Business Research Methodology by SRINIVAS R RAO - HTML preview

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Time Period I Time Period II

Test area: Level of phenomenon Treatment Level of phenomenon

Before treatment (X) Introduced After treatment (Y)

Control area: Level of phenomenon Level of phenomenon

Without treatment Without treatment

(A) (Z)

Treatment Effect = (Y-X)-(Z-A)

This design is superior to the previous two designs because it

avoids extraneous variation resulting both from the passage of time and

from non-comparability of the rest and control areas. But at times, due to

lack of historical data time or a comparable control area, we should prefer

to select one of the first two informal designs stated above.

2. Formal Experimental Design

(i)

Completely randomized design:

This design involves only two principles i.e., the principle of

replication and the principle of randomization of experimental designs.

Among all other designs this is the simpler and easier because it’s procedure

and analysis are simple. The important characteristic of this design is

that the subjects are randomly assigned to experimental treatments. For

example, if the researcher has 20 subjects and if he wishes to test 10 under

treatment A and 10 under treatment B, the randomization process gives

every possible group of 10 subjects selected from a set of 20 an equal

opportunity of being assigned to treatment A and treatment B. One way

analysis of variance (one way ANOVA) is used to analyze such a design.

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(ii)

Randomized block design:

R. B. Design is an improvement over the C.R. design. In the R .B.

Design, the principle of local control can be applied along with the other

two principles of experimental designs. In the R.B. design, subjects are

first divided into groups, known as blocks, such that within each group the

subjects are relatively homogenous in respect to some selected variable.

The number of subjects in a given block would be randomly assigned

to each treatment. Blocks are the levels at which we hold the extraneous

factor fixed, so that its contribution to the total variability of data can be

measured. The main feature of the R.B. design is that, in this, each treatment

appears the same number of times in each block. This design is analyzed

by the two-way analysis of variance (two-way ANOVA) technique.

(iii) Latin squares design:

The Latin squares design (L.S design) is an experimental design

which is very frequently used in agricultural research. Since agriculture

depends upon nature to a large extent, the condition of research and

investigation in agriculture is different than the other studies. For example,

an experiment has to be made through which the effects of fertilizers on

the yield of a certain crop, say wheat, are to be judged. In this situation, the

varying fertility of the soil in different blocks in which the experiment has

to be performed must be taken into consideration; otherwise the results

obtained may not be very dependable because the output happens to be

the effects of not only of fertilizers, but also of the effect of fertility of

soil. Similarly there may be the impact of varying seeds of the yield. In

order to overcome such difficulties, the L.S. design is used when there are

two major extraneous factors such as the varying soil fertility and varying

seeds. The Latin square design is such that each fertilizer will appear five

times but will be used only once in each row and in each column of the

design. In other words, in this design, the treatment is so allocated among

the plots that no treatment occurs more than once in any one row or any

one column. This experiment can be shown with the help of the following

diagram:

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FERTILITY LEVEL

I II III IV V

X

A

B

C

D

E

1

X

B

C

D

E

A

2

X

C

D

E

A

B

3

X

D

E

A

B

C

4

X

E

A

B

C

D

5

From the above diagram, it is clear that in L.S. design the field

is divided into as many blocks as there are varieties of fertilizers. Then,

each block is again divided into as many parts as there are varieties of

fertilizers in such a way that each of the fertilizer variety is used in each of

the block only once. The analysis of L.S. design is very similar to the two-

way ANOVA technique.

(iv) Factorial design:

Factorial designs are used in experiments where the effects of

varying more than one factor are to be determined. These designs are

used more in economic and social matters where usually a large number

of factors affect a particular problem. Factorial designs are usually of two

types:

(i) Simple factorial designs and

(ii) Complex factorial designs.

(i)

Simple factorial design:

In simple factorial design, the effects of varying two factors on the

dependent variable are considered but when an experiment is done with

more than two factors, complex factorial designs are used. Simple factorial

design is also termed as a ‘two-factor-factorial design,’ whereas complex

factorial design is known as ‘multi-factor-factorial design.

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(ii)

Complex factorial designs:

When the experiments with more than two factors at a time are

conducted, it involves the use of complex factorial designs. A design which

considers three or more independent variables simultaneously is called a

complex factorial design. In case of three factors with one experimental

variable, two treatments and two levels, complex factorial design will

contain a total of eight cells. This can be seen through the following

diagram:

2x2x2 COMPLEX FACTORIAL DESIGN

Experimental variable

Treatment A

Treatment B

Control

Control

Control

Control

variable 2

variable 2 variable 2

variable 2

Level I

Level II

Level III

Level II

Level I

Control

Cell 1

Cell 3

Cell 5

Cell 7

variable 2

Cell 2

Cell 4

Cell 6

Cell 8

Level II

A pictorial presentation is given of the design shown above in the following:

Experimental Variable

Treatment Treatment

Control Variable II A

B

Level II

Level I

Level I

Level

II

Control Variable I

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The dotted line cell in this diagram corresponds to cell I of the above

stated 2x2x2 design and is for treatment A, level I of the control variable

1, and levelIi of the control variable 2. From this design, it is possible to

determine the main effects for three variables i.e., one experimental and

true control variables. The researcher can also determine the interaction

between each possible pair of variables (such interactions are called ‘first

order interactions’) and interaction between variable taken in triplets

(such interactions are called second order interactions). In case of a 2x2x2

design, the further given first order interactions are possible:

Experimental variable with control variable 1 (or EV x CV 1);

Experimental variable with control variable 2 (or EV x CV 2);

Control variable 1 with control variable 2 (or CV 1 x CV 2);

There will be one second order interaction as well in the given design (it is

between all the three variables i.e., EV x CV 1 x CV 2).

To determine the main effect for the experimental variable, the

researcher must necessarily compare the combined mean of data in cells 1,

2, 3 and 4 for Treatment A with the combined mean of data in cells 5,6,7

and 8 for Treatment B. In this way the main effect of experimental variable,

independent of control variable 1 and variable 2, is obtained. Similarly, the

main effect for control variable 1, independent experimental variable and

control variable 2, is obtained if we compare the combined mean of data in

cells 1, 3, 5 and 7 with the combined mean of data in cells 2, 4, 6 and 8 of

our 2x2x2 factorial design. On similar lines, one can determine the effect

of control variable 2 independent of experimental variable and control

variable 1, if the combined mean of data in cells 1,2,5 and 6 are compared

with the combined mean of data in cells 3,4,7 and 8.

To obtain the first order interaction, say, for EV x CV 1 in the above

stated design, the researcher must necessarily ignore control variable 2

for which purpose he may develop 2x2 design from the 2x2x2 design by

combining the data of the relevant cells of the latter design as has been

shown on next page:

86

Experimental Variable

Treatment A

Treatment B

Control

Level I

Cells 1,3

Cells 5,7

Variable 1

Level II

Cells 2,4

Cells 6,8

Similarly, the researcher can determine other first order interactions.

The analysis of the first order interaction in the manner described above is

essentially a simple factorial analysis as only two variables are considered

at a time and the remaining ones are ignored. But the analysis of the second

order interaction would not ignore one of the three independent variables

in case of a 2x2x2 design. The analysis would be termed as a complex

factorial analysis.

It may, however, be remembered that the complex factorial design

need not necessarily be of 2x2x2 type design, but can be generalized to

any number and combinations of experimental and control independent

variables. Of course, the greater the number of independent variables

included in a complex factorial design, the higher the order of the

interaction analysis possible. But the overall task goes on becoming more

and more complicated with the inclusion of more and more independent

variables in our design.

Factorial designs are used mainly because of the two advantages -

(i) They provide equivalent accuracy (as happens in the case of experiments

with only one factor) with less labour and as such are source of economy.

Using factorial designs, we can determine the effects of two (in simple

factorial design) or more (in case of complex factorial design) factors

(or variables) in one single experiment. (ii) they permit various other

comparisons of interest. For example, they give information about such

effects which cannot be obtained by treating one single factor at a time.

The determination of interaction effects is possible in case of factorial

designs.

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Conclusion

There are several research designs and the researcher must decide

in advance of collection and analysis of data as to which design would prove

to be more appropriate for his research project. He must give due weight

to various points such as type of universe and it’s nature, the objective of

the study, the source list or the sampling frame, desired standard accuracy

and the like when taking a decision in respect of the design for his research

project.

SUMMARY

Experiment is the process of examining the truth of a statistical

hypothesis related to some research problem. There are two types of

experiments - absolute and comparative. There are three types of research

designs - research design for descriptive and diagnostic research, research

design for exploratory research studies and research design for hypothesis

testing. Prof. Fisher has laid three principles of experimental design. They

are Principle of Replication, Principle of Randomization and Principle of

Local Control. There are different kinds of experimental designs. Some of

them are Informal experimental design, After only with control design,

Formal experimental design, Completely randomized design, Randomized

block design, Latin square design and Factorial design.

SELF ASSESMENT QUESTIONS (SAQS)

1. Explain the meaning and types of experiment (Ref. Introduction and

types of research design next to introduction)

2. Explain informal designs. (Ref. i,ii,iii in informal experiment design

portion.)

3. Explain formal experimental design and control. (Ref. i,ii,iii,iv in

formal experiment design section)

4. Explain complex factorial design.

***

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CHAPTER II

Lesson 4. Observation

1 Steps In Observation

Meaning And Characteristics Of Observation

Types Of Observation

Stages Of Observation

Problems, Merits And Demerits

Introduction

Observation is a method that employs vision as its main means

of data collection. It implies the use of eyes rather than of ears and the

voice. It is accurate watching and noting of phenomena as they occur

with regard to the cause and effect or mutual relations. It is watching

other persons’ behavior as it actually happens without controlling it. For

example, watching bonded labourer’s life, or treatment of widows and

their drudgery at home, provide graphic description of their social life and

sufferings. Observation is also defined as “a planned methodical watching

that involves constraints to improve accuracy”.

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CHARACTERISTICS OF OBSERVATION

Scientific observation differs from other methods of data collection

specifically in four ways: (i) observation is always direct while other

methods could be direct or indirect; (ii) field observation takes place in

a natural setting; (iii) observation tends to be less structured; and (iv) it

makes only the qualitative (and not the quantitative) study which aims at

discovering subjects’ experiences and how subjects make sense of them

(phenomenology) or how subjects understand their life (interpretivism).

Lofland (1955) has said that this method is more appropriate

for studying lifestyles or sub-cultures, practices, episodes, encounters,

relationships, groups, organizations, settlements and roles etc. Black and

Champion (1976) have given the following characteristics of observation:

ӹ Behavior is observed in natural surroundings.

ӹ It enables understanding significant events affecting social relations

of the participants.

ӹ It determines reality from the perspective of observed person himself.

ӹ It identifies regularities and recurrences in social life by comparing

data in our study with that of other studies.

Besides, four other characteristics are:

ӹ Observation involves some control pertaining to the observation

and to the means he uses to record data. However, such controls do

not exist for the setting or the subject population.

ӹ It is focused on hypotheses-free inquiry.

ӹ It avoids manipulations in the independent variable i.e., one that is

supposed to cause other variable(s) and is not caused by them.

ӹ Recording is not selective.

Since at times, observation technique is indistinguishable from

experiment technique, it is necessary to distinguish the two.

90

Observation involves few controls than the experiment technique.

1. The behaviour observed in observation is natural, whereas in

experiment it is not always so.

2. The behavior observed in experiment is more molecular (of a smaller

unit), while one in observation is molar.

3. In observation, fewer subjects are watched for long periods of time in

more varied circumstances than in experiment.

4. Training required in observation study is directed more towards

sensitizing the observer to the flow of events, whereas training in

experiments serves to sharpen the judgment of the subject.

5. In observational study, the behavior observed is more diffused.

Observational methods differ from one another along several variables

or dimensions.

Merits:

1. We get original data

2. We get more accurate and reliable data.

3. Satisfactory information can be extracted by the investigator

through indirect questions.

4. Data are homogeneous and comparable.

5. Additional information can be gathered.

6. Misinterpretation of questions can be avoided.

Demerits:

1. It is time consuming and costs more.

SELF ASSESSMENT QUESTIONS (SAQS)

1. What are the characteristics of observation?

2. How do you differentiate observation from experiment?

----

91

92

CHAPTER– III

Statistical Analysis

CONTENTS

1. Probability

2. Probability Distribution

2.1 Binomial Distribution

2.2 Poisson Distribution

2.3 Normal Distribution

3. Testing of Hypothesis

3.1 Small Sample

3.2 Large Sample Test

4. Χ2 Test

1.

PROBABILITY

If an experiment is repeated under essentially homogeneous and

similar conditions, two possible conclusions can be arrived. They are: the

results are unique and the outcome can be predictable and result is not

unique but may be one of the several possible outcomes. In this context,

it is better to understand various terms pertaining to probability before

examining the probability theory. The main terms are explained as follows:

(i)

Random Experiment

An experiment which can be repeated under the same conditions

and the outcome cannot be predicted under any circumstances is known

93

as random experiment. For example: An unbiased coin is tossed. Here

we are not in a position to predict whether head or tail is going to occur.

Hence, this type of experiment is known as random experiment.

(ii)

Sample Space

A set of possible outcomes of a random experiment is known as

sample space. For example, in the case of tossing of an unbiased coin twice,

the possible outcomes are HH, HT, TH and TT. This can be represented in

a sample space as S= (HH, HT, TH, TT).

(iii) An Event

Any possible outcomes of an experiment are known as an event. In

the case of tossing of an unbiased coin twice, HH is an event. An event

can be classified into two. They are: (a) Simple events, and (ii) Compound

events. Simple event is an event which has only one sample point in the

sample space. Compound event is an event which has more than one

sample point in the sample space. In the case of tossing of an unbiased

coin twice HH is a simple event and TH and TT are the compound events.

(iv) Complementary Event

A and A’ are the complementary event if A’ consists of all those

sample point which is not included in A. For instance, an unbiased

dice is thrown once. The probability of an odd number turns up are

complementary to an even number turns up. Here, it is worth mentioning

that the probability of sample space is always is equal to one. Hence, the P

(A’) = 1 - P (A).

(v)

Mutually Exclusive Events

A and B are the two mutually exclusive events if the occurrence of

A precludes the occurrence of B. For example, in the case of tossing of

an unbiased coin once, the occurrence of head precludes the occurrence

of tail. Hence, head and tail are the mutually exclusive event in the case

of tossing of an unbiased coin once. If A and B are mutually exclusive

events, then the probability of occurrence of A or B is equal to sum of their

individual probabilities. Symbolically, it can be presented as:

94

P (A U B) = P (A) + P (B)

If A and B is joint sets, then the addition theorem of probability can be

stated as:

P (A U B ) = P(A) + P(B) - P(AB)

(vi) Independent Event

A and B are the two independent event if the occurrence of A does

not influence the occurrence of B. In the case of tossing of an unbiased

coin twice, the occurrence of head in the first toss does not influence the

occurrence of head or tail in the toss. Hence, these two events are called

independent events. In the case of independent event, the multiplication

theorem can be stated as the probability of A and B is the product of their

individual probabilities. Symbolically, it can be presented as:-

P (A B) = P (A) * P (B)

Addition Theorem of Probability

Let

A and B be the two mutually exclusive events, then the

probabi