29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan1 RESEARCH METHODOLOGY (Business Research Methods) Week 12

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan2 Descriptive and Inferential Statistics (1) Descriptive statistics – The branch of statistics which describes or summarizes information about a population or sample Examples:  The number of employees with MBA degrees in an organization  The number of students who failed to qualify their final examination at CIIT

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan3 Descriptive and Inferential Statistics (2) Inferential statistics – The branch of statistics which is used to make inferences or judgments about a population on the basis of a sample Examples:  The demand for a new Product X based on a sample conducted in Region Y  The general election result based on a representative survey of voters in electoral district Z

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan4 Statistical Data Analysis  Collecting data on the basis of surveys and questionnaires is the first step towards interpreting and utilizing the data for decision-making  After data has been collected, it must be organized and analysed using various statistical tools and techniques

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan5 Statistical Data Analysis (Frequency Distribution (absolute distribution))  A frequency distribution (or frequency table) is a set of data which records the number of times a particular vlaue of a variable, or range of values of a variable, occurs  Example: Amount Deposited (Rs.)Frequency Less than 50,000 50,000 – 100,000 Above 100, Total = 8,315

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan6 Statistical Data Analysis (Frequency Distribution (relative distribution)) Amount Deposited (Rs.)Frequency Less than 50,000 50,000 – 100,000 Above 100,000 80% 15% 5% Total = 100% Amount Deposited (Rs.)Frequency Less than 50,000 50,000 – 100,000 Above 100, Total = 1 Relative Probability

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan7 Proportions Proportions are the percentage of popluation elemts that succesfully fulfill some specific criteria Examples: –The proportion of CIIT Management Science students who are in the evening programme –The proportion of jeweller shops in Islamabad who have an annual revenue exceeding 50 million Rupees

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan8 Measures of Central Tendency  The purpose of „measures of central tendency“ is to determine the average value in a set of values  There are three measures of central tendency: –(Arithmetic) Mean –Median –Mode

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan9 Measures of Central Tendency (Arithmetic Mean)  The arithmetic mean is the average of all the values under consideration Total = 300,000,000 BranchRevenue ,000, ,000,000 40,000,000 60,000,000 Arithmetic Mean = 300,000,000 / 4 = 75,000,000

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan10 Measures of Central Tendency (Median)  The Median is the midpoint of the distribution of values under consideration SalespersonNumber of Sales Calls Median =

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan11 Measures of Central Tendency (Mode)  The Mode is the value that occurs most frequently in the distribution of values under consideration SalespersonNumber of Sales Calls Mode = 3

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan12 Measures of Dispersion  Measures of dispersion provide an indication of the tendency of value to depart from their central tendency  Two sets of values may have the same central tendency, but their dispersion may differ significantly  See example table 17.5 on page 407 of the text book

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan13 Measures of Dispersion (The Range)  The Range is the simplest measure of dispersion of values and is defind as the distance between the smallest and the highest value (i.e. the extreme values) in a frequency distribution  Refer again to table 17.5 on page 407 of your text book for an example  See the deviation score (the distance of a value from the arithmetic mean, e.g. deviation score = 500 – 750 = - 250)  The deviation score is used as the basis of computing the „average deviation“ which is simply the summation of all deviation scores divided by the sample size. The absolute values of the deviation scores should be used

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan14 Measures of Dispersion (The Variance)  The variance is another very useful measure of the level of dispersion or variability in a set of values  The variance is computed by squaring the deviation scores, summing them all up, and then dividing by the sample size minus one  The larger the value of the variance, the larger is the distance from the arithmetic mean

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan15 Measures of Dispersion (The Standard Deviation)  The standard deviation is simply the square root of the variance and is considered a very accurate measure of variation or dispersion in a set of values  The standard deviation is preferred by business researchers over the variance  If the set of values is based on a sample, it is important to note that the standard deviation of the sample may differ from the standard deviation of the whole population

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan16 Fieldwork (1)  The gathering of data by individuals, such as, personal or telephone interviewers and observers is, broadly speaking, referred to as fiedwork  The selection of fieldworkers with adequate training and experience is essential the success of the research project  A research study is only as good as the data input

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan17 Fieldwork (2)  There are organizations to whom the task of gathering data and information can be outsourced, which are refffered to as „field interviewing services“  Such organizations gather data (e.g. through personal and telephone interviews or observation) for a fee, and they may also offer training and supervision services and selecting fieldworkers  It is important for fieldworkers to have certain characteristics when gathering data, for e.g., being well- dressed and well-groomed, pleasant in disposition, outgoing, keen to interact with strangers

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan18 Training Fieldworkers  Briefing Session (provides all interviewers with identical background information about the project  Training Interview (a practice session in which an inexperienced fieldworker records answers on a questionnaire to develop his or her skills, and clarify the requirements of the research project in question)  The purpose of the briefing session and training interview is to ensure that data is gathered by the fieldworkers in a uniform manner

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan19 Major Themes in Training Fieldworkers 1)Making initial contact with the respondent and securing the interview 2)Asking survey questions 3)Probing 4)Recording Responses 5)Terminating the interview

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan20 Making Initial Contact Polite introduction Try to convince the person being interviewed that cooperation is important Use of ID cards Avoid using certain words which give the respondent a means of quickly ending the interview (e.g.: may I...) Do not be too aggressive

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan21 Asking Survey Questions  Questions must be asked in a manner that avoids interviewer bias  Asking questions must take 5 major principles into consideration, i.e.: –ask the questions exactly as they are worded in the questionnaire, –read each question very slowly, –ask the questions in the order in which they are presented in the questionnaire, –ask every question specified in the questionnaire and –repeat questions that are easily misunderstood or misinterpreted

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan22 Probing  Probing is about verbal prompts by the fieldworker or interviewer when the respondent must be motivated to communicate his or her answer or to enlarge on, clarify, or explain an answer  Interviewers must try to ensure that answers provided by the respondents are complete and unambiguous and they must ensure that the respondent does not lose track of the questions they are asked  Interviewers must ensure that they do not influence the respondents when probing (neutrality)

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan23 Recording Responses  All fieldworkers should use the same procedure for recording responses  In case of open-ended questions, responses should be recorded in the respondent‘s own words (no summarizing or paraphrasing) and should include an indication as to whether probing was required

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan24 Terminating the Interview  Interview should not be terminated before all the information has been gathered from the respondent  Hasty departure by the interviewer should be avoided because sometimes after formal interviewing, the respondents may offer valuable information. Moreover, a hasty departure is considered impolite and the respondent may have to be reinterviewed  Interviewers should have the courtesy to answer questions which the respondent may have after the interview

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan25 Principles of Good Interviewing The Basics  Integrity and honesty (for interviewers)  Patience and tactfulness (in dealing with respondents)  Accuracy and detail (record responses that are understood, clarify and ask respondents for detailed answers if necessary, and record answers verbatim)  Impartiality (keep your opinions to yourself and remain neutral)  Listen more, talk less (respondents are expected to provide the information)  Maintain confidentiality and privacy (do not disclose information on respondents to anyone else)  Be respectful of the rights of respondents

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan26 Principles of Good Interviewing Required Practices (1)  Complete the number of interviews according to the assigned sampling plan  Follow the directions given to you  Keep your schedules  Keep control of the interview (no deviation to other subjects, avoid talking too much, keep time frame in mind)  Complete the questionnaires and follow the prescribed sequence in asking questions

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan27 Principles of Good Interviewing Required Practices (2)  Ask questions as they are written (no summarizing or paraphrasing)  Do not leave questions blank  Use all aids (props, photographs etc.) provided to the interviewer for conducting the interview  Check each questionnaire (preferably immediately) after the interview has finished  Check how many questionnaires were you assigned to complete with the number you actually completed  Clarify any questions with the research initiator or fieldwork supervisor