IMT- 120

BUSINESS RESEARCH METHAODS

IMT-120_3-- Solution

SECTION A
1.
Distinguish between Basic Research and applied research.
Ans 1: Both basic and applied research are important to the advancement of human knowledge, but they work in
slightly different ways, and they have different end goals in sight.
Basic Research
Basic or pure research is conducted solely for the
purpose of gathering information and building on
existing knowledge.
Example: A neurologist who studies the brain to learn
about its general workings is doing basic research,
In basic research, general theories, ideas, and questions
are explored and tested

purely by curiosity and a desire to expand our

knowledge.
basic research fit into the broader world of research
it costs money, time and other precious resources,
does not have a direct application

Applied research
Applied research, which is geared towards the
resolution of a particular question
Example: a neurologist who is searching for the origins
of Alzheimer's disease is involved in applied research.
Applied research builds on existing basic research. Basic
research could be considered the foundation of
knowledge which provides people with the basic
information they need to pursue particular areas of
research
answer a specific question that has direct applications
to the world.
answer a specific question
it costs money, time and other precious resources,
have a direct application

2. What is experimental design? Explain its meaning and significance.

Ans: 2 Experimental Research - An attempt by the researcher to maintain control over all factors that may affect
the result of an experiment. In doing this, the researcher attempts to determine or predict what may occur.
A blueprint of the procedure that enables the researcher to test his hypothesis by reaching valid conclusions about
relationships between independent and dependent variables. It refers to the conceptual framework within which
the experiment is conducted.

Steps involved
1.
2.
3.
4.
5.
6.

Identify and define the problem.

Formulate hypotheses and deduce their consequences
Construct an experimental design that represents all the elements, conditions, and relations of the
consequences.
Conduct the experiment.
Compile raw data and reduce to usable form.
Apply an appropriate test of significance.

3. What is the necessity of defining a research problem? Explain.

Ans3: You will never be able to figure out how to conduct your research if you do not have a well defined research
problem,

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Blog: vishesh2014@blogspot.in

IMT- 120
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IMT-120_3-- Solution

The manner in which the problem is defined decides the direction for the entire research. A careful scrutiny of the
research problem will help in working out the research design. This will ensure smooth coordination of all the
consequential steps involved in the research.
A proper definition of the problem helps to improve the overall efficiency and quality of the study. It is the
foundation for further development of the research proposal. It enables the researcher to systematically point out
as to why the proposed research should be undertaken and what can be achieved with the research findings. A
carefully defined research problem ensures that the researcher does not stray from the research path that has to
be followed.
4. What is meant by a hypothesis? What are the different type of hypothesis? Explain.
Ans 4:
A hypothesis (plural hypotheses) is a proposed explanation for a phenomenon.
1. Explanatory or Descriptive hypothesis This type of the hypothesis generally involves data about the cause of
the process or about the law on which it is based. Hypothesis involving data about the cause is explanatory in
approach and the hypothesis involving laws acts descriptive in the approach.
2. Tentative hypothesis Such a hypothesis is made, when one does not possess complete information and
understanding about a certain process or phenomenon. Such a situation, when one is not able to understand the
process may occur due to the technical difficulties. It is also possible to test two or more hypothesis simultaneously
the hypothesis about the propagation of light, namely, wave theory and the corpuscular theory of light both
describe the light s phenomenon but among both of these none of them is final hence these can be referred to as
tentative in nature.
3. Representative fictions Some hypothesis are based on the assumptions and depending on the nature of the
case, it is not at all possible to prove these assumptions by the direct means such hypothesis is referred to as the
representative fictions. The only positive point of these representative fictions is that they are very suitable in
order to explain the whole phenomenon.
Problems faced during hypothesis formulation
Formulating a hypothesis is not at all an easy process and is faced with a large number of difficulties. According to
Goode and Hatt, the various difficulties faced during the formulation of the hypothesis generally include the lack of
the knowledge about the scientific approach of the method involved, as sometimes it becomes impossible to
gather the complete information about a particular scientific method. One other major difficulty in the formulation
of the hypothesis is the lack of clear theoretical background. Because of this problem of unclear and indefinite
background of theory one is not able to arrive to a conclusion easily.
But with time answers to all such problems are available and these difficulties that arise during the hypothesis
formulation can be easily removed by having complete and accurate information about the concepts of the
subjects involved. Also the hypothesis should not be very long and should be timely in nature.
1. Types of hypothesesa. Inductive is a generalization based on specific observations.
b. Deductive is derived from theory and provides evidence that supports, expands, or contradicts the theory.
c. Nondirectional - states that relation or difference between variables exists.
d. Directional - states the expected direction of the relation or difference.
e. Null - states that there is no significant relation or difference between variables.
5. What do you understand by sampling and sampling distribution?

Kishor
Blog: vishesh2014@blogspot.in

IMT- 120
BUSINESS RESEARCH METHAODS
IMT-120_3-- Solution

SECTION - B
1. What is sample size? Explain the method of deciding the sample size.
Ans B1: The sample size of a statistical sample is the number of observations that constitute it.
The sample size is typically denoted by n and it is always a positive integer. No exact sample size can be mentioned
here and it can vary in different research settings.
What Should Be the Sample Size?
The choosing of sample size depends on non-statistical considerations and statistical considerations. The nonstatistical considerations may include availability of resources, manpower, budget, ethics and sampling frame. The
statistical considerations will include the desired precision of the estimate of prevalence and the expected
prevalence of eye problems in school children.
There are six methods of determining sample size in market research. They are
1. Unaided Judgement: When no specific method is used to determine sample size, it is called Unaided Judgement.
Such approach when used to arrive at sample size gives no explicit considerations to either the likely precision of
the sample results or the cost of obtaining them (characteristics in which client should have interest). It is an
approach to be avoided.
2. All You Can Afford: In this method, a budget for the project is set by some (generally unspecified) process
and, after the estimated fixed costs of designing the project, preparing a questionnaire (if required), analyzing the
data, and preparing the report are deducted, the remainder of the budget is allocated to sampling. Dividing this
remaining amount by the estimated cost per sampling unit gives the sample size.
This method concentrates on the cost of the information and is not concerned about its value. Although cost
always has to be considered in any systematic approach to sample size determination, one also needs to give
consideration to how much the information to be provided by the sample will be worth. This approach produces
sample sizes that are larger than required as well as sizes that are smaller than optimal.
3. Required Size Per Cell: This method of determining sample size can be used on simple random, stratified
random, purposive and quota samples. For example, in a study of attitudes with respect to fast food
establishments in a local marketing area it was decided that information was desired for two occupational groups
and for each of the four age groups. This resulted in 2 x 4 = 8 sample cells. A sample size of 30 was needed per cell
for the types of statistical analyses that were to be conducted. The overall sample size was therefore 8 x 30 = 240.
4. Use of Traditional Statistical Model: The formula for traditional statistical model depends upon the type of
sample to be taken and it always incorporates three common variables
an estimate of the variance in the population from which the sample is to be drawn,
the error from sampling that the researcher will allow, and
the desired level of confidence that the actual sampling error will be within the allowable limits.
The statistical models for simple random sampling include estimation of means and estimation of proportion.
5. Use of Bayesian Statistical Model: The Bayesian model involves finding the difference between the expected
value of the information to be provided by the sample size. This difference is known as expected net gain from
sampling (ENGS). The sample size with the largest positive ENGS is chosen.
The Bayesian model is not as widely used as the traditional statistical models for determining sample size, even
though it incorporates the cost of sampling and the traditional models do not. The reasons for the relative
infrequent use of Bayesian model are related to greater complexity and perceived difficulty of making the
estimates required for Bayesian model as compared to the traditional models.

Kishor
Blog: vishesh2014@blogspot.in

IMT- 120
BUSINESS RESEARCH METHAODS
IMT-120_3-- Solution

2. A company running a chain of restaurants in Noida wants to start a new one in Sector18. Prior to that it wants
to conduct a survey of the employees of various institutions in that area to know about their eating habits, food
preferences, etc. Suggest a suitable sampling scheme for the same.
Ans B2: . Required Size Per Cell: This method of determining sample size can be used on simple random, stratified
random, purposive and quota samples. For example, in a study of attitudes with respect to fast food
establishments in a local marketing area it was decided that information was desired for two occupational groups
and for each of the four age groups. This resulted in 2 x 4 = 8 sample cells. A sample size of 30 was needed per cell
for the types of statistical analyses that were to be conducted. The overall sample size was therefore 8 x 30 = 240.
3. What is a questionnaire? Describe in your own words.
Ans B3: A questionnaire is a research instrument consisting of a series of questions and other prompts for the
purpose of gathering information from respondents
Questionnaires have advantages over some other types of surveys in that they are cheap, do not require as much
effort from the questioner as verbal or telephone surveys, and often have standardized answers that make it
simple to compile data. However, such standardized answers may frustrate users. Questionnaires are also sharply
limited by the fact that respondents must be able to read the questions and respond to them. Thus, for some
demographic groups conducting a survey by questionnaire may not be concrete.
Basic rules for questionnaire item construction
Use statements which are interpreted in the same way by members of different subpopulations of the
population of interest.
Use statements where persons that have different opinions or traits will give different answers.
Think of having an "open" answer category after a list of possible answers.
Use only one aspect of the construct you are interested in per item.
Use positive statements and avoid negatives or double negatives.
Do not make assumptions about the respondent.
Use clear and comprehensible wording, easily understandable for all educational levels
Use correct spelling, grammar and punctuation.
Avoid items that contain more than one question per item (e.g. Do you like strawberries and potatoes?).
Question should not be biased or even leading the participant towards an answer.
4. Discuss the statement Hypothesis testing is a waste of time in commercial business research.
Ans B4: The ultimate job of the hypothesis in business is to serve as a guidepost to your testing and research
methods.
business leaders also conduct formal and informal research to inform their business decisions. Good research
starts with a good hypothesis, which is simply a statement making a prediction based on a set of observations. For
example, if youre considering offering flexible work hours to your employees, you might hypothesize that this
policy change will positively affect their productivity and contribute to your bottom line.
Essentially good hypotheses lead decision-makers like you to new and better ways to achieve your business goals.
When you need to make decisions such as how much you should spend on advertising or what effect a price
increase will have your customer base,
One of the most important hypotheses youll make in growing your small business is the cost of acquiring a
customer. Your viability as a business is founded on ensuring that your customers bring you more money than it
costs you to get them in the door.

Kishor
Blog: vishesh2014@blogspot.in

IMT- 120
BUSINESS RESEARCH METHAODS
IMT-120_3-- Solution

A hypothesis predicts the relationship between two variables. If you want to study pricing and customer loyalty,
you wont waste your time and resources studying tangential areas.
5. Discuss the statement Correlation and regression analysis are a good means of knowing the associations
between variables.
Ams B5:
Correlation
deal with relationships among variables.
The correlation coefficient is a measure of linear
association between two variables.
Values of the correlation coefficient are always
between -1 and +1.

A correlation coefficient of +1 indicates that two

variables are perfectly related in a positive linear sense;
a correlation coefficient of -1 indicates that two
variables are perfectly related in a negative linear
sense, and a correlation coefficient of 0 indicates that
there is no linear relationship between the two
variables.

Regression
Regression analysis involves identifying the relationship
between a dependent variable and one or more
independent variables
A model of the relationship is hypothesized, and
estimates of the parameter values are used to develop
an estimated regression equation.
Various tests are then employed to determine if the
model is satisfactory. If the model is deemed
satisfactory, the estimated regression equation can be
used to predict the value of the dependent variable
given values for the independent variables.
In simple linear regression, the model used to describe
the relationship between a single dependent variable y
and a single independent variable x is y = a0 + a1x + k.
a0and a1 are referred to as the model parameters,

Neither regression nor correlation analyses can be interpreted as establishing cause-and-effect relationships. They
can indicate only how or to what extent variables are associated with each other. The correlation coefficient
measures only the degree of linear association between two variables. Any conclusions about a cause-and-effect
relationship must be based on the judgment of the analyst.

Kishor
Blog: vishesh2014@blogspot.in

IMT- 120
BUSINESS RESEARCH METHAODS
IMT-120_3-- Solution

SECTION C
1. Write short notes on
a. Cluster analysis
Cluster analysis or clustering is the task of grouping a set of objects in such a way that objects in the same group
(called a cluster) are more similar (in some sense or another) to each other than to those in other groups (clusters).

b. Factor analysis
Factor analysis is a statistical method used to describe variability among observed,
correlated variables in terms of a potentially lower number of unobserved variables called factors. For
example, it is possible that variations in four observed variables mainly reflect the variations in two
unobserved variables. Factor analysis searches for such joint variations in response to unobserved latent
variables. The observed variables are modelled as linear combinations of the potential factors, plus
"error" terms. The information gained about the interdependencies between observed variables can be
used later to reduce the set of variables in a dataset. Computationally this technique is equivalent to lowrank approximation of the matrix of observed variables. Factor analysis originated inpsychometrics and is
used in behavioral sciences, social sciences, marketing, product management, operations research, and
other applied sciences that deal with large quantities of data.
Factor analysis is related to principal component analysis (PCA), but the two are not identical. Latent
variable models, including factor analysis, use regression modelling techniques to test hypotheses
producing error terms, while PCA is a descriptive statistical technique.[1] There has been significant
controversy in the field over the equivalence or otherwise of the two techniques (see exploratory factor
analysis versus principal components analysis)
c. T-test
T- Test: A statistical examination of two population means. A two-sample t-test examines whether two samples
are different and is commonly used when the variances of two normal distributions are unknown and when an
experiment uses a small sample size. For example, a t-test could be used to compare the average floor routine
score of the U.S. women's Olympic gymnastic team to the average floor routine score of China's women's team.
d. Explain the working of one way ANOVA.
One way ANOVA: The one-way analysis of variance (ANOVA) is used to determine whether there are any significant
differences between the means of three or more independent (unrelated) groups.

The one-way ANOVA compares the means between the groups you are interested in and determines whether any
of those means are significantly different from each other. Specifically, it tests the null hypothesis:

where = group mean and k = number of groups. If, however, the one-way ANOVA returns a significant result, we
accept the alternative hypothesis (HA), which is that there are at least 2 group means that are significantly
different from each other.

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Blog: vishesh2014@blogspot.in

IMT- 120
BUSINESS RESEARCH METHAODS
IMT-120_3-- Solution
At this point, it is important to realize that the one-way ANOVA is an omnibus test statistic and cannot tell you
which specific groups were significantly different from each other, only that at least two groups were

e. What are the advantage and disadvantage of open-end and close ended questions?
Advantages and Disadvantages of Open and Closed Questions:
Advantages of Closed Ended
it is easier and quicker for respondents to answer
the answers of different respondents are easier to compare
answers are easier to code and statistically analyse
the response choices can clarify question meaning for respondents
respondents are more likely to answer about sensitive topics
there are fewer irrelevant or confused answers to questions
less articulate or less literate respondents are not at a disadvantage
replication is easier
Disadvantages of Closed Ended
they can suggest ideas that the respondent would not otherwise have
respondents with no opinion or no knowledge can answer anyway
respondents can be frustrated because their desired answer is not a choice
it is confusing if many response choices are offered
misinterpretation of a question can go unnoticed
distinctions between respondent answers may be blurred
clerical mistakes or marking the wrong response is possible
they force respondents to give simplistic responses to complex issues
they force people to make choices they would not make in the real world
Advantages of Open
they permit an unlimited number of possible answers.
respondents can answer in detail and can qualify and clarify responses
unanticipated findings can be discovered
they permit adequate answers to complex issues
they permit creativity, self-expression, and richness of detail
they reveal a respondent s logic, thinking process, and frame of reference
Disadvantages of Open
different respondents give different degrees of detail in answers
responses may be irrelevant or buried in useless detail
comparisons and statistical analysis become difficult
coding responses is difficult articulate and highly literate respondents have an advantage
questions may be too general for respondents who lose direction
a greater amount of respondent time, thought, and effort is necessary
respondents can be intimidated by questions

Kishor
Blog: vishesh2014@blogspot.in

IMT- 120
BUSINESS RESEARCH METHAODS
IMT-120_3-- Solution
answers take up a lot of space in the questionare.
CASE STUDY 1
Mustafa
Mustafa, a popular departmental sore in Singapore with Indians (local as well as tourists and transit passengers),
stocks over 100000items , spread over 2 buildings with 4 floors each . The store has been popular stop over for the
Indian transiting through Singapore for buying items like appliances , electronic s, jewelry and gifts as the goods
sold in the store cater to Indian requirements and also because the store takes care of the shipping the goods to
india. Mustfa receives over 60% of its business from overseas visitors.
In September 1997 , with the emergence of the internet as an imminent force and inspired by the success of DELL
and Amazon.com, Mustafa decided to move on to a transactional site where international visitors can browse
through store catalogs and place orders in advance .
In mid 1998, Mustafa started accepting online orders and payments using the secure socket layer, showcasing 500
items that were popular in the tourist and transit visitors category.
Questions:
1. What do you think are some of the customer loyalty issues that Mustafa managers faces as they grow online
sales? If yes, kindly state hypothesis .
2. How can Mustafa best pursue a multichannel online payment system? Is the current management making the
right judgment about developing online capabilities slowly over a long period of time? Explain the process of
Business research and also explain the statistical tools required for solving the above business problem.
CASE STUDY 2
Hotel Country INN is a well-known hotel situated in the heart of a metropolitan city. With 12 floors and 120 rooms
providing an excellent boarding and lodging facilities, it offers deluxe Suites, Superior Single and Double rooms
along with services like coffee shop, restaurants, Saloon, Health Club, Shopping arcades and convention halls. It is
one of the most sought after hotels in the city as reflected by the fact that 28000 guests housed in the financial
year 2006-2007.
The front office of the hotel occupies a very important position in ensuring a loyal clientele for the hotel. The front
office job is to interact with every outsider who steps in the hotel. The front desk takes care of all the needs of the
guests. The most important jobs of the front office include making all the reservations, check-in and check out. In
short, the front office or the front desk is the interface between the hotel and the outside world. Behind the scene
are a large number of people, who perform a wide variety of functions to keep the front office functions smooth.
From the very moment a traveler plans to make a stay in the hotel, the front office comes into the picture and
interacts with the traveler on a daily basis till he leaves the hotel. The guests can be individual or the corporate
guests. In case of corporate guests, the bill is sent to the organization sponsoring the stay of the guest.
Questions
1. Identify Business problem in this case.
2. Enumerate three objective of the study from this case.
3. What are the steps the hotel to do to understand feedback of customer?

Kishor
Blog: vishesh2014@blogspot.in