Business Research Method by Tujuba A
Business Research Method by Tujuba A
CHAPTER ONE
Research Methods: An Introduction
Overview of Research
Research is mostly used terminology in different academic and business institutions. Research as
consciously and creative human activity involves discovering and learning new things. Where
there is a problem there is always research. It is an essential tool for understanding the events
and structure of the social world. Research can mean different things to different people. People
have defined research differently according to their perception.
Woody on the other hand defined research, as an activity comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating
data; making deduction and reaching at conclusion to determine whether they fit the formulated
hypothesis.
An author called Klopsteg gives the most comprehensive definition of research. According to him
“ Research is original and creative intellectual activity, carried out in the laboratory, the library
or in field which endeavors to discover new facts and to apprise and interpret them properly in
the light of previous knowledge. With constantly increasing understanding, it revises previously
accepted conclusion, theories and laws, and makes new application of its findings. Whether it
seeks to extend knowledge for its own sake or to achieve results with specific economic or social
value, its raison de’tre is its contribution to human welfare.
I. On the basis of the out comes of research: whether the research tries to solve a particular
problem or makes a general contribution to the knowledge, research can be classified on the
following traits.
A. Fundamental Research:
Fundamental research is also called academic or basic or pure research. Such research is aimed
at investigating or search for new principles and laws. It is mainly concerned with generalization
and formulation of a theory. Fundamental research is organized only for the attainment of
knowledge and truth. With change of time and space, it is necessary to make in the fundamental
principles in every branch of science; thus, this type of research also verifies the old established
theories, principles and laws.
B. Applied Research
A research aimed finding a solution for an immediate problem facing a society, a group or
industry (business organization). The results of such research would be used by either
individuals or groups of decision-makers or even by policy makers.
While pure research discovers principles and laws, applied research discovers their
application in solving some social, economical or any other problems.
Ex. The improvement of safety in the working place.
Types of Applied Research
Social impact analysis: the major purpose of social assessment is to estimate the likely
consequences of a planned change. Such an assessment can be used for planning and
making choices among alternative policies.
Evaluation Research: is widely used type of applied research that addresses the question,
“did it works?” Evaluation is a process of establishing value judgment based on
evidence.
Applied research being impact analysis or evaluation research uses two tools namely; need
assessment and cost benefit analysis.
Need Assessment: a research collects data, to determine major needs and their severity. It is
often a preliminary step before deciding on a strategy to help people.
Cost benefit analysis: this is commonly used in social impact analysis. Economics developed cost
benefit analysis, in which the researcher estimates the future costs and the expected benefits of
one or several proposed actions and gives them monetary values.
II. On the basis of the purpose (the reason why a research is conducted)
B. Descriptive Research
The main purpose of such research is description of the state of nature or affairs, as it exists at
present. In social science and business research we often use the term ex-post facto research for
descriptive research. The main characteristic of such research is that the researcher has no
control over the variables; he can report what has happened or what is happening.
In case study a researcher may intensively investigate one or more cases or compare a
limited set of cases focusing on a several factors.
II. Tracer study is also known as follow up study. It is a type of explanatory research
that aims at investigating the subsequent development of individuals after a specified
treatment or condition.
Iv. On the basis of the environment in which the research is carried out research can be:
a. Field research
It is a research carried out in the field. Such research is common in social science, agricultural
science, history and archeology.
b. Laboratory research
It is a research carried out in the laboratory. These are commonly experimental research. Such
researches are common in medical science, agriculture and in general in natural sciences.
c. Simulation research
Such research uses model to represent the real world. Simulation is common in physical science,
economics and mathematics.
V. On the basis of the time required to complete the research, research can be:
Research methodology and techniques are mostly different from one science to another or can be
different from research to research. The philosophy common to all research methodology and
technique is called scientific methods.
Recording: the next step to observe in scientific method is a careful recording of all
information (data) obtained in the first step, i.e. observation
Classification: the collected data (information) have to be classified and organized. The
classification implies systematically arranging and organizing the recorded data on the
logical basis so that they will become viable for the analysis and to make generation.
Generalization: It is an extension of general laws and principles on the basis o the
pattern exhibited by the classified material. This general law is known as scientific law.
Verification: the scientific method does not stop only at the formulation of general law.
The general principle must be verified.
CHAPTER TWO
2. DEFINING RESEARCH PROBLEM AND HYPOTHESIS
In research processes, the first step happens to be identifying and properly defining a research
problem. The researcher must find any social, economic, business problem and formulate it into
research problem. The problem identified initially may be stated in broad general way and then
gradually the ambiguity will be resolved. The feasibility of a possible particular solution has to be
considered before formulating the problem. The best way of understanding a problem is to
discuss it with colleagues or those of having some experiences in the matter.
5. The scope of the investigation or the limits within which the problem is to be studied must
be mentioned explicitly in defining a research problem
and interpret the necessary data gathering tools. What is more, he needs to consider
whether he has the necessary knowledge of research design and statistical procedure
that may be required to carry out the research through its completion.
o Interest and enthusiasm: the researcher has to make sure that the problem really
interests him/her. He/she must also be truly enthusiastic about the problem. If the
problem is chosen properly by observing these points, the research will not be boring;
rather its will be love’s labor.
o Financial consideration: research is an expensive endeavor, which requires a great
deal of money invest. In this regard, the researcher should ascertain whether he has
necessary financial resources to carry on the investigation of the selected problem.
An estimate of the expenditure involved in the data gathering equipment, printing, test
material, travel, and clerical assistance to be specified.
o Time requirement: research should be undertaken within a given scope of time,
which was allocated, with careful analysis of the prevailing situation. Each and every
of research process require time. Particularly, it is worthwhile to plan for the time
that will be needed for the development and administration of tools, processing and
analysis of data and writing of the research report.
o Administration consideration: the researcher has to pay attention to all
administrative matter that is necessary to bring his/her study to its full completion. In
this regard the researcher should consider kinds of data, equipment, specialized
personnel and administrative facilities that are needed to complete study successfully.
The researcher must assure whether the pertinent data are available and accessible to
him/ her.
Hypothesis
Once the selection and definition of the problem have been accomplished, the derivation of working
hypothesis is the most important step in the research process. The word hypothesis is a compound
of two words, ‘hypo’ and ‘thesis’. Hypo means, under or below and thesis means a reasoned
theory or national viewpoint.
The term hypothesis is defined as a proposition that is stated in a testable form and predicts a
particular relationship between two or more variables.
RESEARCH PROBLEM: “Factors that contribute to lower achievement of female students than
males in ESLCE in A.A”
The following hypotheses could be derived from the above research problem:
H1. Female Students receive significantly less support to their education than that of their male
counterpart.
H2. Female Students sustain significantly higher stereotypes in textbooks than do their male
counterpart.
It should be noted that these hypothesis are taken as a tentative solutions to the problem with the
understanding that the investigation in due course may lead either to their retention or rejection.
Establishing a hypothesis should follow rules like:
The variables must be clearly specified and measurable by some techniques we know
The relationship between them must be stated precisely.
Importance of hypothesis
A well-grounded hypothesis provides the following advantages:
Represents specific objective, which determine the nature of the data needed to test the
proposition
Offer basis for selecting the sample, the research procedure, and the statistical analysis
needed
Keeps the study restricted in scope thereby preventing it from becoming too broad
Sets a framework for reporting the conclusion of the study
Source of Hypothesis
The inspection for hypothesis comes from a number of sources w/h include the following:
1. Professional Experience: The daily life experience or the day to day observation of the
relationship (correlation) between different phenomena leads the researcher to
hypothesize a relationship and to conduct a study if his/ her assumptions are confirmed.
2. Past Research or Common beliefs: Hypothesis can also be inspired by tracing past
research or by commonly held beliefs.
3. Through direct analysis of data or deduction from existing theory: Hypothesis may also
be generated through direct analysis of data in the field or may be deducted from a formal
theory. Through attentive reading, the researcher may able to get acquaintance with
relevant theories, principles and facts that may alert him or her to identify valid for his/her
study
4. Technological and social changes: Directly or indirectly exerts an influence in the
function of an organization. All such changes bring about new problems for research.
Forms of Hypothesis
Statement of research hypothesis can take a declarative (positive) form, negative form, the null form,
or the question form.
Positive:
Students who learn in small class size will perform significantly better in mathematics test than
those who learn in large class size.
Negative:
Students who learn in small class size will not perform significantly better in math’s test than those
in large class size.
Null Form:
There is no significances difference between students who learn in small class size and those who
learn in large class size in their mathematics performance.
Question Form:
Is there significant difference between students who learn in small class size and those in large
class size in their math’s performance?
In general, when a researcher makes a positive statement about the outcome of the study, the
hypothesis takes declarative forms. When the researcher negates about outcome of the study, the
hypothesis takes the negative form.
When the researcher makes a statement that no relationship exists, the hypothesis takes the null
form. In the question form hypothesis, a question is asked as to what the outcome will be instead
of stating what outcome is expected. It should also be noted that a working proposition stated
either in declarative, negative, null, question form is a matter of preference by the researcher.
CHAPTER THREE
I. The survey of concentrating literature: this is the most simple and fruitful method of
formulating precisely the research problem or developing hypothesis. Hypothesis stated by
earlier works may be review and their usefulness be evaluated as a basis for further research.
II. Experience Survey: this implies the survey of people who have practical experience with the
problem to be studied. The objective of such survey is to obtain insight in to the relationship
between variables and new ideas relating to the problem.
III. Analysis of Insight (examining analogous situation): is also important method for
suggesting hypothesis for research. It is particularly suitable in areas where there is a little
experience to serve as a guide. This method consists of intensive study
B. Research Design for Descriptive Study
Descriptive researches are those studies, which are concerned with describing the characteristics or
function of a particular individual, or of a group or a phenomenon.
CHAPTER FOUR
4. Research Proposal and Guide to Prepare a Proposal
The term “research proposal” is coined two words, research and proposal. Research has been
defined in the first chapter. Proposal lexically means a course of activities etc proposed.
Therefore, a research proposal can be defined as a written document requesting both
authorization and funds to undertake a specific research project. It always includes a statement
explaining the purpose of the study or a definition of the problem. It systematically outlines the
particular research methodology and the details the process that will be utilized at each stage of
the research process.
It is a systematic plan which brings to focus the preliminary planning that will be needed to
accomplish the purposes of the proposed study. It is just like a blue print which the architect
prepares before the construction of building starts.
In research proposal:
o What information will be required?
o What research procedures will be implemented? Will be clearly specified so that others
may understand their exact implications.
4.1. Functions of the Research Proposal
Research proposal may function as:
o A mean of communication: serves to communicate the investigator’s research plan to
those who give consultations and /or disburse fund. The quality of assistance and the
probability of financial support will all depend directly on the clarity and justification of
the proposal.
o A plan: helps the researcher to organize his idea in a systematic manner and to look for
strengths and flaws. A successful proposal sets out the plan in step-by-step detail. That
is, it provides an inventory of what must be done and which materials have to be collected
as a preliminary step. Generally, the acceptability of results is judged exclusively items of
the adequacy of the methods employed in recording, analyzing, and interpreting he data in
the planned study.
o A contract: a completed proposal approved for execution and signed by all members of
the sponsoring committee, constitute a bond of agreement between the researcher and that
committee.
2. Abstract
It is summary, which reflects the whole content of the proposal (most of the time less than 300
words). Abstract should be concise, informative, and should provide brief information about the
whole problem to investigated.
Abstract of a proposal should contain the following points:
o Title or topic of the research
o Statement of the problem and objective
o Methodology of Investigation
o Expected result (tentative only if a researcher starts with a formulated hypothesis)
3. Introduction
These sections in research proposal give the general background of the study and the need for
undertaking the study. It reviews the previous work to reveal what is known of the subject.
4. Statement of the problem/The Rationale
Statement of the problem elaborates about he problem under investigation. It attempts to focus
on a clear goal. More specifically, statement of the problem is targeted towards the following:
Stating the background facts which justify the study to be in order
Developing hypotheses or key questions, which may show the direction of the whole
exercise.
7. Significance of the Study: while preparing the research proposal, the researcher has to
incorporate the justification for the need of the research. He/she should justify the importance
and urgency of the study; as to how the results of the study will be useful to the beneficiaries. The
following are some of the points in which the justification stresses:
o A wide time gap between the earlier study and the present one.
o Existence of knowledge gaps that were uncovered by the previous studies.
o Lack or shortage of information about a problem. In general, in this section the
researcher can classify and explain the policy, academic and awareness significance of
the investigation.
In general, in this section the researcher can classify and explain the policy, academic and awareness
significance of the investigation.
A. Sampling: in the research process, the researcher often comes across unmanageable size of
population in which case he/she may be forced/ compelled to draw representative sample by
using different sampling techniques. A researcher proposal should clearly indicate the
population from which the researcher will draw his/her sample, and describe the procedure
he/she will use to select the sample.
B. Data Gathering Tools: In order to gather evidence or data for the study, the researcher has to
develop appropriate and reliable instrument(s) The research must be well versed in the use of
these tools or instruments and fully aware of their merits and demerits. The researcher proposal
should explain the reasons for selecting a particular tool(s) for collecting data.
12. Budget of time: A timetable explaining how the researcher expects to carry out his project
and when each of the important phases will be completed is helpful to both the researcher and the
reviewer. It is a plan in terms of number of weeks or months and expected completion dates.
Commonly researcher presents it in a table form.
13. Cost Budget: Most proposals put together with the expectation that funding be necessary
and an itemized list of items needed to carry out the research is listed in some detail. Personal
needs, including the principal researcher’s time are included.
These are items like:
Field expenses for data collection
Pay for consultants where they are necessary
Travel and all such items needed to be detailed.
A sum of money for contingencies etc
14. Bibliography
This is a section where a list of books, journals and other documents is offered. The researcher
should list all reference material that he has used in selecting the problem and which he may use
during the conduct of the study.
CHAPTER FIVE
Sources of Information
Any research is based on various types of information. The more information the researcher has
about the phenomena the better will be his investigation, and explanation about it. Without
information no investigation will be made. In order to carry on any research activity, information
should be gathered from proper sources. The more valid is the sources of information, the more
reliable will be the information received, which will lead to correct and reliable conclusion.
Generally, the sources of information are two types, i.e. Primary sources and secondary sources
of information.
1. Primary sources of information: the information obtained from primary sources is often
called as primary data.
Primary Data: are those information gathered by researcher himself and are gathered for the
first time, thus, happening to be original. The sources of such information are individuals and the
incidence around them. These data are obtained by means of questionnaires and schedules or
some other techniques. In some fields primary data are collected through interview and
observation method. The observation method, for collecting primary data, may be either
participant or non-participant. Such data are known as primary because they are gathered by the
researcher himself from the field of research direct and for first time.
spontaneous picture of life or person. The main weakness of uncontrolled observation is that of
subjective interpretation.
B. Controlled observation: Observation takes place according to define prearranged plan,
including experimental procedure. In this observation we use mechanical (or precision)
instruments as aids to accuracy and standardization. Controlled observation takes place in
various experiments that are carried out in a laboratory or under controlled condition.
5.1.1.3. Structured vs unstructured Observation
A. Structure Observation: it is structured and preplanned observation technique. This
observation is characterized by a careful definition of units, the style of recording the
observation information; standardize conditions of observation and the selection of
pertinent observation. Such observation is appropriate in descriptive research. The
approach followed in the observation process is specified in detail. It includes:
o The behavior to be observed
o The unit of observation
o Subject of observation (women, adult etc)
o Conditions of observation (time of observation, place of observation, approaches of
observation, etc)
o Style of recording the observed information and the like are predetermined.
In general, such observation has standardize format and is pre-planned
B. Unstructured Observation:
The observation takes place without the characteristics mentioned above; i.e. with out standardize
format and plan. There is no specification of subject of observation, behavior to be observed
and no standard format for recording the observed information. Such observation is very
much flexible and commonly used in exploratory research.
Advantages of observation Method
The main advantage of this method of data collection is that, information obtained relates to what
is currently happening. That is, it is not complicated by either the past behavior or future
intention or attitude.
Limitation of observation method
o It is an expensive method
o The information provided by this method is very limited
of recording information. The researcher is allowed much greater freedom to, if it is needed,
supplementary questions or at times he may omit certain questions. Interviewer can change the
sequences of question and he has also freedom in recording the response to include some aspects
and exclude the other. Unstructured interview is much more difficult and time consuming than
that of the structured one.
Questionnaires are mailed to respondents who are expected to read and understand the question
and write down the answer.
Limitations
o Low rate of return
o It can be only for literature respondent
o The control over the questionnaire may be lost once it is sent
o There is inbuilt inflexibility
o The slowest methods of all
Closed Ended Questions: the respondent is asked to select his answer from among a list
provided by the researcher (Yes, no, I don’t etc). Closed ended questions are very popular in
survey research since they provide a greater uniformity response and because they are easy to
process.
Importance of interviewer
There are a number of advantages in having questionnaires administered by an interviewer
rather by the respondent himself.
o Interview survey attain higher response rate than mail survey. A properly designed and
executed interview survey ought to achieve a return rate of at least 80-85 %
o The presence of interviewer generally decrease the number of “don’t knows” an “no
answers”
o The interviewer can be instructed to probe for answer, “if you had to pick one of the
answer, which do you think would come closest to your feelings?”
o Interviewer can also provide a guard against confusing questionnaires item. (Clarification
must be strictly controlled)
o The interviewer can observe as well as ask question
General rule for Interviewing
The manner in which the interview would be conducted will vary by survey population and will be
affected by the nature of the survey. Nevertheless, it is possible to provide some general
guidelines that would apply to most, if not all, interviewing situations.
o Appearances and demeanor (behavior or conduct)
o Familiarity with questionnaires
o Record responses exactly
o Probing for response
o Interviewer should be trained
5.2. Secondary Data Collection
Secondary information is information, which has already been collected by some one and which,
have already been passed through statistical process. The researcher does not obtain them
directly rater he gathered them from published an unpublished material.
Why researchers use data from secondary sources? In most cases researchers use secondary data
for different reason like:
o Secondary data may solve problem: if adequate data are available from secondary
sources, primary data collection will not be necessary
o Search costs are substantially lower than primary sources: it is cheap and less time
consuming than primary sources. A comprehensive search of secondary sources can
almost always be made in a fraction of the time and cost required for collection of primary
data.
It has also important supplementary use, these include:
o It helps to define the problem and formulate hypothesis about its solution.
o It will be help the plan the collection of primary data
o It will help to define the population and select the sample in primary data collection
However, the researcher must be careful when using secondary data, particularly as the only
sources of data. Secondary data be useful, it must be:
o Available
o Relevant to the information needed
o Accurate and sufficient to meet data requirement
Before using data, we must see that posses the following characteristics:
1. Reliability of the data
2. Suitability of the data
3. Adequacy of the data
CHAPTER SIX
Sampling Design and Procedure
Some Fundamental Definitions
Population: is the theoretically specified aggregation of survey elements from which the survey
sample is actually selected.
Sampling Frame: is the list of elements from which the sample drawn
Sample: a subset or some part of a larger population
Sample Design: is a definite plan for obtaining a sample frame
Sampling: is the process of using a small number or part of a larger population to make
conclusion about the whole population.
Element: is unit from which information is collected and which provides the basis of analysis
Statistics: is a characteristics of a sample
Parameter: is a characteristic of a population
6.1. Steps Involved in Sample Planning (Sample procedure)
The first thing that the sample plan must include is a definition of the population to be
investigated. This involves the following procedure:
Defining Population
Sample Design
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Execute Sampling Procedure
Management
Business Research Methods Ambo University April 2023
Advantages of Census
Reliability: data derived through census are highly reliable.
Detailed information: Census data yield much information.
Limitation of census
Expensiveness: Investigating each elements of the population is expensive to
any individual researcher.
Excessive time and energy: beside cost factor, census survey takes too long
time and consumes too much energy.
A type of sample that contains many unrepresentative characteristics would be termed as a biased
sample. The findings of a biased sample cannot legitimately be generalized to the population
from which it is taken.
Limitations of sampling
Less Accuracy: in comparison to census technique the conclusion derived from sample
are more liable to error. Therefore, sampling techniques is less accurate than the census
technique.
Misleading conclusion: if the sample is not carefully selected or if samples are
arbitrarily selected, the conclusion derived from them will become misleading if extended
to all population.
Need for specialized knowledge: the sample technique can be successful only if a
competent and able scientist makes the selection.
Personal Judgment: the personal judgment and subjective decision of the researcher in some cases
can be used as a base to determine the size of the sample.
Budgetary Approach: is another way to determine by the sample size. Under this approach the sample
size is determined by the available fund for the proposed study.
Example:
If cost of surveying of one individual or unit is 30 birr and if the total available fund for survey is say
1800 birr, the sample size then will be determined as,
Sample size (n)= total budget of survey/cost of unit survey, accordingly, the sample size will be 60
units (1800/30= 60 units)
Traditional inferences: This is based on precision taste and confidence level. To estimate sample
size using this approach we need to have information about the estimated variance of the
population, the magnitude of acceptable error and the confidence interval.
Variance or heterogeneity of the population: it refers to the standard deviation of the
population parameter. The sample size depends up on the variance of the population.
If the population is similar (homogenous) small sample size can be enough.
Magnitude of acceptable error: the magnitude of the error (range of possible error)
indicates how precise the study must be. It is acceptable error for that study. The
researcher makes subjective judgment about the desired magnitude of error.
I. V. Cost of Sampling
The sample plan must take into account the estimated cost of sampling. Such costs are two types,
overhead costs and, variable costs. In reality however, it may be difficult and even for some
people not reasonable to separate sampling cost from over all study cost.
VI. Execution of Sampling Process
The last step in sample planning is the execution of the sample process (procedure). In short the
sample is actually chosen at this stage. The actual requirement for sampling procedure are the
following:
Sample must be representative: when it is a representative, a sample will be relatively small pieces
of e population that mirror the various patterns and subclass of the population.
Sample must be adequate: a sample is adequate when it is of sufficient in size to provide confidence
in the stability of its characteristics.
I. Simple Random Sampling: each member of the population understudy has an equal chance of
being selected. The method involves selecting at random from al list of the population (sample
frame) the required number of subjects for the sample. Because of probability chance, the sample
should contain subject s with characteristics similar to the population as a whole: some old, some
young, some tall, some short, some rich, some poor etc.
2. Systematic sampling: this method is the modified form of simple random sampling. It involves
selecting from population lists in a systematic random fashion. For example, from a population
of 2000 a sample of 200 is required and then every 10 th person can be selected. The starting
point for the selection is chosen at random.
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Business Research Methods Ambo University April 2023
3. Stratified Sampling: it involves dividing the population in to homogonous groups, each group
containing subjects with similar characteristics. For example, group A might contain males and
group B females. In order to obtain a sample representative of the whole population in terms of
sex, random sampling selection of subjects from group A and group B must be taken. I needed,
the exact proportion of males to females in the whole population can be reflected in the sample.
4. Cluster sampling:
It is used when the population under study is large, when the distribution of the members is scattered,
or when the selection of individual members is not continent for several reasons. Cluster
sampling is used in situations where the population members are naturally grouped in unit that
can be used conveniently as clusters. Example: A researcher is interested to survey the Math’s
achievement of 4th grade students in elementary schools found in Ethiopia. It is practically
impossible to test all 4th grade students in elementary school students in the country by a single
researcher.
Since the 4th graders are naturally grouped by regions, Zones, Woredas, schools and classes, the
researcher may take zones or Woredas or schools as clusters. If schools are selected, it will be
easier for him to take students as sample. Then, all students in the selected schools are to be
selected. Cluster sampling differs from stratified random sampling in that in cluster sampling
random selection occurs not with the individual members but with the clusters. The clusters for
the sample are randomly selected from the large population of cluster and once a cluster is
selected for the sample, all the population members in that clusters are included in the sample.
This is in contrast to stratified sampling in which the individual members within strata are
randomly selected.
sample of 15 zones selected. Form the 15 zones, 30 Woredas can be selected randomly and from
these Woredas all elementary schools could be listed and a random sample of 100 schools
selected. It wouldn’t be difficult to compile a list of all elementary school teachers working in
100 schools and random sample of say 650 teachers selected. The successive random sampling
of regional states, zones, Woredas schools and finally teachers constitute a multistage /5stages/.
Multi stage sampling is comparatively convenient less time consuming, and less expensive method
of sampling. However, an element sample bias gets introduced because of the unequal size of
some of the selected sub-samples.
locations. It occurs when there is a failure of all units in the universe to have some probability of
being selected for the sample.
The size of the population to be sampled: Even if general rules are hard to make without
knowledge of the specific population, researchers recommend that the sample size of
around 30 cases seems to be the minimum for studies which require statistical data
analysis and which don’t involve many sub-division of data.
The actual number of cases from which the data are collected: in some instances, the
data actually gathered might be substantially fewer because of respondents who cannot be
located, refuse to be interviewed or return legible or not otherwise unusable
questionnaires. Furthermore, the actual number of cases varies from question of question
depending on the knowledge of respondents who fail to answer particular question.
The amount of heterogeneity of he variable within the population: the greater the
heterogeneity among members of the population a variable, the larger the sample
required. However, for population in which there is no variability or heterogeneity on a
variable, a sample of any size will be enough regardless of the population size.
The number of cells the sample may have to be sub-divided data analysis: Every
researcher is required to estimate the number of cells in which the sample may have to be
shared during data analysis and ensure an adequate sample size for each sub-division.
The degree of accuracy that is needed for the study: if you seek a high degree of
accuracy such as (o.o1) your sample will need to be much larger than if you seek a
relatively lower degree of accuracy such as (0.05).
Chapter Seven
C. Classification: Most research studies in a large volume of raw data, which must be reduced
in to homogenous group. Which means to classify the raw data or arranging data in groups or
classes on the basis of common characteristics
Data classification implies the processes of arranging data in groups or classes on the basis of
common characteristics. Data having common characteristics placed in one class and in this way
the entire data get divided in to a number of groups or classes.
D. Data according to attributes: Data are classified on the basis of common characteristics,
which can either be descriptive (such as literacy, sex, honesty, etc) or numerical (such as weight,
age, height, income, expenditure, etc). Descriptive characteristics refer to qualitative
phenomenon, which cannot be measured quantitatively: only their presence or absence in an
individual item can be noticed. Data obtained this way on the basis of certain attributes are
known as statistics of attributes and their classification is said to be classification according to
attributes.
E. Classification according to Class interval : unlike descriptive characteristics the numerical
characteristics refer to quantitative phenomena, which can be measured through some statistical
unit. Data relating to income, production, age, weighted, come under category. Such data are
known as statistics of variables and are classified on the basis of class interval. For example,
individuals whose incomes, say, are within 1001-1500 birr can form one group, those whose
incomes within 500-1500 birr can form another group and so on. In this way the entire data may
be divided in to a number of groups or classes or what are usually called class interval. Each
class-interval, thus, has an upper as well as lower limit, which is known as class limit. The
difference between the two-class limits is known as class magnitude. The number of items that
fall in a given class is known as the frequency of the given class.
The most commonly used measure of central tendency is the mean. To compute the mean, you add
up all the numbers and divide by how many numbers there are. It's not the average nor a halfway
point, but a kind of center that balances high numbers with low numbers. For this reason, it's
most often reported along with some simple measure of dispersion, such as the range, which is
expressed as the lowest and highest number.
The median is the number that falls in the middle of a range of numbers. It's not the average; it's
the halfway point. There are always just as many numbers above the median as below it. In cases
where there is an even set of numbers, you average the two middle numbers. The median is best
suited for data that are ordinal, or ranked. It is also useful when you have extremely low or high
scores.
The mode is the most frequently occurring number in a list of numbers. It's the closest thing to
what people mean when they say something is average or typical. The mode doesn't even have to
be a number. It will be a category when the data are nominal or qualitative. The mode is useful
when you have a highly skewed set of numbers, mostly low or mostly high. You can also have two
modes (bimodal distribution) when one group of scores are mostly low and the other group is
mostly high, with few in the middle.
Measure of Dispersion: is a measurement how the value of an item scattered around the truth-
value of the average. Average value fails to give any idea bout the dispersion of the values of an
item or a variable around the truth-value of the average. After identifying the typical value of a
variable the researcher can measure how the value of an item is scattered around the true value
of the mean. It is a measurement of how far is the value of the variable from the average value. It
measures the variation of the value of an item.
Important measures of dispersion are:
Range: measures the difference between the maximum and the minimum value of the
observed variable.
Mean Deviation: it is the average dispersion of an observation around the mean value. E
(Xi-X)/n
Variance: it is mean square deviation. It measures the sample variability.
Standard deviation: the square root of variance
Skew -ness describes the asymmetry of a distribution. A skewed distribution therefore has one tail
longer than the other.
When the population is consisting of more than one variable it is possible to measure the
relationship between them.
I. Is there exist association or correlation between the two or more variable? If yes, then up to
what degree?
This will be answered by the use of correlation technique.
CORRELATION
The most commonly used relational statistic is correlation, and it's a measure of the strength of
some relationship between two variables, not causality. Interpretation of a correlation coefficient
does not even allow the slightest hint of causality. The most a researcher can say is that the
variables share something in common; that is, are related in some way. The more two things have
something in common, the more strongly they are related. There can also be negative relations,
but the important quality of correlation coefficients is not their sign, but their absolute value. A
correlation of -.58 is stronger than a correlation of .43, even though with the former, the
relationship is negative. The following table lists the interpretations for various correlation
coefficients:
.6 to .8 Strong
.4 to .6 Moderate
.2 to .4 Weak
.0 to .2 Very weak
Pearson's correlation coefficient, or small r, represents the degree of linear association between
any two variables. Unlike regression, correlation doesn't care which variable is the independent
one or the dependent one, therefore, you cannot infer causality. Correlations are also dimension-
free, but they require a good deal of variability or randomness in your outcome measures. A
correlation coefficient always ranges from negative one (-1) to one (1), so a negative correlation
coefficient of -0.65 indicates that "65% of the time, when one variable is low, the other variable is
high" and it's up to you, the researcher to guess which one is usually initially low. A positive
correlation coefficient of 0.65 indicates, "65% of the time, when one variable exerts a positive
influence, the other variable also exerts a positive influence". Researchers often report the names
of the variables in such sentences, rather than just saying "one variable". A correlation
coefficient at zero, or close to zero, indicates no linear relationship.
The most frequently used correlation coefficient in data analysis is the Pearson product moment
correlation. It is symbolized by the small letter r, and is fairly easy to compute from raw scores
using the following formula:
II. Is there any cause and effect (causal relationship) between two variables or between one
variable on one side and two or more variables on the other side?
This question can be answered by the use of regression analysis. In regression analysis the
researcher tries to estimate or predict the average value of one variable on the basis of the value
of other variable.
REGRESSION
Regression is the closest thing to estimating causality in data analysis, and that's because it
predicts how much the numbers "fit" a projected straight line. The most common form of
regression, however, is linear regression, and the least squares method to find an equation that
best fits a line representing what is called the regression of y on x. Instead of finding the perfect
number, however, one is interested in finding the perfect line, such that there is one and only one
line (represented by equation) that perfectly represents, or fits the data, regardless of how
scattered the data points. The slope of the line (equation) provides information about predicted
directionality, and the estimated coefficients (or beta weights) for x and y (independent and
dependent variables) indicates the power of the relationship.
Yi= Bo + B1Zi
Yi= Outcomes score for the nth unit (dependent variable)
B0= coefficient for the intercept
B1= Coefficient for slope
Zi= independent variable
Chapter 8
After collecting and analyzing the data, the researcher has to accomplish the task of drawing
inferences followed by report writing. Interpretation has to be done carefully so that misleading
conclusion will not be drawn and the whole purpose of doing research will not be violated.
In one sense, interpretation is concerned with relationships within the collected data, partially
overlapping analysis.
Technique of interpretation
There are no existing rules to guide the researcher about how to interpret the data. However, the
following suggested steps could be helpful.
1. Researcher must give reasonable explanation of the relation, which he has found and he
must interpret the lines of relationship in terms of the underlining process and must try to
find out the thread of uniformity that lies under the surface layer of his diversified
findings.
2. Extraneous information, if collected during the study, must be considered while
interpreting the final result of research study, for it may prove to be a key factor in
understanding the problem under consideration
3. It is advisable, before embarking upon final interpretation, to consult some one having
insight in to the study and who is frank and honest and will not hesitate to point out
omissions and errors in logical argumentation. Such a consultation will result in correct
interpretation and, thus, enhance the utility of research result.
57 of 62 Department of Management Tujuba A.
Business Research Methods Ambo University April 2023
4. Researcher must accomplish the task of interpretation only after considering all relevant
factors affecting the problem to avoid false generalization.
Precaution in Interpretation
Researcher must pay attention to the following points for correct interpretation
o At the outset, researcher must invariably satisfy him self that the data are appropriate,
trust worthy, and adequate for drawing inferences. The data reflect good homogeneity
(no extreme) and popular analysis has been done through statistical or any other methods.
o The researcher must remain cautious about the errors that can possibly arise in the
process of interpreting results
o He should be well equipped with and must know the correct use of statistical measures for
drawing inferences concerning his study.
o Broad generalization must be avoided, because the coverage restricted to a particular
time, a particular area and particular condition. Such restriction, if any, must invariably
be specified and the results must be farmed within their limit.
o The researcher must remember that there should be constant interaction between initial
hypothesis and, empirical observation and theoretical conceptions
Bibliographical Usage
A bibliography is a list of all the works referred in due course of investigation in alphabetical
order. The basic styles for documenting major sources in a bibliography are the following:
Books: When the name of the author is indicated, basic entries are authors name, title of the
book, and publication information- year of publication, place of publication and publisher.
Example:
Johnson, D. (1994). Research Method in Education Management.
London: Long man Group Uk ltd.
When a book is written by more than three authors you will come only the first author and others
or et al.
Gorton, R. and Others or Gorton, R. etal (1988). Harvard book of School Management. Phoenix:
Oryd Press
Journals
The entry for an article in a journal has three major divisions. These are: Author name, title of
the article in quotation marks, and publication information.
Example:
Rosner, B. (1991) “Women in Management.” Harvard Business Review. Vol. 69, No.
3 (Pp. 152-165)
News Papers
The citation includes:
The name of the author and year of publication
The title of the article in quotation mark
The name of the news paper underlined
Page number of the news paper
Example
Abebe Asfaw (Sept, 1994) “attacking unemployment in Ethiopia” The Ethiopia
Herald. (Pp. 3-5)
Unpublished sources
Essential entries are the following:
The name of the writer
The title of unpublished work under quotation
Description about the sources
Example:
Sakala, C. (1993). “Maturity Care Policy in the United States: Toward a more Rational and
Effective Society.” Unpublished Dissertation Boston University.
Government publication
If the information sources are published by government ministries/Agencies, cite as an author
government agency that issued it.
Example:
Ministry of Education (1993). Basic Education Statistics. Addis Ababa:
Educational Management and information system
General Points to Note in Bibliography
When the authors name is not indicated alphabetize the book by its title. Ignore articles (a,
an or the) for the order of alphabetization
When the same name (a person or an institution) is referred to more than once in your
bibliography, give the name in the first entry only. Then, in place of the names use bars
( )
If several works by the same author appear in bibliography, they must be alphabetized
among themselves in bibliography; they must be alphabetized among themselves by title.
When the same author produces two or more publications in a year alphabetize by
assigning sequential letters (a,b,c,…) next to their year of publications
Example: (1973a, 1973b)
If the bibliography is long (more than 25 entries), references can be grouped according to their
category usually in three parts:
o Books
o Periodicals- Journals
o News Papers and Unpublished Material
N.B
When the author is an Ethiopian take the name as written on title pages Ethiopian names
cannot be converted.
When materials in Amharic are used, place on the last line of bibliography page.