Intervals (or Groups)

When the set of data values are spread out, it is difficult to set up a frequency table for every
data value as there will be too many rows in the table. So we group the data into class
intervals (or groups) to help us organise, interpret and analyse the data.

Ideally, we should have between five and ten rows in a frequency table. Bear this in mind when
deciding the size of the class interval (or group).

Each group starts at a data value that is a multiple of that group. For example, if the size of the
group is 5, then the groups should start at 5, 10, 15, 20 etc. Likewise, if the size of the group is
10, then the groups should start at 10, 20, 30, 40 etc.

The frequency of a group (or class interval) is the number of data values that fall in the range
specified by that group (or class interval).

Example

The number of calls from motorists per day for roadside service was recorded for the month of
December 2003. The results were as follows:

Set up a frequency table for this set of data values.

Solution:

To construct a frequency table, we proceed as follows:

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Step 1: Construct a table with three columns, and then write the data groups or class intervals
in the first column. The size of each group is 40. So, the groups will start at 0, 40, 80, 120, 160
and 200 to include all of the data. Note that in fact we need 6 groups (1 more than we first
thought).

Step 2: Go through the list of data values. For the first data value in the list, 28, place a tally
mark against the group 0-39 in the second column. For the second data value in the list, 122,
place a tally mark against the group 120-159 in the second column. For the third data value in
the list, 217, place a tally mark against the group 200-239 in the second column.

We continue this process until all of the data values in the set are tallied.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Step 3: Count the number of tally marks for each group and write it in the third column. The
finished frequency table is as follows:

Following steps are involved in the construction of a frequency distribution.

(1) Find the range of the data: The range is the difference between the largest and the smallest
values.
(2) Decide the approximate number of classes: Which the data are to be grouped. There are no
hard and first rules for number of classes. Most of the cases we have 55 to 2020 classes. H.A.
Sturges has given a formula for determining the approximation number of classes.

(3) Determine the approximate class interval size: The size of class interval is obtained by
dividing the range of data by number of classes and denoted by h class interval size

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

In case of fractional results, the next higher whole number is taken as the size of the class
interval.

(4) Decide the starting point: The lower class limits or class boundary should cover the smallest
value in the raw data. It is a multiple of class interval.
For Example: 0,5,10,15,20 etc… are commonly used.

(5) Determine the remaining class limits (boundary): When the lowest class boundary of the
lowest class has been decided, then by adding the class interval size to the lower class
boundary, compute the upper class boundary. The remaining lower and upper class limits may
be determined by adding the class interval size repeatedly till the largest value of the data is
observed in the class.
(6) Distribute the data into respective classes: All the observations are marked into respective
classes by using Tally Bars (Tally Marks) methods which is suitable for tabulating the
observations into respective classes. The number of tally bars is counted to get the frequency
against each class. The frequency of all the classes is noted to get grouped data or frequency
distribution of the data. The total of the frequency columns must be equal to the number of
observations.

Example

Construct a frequency distribution with suitable class interval size of marks obtained by 50
students of a class are given below:

23, 50, 38, 42, 63, 75, 12, 33, 26, 39, 35, 47, 43, 52, 56, 59, 64, 77, 15, 21, 51, 54, 72, 68, 36, 65,
52, 60, 27, 34, 47, 48, 55, 58, 59, 62, 51, 48, 50, 41, 57, 65, 54, 43, 56, 44, 30, 46, 67, 53

Solution

Arrange the marks in ascending order as

12, 15, 21, 23, 26, 27, 30, 33, 34, 35, 36, 38, 39, 41, 42, 43, 43, 44, 46, 47, 47, 48, 48, 50, 50, 51,
51, 52, 52, 53, 54, 54, 55, 56, 56, 57, 58, 59, 59, 60, 62, 63, 64, 65, 65, 67, 68, 72, 75, 77

Minimum Value = 12 Maximum = 77

Range = Maximum Value – Minimum Value = 77−12= 65

Number of Classes = 1+3.322logN

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Number of Classes = 1+3.322log50

Number of Classes = 1+3.322(1.69897)

Number of Classes = 1+5.64= 6.64 or 7 approximate

Cumulative Frequency Distributions

The total frequency of all classes less than the upper class boundary of a given class is called the
cumulative frequency of that class. “A table showing the cumulative frequencies is called a
cumulative frequency distribution”. There are two types of cumulative frequency distributions.

Less than cumulative frequency distribution:

It is obtained by adding successively the frequencies of all the previous classes including the
class against which it is written. The cumulate is started from the lowest to the highest size.

More than cumulative frequency distribution:

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

It is obtained by finding the cumulate total of frequencies starting from the highest to the
lowest class. The less than cumulative frequency distribution and more than cumulative
frequency distribution for the frequency distribution given below are:

GRAPHICAL REPRESENTATION OF DATA

BAR CHARTS

Simple Bar Charts

A simple bar chart is used to represents data involving only one variable classified on spatial,
quantitative or temporal basis. In simple bar chart, we make bars of equal width but variable
length, i.e. the magnitude of a quantity is represented by the height or length of the bars.
Following steps are undertaken in drawing a simple bar diagram:
 Draw two perpendicular lines one horizontally and the other vertically at an appropriate
place of the paper.
 Take the basis of classification along horizontal line (X−X− axis) and the observed variable
along vertical line (Y−Y− axis) or vice versa.
 Marks signs of equal breath for each class and leave equal or not less than half breath in
between two classes.
 Finally marks the values of the given variable to prepare required bars.

Example:
Draw simple bar diagram to represent the profits of a bank for 5 years.
Years 1989 1990 1991 1992 1993

Profit (million $$) 10 12 18 25 42

Simple bar chart showing the profit of a bank for 5 years.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Multiple Bar Charts

By multiple bars diagram two or more sets of inter-related data are represented (multiple bar
diagram facilities comparison between more than one phenomena). The technique of simple
bar chart is used to draw this diagram but the difference is that we use different shades, colors,
or dots to distinguish between different phenomena. We use to draw multiple bar charts if the
total of different phenomena is meaningless.
Example:
Draw a multiple bar chart to represent the import and export of Canada (values in $) for the
years 1991 to 1995.

Years Imports Exports

1991 7930 4260
1992 8850 5225
1993 9780 6150
1994 11720 7340
1995 12150 8145
Simple bar chart showing the import and export of Canada from 1991 – 1995.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Component bar chart

Sub-divided or component bar cha t is used to represent data in which the total magnitude is
divided into different or components.

In this diagram, first we make simple bars for each class taking total magnitude in that class and
then divide these simple bars into parts in the ratio of various components. This type of
diagram shows the variation in different components within each class as well as between
different classes. Sub-divided bar diagram is also known as component bar chart or staked
chart.

Example:

The table below shows the quantity in hundred kgs of Wheat, Barley and Oats produced on a
certain form during the years 1991 to 1994.

Years Wheat Barley Oats

1991 34 18 27
1992 43 14 24
1993 43 16 27
1994 45 13 34
Construct a component bar chart to illustrate this data.

Solution:

To make the component bar chart, first of all we have to take year wise total production.

Years Wheat Barley Oats Total

1991 34 18 27 79
1992 43 14 24 81
1993 43 16 27 86
1994 45 13 34 92
The required diagram is given below:

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

PIE CHART

Pie chart can used to compare the relation between the whole and its components. Pie chart is
a circular diagram and the area of the sector of a circle is used in pie chart. Circles are drawn
with radii proportional to the square root of the quantities because the area of a circle is
To construct a pie chart (sector diagram), we draw a circle with radius (square root of the total).
The total angle of the circle is 360 .The angles of each component are calculated by the
formula.

hese angles are made in the circle by mean of a protractor to show different components. The
arrangement of the sectors is usually anti-clock wise.

Example:
The following table gives the details of monthly budget of a family. Represent these figures by a
suitable diagram.

The following table gives the details of monthly budget of a family. Represent these figures by a
suitable diagram.

Item of Expenditure Family Budget

Food $ 600
Clothing $ 100
House Rent $ 400
Fuel and Lighting $ 100
Miscellaneous $ 300

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Total $ 1500
Solution:

Family Budget
Items
Expenditure $ Angle of Sectors Cumulative Angle
Food 600 144 144
Clothing 100 24 168
House Rent 400 96 264
Fuel and Lighting 100 24 288
Miscellaneous 300 72 360

Total 1500 360

HISTOGRAM

A histogram looks similar to a bar chart, but in this case the area of the bar or rectangle varies
with the data, rather than just the length

When to use a histogram: It can only be used to represent continuous data.

It can represent data expressed as actual numbers, percentages

and frequencies.

It is really only of value if the reader gets more information from

a chart where the classes are different sizes.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

BIVARIATE DATA
Data in statistics is sometimes classified according to how many variables are in a particular
study. For example, “height” might be one variable and “weight” might be another variable.
Depending on the number of variables being looked at, the data might be univariate, or it might
be bivariate.

When you conduct a study that looks at a single variable, that study involves univariate data.
For example, you might study a group of college students to find out their average SAT
scores or you might study a group of diabetic patients to find their weights. Bivariate data is
when you are studying two variables. For example, if you are studying a group of college
students to find out their average SAT score and their age, you have two pieces of the puzzle
to find (SAT score and age). Or if you want to find out the weights and heights of college
students, then you also have bivariate data. Bivariate data could also be two sets of items that
are dependent on each other. For example:
 Ice cream sales compared to the temperature that day.
 Traffic accidents along with the weather on a particular day.

BIVARIATE ANALYSIS
Bivariate analysis means the analysis of bivariate data. It is one of the simplest forms of
statistical analysis, used to find out if there is a relationship between two sets of values. It
usually involves the variables X and Y.
 Univariate analysis is the analysis of one (“uni”) variable.
 Bivariate analysis is the analysis of exactly two variables.
 Multivariate analysis is the analysis of more than two variables.
The results from bivariate analysis can be stored in a two-column data table. For example, you
might want to find out the relationship between caloric intake and weight (of course, there is a
pretty strong relationship between the two. You can read more here.). Caloric intake would be

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

your independent variable, X and weight would be your dependent variable, Y.

Types of Bivariate Analysis

Common types of bivariate analysis include:

1. Regression Analysis
Regression analysis, predicts the value of the dependent variable based on the known value of
the independent variable, assuming that average mathematical relationship between two or
more variables.

A statistical technique for estimating the change in the metric dependent variable due to the
change in one or more independent variables, based on the average mathematical relationship
between two or more variables is known as regression. It plays a significant role in many human
activities, as it is a powerful and flexible tool which used to forecast the past, present or future
events on the basis of past or present events. For instance: On the basis of past records, a
business’s future profit can be estimated.

In a simple linear regression, there are two variables x and y, wherein y depends on x or say
influenced by x. Here y is called as dependent, or criterion variable and x is independent or
predictor variable. The regression line of y on x is expressed as under:

y = a + bx

where, a = constant,
b = regression coefficient,
In this equation, a and b are the two regression parameter.

2. Correlation Coefficients
Correlation is described as the analysis which lets us know the association or the absence of the
relationship between two variables ‘x’ and ‘y’.
This coefficient tells you if the variables are related. Basically, a zero means they aren’t
correlated (i.e. related in some way), while a 1 (either positive or negative) means that the
variables are perfectly correlated (i.e. they are perfectly in sync with each other).

The term correlation is a combination of two words ‘Co’ (together) and relation (connection)
between two quantities. Correlation is when, at the time of study of two variables, it is

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 Dr. Ruchi Jain
Business Research Methods (KMBN 203)

observed that a unit change in one variable is retaliated by an equivalent change in another
variable, i.e. direct or indirect. Or else the variables are said to be uncorrelated when the
movement in one variable does not amount to any movement in another variable in a specific
direction. It is a statistical technique that represents the strength of the connection between
pairs of variables.

Correlation can be positive or negative. When the two variables move in the same direction, i.e.
an increase in one variable will result in the corresponding increase in another variable and vice
versa, then the variables are considered to be positively correlated. For instance: profit and
investment.

On the contrary, when the two variables move in different directions, in such a way that an
increase in one variable will result in a decrease in another variable and vice versa, This
situation is known as negative correlation. For instance: Price and demand of a product.

The measures of correlation are given as under:

 Karl Pearson’s Product-moment correlation coefficient

 Spearman’s rank correlation coefficient

(NUMERICALS AND THEORY OF CORRELATION AND REGRESSION FROM S.P.GUPTA)

CHI-SQUARE

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

Chi-square, symbolically written as χ2 (Pronounced as Ki-square), is a statistical measure used in

the context of sampling analysis for comparing a variance to a theoretical variance.

As a non-parametric test, it “can be used to determine if categorical data shows dependency or

the two classifications are independent.

It can also be used to make comparisons between theoretical populations and actual data when
categories are used.”Thus, the chi-square test is applicable in large number of problems.

Chi-Square As A Non-Parametric Test

Chi-square is an important non-parametric test and as such no rigid assumptions are necessary
in respect of the type of population. We require only the degrees of freedom (implicitly of
course the size of the sample) for using this test.

As a non-parametric test, chi-square can be used

(i) as a test of goodness of fit and

(ii) as a test of independence.

As a test of goodness of fit, χ2 test enables us to see how well does the assumed theoretical
distribution (such as Binomial distribution, Poisson distribution or Normal distribution) fit to the
observed data. When some theoretical distribution is fitted to the given data, we are always
interested in knowing as to how well this distribution fits with the observed data. The chi-
square test can give answer to this. If the calculated value of χ2 is less than the table value at
a certain level of significance, the fit is considered to be a good one which means that the
divergence between the observed and expected frequencies is attributable to fluctuations of
sampling. But if the calculated value of χ2 is greater than its table value, the fit is not
considered to be a good one.

As a test of independence, χ2 test enables us to explain whether or not two attributes are
associated. For instance, we may be interested in knowing whether a new medicine is effective
in controlling fever or not, χ2 test will helps us in deciding this issue. In such a situation, we
proceed with the null hypothesis that the two attributes (viz., new medicine and control of
fever) are independent which means that new medicine is not effective in controlling fever. On
this basis we first calculate the expected frequencies and then work out the value of χ2 . If the
calculated value of χ2 is less than the table value at a certain level of significance for given
degrees of freedom, we conclude that null hypothesis stands which means that the two
attributes are independent or not associated (i.e., the new medicine is not effective in
controlling the fever). But if the calculated value of χ2 is greater than its table value, our
inference then would be that null hypothesis does not hold good which means the two

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

attributes are associated and the association is not because of some chance factor but it
exists in reality (i.e., the new medicine is effective in controlling the fever and as such may be
prescribed).

NUMERICALS OF CHI SQUARE FROM S.P.GUPTA

TESTING OF HYPOTHESIS

Research hypothesis

Research Hypothesis is a predictive statement, capable of being tested by scientific methods,

that relates an independent variable to some dependent variable.

For example:

“Students who receive counseling will show a greater increase in creativity than students not
receiving counseling”
Or
“the automobile A is performing as well as automobile B.”

Characteristics of hypothesis:

Hypothesis must possess the following characteristics:

(i) Hypothesis should be clear and precise. If the hypothesis is not clear and precise, the
inferences drawn on its basis cannot be taken as reliable.
(ii) Hypothesis should be capable of being tested.
(iii) Hypothesis should state relationship between variables, if it happens to be a
relational hypothesis.
(iv) Hypothesis should be limited in scope and must be specific. A researcher must
remember that narrower hypotheses are generally more testable and he should
develop such hypotheses.
(v) Hypothesis should be stated as far as possible in most simple terms so that the same
is easily understandable by all concerned. But one must remember that simplicity of
hypothesis has nothing to do with its significance.
(vi) Hypothesis should be one which judges accept as being the most likely.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

(vii) Hypothesis should be amenable to testing within a reasonable time.

(viii) Hypothesis must explain the facts that gave rise to the need for explanation.

Qualities of Good Hypothesis

(i) It should be based on known facts and must have roots in the existing theories of knowledge.

(ii) The hypothesis should be testable. (This is the most important requirement).

(iii)The explanation offered by the hypothesis should be quite simple, straightforward and brief,
as this will be helpful in making the hypothesis 'testable'. If the explanation is complex, it has to
be broken up into smaller hypotheses and each has to be tested separately.

(iv) A hypothesis is of very great value if its acceptance or rejection is utilizable for many
purposes or opens the doors for further researchers. For instance, the acceptance of the
hypothesis related with the research problem mentioned earlier will be helpful in providing
appropriate creative opportunities to children of the different sexes and intelligence levels in
school and homes.

Basic Concepts Concerning Testing Of Hypotheses

(a) Null hypothesis and alternative hypothesis: If we are to compare method A with
method B about its superiority and if we proceed on the assumption that both methods
are equally good, then this assumption is termed as the null hypothesis.
As against this, we may think that the method A is superior or the method B is inferior,
we are then stating what is termed as alternative hypothesis.

The null hypothesis is generally symbolized as Ho and the alternative hypothesis as Ha.

(b) The level of significance: It is always some percentage (usually 5%) which should be
chosen with great care, thought and reason, it means that researcher is willing to take
as much as a 5 per cent risk of rejecting the null hypothesis when it (Ho) happens to be
true. Thus the significance level is the maximum value of the probability of rejecting Ho
when it is true and is usually determined in advance before testing the hypothesis.

(c) Decision rule or test of hypothesis: Given a hypothesis Ho and an alternative hypothesis
Ha, we make a rule which is known as decision rule according to which we accept Ho
(i.e., reject Ha) or reject Ho (i.e., accept Ha). For instance, if (Ho is that a certain lot is
good (there are very few defective items in it) against (Ha) that the lot is not good (there
are too many defective items in it), then we must decide the number of items to be
tested and the criterion for accepting or rejecting the hypothesis.

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Dr. Ruchi Jain
Business Research Methods (KMBN 203)

(d) Type I and Type II errors: There are basically two types of errors we can make. We may
reject Ho when Ho is true and we may accept Ho when in fact Ho is not true. The former
is known as Type I error and the latter as Type II error. In other words, Type I error
means rejection of hypothesis which should have been accepted and Type II error
means accepting the hypothesis which should have been rejected. Type I error is
denoted by α (alpha) known as α error, also called the level of significance of test; and
Type II error is denoted by β (beta) known as β error.

Procedure For Hypothesis Testing

Step 1: Making a formal statement: The step consists in making a formal statement of the null
hypothesis (Ho) and also of the alternative hypothesis (Ha). This means that hypotheses should
be clearly stated, considering the nature of the research problem.
Step 2:Selecting a significance level: The hypotheses are tested on a pre-determined level of
significance and as such the same should be specified. Generally, in practice, either 5% level or
1% level is adopted for the purpose. The factors that affect the level of significance are:
(a) the magnitude of the difference between sample means;
(b) the size of the samples;
(c) the variability of measurements within samples; and
(d) whether the hypothesis is directional or non-directional (A directional hypothesis is one
which predicts the direction of the difference between, say, means). In brief, the level of
significance must be adequate in the context of the purpose and nature of enquiry.
Step 3: Deciding the distribution to use: After deciding the level of significance, the next step in
hypothesis testing is to determine the appropriate sampling distribution. The choice generally
remains between normal distribution and the t-distribution.
Step 4: Selecting a random sample and computing an appropriate value: Another step is to
select a random sample(s) and compute an appropriate value from the sample data concerning
the test statistic utilizing the relevant distribution. In other words, draw a sample to furnish
empirical data.
Step 5:Calculation of the probability: One has then to calculate the probability that the sample
result would diverge as widely as it has from expectations, if the null hypothesis were in fact
true.
Step 6: Comparing the probability: Yet another step consists in comparing the probability thus
calculated with the specified value for α , the significance level. If the calculated probability is

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Business Research Methods (KMBN 203)

equal to or smaller than the α value in case of one-tailed test (and α /2 in case of two-tailed
test), then reject the null hypothesis (i.e., accept the alternative hypothesis), but if the
calculated probability is greater, then accept the null hypothesis.

Flow Diagram For Hypothesis Testing

ANALYSIS OF VARIANCE (ANOVA)

 Professor R.A. Fisher developed a very elaborate theory concerning ANOVA.

 Analysis of variance (abbreviated as ANOVA) is an extremely useful technique
concerning researches in the fields of economics, biology, education, psychology,
sociology, business/industry and in researches of several other disciplines. This
technique is used when multiple sample cases are involved.
 The ANOVA technique is important in the context of all those situations where we want
to compare more than two populations such as in comparing the yield of crop from
several varieties of seeds, the gasoline mileage of four automobiles, the smoking habits
of five groups of university students and so on.
 Thus, through ANOVA technique one can, in general, investigate any number of factors
which are hypothesized or said to influence the dependent variable.

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Business Research Methods (KMBN 203)

 If we take only one factor and investigate the differences amongst its various categories
having numerous possible values, we are said to use one-way ANOVA and in case we
investigate two factors at the same time, then we use two-way ANOVA.

One-way (or single factor) ANOVA:

Illustration

Set up an analysis of variance table for the following per acre production data for three
varieties of wheat, each grown on 4 plots and state if the variety differences are significant.

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Business Research Methods (KMBN 203)

In this case we first take the total of all the individual values of n items and call it as T.
T in the given case = 60 and n = 12

We can now set up the ANOVA table for this problem:

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Business Research Methods (KMBN 203)

Interpretation:

If the worked out value of F, as stated above, is less than the table value of F, the difference is
taken as insignificant i.e., due to chance and the null-hypothesis of no difference between
sample means stands. In case the calculated value of F happens to be either equal or more
than its table value, the difference is considered as significant (which means the samples
could not have come from the same universe) and accordingly the conclusion may be drawn.

TWO WAY ANOVA

Illustration

Set up an analysis of variance table for the following two-way design results:

Solution:

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Business Research Methods (KMBN 203)

TWO WAY ANOVA TABLE

INTERPRETATION

Interpretation refers to the task of drawing inferences from the collected facts after an
analytical and/or experimental study. In fact, it is a search for broader meaning of research
findings. The task of interpretation has two major aspects viz.,

(i) the effort to establish continuity in research through linking the results of a given
study with those of another, and

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Business Research Methods (KMBN 203)

(ii) the establishment of some explanatory concepts.

NEED OF INTERPRETATION

i)It is through interpretation that the researcher can well understand the abstract principle that
works beneath his findings. Through this he can link up his findings with those of other studies,
having the same abstract principle, and thereby can predict about the concrete world of events.

(ii) Interpretation leads to the establishment of explanatory concepts that can serve as a guide
for future research studies; it opens new avenues of intellectual adventure and stimulates the
quest for more knowledge.

(iii)Researcher can better appreciate only through interpretation why his findings are what they
are and can make others to understand the real significance of his research findings.

(iv)The interpretation of the findings of exploratory research study often results into
hypotheses for experimental research and as such interpretation is involved in the transition
from exploratory to experimental research.

PRECAUTIONS IN INTERPRETATION

Researcher must pay attention to the following points for correct interpretation:

(i) Researcher must invariably satisfy himself that:

(a) the data are appropriate, trustworthy and adequate for drawing inferences;
(b) the data reflect good homogeneity; and that
(c) proper analysis has been done through statistical methods.

(ii)The researcher must remain cautious about the errors that can possibly arise in the process
of interpreting results. Errors can arise due to false generalization and/or due to wrong
interpretation of statistical measures, such as the application of findings beyond the range of
observations, identification of correlation with causation and the like.

(iii)He must always keep in view that the task of interpretation is very much intertwined with
analysis As such he must take the task of interpretation as a special aspect of analysis and
accordingly must take all those precautions that one usually observes while going through the
process of analysis viz., precautions concerning the reliability of data, computational checks,
validation and comparison of results.

(iv)Broad generalisation should be avoided as most research is not amenable to it because the
coverage may be restricted to a particular time, a particular area and particular conditions.

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Business Research Methods (KMBN 203)

(v)The researcher must remember that “ideally in the course of a research study, there should
be constant interaction between initial hypothesis, empirical observation and theoretical
conceptions. He must pay special attention to this aspect while engaged in the task of
interpretation.

DIFFERENT STEPS IN WRITING REPORT

Research reports are the product of slow, painstaking, accurate inductive work. The usual steps
involved in writing report are:

(a) logical analysis of the subject-matter;

(b) preparation of the final outline;
(c) preparation of the rough draft;
(d) rewriting and polishing;
(e) preparation of the final bibliography; and
(f) writing the final draft.
Logical analysis of the subject matter: It is the first step which is primarily concerned with the
development of a subject. There are two ways in which to develop a subject (a) logically and (b)
chronologically. The logical development is made on the basis of mental connections and
associations between the one thing and another by means of analysis. Logical treatment often
consists in developing the material from the simple possible to the most complex structures.
Chronological development is based on a connection or sequence in time or occurrence. The
directions for doing or making something usually follow the chronological order.

Preparation of the final outline: It is the next step in writing the research report “Outlines are
the framework upon which long written works are constructed. They are an aid to the logical
organisation of the material and a reminder of the points to be stressed in the report.”

Preparation of the rough draft: This follows the logical analysis of the subject and the
preparation of the final outline. Such a step is of utmost importance for the researcher now sits
to write down what he has done in the context of his research study. He will write down the
procedure adopted by him in collecting the material for his study along with various limitations
faced by him, the technique of analysis adopted by him, the broad findings and generalizations
and the various suggestions he wants to offer regarding the problem concerned.

Rewriting and polishing of the rough draft: This step happens to be most difficult part of all
formal writing. Usually this step requires more time than the writing of the rough draft. The
careful revision makes the difference between a mediocre and a good piece of writing. While
rewriting and polishing, one should check the report for weaknesses in logical development or

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Business Research Methods (KMBN 203)

presentation. The researcher should also “see whether or not the material, as it is presented, has
unity and cohesion; does the report stand upright and firm and exhibit a definite pattern, like a
marble arch? Or does it resemble an old wall of moldering cement and loose brick.” In addition
the researcher should give due attention to the fact that in his rough draft he has been consistent
or not. He should check the mechanics of writing—grammar, spelling and usage.

Preparation of the final bibliography: Next in order comes the task of the preparation of the final
bibliography. The bibliography, which is generally appended to the research report, is a list of
books in some way pertinent to the research which has been done. It should contain all those
works which the researcher has consulted.

Writing the final draft: This constitutes the last step. The final draft should be written in a concise
and objective style and in simple language, avoiding vague expressions such as “it seems”, “there
may be”, and the like ones. While writing the final draft, the researcher must avoid abstract
terminology and technical jargon. Illustrations and examples based on common experiences
must be incorporated in the final draft as they happen to be most effective in communicating the
research findings to others. A research report should not be dull, but must enthuse people and
maintain interest and must show originality. It must be remembered that every report should be
an attempt to solve some intellectual problem and must contribute to the solution of a problem
and must add to the knowledge of both the researcher and the reader.

LAYOUT OF THE RESEARCH REPORT

The layout of the report means as to what the research report should contain. A comprehensive
layout of the research report should comprise

(A) preliminary pages;

(B) the main text; and
(C) the end matter.

(A) Preliminary Pages

In its preliminary pages the report should carry a title and date, followed by acknowledgements
in the form of ‘Preface’ or ‘Foreword’. Then there should be a table of contents followed by list
of tables and illustrations so that the decision-maker or anybody interested in reading the report
can easily locate the required information in the report.

(B) Main Text

The main text of the report should have the following sections:

 Introduction;

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Business Research Methods (KMBN 203)

 Statement of findings and recommendations;

 The results;
 The implications drawn from the results; and
 The summary.

(i)Introduction: The purpose of introduction is to introduce the research project to the readers.
It should contain a clear statement of the objectives of research i.e., enough background should
be given to make clear to the reader why the problem was considered worth investigating. A brief
summary of other relevant research may also be stated so that the present study can be seen in
that context. The hypotheses of study, if any, and the definitions of the major concepts employed
in the study should be explicitly stated in the introduction of the report. The methodology
adopted in conducting the study must be fully explained. The various limitations, under which
the research project was completed, must also be narrated.

(ii) Statement of findings and recommendations: After introduction, the research report must
contain a statement of findings and recommendations in non-technical language so that it can
be easily understood by all concerned. If the findings happen to be extensive, at this point they
should be put in the summarised form.

(iii)Results: A detailed presentation of the findings of the study, with supporting data in the form
of tables and charts together with a validation of results, is the next step in writing the main text
of the report. This generally comprises the main body of the report, extending over several
chapters. The result section of the report should contain statistical summaries and reductions of
the data rather than the raw data. All the results should be presented in logical sequence and
splitted into readily identifiable sections.

(iv)Implications of the results: Toward the end of the main text, the researcher should again put
down the results of his research clearly and precisely. The general reader is interested in the
implications for understanding the human behaviour. Such implications may have three aspects
as stated below:

(a) A statement of the inferences drawn from the present study which may be expected to apply
in similar circumstances.

(b) The conditions of the present study which may limit the extent of legitimate generalizations
of the inferences drawn from the study.

(c) Thc relevant questions that still remain unanswered or new questions raised by the study
along with suggestions for the kind of research that would provide answers for them.

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Business Research Methods (KMBN 203)

(v) Summary: It has become customary to conclude the research report with a very brief
summary, resting in brief the research problem, the methodology, the major findings and the
major conclusions drawn from the research results.

(C) End Matter

At the end of the report, appendices should be enlisted in respect of all technical data such as
questionnaires, sample information, mathematical derivations and the like ones. Bibliography of
sources consulted should also be given. Index (an alphabetical listing of names, places and topics
along with the numbers of the pages in a book or report on which they are mentioned or
discussed) should invariably be given at the end of the report.

TYPES OF REPORTS

1. Technical Report:

A technical report is used whenever a full written report of the study is required whether for
record- keeping or for public dissemination.

2. Popular Report

A popular report is used if the research results have policy implications.

(A) Technical Report

In the technical report the main emphasis is on

(i) the methods employed,

(ii) assumptions made in the course of the study,
(iii) the detailed presentation of the findings including their limitations and supporting
data.

A general outline of a technical report can be as follows:

1. Summary of results: A brief review of the main findings just in two or three pages.

2. Nature of the study: Description of the general objectives of study, formulation of the problem
in operational terms, the working hypothesis, the type of analysis and data required, etc.

3. Methods employed: Specific methods used in the study and their limitations. For instance, in
sampling studies we should give details of sample design viz., sample size, sample selection, etc.

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Business Research Methods (KMBN 203)

4. Data: Discussion of data collected, their sources, characteristics and limitations. If secondary
data are used, their suitability to the problem at hand be fully assessed. In case of a survey, the
manner in which data were collected should be fully described.

5. Analysis of data and presentation of findings: The analysis of data and presentation of the
findings of the study with supporting data in the form of tables and charts be fully narrated. This,
in fact, happens to be the main body of the report usually extending over several chapters. 6.
Conclusions: A detailed summary of the findings and the policy implications drawn from the
results be explained.

7. Bibliography: Bibliography of various sources consulted be prepared and attached.

8. Technical appendices:Appendices be given for all technical matters relating to questionnaire,

mathematical derivations, elaboration on particular technique of analysis and the like ones.

9. Index: Index must be prepared and be given invariably in the report at the end.

(B) Popular Report

The popular report is one which gives emphasis on simplicity and attractiveness. The
simplification should be sought through clear writing, minimization of technical, particularly
mathematical, details and liberal use of charts and diagrams. Attractive layout along with large
print, many subheadings, even an occasional cartoon now and then is another characteristic
feature of the popular report.

General Outline of a popular report.

1. The findings and their implications: Emphasis in the report is given on the findings of most
practical interest and on the implications of these findings.

2. Recommendations for action: Recommendations for action on the basis of the findings of the
study is made in this section of the report.

3. Objective of the study: A general review of how the problem arise is presented along with the
specific objectives of the project under study.

4. Methods employed: A brief and non-technical description of the methods and techniques
used, including a short review of the data on which the study is based, is given in this part of the
report.

5. Results: This section constitutes the main body of the report wherein the results of the study
are presented in clear and non-technical terms with liberal use of all sorts of illustrations such as
charts, diagrams and the like ones.

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Business Research Methods (KMBN 203)

6. Technical appendices: More detailed information on methods used, forms, etc. is presented
in the form of appendices. But the appendices are often not detailed if the report is entirely
meant for general public.

MECHANICS OF WRITING A RESEARCH REPORT

The following points deserve mention so far as the mechanics of writing a report are concerned:

1. Size and physical design: The manuscript should be written on unruled paper 8.5″ × 11″ in size.
If it is to be written by hand, then black or blue-black ink should be used. A margin of at least one
and one-half inches should be allowed at the left hand and of at least half an inch at the right
hand of the paper. There should also be one-inch margins, top and bottom. The paper should be
neat and legible. If the manuscript is to be typed, then all typing should be double-spaced on one
side of the page only except for the insertion of the long quotations.

2. Procedure: Various steps in writing the report should be strictly adhered.

3. Layout: Keeping in view the objective and nature of the problem, the layout of the report
should be thought of and decided and accordingly adopted.

4. Treatment of quotations: Quotations should be placed in quotation marks and double spaced,
forming an immediate part of the text. But if a quotation is of a considerable length (more than
four or five type written lines) then it should be single-spaced and indented at least half an inch
to the right of the normal text margin.

5. The footnotes: Regarding footnotes one should keep in view the followings:

(a) The footnotes serve two purposes viz., the identification of materials used in quotations in
the report and the notice of materials not immediately necessary to the body of the research text
but still of supplemental value. In other words, footnotes are meant for cross references, citation
of authorities and sources, acknowledgement and elucidation or explanation of a point of view.

(b) Footnotes are placed at the bottom of the page on which the reference or quotation which
they identify or supplement ends. Footnotes are customarily separated from the textual material
by a space of half an inch and a line about one and a half inches long.

(c) Footnotes should be numbered consecutively, usually beginning with 1 in each chapter
separately. The number should be put slightly above the line, say at the end of a quotation. At
the foot of the page, again, the footnote number should be indented and typed a little above the
line. Statistical tables and other numerical material, where symbols such as the asterisk (*) or the
like one may be used to prevent confusion.

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Business Research Methods (KMBN 203)

(d) Footnotes are always typed in single space though they are divided from one another by
double space.

7. Punctuation and abbreviations in footnotes: The first item after the number in the footnote
is the author’s name, given in the normal signature order. This is followed by a comma. After the
comma, the title of the book is given: the article (such as “A”, “An”, “The” etc.) is omitted and
only the first word and proper nouns and adjectives are capitalized. The title is followed by a
comma. Information concerning the edition is given next. This entry is followed by a comma. The
place of publication is then stated; it may be mentioned in an abbreviated form, if the place
happens to be a famous one such as Lond. for London, N.Y. for New York, N.D. for New Delhi and
so on.

8. Use of statistics, charts and graphs: A judicious use of statistics in research reports is often
considered a virtue for it contributes a great deal towards the clarification and simplification of
the material and research results. One may well remember that a good picture is often worth
more than a thousand words. Statistics are usually presented in the form of tables, charts, bars
and line-graphs and pictograms. Such presentation should be self explanatory and complete in
itself.

9. The final draft: Revising and rewriting the rough draft of the report should be done with great
care before writing the final draft. For the purpose, the researcher should put to himself
questions like:

 Are the sentences written in the report clear?

 Are they grammatically correct?
 Do they say what is meant’?
 Do the various points incorporated in the report fit together logically?

A friendly critic, by pointing out passages that seem unclear or illogical, and perhaps suggesting
ways of remedying the difficulties, can be an invaluable aid in achieving the goal of adequate
communication.”

10. Bibliography: Bibliography should be prepared and appended to the research report .

11. Preparation of the index: Index may be prepared both as subject index and as author index.
The former gives the names of the subject-topics or concepts along with the number of pages on
which they have appeared or discussed in the report, whereas the latter gives the similar
information regarding the names of authors. The index should always be arranged alphabetically.

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Business Research Methods (KMBN 203)

PRECAUTIONS FOR WRITING RESEARCH REPORTS

Research report is a channel of communicating the research findings to the readers of the report.
A good research report is one which does this task efficiently and effectively. As such it must be
prepared keeping the following precautions in view:

1. While determining the length of the report (since research reports vary greatly in length), one
should keep in view the fact that it should be long enough to cover the subject but short enough
to maintain interest.

2. A research report should not be dull; it should be such as to sustain reader’s interest.

3. Abstract terminology and technical jargon should be avoided in a research report. The report
should be able to convey the matter as simply as possible. This, in other words, means that report
should be written in an objective style in simple language, avoiding expressions such as “it
seems,” “there may be” and the like.

4. Readers are often interested in acquiring a quick knowledge of the main findings and as such
the report must provide a ready availability of the findings. For this purpose, charts, graphs and
the statistical tables may be used for the various results in the main report in addition to the
summary of important findings.

5. The layout of the report should be well thought out and must be appropriate and in
accordance with the objective of the research problem.

6. The reports should be free from grammatical mistakes and must be prepared strictly in
accordance with the techniques of composition of report-writing such as the use of quotations,
footnotes, documentation, proper punctuation and use of abbreviations in footnotes and the
like.

7. The report must present the logical analysis of the subject matter. It must reflect a structure
wherein the different pieces of analysis relating to the research problem fit well.

8. A research report should show originality and should necessarily be an attempt to solve some
intellectual problem. It must contribute to the solution of a problem and must add to the store
of knowledge.

9. Towards the end, the report must also state the policy implications relating to the problem
under consideration. It is usually considered desirable if the report makes a forecast of the
probable future of the subject concerned and indicates the kinds of research still needs to be
done in that particular field.

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Business Research Methods (KMBN 203)

10. Appendices should be enlisted in respect of all the technical data in the report.

11. Bibliography of sources consulted is a must for a good report and must necessarily be given.

12. Index is also considered an essential part of a good report and as such must be prepared and
appended at the end.

13. Report must be attractive in appearance, neat and clean, whether typed or printed.

14. Calculated confidence limits must be mentioned and the various constraints experienced
in conducting the research study may also be stated in the report. 1

15. Objective of the study, the nature of the problem, the methods employed and the analysis
techniques adopted must all be clearly stated in the beginning of the report in the form of
introduction.

RECOMMENDATIONS

 Recommendations are the action plan you propose based on the outcome.
 Recommendations allow you to suggest specific interventions or strategies to address the
issues and constraints identified through your study. It responds to key findings arrived
at through data collection and analysis. A process of prioritization can help you narrow
down important findings for which recommendations are developed.
 Recommendations in research are suggestions/solutions that address certain problems
based on your study results.
 Lists specific actions to be taken with regard to policy, practice, theory, or subsequent
research.
 What’s next in this field of research?
 Based on our findings, we recommend conducting periodic assessments to benefit fully
from the interventions.
 Recommendations for future research should be:

 Concrete and specific

 Supported with a clear rationale
 Directly connected to your research


Recommendations in research examples

Recommendations in research may vary depending on the purpose or beneficiary as seen in the
table below.

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Business Research Methods (KMBN 203)

LIMITATIONS OF THE STUDY

Research limitations are, at the simplest level, the weaknesses of the study, based on factors that
are often outside of your control as the researcher. These factors could include things like time,
access to funding, equipment, data or participants. For example, if you weren’t able to access a
random sample of participants for your study and had to adopt a convenience sampling
strategy instead, that would impact the generalizability of your findings and therefore reflect a
limitation of your study.
Research limitations can also emerge from the research design itself. For example, if you utilized
online surveys to collect data from your participants, you naturally wouldn’t be able to get the
same degree of rich data that you would from in-person interviews.
Simply put, research limitations reflect the shortcomings of a study, based on practical (or
theoretical) constraints that the researcher faced. These shortcomings limit what you
can conclude from a study, but at the same time, present a foundation for future research.
Importantly, all research has limitations, so there’s no need to hide anything here – as long as
you discuss how the limitations might affect your findings, it’s all good.

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