1.What is a Research Methodology and Research?

Ans:- Research methodology is the specific procedures or techniques used

to identify, select, process, and analyze information about a topic.
• Research is defined as careful consideration of study regarding a
particular concern or problem using scientific methods.
• According to the American sociologist Earl Robert Babbie, “research is a
systematic inquiry to describe, explain, predict, and control the observed
phenomenon.
• Research is an activity that leads us to finding new facts, information,
assisting us in verifying the available knowledge and in making us
question things that are difficult to understand as per existing data.
• To be successful manager it is important for you to know how to go
about making the right decisions by being knowledgeable about the
various steps involved in finding solutions to problematic issues.
• Research is a continuous activity in majority of disciplines and
professions.
• It is helpful in critical assessment of the way we work, execute policies,
and give instructions in our professions.
• It is systematic observation of processes to find better ways to do things
and to reduce the effort being put in to achieve an objective and
identifying the validity of the targets.
• In fact, research is a subconscious activity that we are always involved in
whether it is purchase of daily use articles, a car, an electronic good or
planning a holiday.

2. Explain the Criteria of a good research study

Ans: - 1. Purpose should be clearly defined.
2. Common concepts should be used that can be understood by all.
3. Research procedures should be explained in detail.
4. Research design should be carefully planned.
5. Researcher should declare all the possible errors and their possible
impact on findings.
6. Analysis of data should be sufficiently adequate to reveal significance.
 7. The methods of analysis should be appropriate.
8. The validity and reliability of the data should be checked carefully.
9. The researcher should good command over research methodologies and
should be intelligent and experienced.
10. Ethics in research refers to a code of conduct of behavior while
conducting research. Ethical conduct applies to the organization and the
members that sponsor the research, the researchers who undertake the
research, and the respondents who provide them with the necessary data.

3.Explain the importance of business research and its importance in the

business
Ans: - Business research is important because it helps to understand a business
market or to know consumers. Big companies always prepare surveys to
understand how customers or consumers react to their products and the
companies’ services. Collecting information from customers is what we call
research.

A company now day easy the process of collecting folks for the field
research through the preparation of online surveys. Online surveys have now
become the best way for the company to improve their services by receiving
insights and enough data from its customers. So through customer data, the
company become detailed.
It is easy now for the company to know what do people need and what sells
enough in the market. That is how company grow through research.

Business research helps to increase enough knowledge on increasing sales and

showing where money can be spent for high profit-making. With enough
business information, a businessman can understand how to invest, where and
when in order to drive the desired profit on his or her venture.

The investment decision, production decision is wider the hand of business

research. without enough information you can end up losing everywhere you
are investing or sometimes producing and product that consumers doesn’t
need at that moment. The research will impact a lot on your business. Do not
try doing a business that you do not understand. Make research before any
decisions relating to a business in order to avoid loss.
4.Explain the primary scaling techniques used in business research.
Ans: - Companies use different methods to assess customer satisfaction,
happiness, and other critical aspects of the sales process. Large organizations
often employ scaling techniques, which measure consumer views, in market
research. Polls, surveys, and questionnaires are just a few examples. Their role
is to determine how customers feel about a particular product, what features
they are looking for or why they dislike a specific item. Brands can use this data
to identify areas of improvement and develop better products. Various scaling
techniques are used in business market research, and each has unique
characteristics. Choosing one over another depends on your budget and goals.

Nominal scales
Nominal scales are the easiest to use but provide the lowest measurement
level. Unlike other techniques, they don't express any relationships or values
between variables. Researchers use them to determine frequency counts, such
as the number of men and women who prefer a specific product color or size.
For example, you can ask respondents whether they have black, brown, blonde
or gray hair. If you're selling hair care products, this information will provide
insights into your target market. Assuming that most of your customers have
gray hair, you could develop a product that helps cover gray hairs and restores
natural color.

Interval scales
Interval scales are commonly used in commercial marketing research. They
indicate the order as well as the differences between variables. A distinctive
feature of this method is that there is no absolute zero point. Examples include
opinion scales and attitude scales.
Temperature, for instance, represents an interval scale. We can say that a
temperature of 10-degrees Celsius is lower than one of 20-degrees Celsius.
As a business owner, you can ask respondents to rate their satisfaction on a
scale from one to 10. Or you can ask them to state their income as a range,
such as $1,500-$2,500, $2,500-$4,500 and so on which will give you a better
understanding of their spending power.

Ordinal scales
This scaling technique helps measure non-numeric concepts, such as comfort,
satisfaction, overall experience and more. A good example would be:
Dissatisfied, Satisfied, Somehow Satisfied or Extremely Satisfied. Respondents
will tick the box that best reflects their satisfaction level.
Ordinal scales allow you to rank the variables you measure regarding which has
less or more of the quality it represents. They don't indicate the magnitude of
difference, but only the relative position of items.

Comparative scales
As their name suggests, these scales allow respondents to compare various
products or services. They are widely used in market research, offering
valuable insights into customer preferences. For example, if you're planning to
launch a new energy drink, you can ask prospects whether they would prefer
vanilla, citrus or berry flavor.
Comparative scaling techniques measure how respondents interact with items
as well as the individual difference in response tendencies. Companies can use
this data to define their audience better and create products that address its
needs and wants.

Ratio scales
Ratio scales are the most comprehensive of all scaling techniques because they
measure the exact value of responses. Additionally, they have a fixed origin or
zero points. Respondents can provide compelling information, such as their
annual household income, the amount spent on their last purchase, the time
spent watching TV on a daily basis and more. From here, researchers can apply
various statistics like mode, frequency, range, standard deviation and variance.
There are many other scaling techniques used in market research. For
instance, you can use the unity-sum-gain technique when launching new
products or services. Companies can also work with non-comparative scales,
such as line marking scales, continuous rating scales and semantic scales. Each
has a different purpose and a unique method of measurement.

5. What is a research hypothesis? Explain essential characteristics of a good

hypothesis.
Ans: - A hypothesis is a statement that introduces a research question and
proposes an expected result. It is an integral part of the scientific method that
forms the basis of scientific experiments.
Therefore, you need to be careful and thorough when building your
hypothesis. A minor flaw in the construction of your hypothesis could have an
adverse effect on your experiment.

Essential Characteristics of a Good Hypothesis

• As a research hypothesis is a specific, testable prediction about what you
expect to happen in a study, you may consider drawing hypothesis from
 previously published research based on the theory.
• A good research hypothesis involves more efforts than just a guess. In
particular, your hypothesis may begin with a question which could be
further explored through background research.
• To help you formulate a promising research hypothesis, you should ask
yourself the following questions:
• Is the language clear and focused?
• What is the relationship between your hypothesis and your research
topic?
• Is your hypothesis testable? If yes, then how?
• What are the possible explanations that you might want to explore?
• Does your hypothesis include both an independent and dependent
variable?
• Can you manipulate your variables without hampering the ethical
standards?

6. Explain the importance of secondary research.

Ans:- Secondary research refers to the use of existing data to answer
research questions or solve research problems. There are many situations
where taking this approach can be of benefit, and in this article, we outline
some of the key features and types of secondary research and why there
are advantages to following this route rather than gathering your own
data.

1) It paves way for primary research:- One of the reasons for importance
of Secondary research is to pave way for primary research. Secondary
research gives enough background information so that the right
questions can be asked during primary market research.

2) It helps you analyse the external environment:- Secondary research

can help you find out the trend in the market. At the same time, it can
also help with business information as well as competitive intelligence.
Thus, all in all, if it is the external market you are looking to analyse,
then secondary market research will give you a lot of answers.

3) It helps you get customer information:- Not only can secondary

research help you with the external environment, but it can also give
you the correct customer information which can be very useful for your
company. For example – secondary research can help you define which
type of customers to target, which types of customers regularly buy the
 product, gives more insight into customer information and finally helps
you retain as well as attract new customers.

4) It can provide you an internal analysis:- While conducting secondary

research, it is very easy to find out where does your company stand in
the market as well as what do customers think about your company.
For example – if there are 10 types of detergent in the market, and
your company has 6, then it is clear from secondary data that you need
more variants of detergents. However, if secondary research also
detects that out of the 10 detergents which a competitor has, only 4 are
profitable to the company, then your company is better off with 6
detergents only. Thus, secondary research can help you with internal
analysis as well.

5) It helps you with decision making:- The most important factor in

conducting secondary research is that you have enough information,
information which helps you decide whether or not you need to
conduct primary market research, information on what the
company needs to do next as well market and customer information to
make you the right decision for the company.

7. What do you mean by the term measurement? Explain different types of

measurement scales used in business research.

Ans:- Measurement: May be defined as the assignment of numerical to the

characteristics of objects, persons, or events according to rules.

• What is measured is not subject, person or event itself but some

characteristic of it.
• Scale of measurement is called level of measurement.
• How the collected data (both qualitative and quantitative) is to be
measured.
• Levels of measurement helps in deciding which statistical test type is to
be used that is parametric or non-parametric

S. S. Stevens has classified the different types of into four categories:

• Nominal or classificatory scale

• Ordinal or ranking scale
• Interval scale
• Ratio scale
 Properties

• Nominal or classificatory scale: Identity

• Ordinal or ranking scale : Identity and Order
• Interval scale : Identity , Order and Equal intervals
• Ratio scale : Identity , Order , Equal intervals including absolute zero

1) The nominal or classificatory scale: A nominal scale enables the

classification of individuals, objects or responses into subgroups based
on a common/shared property or characteristic.

• Variables which are quantitative in nature.

• A variable measured on a nominal scale may have one, two or more
subcategories depending upon the extent of variation.
• It is the first level of measurement
• For example, the population of a town (the variable) ―gender can be
classified into two sub-categories: male and female.
• This measurement assigns mutually exclusive labels to identity
objects.
• Hotels ‘can be classified into sub-categories like Luxury, Medium or
Economical based on service offered by the hotel.
• The sequence in which subgroups are listed makes no difference as
there is no relationship among subgroups.
• So, this will tell us the qualitative difference not the quantitative
significance.

2) The ordinal or ranking scale:

• Letters of other symbols are used to rank objects.

• Besides categorizing individuals, objects, responses, or a property
into subgroups based on common characteristic, it ranks the
subgroups in a certain order.
• They are arranged either in ascending or descending order according
to the extent a subcategory reflects the magnitude of variation in the
variable.
• Ordinal data indicate the relative position of two or more objects on
some characteristics.
 • For example, income ‘can be measured either quantitatively (in
rupees and paisa) or
• qualitatively using subcategories above average ‘, average ‘and below
average ‘.
• The distance ‘between these subcategories are not equal as there is
no quantitative unit of measurement.
• Socioeconomic status ‘and attitude ‘are other variables that can be
measured on ordinal scale.
• A significant amount of marketing research particularly consumers-
oriented research reflection on this type of data.
• Consumers may be asked to rank references for several brands,
flavor, or package designs.
• However ordinal measurements do not provide information on how
much more or less of the characteristic various objects possess.

3) The interval scale: An interval scale has all the characteristics of an

ordinal scale.

• It involves the use of numbers to rank objects or events such that

distance between the numerals correspond to the distance between
the objects or events on the characteristics being measured.
• In addition, it uses a unit of measurement with an arbitrary starting
and terminating points.
• For example: Measuring the temperatures: Celsius scale: 0°C to
100°C Fahrenheit scale: 32°F to 212°F
• Attitudinal scales: 10-20, 21-30, 31-40 etc.
• The lack of true zero limits the capacity to measure the complete
absence of a characteristic.
• Once can say that an increase in temperature from 30degree to 40
degrees but once cannot say that the temperature of 0 degree is
twice as warm as the temperature of 30 degree.
• Because both the numbers are dependent on the zero on the scale
that is set arbitrarily.

4) The ratio scale: A ratio scale has all the properties of nominal, ordinal
and interval scales plus its own property

• the zero point of a ratio scale is fixed, which means it has a fixed
starting point.
 • Since the difference between intervals is always measured from a
zero point, this scale can be used for mathematical operations.
• The measurement of variables like income, age, height and weight
are examples of this scale.
• A person who is 40-year-old is twice as old as one who is 20-year-old.
• Sales cost, number of purchases etc.
• With the ratio measurement the comparison of absolute magnitude
of the numbers becomes possible.

8. Explain types of research hypothesis

Ans:- Research hypothesis can be classified into seven categories as stated

below:

1.Simple Hypothesis

It predicts the relationship between a single dependent variable and a single

independent variable.

2.Complex Hypothesis

It predicts the relationship between two or more independent and dependent

variables.

3. Directional Hypothesis

It specifies the expected direction to be followed to determine the relationship

between variables and is derived from theory. Furthermore, it implies
researcher’s intellectual commitment to a particular outcome.

4. Non-directional Hypothesis

It does not predict the exact direction or nature of the relationship between
the two variables. Non-directional hypothesis is used when there is no theory
involved or when findings contradict previous research.

5. Associative and Causal Hypothesis

Associative hypothesis defines interdependency between variables. A change

in one variable results in the change of the other variable.
On the other hand, causal hypothesis proposes an effect on the dependent
due to manipulation of the independent variable.

6. Null Hypothesis

It states a negative statement to support the researcher’s findings that there is

no relationship between two variables.

7. Alternative Hypothesis

It states that there is a relationship between the two variables of the study and
that the results are significant to the research topic.

Thus, A hypothesis is an educated guess, based on the probability of an

outcome. Scientists formulate hypotheses after they understand all the current
research on their subject. Hypotheses specify the relationship between at least
two variables and are testable. For a hypothesis to function properly, other
researchers must be able to reproduce the results that prove or disprove it.

9. Assume you as a marketing manager of a cosmetic company wish to

launch an anti-acne cream. Which kind of data would you collect for your
research. Explain.
10. What is a decision statement? How does the focus on an irrelevant
decision affect the research process?

11.What is an expert opinion survey? Under what circumstances should it be

used? Explain with an example.
Ans: - There might be a situation at times when the topic of a research is such
that there is no previous information available on it. Thus, in these cases, it is
advisable to seek help from the experts who might be able to provide some
valuable insights based upon their experience in the field or with the concept.
This approach of collecting particulars from significant and erudite people is
referred to as the expert opinion survey. This methodology might be formal
and structured and might be useful when being authenticated or supported by
secondary/primary research or it might be fluid and unstructured and might
require an in-depth interviewing of the expert.

For example:- the evaluation of the merit of marketing organic food products
in the domestic Indian market cannot be done with the help of secondary data
as no such structured data sources exist. In this case the following can be
contacted:
• Doctors and dieticians as experts would be able to provide information about
the products and the level to which they would advocate organic food
products as a healthier alternative.
• Chefs who are experimental and innovative and might look at providing a
better value to the clients. However, this would require evaluating their level
of awareness and perspective on the viability of providing organically prepared
dishes.
• Pragmatic retailers who are looking at new ways of generating footfalls and
conversions by offering contemporary and futuristic products. Again,
awareness about the product, past experience with selling healthier lifestyle
products would need to be probed to gauge their positive or negative
reactions to the new marketing initiatives.
These could be useful in measuring the viability of the proposed plan.
Discussions with knowledgeable people may reveal some information
regarding who might be considered as potential consumers. Secondly, the
question whether a healthy proposition or a lifestyle proposition would work
better to capture the targeted consumers needs to be examined.
Thus, this method can play a directional role in shaping the research study.
However, a note of caution is also necessary as by its very nature, it is a loosely
structured and skewed method, thus supporting it with some secondary data
or subsequently validating the presumptions through primary research is
recommended. Another aspect to be kept in mind is that no expert, no matter
how vast and significant his experience is, can be solely relied upon to arrive at
any conclusions, as in the example stated above. It is also advisable to quiz
different expert sources. Notwithstanding these constraints, this technique is
of great value to any researcher, no matter what

12. What is a research design? Explain its need and importance

Ans:- The research design is an overall formulation of a research problem.

• It refers to the overall strategy that you choose to integrate the

different components of the study in a coherent and logical way.
• It is a framework or blueprint for conducting the research.
• In simple words it is the general plan of how you will go about your
research.
• According to Smith (1976) – “A design is a carefully arranged scheme
regarding how to conduct an experiment.
• The design of an experiment refers to the selection and arrangement of
conditions”.
• According to Kerlinger – “Research design is the plan, structure and
strategy of investigation conceived so as to obtain answers to research
questions and to control variance”.
• The design of a study defines the study type (descriptive, correlational,
semi-experimental, experimental, review, meta-analytic) and sub-type
(e.g., descriptive - longitudinal case study), research question,
hypotheses, independent and dependent variables, experimental design,
and, if applicable, data collection methods and a statistical analysis plan.
• A research design will typically include how data is to be collected, what
instruments will be employed, how the instruments will be used and the
intended means for analysing data collected.
• A research design is a systematic plan to study a scientific problem.
• A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the
research purpose with economy in Procedure.
• The research design is a comprehensive master plan of the research
study to be undertaken, giving a general statement of the methods to be
used.

Need for Research Design

• Provides firm foundation to the endeavour.

• It reduces inaccuracy.
• Helps to get maximum efficiency and reliability.
• Eliminates bias and marginal errors.
• Minimizes wastage of time.
• Reduce uncertainty, confusion and practical haphazard related to any
research problem.
• Helpful for collecting research materials.
• Helpful for testing of hypothesis.
• Gives an idea regarding the type of resources required in terms of
money, manpower, time, and efforts.
• Provides an overview to other experts.
• Guides the research in the right direction.
• Smooth & efficient sailing (sets boundaries & helps prevent blind
search).
 Importance of Research Design

• The importance of research design lies in the fact that it makes a

statement of what is to be done in order to achieve the research
objectives and how it is to be done.
• It furnishes the minimum information required for planning the
research project.
• It is an expression of what is expected of the research exercise in terms
of results and the analytical input needed to convert data into research
findings.
• The research design furnishes a clear idea as to the activities that would
need to be undertaken in order to achieve the research objective.
• It enables the researcher to have a frame of reference and prevent the
study from deviating.
• The research design helps in providing direction to the computation and
interpretation process to arrive at solution and recommendations.

13. Describe the difference between the probability and a non-probability

sample

Ans:- Probability sampling involves random selection, allowing you to make

strong statistical inferences about the whole group.

Non-probability sampling involves non-random selection based on

convenience or other criteria, allowing you to easily collect data.

BASIS FOR
PROBABILITY SAMPLING NON-PROBABILITY SAMPLING
COMPARISON

Meaning Probability sampling is a Nonprobability sampling is a

sampling technique, in which method of sampling wherein,
the subjects of the population it is not known that which
get an equal opportunity to be individual from the population
selected as a representative will be selected as a sample.
sample.

Alternately Random sampling Non-random sampling

 BASIS FOR
PROBABILITY SAMPLING NON-PROBABILITY SAMPLING
COMPARISON

known as

Basis of Randomly Arbitrarily

selection

Opportunity of Fixed and known Not specified and unknown

selection

Research Conclusive Exploratory

Result Unbiased Biased

Method Objective Subjective

Inferences Statistical Analytical

Hypothesis Tested Generated

14. In what types of situations is conducting a census more appropriate than

sampling?

Ans: - The census is a systematic method that collects and records the data
about the members of the population. The sampling is defined as the subset of
the population selected to represent the entire group, in all its characteristics.

1.The census is alternately known as a complete enumeration survey method.

In contrast, sampling is also known as a partial enumeration survey method.

2.In the census, each and every unit of population is researched. On the
contrary, in case of sample only a handful of items is selected from the
population for research.
3.Census is a very time-consuming method of survey, whereas, in the case of
sampling, the survey does not take much time.

4.The census method requires high capital investment as it involves the

research and collection of all the values of the population. Unlike sampling
which is a comparatively economical method.

5.The results drawn by conducting a census is accurate and reliable while there
are chances of errors in the results drawn from the sample.

6.The size of the sample determines the probability of errors in the outcome,
i.e. the larger the size of population the less are the chances of errors and the
smaller the size; the higher are the chances of errors. This is not possible with
census as all the items are taken into consideration.

7.Census is best suited for the population of heterogeneous nature. As

opposed to sampling which is appropriate for homogeneous nature.

15. Explain snowball sampling with appropriate examples.

Ans:- Snowball sampling (also known as chain-referral sampling) is a non-

probability (non-random) sampling method used when characteristics to be
possessed by samples are rare and difficult to find. For example, if you are
studying the level of customer satisfaction among elite Nirvana Bali Golf Club
in Bali, you will find it increasingly difficult to find primary data sources unless a
member is willing to provide you with contacts of other members.
This sampling method involves primary data sources nominating another
potential primary data source to be used in the research. In other words,
snowball sampling method is based on referrals from initial subjects to
generate additional subjects. Therefore, when applying this sampling method
members of the sample group are recruited via chain referral.
Also, snowball sampling is the most popular in business studies focusing on a
specific company that involve primary data collection from employees of that
company. Once you have contact details of one employee, she/he can help you
to recruit other employees to the study by providing contact details.
There are following three patterns of snowball sampling:
1. Linear snowball sampling. Formation of a sample group starts with only one
subject and the subject provides only one referral. The referral is recruited into
the sample group and he/she also provides only one new referral. This pattern
is continued until the sample group is fully formed.

2. Exponential non-discriminative snowball sampling. The first subject

recruited to the sample group provides multiple referrals. Each new referral is
explored until primary data from sufficient number of samples are collected.

3. Exponential discriminative snowball sampling. Subjects give multiple

referrals, however, only one new subject is recruited among them. The choice
of a new subject is guided by the aim and objectives of the study.

Example:- If using questionnaire as primary data collection method, you can

effectively apply snowball sampling with the use of emails. Specifically, body of
the email requesting sample group members to participate in the survey can
include a sentence along the following lines:

I would be very grateful if you could provide me with e-mail addresses of other
employees in your department/managers who are known to practice
democratic leadership style/other people who have bought the same
product/etc. who could also participate in this survey.
16. Differentiate between Primary data & Secondary data
Ans: -
BASIS FOR
PRIMARY DATA SECONDARY DATA
COMPARISON

Meaning Primary data refers to the Secondary data means data

first-hand data gathered by collected by someone else
the researcher himself. earlier.

Data Real time data Past data

Process Very involved Quick and easy

Source Surveys, observations, Government publications,

experiments, questionnaire, websites, books, journal
personal interview, etc. articles, internal records etc.

Cost Expensive Economical

effectiveness

Collection time Long Short

Specific Always specific to the May or may not be specific to

researcher's needs. the researcher's need.

Available in Crude form Refined form

Accuracy and More Relatively less

Reliability

The fundamental differences between primary and secondary data are

discussed in the following points:
 1. The term primary data refers to the data originated by the researcher
for the first time. Secondary data is the already existing data, collected
by the investigator agencies and organisations earlier.
2. Primary data is a real-time data whereas secondary data is one which
relates to the past.
3. Primary data is collected for addressing the problem at hand while
secondary data is collected for purposes other than the problem at
hand.
4. Primary data collection is a very involved process. On the other hand,
secondary data collection process is rapid and easy.
5. Primary data collection sources include surveys, observations,
experiments, questionnaire, personal interview, etc. On the contrary,
secondary data collection sources are government publications,
websites, books, journal articles, internal records etc.
6. Primary data collection requires a large amount of resources like time,
cost, and manpower. Conversely, secondary data is relatively
inexpensive and quickly available.
7. Primary data is always specific to the researcher’s needs, and he controls
the quality of research. In contrast, secondary data is neither specific to
the researcher’s need, nor he has control over the data quality.
8. Primary data is available in the raw form whereas secondary data is the
refined form of primary data. It can also be said that secondary data is
obtained when statistical methods are applied to the primary data.
9. Data collected through primary sources are more reliable and accurate
as compared to the secondary sources.

17. A department store that wishes to examine whether it is losing or

gaining customers draws a sample from its list of loyalty card holders by
selecting every tenth name Comment on the sampling design

18. Explain Type1 and Type 2 errors with appropriate examples

Ans:- Type 1 errors are commonly known as false positives. A type 1 error
occurs when a null hypothesis is rejected during hypothesis testing, even
though it is accurate. In this type of error, we conclude that our results are
significantly correct when they’re not. The probability of making this type of
error is represented by the alpha or ‘α’ you choose, which is the p-value.

For example, a p-value of 0.02 reveals a 2% chance that you may reject the
actual null hypothesis wrong. You can reduce this probability of committing a
type 1 error achieving by lowering the value for p. For example, a p-value of
0.01 indicates that there may be a 1% chance of committing an error.
Example for Type 1 Error
Let’s say that you’re convinced the Earth is flat and want to prove it to others.
Your null hypothesis, in this case, will be: The earth is not flat.

To nullify this hypothesis, you walk on a plain surface for a few days, noticing
that hey – it does look and feel flat when walking, so it must be flat and not a
sphere.

You, therefore, reject your null hypothesis and tell everyone that the earth is,
in fact, flat. This example is a simple explanation of the Type 1 Error. Although
type 1 errors are a little more complex in real life than the example used, this is
what the error looks like.

In such cases, your goal is to minimize the chances of the type 1 error. For
instance, here, you could have minimized your probability of type 1 error by
reading some scientific journals about the earth’s shape.

Type2 errors are also called false negatives. Type 2 errors occur when a
hypothesis test rejects the null hypothesis and makes a false assumption. Beta
or the “β” determines the probability of making a type 2 error. Beta is related
to the power of the statistical test, i.e., power=1-β

A high-test power can reduce the probability of committing a type 2 error.

Examples of a Type 2 Error

Suppose a pharmaceutical company is testing how effective two new vaccines
for COVID-19 are in developing antibodies. The null hypothesis states that both
the vaccines are equally effective, whereas the alternate hypothesis states that
there is varying effectiveness between the two vaccines.

To test this hypothesis, the pharmaceutical company begins a trial to compare

the two vaccines. It divides the participants, giving Group A one of the vaccines
and Group B the other vaccine.

The beta is calculated to be 0.03 (or 3%). This means that the chances of
committing a type 2 error are 97%. The null hypothesis should be rejected if
the vaccines are not equally effective. However, if the null hypothesis is not
rejected, a type 2 error occurs, indicating a false-negative error.
19. What is hypothesis? Hypotheses are the guiding force in any research
study. Justify and explain
Ans: - A hypothesis is a statement that introduces a research question and
proposes an expected result. It is an integral part of the scientific method that
forms the basis of scientific experiments.

Therefore, you need to be careful and thorough when building your

hypothesis. A minor flaw in the construction of your hypothesis could have an
adverse effect on your experiment.

The importance of hypotheses in research comes from the nexus between

theory and empirical reality between the formalized system and the
investigation. In this sense, the hypothesis serves to guide and delimit an
investigation, giving a definitive direction to the search for the solution of a
problem. Indeed, one of the purposes fulfilled by hypotheses is to serve as
guiding ideas for research. Consequently, when they are used to design them,
they are often called working hypotheses since the researcher can formulate
several hypotheses to be tested. In scientific research, there is nothing more
important than the hypothesis, perhaps the element from which any research
or work starts. The hypothesis is a possible explanation to the doubt that sets
in motion the investigative and scientific process and without it, without the
hypothesis, that is, without an option of explanation or answer to that doubt,
there is no science that can be developed. The scientific method developed
since the Modern Age by men and women from different areas of science is
structured in a rigid and regular enough way to be able to obtain the most
accurate results possible, although in many cases reaching the absolute truth is
impossible. . The investigation process has several parts or stages that go from
the raising of a doubt to its verification or refutation. In the middle of this
process, a fundamental element appears, which is the hypothesis, that which
distinguishes any person from a scientist since it is a possible explanation for a
doubt that even any ordinary person may have. When we speak of hypotheses,
we must understand that we are referring to the act by which we seek to raise
a possible solution to a doubt or concern that has not yet been proven. This act
not only happens in science but is also part of everyday life even if one is not
fully aware. An example of a hypothesis can be one that indicates, when in
doubt about why certain animals prefer one type of food and not another, that
this may be due to the abundance of certain types of resources and foods. This
“may be “possibility from which the research and testing process is born and
begins to develop.
This states how Hypotheses play an important role in the research study.
20.Researchers are paid to reduce the risk in making business decisions.
Comment

21. Explain the analysis of variance. Differentiate between the one-way and
two-way analysis of variance.

Ans: - A key statistical test in research fields including biology, economics and
psychology, analysis of variance (ANOVA) is very useful for analyzing datasets.
It allows comparisons to be made between three or more groups of data.
Analysis of variance (ANOVA) is a statistical technique that is used to compare
groups on possible differences in the average (mean) of a quantitative (interval
or ratio, continuous) measure. Variables that allocate respondents to different
groups are called factors; an ANOVA can involve one factor (a one-way design)
or multiple factors (a multi-way or factorial design). The term analysis of
variance refers to the partitioning of the total variation in the outcome variable
into parts explained by the factor(s)—related to differences between groups,
so-called explained or between variation—and a part that remains after taking
the factor(s) into account, the so-called unexplained, residual, or within
variation.

The key differences between one-way and two-way ANOVA are summarized
clearly below.

1. A one-way ANOVA is primarily designed to enable the equality testing

between three or more means. A two-way ANOVA is designed to assess the
interrelationship of two independent variables on a dependent variable.

2. A one-way ANOVA only involves one factor or independent variable,

whereas there are two independent variables in a two-way ANOVA.

3. In a one-way ANOVA, the one factor or independent variable analysed

has three or more categorical groups. A two-way ANOVA instead compares
multiple groups of two factors.

4. One-way ANOVA need to satisfy only two principles of design of

experiments, i.e. replication and randomization. As opposed to two-way
ANOVA, which meets all three principles of design of experiments which are
replication, randomization, and local control.
 One-Way ANOVA Two-Way ANOVA
A test that allows one to A test that allows one to make
make comparisons comparisons between the
Definition between the means of means of three or more groups
three or more groups of of data, where two independent
data. variables are considered.
Number of
Independent One. Two.
Variables
The means of three or The effect of multiple groups of
What is Being more groups of an two independent variables on a
Compared? independent variable on dependent variable and on each
a dependent variable. other.
Number of
Each variable should have
Groups of Three or more.
multiple samples.
Samples

22. Are Z-test and t-tests used more often in business research? Explain

Ans: - A z-test is used for testing the mean of a population versus a standard,
or comparing the means of two populations, with large (n ≥ 30) samples
whether you know the population standard deviation or not. It is also used for
testing the proportion of some characteristic versus a standard proportion or
comparing the proportions of two populations.
Example: Comparing the average engineering salaries of men versus women.

Example: Comparing the fraction defectives from 2 production lines.

A t-test is used for testing the mean of one population against a standard or
comparing the means of two populations if you do not know the populations’
standard deviation and when you have a limited sample (n < 30). If you know
the populations’ standard deviation, you may use a z-test.
Example: Measuring the average diameter of shafts from a certain machine
when you have a small sample.

23. Explain types of sampling techniques with relevant examples.

Ans:- Probability sampling involves random selection, allowing you to make

strong statistical inferences about the whole group.

Non-probability sampling involves non-random selection based on

convenience or other criteria, allowing you to easily collect data.

Probability sampling means that every member of the population has a chance
of being selected. It is mainly used in quantitative research. If you want to
produce results that are representative of the whole population, probability
sampling techniques are the most valid choice.

There are four main types of probability sample.

1. Simple random sampling

In a simple random sample, every member of the population has an equal
chance of being selected. Your sampling frame should include the whole
population.

To conduct this type of sampling, you can use tools like random number
generators or other techniques that are based entirely on chance.

Example: You want to select a simple random sample of 100 employees of

Company X. You assign a number to every employee in the company database
from 1 to 1000 and use a random number generator to select 100 numbers.

2. Systematic sampling
Systematic sampling is similar to simple random sampling, but it is usually
slightly easier to conduct. Every member of the population is listed with a
number, but instead of randomly generating numbers, individuals are chosen
at regular intervals.
Example: All employees of the company are listed in alphabetical order. From
the first 10 numbers, you randomly select a starting point: number 6. From
number 6 onwards, every 10th person on the list is selected (6, 16, 26, 36, and
so on), and you end up with a sample of 100 people.
If you use this technique, it is important to make sure that there is no hidden
pattern in the list that might skew the sample. For example, if the HR database
groups employees by team, and team members are listed in order of seniority,
there is a risk that your interval might skip over people in junior roles, resulting
in a sample that is skewed towards senior employees.

3. Stratified sampling
Stratified sampling involves dividing the population into subpopulations that
may differ in important ways. It allows you draw more precise conclusions by
ensuring that every subgroup is properly represented in the sample.

To use this sampling method, you divide the population into subgroups (called
strata) based on the relevant characteristic (e.g. gender, age range, income
bracket, job role).

Based on the overall proportions of the population, you calculate how many
people should be sampled from each subgroup. Then you use random
or systematic sampling to select a sample from each subgroup.

Example: The company has 800 female employees and 200 male employees.
You want to ensure that the sample reflects the gender balance of the
company, so you sort the population into two strata based on gender. Then
you use random sampling on each group, selecting 80 women and 20 men,
which gives you a representative sample of 100 people.

4. Cluster sampling
Cluster sampling also involves dividing the population into subgroups, but each
subgroup should have similar characteristics to the whole sample. Instead of
sampling individuals from each subgroup, you randomly select entire
subgroups.

If it is practically possible, you might include every individual from each

sampled cluster. If the clusters themselves are large, you can also sample
individuals from within each cluster using one of the techniques above. This is
called multistage sampling.
This method is good for dealing with large and dispersed populations, but
there is more risk of error in the sample, as there could be substantial
differences between clusters. It’s difficult to guarantee that the sampled
clusters are really representative of the whole population.

Example: The company has offices in 10 cities across the country (all with
roughly the same number of employees in similar roles). You don’t have the
capacity to travel to every office to collect your data, so you use random
sampling to select 3 offices – these are your clusters.

Non-probability sampling methods

In a non-probability sample, individuals are selected based on non-random
criteria, and not every individual has a chance of being included.

This type of sample is easier and cheaper to access, but it has a higher risk
of sampling bias. That means the inferences you can make about the
population are weaker than with probability samples, and your conclusions
may be more limited. If you use a non-probability sample, you should still aim
to make it as representative of the population as possible.

Non-probability sampling techniques are often used

in exploratory and qualitative research. In these types of research, the aim is
not to test a hypothesis about a broad population, but to develop an initial
understanding of a small or under-researched population.

1. Convenience sampling
A convenience sample simply includes the individuals who happen to be most
accessible to the researcher.

This is an easy and inexpensive way to gather initial data, but there is no way
to tell if the sample is representative of the population, so it can’t produce
generalizable results.

Example: You are researching opinions about student support services in your
university, so after each of your classes, you ask your fellow students to
complete a survey on the topic. This is a convenient way to gather data, but as
you only surveyed students taking the same classes as you at the same level,
the sample is not representative of all the students at your university.
2. Voluntary response sampling
Similar to a convenience sample, a voluntary response sample is mainly based
on ease of access. Instead of the researcher choosing participants and directly
contacting them, people volunteer themselves (e.g. by responding to a public
online survey).

Voluntary response samples are always at least somewhat biased, as some

people will inherently be more likely to volunteer than others.

Example: You send out the survey to all students at your university and a lot of
students decide to complete it. This can certainly give you some insight into
the topic, but the people who responded are more likely to be those who have
strong opinions about the student support services, so you can’t be sure that
their opinions are representative of all students.

3. Purposive sampling
This type of sampling, also known as judgement sampling, involves the
researcher using their expertise to select a sample that is most useful to the
purposes of the research.

It is often used in qualitative research, where the researcher wants to gain

detailed knowledge about a specific phenomenon rather than make statistical
inferences, or where the population is very small and specific. An effective
purposive sample must have clear criteria and rationale for inclusion.

Example: You want to know more about the opinions and experiences of
disabled students at your university, so you purposefully select a number of
students with different support needs in order to gather a varied range of data
on their experiences with student services.

4. Snowball sampling
If the population is hard to access, snowball sampling can be used to recruit
participants via other participants. The number of people you have access to
“snowballs” as you get in contact with more people.

Example: You are researching experiences of homelessness in your city. Since

there is no list of all homeless people in the city, probability sampling isn’t
possible. You meet one person who agrees to participate in the research, and
she puts you in contact with other homeless people that she knows in the area.