FORMULATION OF THE RESEARCH

PROBLEM
&
DEVELOPMENT OF THE RESEARCH
HYPOTHESES
Defining the Research Problem
-a gap or uncertainty in the decision
makers’ existing body of knowledge which
inhibits efficient decision making.
-The gap could be academic & theoretical
(basic) or real time and action oriented
(applied).
Problem identification Process
 Problem Identification Process
Management decision problem: the issue/decision that
needs to be resolved through research

Discussion with experts: to get the right perspective on

the issue, discussion/dialogue is held with subject/industry
expert.

Review of literature: the most valuable source of framing

the research question is to review the past work done on
related topic(s).
Qualitative surveys: primary exploratory loosely
structured surveys to attain the environmental context.
 Elements of a Research Problem
Unit of analysis

Dependent variable

Independent variable

Extraneous independent variable

Intervening variables

Moderating variables
• A variable is a symbol to which we can assign
numerals or values. It can be dichotomous,
discrete or continuous.
• The unit of analysis particular source from
which the required information is obtained. It
can be individual, organization, department or
an industry
• A dependent variable is measurable and
quantifiable variable. A variable that is used to
describe or measure the problem under study.
• Independent variable- any variable that can be
stated as influencing or impacting the
dependent variable
• Moderating variable- strong contingent effect
on the relationship between independent and
dependent variable. They have the potential
to modify the direction and magnitude.
Ex.organic food study, the strength of the
relationship between attitude and intention
might be modified by the education and
income level(MV).
• An intervening variable is a temporal occurrence
which follows the independent variable and
precedes the dependent variable.for ex. Increase
in job satisfaction(IVV) of each individual worker
subsequent to the introduction of a flexi-time
work schedule(IV), which eventually affects the
Individuals productivity(DV).
• Extraneous variables(confounding variable) are
responsible for chance variations- ex tyrannical
boss, family pressure or nature of industry could
impact the flexi-time impact, but since these
would be applicable to individual cases can be
eliminated using experimental and a control
group.
• Summary
• An independent variable explaining the
variance in the dependent variable
• The intervening variable follows the
occurrence of the independent variable and
may in turn impact the dependent variable
• The moderating variable is a contributing
variable which might impact the defined
relationship
• The extraneous variable responsible for
chance variation.
 Research Objectives
Break down of Research questions and spelt out as tasks
or objectives to be met in order to answer the
research question.
ex,. To find out, to determine, to establish, to measure
and to examine.
Ex. In organic food research
To study the existing organic market
1. To categorize the organic products available in city x
into grain, snacks, pickles etc
2. To estimate the demand pattern of various products
for each of the above categories
3. To understand the marketing strategies adopted by
different players for promoting organic products
 Consumer diagnostic research
1. To study existing consumer profile i.e
perception and attitude towards organic
products and purchase and consumption
patterns
2. To study the potential customers in terms of
consumer segments, level of awareness,
perception and attitude towards health and
organic products.
 The Research Hypotheses

A hypotheses is any assumption/presupposition

that the researcher makes about the probable
direction of the results that might be obtained on
the completion of the research process
-Can also be described as statement in which we
assign variables to cases.
-A case is defined in this sense as the entity or
thing the hypothesis is talks about
 -the variable is the characteristic, trait or
attribute, that in the hypothesis is imputed to
the case.
Ex. Hypothesis
1. Brand Manager X (case) has a higher –than
average achievement motivation (variable)
2. If hypothesis based on more than one case, it
would be a generalization. Brand Managers in
Company Z (cases) have a higher than
average achievement motivation (variable)
Descriptive hypotheses: This is simply a
statement about the magnitude, trend, or
behaviour of a population under study.
They state the existence, size, form, or
distribution of some variable.
Ex.based on past records
.The attrition rate in BPO sector is 30 percent
. The literacy rate in Bangalore city is 90 percent
Researchers often use a research question
rather than a descriptive hypothesis.
Descriptive Hypothesis format Research question format
In Kanpur(case) our potato What is the market share for
chip market share (variable) our potato chips in Kanpur?
stands at 13.7 percent
State Governments (cases) are Are State Government
expriencing budget experiencing budget
difficulties(variable) difficulties?
Eight percent of Company X Do stockholders of Company X
stockholders(cases) favour favor an increased cash
increasing the companys cash divident?
dividend (variable)
 • Relational hypotheses: These are the typical kind
of hypotheses which state the expected
relationship between two variables. If the
researcher uses words such as increase, decrease,
less than or more than the directional or
one-tailed
• Ex Higher the likeability of the advertisement the
higher the sales
If no supportive data to hypothesize the expected
direction then non-directional or two tailed
Ex.relation between quality of working life and job
satisfaction experienced by employees
- Ban on smoking has an impact on the cigarette
sales.
Criteria for hypotheses formulation
In simple, declarative statement form

Measurable and quantifiable

Is essentially a conjectural statement

Has underlying assumptions on the testing of

the stated relationships
Correlational hypothesis
- States variable occur together in some
specified manner without implying that one
causes the other.
- Ex. Young women (under 35 years) purchase
fewer units of our products than women who
are 35 years of age or older
- The number of suits sold varies directly with
the level of the business cycle
- People in city X give the president a more
favourable rating than do people in city Y
Explanatory (causal) hypothesis
There is an implication that the existence of or a
change in one variable causes or leads to a
change in the other variable.
Ex. An increase in family income(IV) leads to an
increase in the in the percentage of income
saved(DV).
-Exposure to the company messages concerning
industry problem(IV) leads to more favourable
attitude(DV) by employees toward the
company
 Role of the hypothesis
1. It guides the direction of the study
2. It identifies facts that are relevant and those
that are not.
3. It suggests which form of research design is
likely to be most appropriate.
4. It provides a framework for organizing the
conclusion that result.
 Strong hypothesis
1. Adequate for its purpose
2. Testable
3. Better than its rivals
Criteria Interpretation
Adequate for its purpose Does the hypothesis reveal the original
problem condition
Does the hypothesis clearly identify facts
that are relevant and those that are not
Does the hypothesis clearly state the
condition, size or distribution of some
variable in terms of values meaningful to
the research problem
Does the hypothesis provides a
framework for organizing the conclusion
that result
Testable Does the hypothesis use acceptable
techniques.
Is the hypothesis simple requiring few
conditions or assumptions
Better than its rivals Does it explains more facts than its rivals
Explain a greater variety or scope of facts
than its rivals
Is the hypothesis one that informed
judges would accept as being the most
likely.
Your investment advisor proposes you a monthly
income investment plan that promises a
variable return each month. You will invest in
it only if you are assured of an average 12000
monthly income. Your advisor also tells you
that for the past 300 months, the scheme had
investment returns with an average value of
14000 and a standard deviation of 75. Should
you invest in this scheme? Hypothesis testing
comes to the aid for such decision-making.
Hypothesis testing is a mathematical tool for confirming
a financial or business claim or idea.
Hypothesis testing is useful for investors trying to decide
what to invest in and whether the instrument is likely
to provide a satisfactory return.
Despite the existence of different methodologies of
hypothesis testing, the same four steps are used:
define the hypothesis, set the criteria, calculate the
statistic, and reach a conclusion.
This mathematical model, like most statistical tools and
models, has limitations and is prone to certain errors,
necessitating investors also considering other models
in conjunction with this one
Hypothesis or significance testing is a
mathematical model for testing a claim, idea
or hypothesis about a parameter of interest in
a given population set, using data measured in
a sample set. Calculations are performed on
selected samples to gather more decisive
information about the characteristics of the
entire population, which enables a systematic
way to test claims or ideas about the entire
dataset.
• What is a hypothesis?
• A hypothesis states your predictions about what your research will
find. It is a tentative answer to your research question that has not
yet been tested. For some research projects, you might have to
write several hypotheses that address different aspects of your
research question.

• A hypothesis is not just a guess — it should be based on existing

theories and knowledge. It also has to be testable, which means
you can support or refute it through scientific research methods
(such as experiments, observations and statistical analysis of data).

• Variables in hypotheses
• Hypotheses propose a relationship between two or more
variables. An independent variable is something the researcher
changes or controls. A dependent variable is something the
researcher observes and measures.
Here is a simple example: A school principal reports that students in
their school score an average of 7 out of 10 in exams. To test this
“hypothesis,” we record marks of say 30 students (sample) from
the entire student population of the school (say 300) and calculate
the mean of that sample. We can then compare the (calculated)
sample mean to the (reported) population mean and attempt to
confirm the hypothesis.

To take another example, the annual return of a particular mutual

fund is 8%. Assume that mutual fund has been in existence for 20
years. We take a random sample of annual returns of the mutual
fund for, say, five years (sample) and calculate its mean. We then
compare the (calculated) sample mean to the (claimed) population
mean to verify the hypothesis.
• Daily apple consumption leads to fewer doctor’s visits.

• In this example, the independent variable is apple consumption —

the assumed cause. The dependent variable is the frequency of
doctor’s visits — the assumed effect.

• Developing a hypothesis
• 1. Ask a question
• Writing a hypothesis begins with a research question that you
want to answer. The question should be focused, specific, and
researchable within the constraints of your project.

• Do students who attend more lectures get better exam results?

• 2. Do some preliminary research
• Your initial answer to the question should be based on what is already
known about the topic. Look for theories and previous studies to help you
form educated assumptions about what your research will find.

• At this stage, you might construct a conceptual framework to identify

which variables you will study and what you think the relationships are
between them.

• 3. Formulate your hypothesis

• Now you should have some idea of what you expect to find. Write your
initial answer to the question in a clear, concise sentence.

• Attending more lectures leads to better exam results.

• 4. Refine your hypothesis
• You need to make sure your hypothesis is specific and testable. There are various ways of phrasing
a hypothesis, but all the terms you use should have clear definitions, and the hypothesis should
contain:

• The relevant variables

• The specific group being studied
• The predicted outcome of the experiment or analysis
• 5. Phrase your hypothesis in three ways
• To identify the variables, you can write a simple prediction in if…then form. The first part of the
sentence states the independent variable and the second part states the dependent variable.

• If a first-year student starts attending more lectures, then their exam scores will improve.

• In academic research, hypotheses are more commonly phrased in terms of correlations or effects,
where you directly state the predicted relationship between variables.

• The number of lectures attended by first-year students has a positive effect on their exam scores.

• If you are comparing two groups, the hypothesis can state what difference you expect to find
between them.

• First-year students who attended most lectures will have better exam scores than those who
attended few lectures.
• 6. Write a null hypothesis
• If your research involves statistical hypothesis
testing, you will also have to write a null
hypothesis. The null hypothesis is the default
position that there is no association between the
variables. The null hypothesis is written as H0,
while the alternative hypothesis is H1 or Ha.

• H0: The number of lectures attended by first-year

students has no effect on their final exam scores.
• H1: The number of lectures attended by first-year
students has a positive effect on their final exam
scores.
Research Hypothesis Null
question hypothesis
What are the Increasing apple Increasing
health benefits consumption in apple
of eating an over-60s will result consumption
apple a day? in decreasing in over-60s will
frequency of have no effect
doctor’s visits. on frequency
of doctor’s
visits.
Which airlines Low-cost airlines Low-cost and
have the most are more likely to premium
delays? have delays than airlines are
premium airlines. equally likely
to have
delays.
Can flexible Employees who There is no
work have flexible relationship
arrangements working hours will between
improve job report greater job working hour
satisfaction? satisfaction than flexibility and
employees who job
work fixed hours. satisfaction.
What effect There is a There is no
does daily use negative relationship
of social media correlation between social
have on the between time media use and
attention span spent on social attention span in
of under-16s? media and under-16s.
attention span in
under-16s.
 Research Proposal
1. Executive summary
2. Background of the problem/Problem statement
3. Review of literature
4. Research objectives
5. Hypothesis
6. Research Design
7. Scheduling the research
8. Costing and budget
9. References