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MBA Semester 3
MB0034– Research Methodology
Assignment Set- 2

:Write short notes on the following .1

a) Null Hypothesis)

?b) What is exploratory research)

?c) What is Random Sampling)

d) Rank Order Correlation)

:Ans
a) A null hypothesis is a hypothesis (within the frequentist context of statistical )
hypothesis testing) that might be falsified using a test of observed data. Such a test works by
formulating a null hypothesis, collecting data, and calculating a measure of how probable that data
was assuming the null hypothesis were true. If the data appears very improbable (usually defined
as a type of data that should be observed less than 5% of the time) then the experimenter
concludes that the null hypothesis is false. If the data looks reasonable under the null hypothesis,
then no conclusion is made. In this case, the null hypothesis could be true, or it could still be false;
the data gives insufficient evidence to make any conclusion. The null hypothesis typically proposes
a general or default position, such as that there is no relationship between two quantities, or that
there is no difference between a treatment and the control. The term was originally coined by
.English geneticist and statistician Ronald Fisher
In some versions of statistical hypothesis testing (such as developed by Jerzy Neyman
and Egon Pearson), the null hypothesis is tested against an alternative hypothesis. This alternative
may or may not be the logical negation of the null hypothesis. The use of alternative hypotheses
was not part of Ronald Fisher's formulation of statistical hypothesis testing, though alternative
.hypotheses are standardly used today
(b)
Exploratory research provides insights into and comprehension of an issue or situation.
It should draw definitive conclusions only with extreme caution. Exploratory research is a type of
research conducted because a problem has not been clearly defined. Exploratory research helps
determine the best research design, data collection method and selection of subjects. Given its
fundamental nature, exploratory research often concludes that a perceived problem does not
.actually exist
Exploratory research often relies on secondary research such as reviewing available
literature and/or data, or qualitative approaches such as informal discussions with consumers,
employees, management or competitors, and more formal approaches through in-depth
interviews, focus groups, projective methods, case studies or pilot studies. The Internet allows for
research methods that are more interactive in nature: E.g., RSS feeds efficiently supply
researchers with up-to-date information; major search engine search results may be sent by email
to researchers by services such as Google Alerts; comprehensive search results are tracked over
lengthy periods of time by services such as Google Trends; and Web sites may be created to
.attract worldwide feedback on any subject
The results of exploratory research are not usually useful for decision-making by
themselves, but they can provide significant insight into a given situation. Although the results of
qualitative research can give some indication as to the "why", "how" and "when" something occurs,
".it cannot tell us "how often" or "how many

.Exploratory research is not typically generalizable to the population at large

(c)
A sample is a subject chosen from a population for investigation. A random sample is one
chosen by a method involving an unpredictable component. Random sampling can also refer to
taking a number of independent observations from the same probability distribution, without
involving any real population. A probability sample is one in which each item has a known
.probability of being in the sample
The sample usually will not be completely representative of the population from which it
was drawn— this random variation in the results is known as sampling error. In the case of random
samples, mathematical theory is available to assess the sampling error. Thus, estimates obtained
from random samples can be accompanied by measures of the uncertainty associated with the
estimate. This can take the form of a standard error, or if the sample is large enough for the central
.limit theorem to take effect, confidence intervals may be calculated
(d)
When we are dealing with data at the ordinal level, such as ranks, we must use a
measure of correlation that is designed to handle ordinal data. The Spearman Rank Order
Correlation Coefficient was developed by Spearman to use with this type of data. The Symbol for
the Spearman Rank Order
Correlation Coefficient is
.( ) r sub s, or the Greek letter rho ,
:The formula for the Spearman Correlation Coefficient is

,(Where 6 is a constant (it is always used in the formula

,D refers to the difference between subjects ranks on the two variables

.and N is the number of subjects

.Elaborate the format of a research report touching briefly on the mechanics of writing .2
:Ans
:The format of a research report is given below
I.Prefatory Items

Title page

Declaration

Certificates

Preface/ acknowledgements

Table of contents

List of tables

List of graphs/ figures/ charts

Abstract or synopsis
II.Body of the Report

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
Introduction

Theoretical background of the topic

Statement of the problem

Review of literature

The scope of the study

The objectives of the study

Hypothesis to be tested

Definition of the concepts

Models if any
 
Design of the study

Methodology

Method of data collection

Sources of data

Sampling plan

Data collection instruments

Field work

Data processing and analysis plan

Overview of the report

Limitation of the study

Results: findings and discussions

Summary, conclusions and recommendations
III.Reference Material

Bibliography

Appendix

Copies of data collection instruments

Technical details on sampling plan

Complex tables

.Glossary of new terms used
Research report is a means for communicating research experience to others. The
purpose of the research report is to communicate to interested persons the methodology and the
results of the study in such a manner as to enable them to understand the research process and to
determine its validity. Research report is a narrative and authoritative document on the outcome of
a research effort. It represents highly specific information for a clearly designated audience. It
serves as a means for presenting the problem studied, methods and techniques used for collecting
and analyzing data, findings and conclusions and recommendations. It serves as a basic reference
material for future use. It is a means for judging the quality of research project. It is a means for
evaluating researcher’s competency. It provides a systematic knowledge on problems and issues
analyzed. In a technical report a comprehensive full report of the research process and its
outcome. It covers all the aspects of the research process. In popular report the reader is less
interested in the methodological details, but more interested in the findings of the study. An interim
report in such case can narrate what has been done so far and what was its outcome. It presents a
summary of the findings of that part of analysis which has been completed. Summary report is
meant for lay audience i.e., the general pubic. It is written in non- technical, simple language with
pictorial charts it just contains objectives, findings and its implications. It is a short report of two to
three pages. Research abstract is a short summary of technical report. It is prepared by a doctoral
student on the eve of submitting his thesis. Research article is designed for publication in a
professional journal. A research article must be clearly written in concise and unambiguous
.language
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.Discuss the importance of case study method .3
:Ans
Case study research excels at bringing us to an understanding of a complex issue or
object and can extend experience or add strength to what is already known through previous
research. Case studies emphasize detailed contextual analysis of a limited number of events or
conditions and their relationships. Researchers have used the case study research method for
many years across a variety of disciplines. Social scientists, in particular, have made wide use of
this qualitative research method to examine contemporary real-life situations and provide the basis
for the application of ideas and extension of methods. Researcher Robert K. Yin defines the case
study research method as an empirical inquiry that investigates a contemporary phenomenon
within its real-life context; when the boundaries between phenomenon and context are not clearly
.(evident; and in which multiple sources of evidence are used (Yin, 1984, p. 23
Critics of the case study method believe that the study of a small number of cases can
offer no grounds for establishing reliability or generality of findings. Others feel that the intense
exposure to study of the case biases the findings. Some dismiss case study research as useful
only as an exploratory tool. Yet researchers continue to use the case study research method with
success in carefully planned and crafted studies of real-life situations, issues, and problems.
.Reports on case studies from many disciplines are widely available in the literature
This paper explains how to use the case study method and then applies the method to
an example case study project designed to examine how one set of users, non-profit
organizations, make use of an electronic community network. The study examines the issue of
whether or not the electronic community network is beneficial in some way to non-profit
.organizations and what those benefits might be
Many well-known case study researchers such as Robert E. Stake, Helen Simons, and
Robert K. Yin have written about case study research and suggested techniques for organizing
and conducting the research successfully. This introduction to case study research draws upon
:their work and proposes six steps that should be used

Determine and define the research questions

Select the cases and determine data gathering and analysis techniques

Prepare to collect the data

Collect data in the field

Evaluate and analyze the data

Prepare the report
Step 1. Determine and Define the Research Questions
The first step in case study research is to establish a firm research focus to which the
researcher can refer over the course of study of a complex phenomenon or object. The researcher
establishes the focus of the study by forming questions about the situation or problem to be
studied and determining a purpose for the study. The research object in a case study is often a
program, an entity, a person, or a group of people. Each object is likely to be intricately connected
to political, social, historical, and personal issues, providing wide ranging possibilities for questions
and adding complexity to the case study. The researcher investigates the object of the case study
in depth using a variety of data gathering methods to produce evidence that leads to
.understanding of the case and answers the research questions
Case study research generally answers one or more questions which begin with "how" or "why."
The questions are targeted to a limited number of events or conditions and their inter-
relationships. To assist in targeting and formulating the questions, researchers conduct a

510910259
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6

literature review. This review establishes what research has been previously conducted and leads
to refined, insightful questions about the problem. Careful definition of the questions at the start
pinpoints where to look for evidence and helps determine the methods of analysis to be used in
the study. The literature review, definition of the purpose of the case study, and early
determination of the potential audience for the final report guide how the study will be designed,
.conducted, and publicly reported
Step 2. Select the Cases and Determine Data Gathering and Analysis Techniques
During the design phase of case study research, the researcher determines what
approaches to use in selecting single or multiple real-life cases to examine in depth and which
instruments and data gathering approaches to use. When using multiple cases, each case is
treated as a single case. Each case conclusions can then be used as information contributing to
the whole study, but each case remains a single case. Exemplary case studies carefully select
cases and carefully examine the choices available from among many research tools available in
order to increase the validity of the study. Careful discrimination at the point of selection also helps
.erect boundaries around the case
The researcher must determine whether to study cases which are unique in some way
or cases which are considered typical and may also select cases to represent a variety of
geographic regions, a variety of size parameters, or other parameters. A useful step in the
selection process is to repeatedly refer back to the purpose of the study in order to focus attention
on where to look for cases and evidence that will satisfy the purpose of the study and answer the
research questions posed. Selecting multiple or single cases is a key element, but a case study
can include more than one unit of embedded analysis. For example, a case study may involve
study of a single industry and a firm participating in that industry. This type of case study involves
two levels of analysis and increases the complexity and amount of data to be gathered and
.analyzed
A key strength of the case study method involves using multiple sources and techniques
in the data gathering process. The researcher determines in advance what evidence to gather and
what analysis techniques to use with the data to answer the research questions. Data gathered is
normally largely qualitative, but it may also be quantitative. Tools to collect data can include
surveys, interviews, documentation review, observation, and even the collection of physical
.artefacts
The researcher must use the designated data gathering tools systematically and properly
in collecting the evidence. Throughout the design phase, researchers must ensure that the study is
well constructed to ensure construct validity, internal validity, external validity, and reliability.
Construct validity requires the researcher to use the correct measures for the concepts being
studied. Internal validity (especially important with explanatory or causal studies) demonstrates that
certain conditions lead to other conditions and requires the use of multiple pieces of evidence from
multiple sources to uncover convergent lines of inquiry. The researcher strives to establish a chain of
evidence forward and backward. External validity reflects whether or not findings are generalizable
beyond the immediate case or cases; the more variations in places, people, and procedures a case
study can withstand and still yield the same findings, the more external validity. Techniques such as
cross-case examination and within-case examination along with literature review helps ensure
external validity. Reliability refers to the stability, accuracy, and precision of measurement.
Exemplary case study design ensures that the procedures used are well documented and can be
.repeated with the same results over and over again
Step 3. Prepare to Collect the Data
Because case study research generates a large amount of data from multiple sources,
systematic organization of the data is important to prevent the researcher from becoming
overwhelmed by the amount of data and to prevent the researcher from losing sight of the original
research purpose and questions. Advance preparation assists in handling large amounts

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of data in a documented and systematic fashion. Researchers prepare databases to assist with
.categorizing, sorting, storing, and retrieving data for analysis
Exemplary case studies prepare good training programs for investigators, establish clear
protocols and procedures in advance of investigator field work, and conduct a pilot study in
advance of moving into the field in order to remove obvious barriers and problems. The
investigator training program covers the basic concepts of the study, terminology, processes, and
methods, and teaches investigators how to properly apply the techniques being used in the study.
The program also trains investigators to understand how the gathering of data using multiple
techniques strengthens the study by providing opportunities for triangulation during the analysis
phase of the study. The program covers protocols for case study research, including time
deadlines, formats for narrative reporting and field notes, guidelines for collection of documents,
and guidelines for field procedures to be used. Investigators need to be good listeners who can
hear exactly the words being used by those interviewed. Qualifications for investigators also
include being able to ask good questions and interpret answers. Good investigators review
documents looking for facts, but also read between the lines and pursue collaborative evidence
elsewhere when that seems appropriate. Investigators need to be flexible in real-life situations and
not feel threatened by unexpected change, missed appointments, or lack of office space.
Investigators need to understand the purpose of the study and grasp the issues and must be open
to contrary findings. Investigators must also be aware that they are going into the world of real
.human beings who may be threatened or unsure of what the case study will bring
After investigators are trained, the final advance preparation step is to select a pilot site
and conduct a pilot test using each data gathering method so that problematic areas can be
uncovered and corrected. Researchers need to anticipate key problems and events, identify key
people, prepare letters of introduction, establish rules for confidentiality, and actively seek
opportunities to revisit and revise the research design in order to address and add to the original
.set of research questions
Collect Data in the Field .4
The researcher must collect and store multiple sources of evidence comprehensively
and systematically, in formats that can be referenced and sorted so that converging lines of inquiry
and patterns can be uncovered. Researchers carefully observe the object of the case study and
identify causal factors associated with the observed phenomenon. Renegotiation of arrangements
with the objects of the study or addition of questions to interviews may be necessary as the study
progresses. Case study research is flexible, but when changes are made, they are documented
.systematically
Exemplary case studies use field notes and databases to categorize and reference data
so that it is readily available for subsequent reinterpretation. Field notes record feelings and
intuitive hunches, pose questions, and document the work in progress. They record testimonies,
stories, and illustrations which can be used in later reports. They may warn of impending bias
because of the detailed exposure of the client to special attention, or give an early signal that a
pattern is emerging. They assist in determining whether or not the inquiry needs to be reformulated
or redefined based on what is being observed. Field notes should be kept separate from the data
.being collected and stored for analysis
Maintaining the relationship between the issue and the evidence is mandatory. The
researcher may enter some data into a database and physically store other data, but the
researcher documents, classifies, and cross-references all evidence so that it can be efficiently
.recalled for sorting and examination over the course of the study
Step 5. Evaluate and Analyze the Data
The researcher examines raw data using many interpretations in order to find linkages
between the research object and the outcomes with reference to the original research questions.
Throughout the evaluation and analysis process, the researcher remains open to new
opportunities and insights. The case study method, with its use of multiple data collection

510910259
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8
methods and analysis techniques, provides researchers with opportunities to triangulate data in
.order to strengthen the research findings and conclusions
The tactics used in analysis force researchers to move beyond initial impressions to
improve the likelihood of accurate and reliable findings. Exemplary case studies will deliberately
sort the data in many different ways to expose or create new insights and will deliberately look for
conflicting data to disconfirm the analysis. Researchers categorize, tabulate, and recombine data
to address the initial propositions or purpose of the study, and conduct cross-checks of facts and
discrepancies in accounts. Focused, short, repeat interviews may be necessary to gather
.additional data to verify key observations or check a fact
Specific techniques include placing information into arrays, creating matrices of
categories, creating flow charts or other displays, and tabulating frequency of events. Researchers
use the quantitative data that has been collected to corroborate and support the qualitative data
which is most useful for understanding the rationale or theory underlying relationships. Another
technique is to use multiple investigators to gain the advantage provided when a variety of
perspectives and insights examine the data and the patterns. When the multiple observations
converge, confidence in the findings increases. Conflicting perceptions, on the other hand, cause
.the researchers to pry more deeply
Another technique, the cross-case search for patterns, keeps investigators from
reaching premature conclusions by requiring that investigators look at the data in many different
ways. Cross-case analysis divides the data by type across all cases investigated. One researcher
then examines the data of that type thoroughly. When a pattern from one data type is corroborated
by the evidence from another, the finding is stronger. When evidence conflicts, deeper probing of
the differences is necessary to identify the cause or source of conflict. In all cases, the researcher
treats the evidence fairly to produce analytic conclusions answering the original "how" and "why"
.research questions
Step 6. Prepare the report
Exemplary case studies report the data in a way that transforms a complex issue into
one that can be understood, allowing the reader to question and examine the study and reach an
understanding independent of the researcher. The goal of the written report is to portray a complex
problem in a way that conveys a vicarious experience to the reader. Case studies present data in
very publicly accessible ways and may lead the reader to apply the experience in his or her own
real-life situation. Researchers pay particular attention to displaying sufficient evidence to gain the
readers confidence that all avenues have been explored, clearly communicating the boundaries of
.the case, and giving special attention to conflicting propositions
Techniques for composing the report can include handling each case as a separate
chapter or treating the case as a chronological recounting. Some researchers report the case
study as a story. During the report preparation process, researchers critically examine the
document looking for ways the report is incomplete. The researcher uses representative audience
groups to review and comment on the draft document. Based on the comments, the researcher
rewrites and makes revisions. Some case study researchers suggest that the document review
audience include a journalist and some suggest that the documents should be reviewed by the
.participants in the study
Give the importance of frequency tables and discuss the principles of table construction, .4
frequency
distribution and class intervals determination
:Ans
Frequency tables provide a “shorthand” summary of data. The importance of presenting
statistical data in tabular form needs no emphasis. Tables facilitate comprehending masses of data
at a glance; they conserve space and reduce explanations and descriptions to a minimum. They
give a visual

510910259
Rakesh Kumar Singh
9
picture of relationships between variables and categories. They facilitate summation of item and
the
.detection of errors and omissions and provide a basis for computations
It is important to make a distinction between the general purpose tables and specific
tables. The general purpose tables are primary or reference tables designed to include large
amount of source data in convenient and accessible form. The special purpose tables are
analytical or derivate ones that demonstrate significant relationships in the data or the results of
statistical analysis. Tables in reports of government on population, vital statistics, agriculture,
industries etc., are of general purpose type. They represent extensive repositories and statistical
information. Special purpose tables are found in monographs, research reports and articles and
.reused as instruments of analysis. In research, we are primarily concerned with special purpose
Components of a Table
:The major components of a table are
:A Heading
a) Table Number)
b) Title of the Table)
c) Designation of units)
B Body
Sub-head, Heading of all rows or blocks of stub items .1
.Body-head: Headings of all columns or main captions and their sub-captions .1
.Field/body: The cells in rows and columns .2
:C Notations

.Footnotes, wherever applicable

.Source, wherever applicable
Principles of Table Construction
:There are certain generally accepted principles of rules relating to construction of tables. They are
Every table should have a title. The tile should represent a succinct description of the contents .1
.of the table. It should be clear and concise. It should be placed above the body of the table
A number facilitating easy reference should identify every table. The number can be centred above .2
the title. The table numbers should run in consecutive serial order. Alternatively tables in chapter 1
.be numbered as 1.1, 1.2, 1….., in chapter 2 as 2.1, 2.2, 2.3…. and so on
.The captions (or column headings) should be clear and brief .3
.The units of measurement under each heading must always be indicated .4
Any explanatory footnotes concerning the table itself are placed directly beneath the table and in .5
order to obviate any possible confusion with the textual footnotes such reference symbols as the
.asterisk (*) DAGGER (+) and the like may be used
If the data in a series of tables have been obtained from different sources, it is ordinarily .6
.advisable to indicate the specific sources in a place just below the table
Usually lines separate columns from one another. Lines are always drawn at the top and .7
.bottom of the table and below the captions
.The columns may be numbered to facilitate reference .8
All column figures should be properly aligned. Decimal points and “plus” or “minus” signs .9
.should be in perfect alignment

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10
Columns and rows that are to be compared with one another should be brought closed .10
.together
Totals of rows should be placed at the extreme right column and totals of columns at the .11
.bottom
 ,In order to emphasize the relative significance of certain categories, different kinds of type .12
.spacing and identifications can be used
The arrangement of the categories in a table may be chronological, geographical, alphabetical or .13
according to magnitude. Numerical categories are usually arranged in descending order of
.magnitude
.Miscellaneous and exceptions items are generally placed in the last row of the table .14
Usually the larger number of items is listed vertically. This means that a table’s length is more .15
.than its width
Abbreviations should be avoided whenever possible and ditto marks should not be used in a .16
.table
.The table should be made as logical, clear, accurate and simple as possible .17
Text references should identify tables by number, rather than by such expressions as
“the table above” or “the following table”. Tables should not exceed the page size by photo stating.
Tables those are too wide for the page may be turned sidewise, with the top facing the left margin
or binding of the script. Where tables should be placed in research report or thesis? Some writers
place both special purpose and general purpose tables in an appendix and refer to them in the text
by numbers. This practice has the disadvantages of inconveniencing the reader who wants to
study the tabulated data as the text is read. A more appropriate procedure is to place special
.purpose tables in the text and primary tables, if needed at all, in an appendix
Frequency Distribution and Class Intervals
Variables that are classified according to magnitude or size are often arranged in the
form of a frequency table. In constructing this table, it is necessary to determine the number of
.class intervals to be used and the size of the class intervals
A distinction is usually made between continuous and discrete variables. A continuous
variable has an unlimited number of possible values between the lowest and highest with no gaps
or breaks. Examples of continuous variable are age, weight, temperature etc. A discrete variable
can have a series of specified values with no possibility of values between these points. Each
value of a discrete variable is distinct and separate. Examples of discrete variables are gender of
persons (male/female) occupation (salaried, business, profession) car size (800cc, 1000cc,
(1200cc
In practice, all variables are treated as discrete units, the continuous variables being
stated in some discrete unit size according to the needs of a particular situation. For example,
.length is described in discrete units of millimetres or a tenth of an inch
Class Intervals: Ordinarily, the number of class intervals may not be less than 5 not more than
,15
depending on the nature of the data and the number of cases being studied. After noting the
highest
.and lower values and the feature of the data, the number of intervals can be easily determined
For many types of data, it is desirable to have class intervals of uniform size. The
intervals should neither be too small nor too large. Whenever possible, the intervals should
represent common and convenient numerical divisions such as 5 or 10, rather than odd division
such as 3 to 7. Class intervals must be clearly designated in a frequency table in such a way as to
obviate any possibility of misinterpretation of confusion. For example, to present the age group of a
population, the use of

510910259
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 11
intervals of 1-20, 20-50, and 50 and above would be confusing. This may be presented as 1-20,
,21-50
.and above 50
Every class interval has a mid point. For example, the midpoint of an interval 1-20 is
10.5 and the midpoint of class interval 1-25 would be 13. Once class intervals are determined, it is
.routine work to count the number of cases that fall in each interval

:Write short notes on the following .5

.a) Type I error and type II error)

b) One tailed and two tailed test)

c) Selecting the significance level)

:Ans
(a)
In statistics, the terms type I error (also,α error, false alarm rate (FAR) orfa lse
positive) and type II error(β error, miss rate or a false negative) are used to describe possible
errors
made in a statistical decision process. In 1928, Jerzy Neyman (1894-1981) and Egon Pearson
(1895- 1980), both eminent statisticians, discussed the problems associated with "deciding
whether or not a particular sample may be judged as likely to have been randomly drawn from a
:certain population" (1928/1967, p. 1), and identified "two sources of error", namely
Type I (α): reject the null hypothesis when the null hypothesis is true, and
Type II (β): fail to reject the null hypothesis when the null hypothesis is false
:In systems theory an additional type III error is often defined
.Type III (δ): asking the wrong question and using the wrong null hypothesis
In 1930, they elaborated on these two sources of error, remarking that "in testing
hypotheses two considerations must be kept in view, (1) we must be able to reduce the chance of
rejecting a true hypothesis to as low a value as desired; (2) the test must be so devised that it will
]".reject the hypothesis tested when it is likely to be false
When you conduct a test of statistical significance, whether it is from a correlation, an
ANOVA, a regression or some other kind of test, you are given a p-value somewhere in the output.
If your test statistic is symmetrically distributed, you can select one of three alternative hypotheses.
Two of these correspond to one-tailed tests and one corresponds to a two-tailed test. However, the
p-value presented is (almost always) for a two-tailed test. But how do you choose which test? Is
the p-value appropriate for your test? And, if it is not, how can you calculate the correct p-value for
?your test given the p-value in your output
(b)
?What is a two-tailed test
First let's start with the meaning of a two-tailed test. If you are using a significance level
of 0.05, a two-tailed test allots half of your alpha to testing the statistical significance in one
direction and half of your alpha to testing statistical significance in the other direction. This means
that .025 is in each tail of the distribution of your test statistic. When using a two-tailed test,
regardless of the direction of the relationship you hypothesize, you are testing for the possibility of
the relationship in both directions. For example, we may wish to compare the mean of a sample to
-a given valuex using a t
 510910259
Rakesh Kumar Singh
12

test. Our null hypothesis is that the mean is equal tox. A two-tailed test will test both if the mean is
significantly greater thanx and if the mean significantly less thanx. The mean is considered
significantly different fromx if the test statistic is in the top 2.5% or bottom 2.5% of its probability
.distribution, resulting in a p-value less than 0.05
?What is a one-tailed test
Next, let's discuss the meaning of a one-tailed test. If you are using a significance level
of .05, a one-tailed test allots all of your alpha to testing the statistical significance in the one
direction of interest. This means that .05 is in one tail of the distribution of your test statistic. When
using a one- tailed test, you are testing for the possibility of the relationship in one direction and
completely disregarding the possibility of a relationship in the other direction. Let's return to our
example comparing the mean of a sample to a given valuex using a t-test. Our null hypothesis is
that the mean is equal tox. A one-tailed test will test either if the mean is significantly greater thanx
or if the mean is significantly less thanx, but not both. Then, depending on the chosen tail, the
mean is significantly greater than or less thanx if the test statistic is in the top 5% of its probability
distribution or bottom 5% of its probability distribution, resulting in a p-value less than 0.05. The
one-tailed test provides more power to detect an effect in one direction by not testing the effect in
.the other direction
(c)
Selecting a Significant Level: The hypothesis is tested on a pre-determined level of significance
and such the same should have specified. Generally, in practice, either 5% level or 1% level is
adopted
:for the purpose. The factors that affect the level of significance are

; The magnitude of the difference between sample

;The size of the sample

;The variability of measurements within samples


Whether the hypothesis is directional or non – directional (A directional hypothesis is one which
predicts the direction of the difference between, say, means). In brief, the level of significance must
.be adequate in the context of the purpose and nature of enquiry
Explain Karl Pearson Co-efficient of correlation. Calculate Karl Pearson coefficient for the .6
:following data
X(hei
-ght
(cm
174
175
176
177
178
182
183
186
189
193
 Y(wei
-ght
(kg
61
65
67
68
72
74
80
87
92
95
Ans: Karl Pearson’s Co-Efficient of Correlation: Karl Pearson’s Co-Efficient of Correlation is a
mathematical method for measuring correlation. Karl Pearson developed the correlation from the
covariance between two sets of variables. Karl Pearson’s Co-Efficient of Correlation is denoted by
:symbol r. The formula for obtaining Karl Pearson’s Co-Efficient of Correlation is
 510910259
Rakesh Kumar Singh
13
Direct method
= y/N)x/N Xxy / N – ( Covariance between x and y
SDx
standard deviation of x series=  x (2 x/N)/ N) – (2 =
SDy = standard deviation of y series=  y (2 y/N)/ N) – (2
Shortcut Method using Assumed Mean
If short cut method is used using assumed mean, the formula for obtaining Karl Pearson’s Co-
Efficient

:of Correlation is

= dy/N)dx/N Xdxdy / N – (Covariance between x and y

SDx
 dx(2 dx /N)/ N) – (2=
SDy = dy(2 dy /N)/ N) – (2
Steps in calculating Karl Pearson’s Correlation Coefficient using Shortcut Method

Assume means of x and y series

Take deviations of x and y series from assumed mean and get  dx and  dy

.Square the dx and dy and find the sum of squares and get  dx2 and  dy2

.Multiply the corresponding deviations of x and y series and total the products to get  dxdy
If the deviations are taken from the arithmetic mean  dx = 0 and  dy =0 and the
formula becomes
Shortcut Method using Arithmetic Mean
If short cut method is used using actual mean, the formula for obtaining Karl Pearson’s Co-Efficient
of
:Correlation is
Interpreting Co-Efficient of Correlation
 510910259
Rakesh Kumar Singh
14
-The Co-Efficient of Correlation measures the correlation between two variables. The value of Co

.Efficient of Correlation always lies between +1 and –1. It can be interpreted in the following ways

.If the value of Co-Efficient of Correlation r is 1 it is interpreted as perfect positive correlation

.If the value of Co-Efficient of Correlation r is -1, it is interpreted as perfect negative correlation

If the value of Co-Efficient of Correlation r is 0 < r < 0.5, it is interpreted as poor positive

.correlation

If the value of Co-Efficient of Correlation r is 0.5 < r < 1, it is interpreted as good positive
 .correlation

If the value of Co-Efficient of Correlation r is 0 > r > -0.5, it is interpreted as poor negative

.correlation

If the value of Co-Efficient of Correlation r is –0.5 > r > -1, it is interpreted as good negative

.correlation

.If the value of Co-Efficient of Correlation r is 0, it is interpreted as zero correlation

Probable Error
Probable Error of Correlation coefficient is estimated to find out the extent to which the
value of r is dependable. If Probable Error is added to or subtracted from the correlation
coefficient, it would give such limits within which we can reasonably expect the value of correlation
.to vary
If the coefficient of correlation is less than Probable Error it will not be significant. If the
coefficient of correlation r is more than six times the Probable Error, correlation is definitely
significant. If Probable Error is 0.5 or more, it is generally considered as significant. Probable Error
is estimated by the following formula
(PE = 0.6745 (1- r2/  N
X
Y
dx
dy
dx2
dy2
dxdy
174
61
01-
19-
01
361
19
(A(175
65
00
15-
00
225
00
176
67
01
13-
01
169
13-
177
68
02
 12-
04
144
24-
178
72
03
08-
09
64
24-
182
74
07
06-
49
36
42-
183
(A(80
08
00
64
00
00
186
87
11
07
121
49
77
189
92
14
12
196
144
168
193
95
18
15
324
225
270
63
39-
769
1417
431
(Covariance between X and Y= ∑dxdy/N – (∑dx/N X ∑dy/N
r = ∑dxdy/N– (∑dx/N X ∑dy/N)/ √ (∑ dx2 /N) –( ∑dx/N)2
X √ (∑ d y 2 /N) –( ∑ d y / N ) 2
(putting the values we get approximately) 0.8454511 =

MB0034 Set 2
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