Research methodology for business M.com Semester 2 important questions bank

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M.com Part 1 (Sem. 2)

RESEARCH METHODOLOGY FOR BUSINESS

Q.6. How to formulate research hypotheses?

ANS:

Meaning

Hypothesis is an assumption made by the researcher to explain certain fact or provide basis for further investigation. It states what the researcher thinks the outcome of the study will be. The researcher makes hypothesis and collects data that either support the hypothesis or do not support it. So the hypothesis may be proved to be correct or incorrect. Hypotheses are essential to all research studies with the possible exception of some descriptive studies whose purpose is to answer certain specific questions.

Example - A manager may hypothesize that salespersons who show the highest job satisfaction will be the most productive salespersons. Another example, organizational researcher may believe that if workers’ attitudes toward an organizational climate are changed in a positive direction, there will be an increase in organizational effectiveness among these workers.

Definition

Webster’s Dictionary defines hypothesis as “an unproved theory, proposition, supposition etc. tentatively accepted to explain certain facts or to provide a basis for further investigation, argument, etc.”

Formulation of Hypothesis

1) Identification of Research Problem and its causes:

The researcher must identify the research problem which needs to be investigated. Also he/she needs to identify cause of such problem. Eg. The research problem could be “Decline in Sales of Lux soap in Mumbai Region”. The possible causes of such decline in sales could be:

·        Poor quality of the products

·        Higher price of the product

·        Ineffective promotion-mix

·        Faulty distribution network

2) Formulate the Hypotheses:

The researcher may undertake extensive Review of Literature (ROL) or discuss with expert or by his/her own experience formulates the hypothesis. Eg. Hypotheses relating to the above problem can be formulated as:

·        Sales are declining on account of poor quality of the products

·        Sales are declining on account of higher price of the product

·        Sales are declining on account of ineffective promotion-mix

·        Sales are declining on account of Faulty distribution network

3) Pilot Test the Hypotheses:

The researcher may conduct pilot study to test the hypothesis. Small sample respondents are selected and data is collected from them to conduct the pilot study. All the hypotheses are put to test. The pilot study may indicate the most probable cause of the problem. This may help to select the best hypothesis for the purpose of detailed investigation. Suppose the pilot study states that most probable cause of problem is poor quality of the product.

4) Select the Best Hypothesis:

After selecting the best hypothesis on the basis of pilot study, the researcher proceeds for investigation of the problem and find out the validity of the hypothesis. The researcher may specify the null hypothesis and alternative hypothesis.

·        Null Hypothesis: It states that there is no relationship between two or more variables. A researcher hopes to reject or disprove the null hypothesis. Eg. There is no relationship between poor quality of product and decline in sales.

·        Alternative Hypothesis: It states there is relationship between two or more variables. Eg. There is relationship between poor quality of product and decline in sales.

5) Conduct the Research: After formulating the final hypothesis, the researcher proceeds to conduct the research. He/she may prepare research design to conduct research in right direction. The researcher collects data and analyse the same to draw conclusion. He may use Ttest, Z-test, Chi-Square, ANOVA, Correlation etc. tests for the purpose for testing hypothesis.

6) Acceptance or Rejection of Hypothesis:

After testing the hypothesis, the researcher may reject the null hypothesis or the researcher may fail to reject the null hypothesis. Generally, when the researcher rejects the null hypothesis, the researcher may accept the alternative hypothesis. At times, the alternative hypothesis may also be rejected.

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