Business Research Methods

Chapter one :
Concepts of Scientific
Research :

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Definition of Business Research
Business research is the systematic and objective
 identification
 collection
 analysis
 dissemination
 and use of information
For the purpose of improving decision making related to the
 identification and
 solution of problems and opportunities in business.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Business Research

 Specifies the information necessary to address these

issues
 Manages and implements the data collection process
 Analyzes the results
 Communicates the findings and their implications
 Helps managers use this information to make
decisions
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Redefining Business Research
Used to identify and define
business opportunities and
problems

Generate, refine, and evaluate

business performance

Monitor business performance

Improve understanding of
business as a process
MWU Research Methods By Dr Teshale Terefe 09/13/2025
[Link] of (Good) Research

 From the above definitions it is clear that research is a process

for collecting, analyzing and interpreting information to answer
questions.
 But to qualify as a research, a process must have certain
characteristics as listed below:

MWU Research Methods By Dr Teshale Terefe 09/13/2025

a. Controlled

 In exploring the causality relation to two variables, the

study must be set in way that minimizes the effects of
other factors affecting relationship.
 In social science research, however, since controlling is
almost impossible, the effect of the other variable must
be quantified rather.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

b. Rigorous

 One must be very careful in ensuring that the procedures

followed to find answers to questions are relevant, appropriate
and justified.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

c. Valid and verifiable

 This concept implies that whatever you conclude on the basis of

your findings is correct and can be verified or confirmed by you
and others.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

d. Empirical

 This means that any conclusions drawn are based upon hard
evidence gathered from information collected from real life
experiences or observations.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 E. Critical

 The methods employed and procedures used should be critically

examined.
 The process of investigation must be perfect and free from any
drawbacks.
 The process adopted and the procedures used must be able to
withstand critical examination.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

F. Systematic

 A good research will satisfy the steps to be taken in an orderly

sequence according to a set of defined rules

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G. Logical

 This logical process used could be induction or deduction.

 Induction is the process of reasoning from a part to the whole
whereas
 deduction is the process of reasoning from some premise to a
conclusion which follows from that very premise.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

1.3. A Classification of Research Designs

Research Design

Exploratory Research Conclusive Research

Design Design

Descriptive Research Causal Research

Cross-Sectional Design Longitudinal Design

Single Cross-Sectional Multiple Cross-

Design Sectional Design
Classification of business Research

Problem-Identification Research
 Research undertaken to help identify problems which are not necessarily
visible on the surface and yet exist or are likely to arise in the future.

Problem-Solving Research
 Research undertaken to help solve specific business problems.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Exploratory & Conclusive Research Differences
Table 3.1
Exploratory Conclusive
Objective: To provide insights and understanding. To test specific hypotheses and examine
relationships.
Information needed is defined only
Character-istics: loosely. Research process is flexible and Information needed is clearly defined.
unstructured. Sample is small and non- Research process is formal and structured.
representative. Analysis of primary Sample is large and representative. Data
data is qualitative. analysis is quantitative.

Tentative.
Findings/ Conclusive.
Results:
Generally followed by further
Outcome: exploratory or conclusive research. Findings used as input into decision
making.
A Comparison of Basic Research Designs
Table 3.2
Exploratory Descriptive Causal
Objective: Discovery of ideas and Describe business Determine cause and
insights characteristics or functions effect relationships

Marked by the prior Manipulation of one

Characteristics: Flexible, versatile formulation of specific or more independent
hypotheses variables

Preplanned and structured Control of other

Often the front end of design mediating variables
total research design
Experiments
Expert surveys Secondary data:
Pilot surveys quantitative analysis
Methods: Secondary data: Surveys
qualitative analysis Panels
Qualitative research Observation and other data
Uses of Exploratory Research

• Formulate a problem or define a problem more precisely

• Identify alternative courses of action
• Develop hypotheses
• Isolate key variables and relationships for further
examination
• Gain insights for developing an approach to the problem
• Establish priorities for further research
Methods of Exploratory Research

• Survey of experts
• Pilot surveys
• Secondary data analyzed in a qualitative way
• Qualitative research
Use of Descriptive Research

• To describe the characteristics of relevant groups, such as

consumers, salespeople, organizations, or market areas.
• To estimate the percentage of units in a specified population
exhibiting a certain behavior.
• To determine the perceptions of product characteristics.
• To determine the degree to which variables are associated.
• To make specific predictions.
Methods of Descriptive Research
• Secondary data analyzed in a quantitative as opposed to
a qualitative manner
• Surveys
• Panels
• Observational and other data
Cross-sectional Designs

• Involve the collection of information from any given sample of

population elements only once.

• In single cross-sectional designs, there is only one sample of

respondents and information is obtained from this sample only once.

• In multiple cross-sectional designs, there are two or more

samples of respondents, and information from each sample is
obtained only once. Often, information from different samples is
obtained at different times.
Longitudinal Designs
• A fixed sample (or samples) of population elements is
measured repeatedly on the same variables
• A longitudinal design differs from a cross-sectional
design in that the sample or samples remain the same
over time
 Cross-sectional vs. Longitudinal

Cross- Sample
Sectional Surveyed at
Design T1

Same
Sample Sample also
Longitudinal Surveyed at
Design Surveyed at
T1 T2

Time T1 T2
Uses of Casual Research
• To understand which variables are the cause (independent
variables) and which variables are the effect (dependent
variables) of a phenomenon
• To determine the nature of the relationship between the causal
variables and the effect to be predicted
• METHOD: Experiments
 Chapter 2
Formulating Research Problem, Reviewing Literature and
Formulating Hypothesis

MWU Research Methods By Dr Teshale Terefe 09/13/2025

2.1. Formulating Research Problem
[Link] of the research problem

 A research problem refers to some difficulty which a

researcher experiences in the context of either a theoretical
or practical situation and wants to obtain a solution for the
same.

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Cont’d

A research problem does exist if the following conditions are

met:
1. There must be an individual or a group which has some
difficulty or the problem.
2. There must be some objective(s) to be attained. If one
wants nothing, one cannot have a problem.

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Cont’d

3. There must be an alternative means( or the course of

action) for obtaining the objective(s) one wishes to attain.
4. There must remain some doubt in the mind of a
researcher with regard to the selection of alternatives.
5. There must be some environment(s) to which the difficulty
pertains.

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2.1.2. Selecting the problem

 The identification of a research problem is an important

phase of the entire research process.
 Therefore, a considerable care must be taken while
selecting a research problem.
 It requires a great deal of time, energy, and logical
thinking.

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Cont’d

 There are some important sources which are helpful to a

researcher for selecting a problem. These include the
following:
1. Professional Experience
 The day-to-day observation of the incidences in the working
places and out of the working places.

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Cont’d

2. Contact and Discussion with People

 Contacts and discussions with research oriented people in
conferences, seminars or public lectures serve as important
sources of problem.
3. Inference from Theory
 A research problem can be derived from a critical look into
various theories .

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Cont’d

4. Professional Literature
 Consultation of research reports, bibliographies of books
and articles, journals, research abstracts…
5. Technological and social Change
 Changes in technology or social environment such as
changes in attitudes, preferences, policies of a nation…

MWU Research Methods By Dr Teshale Terefe 09/13/2025

[Link] in selecting a research
problem

 When selecting a research problem/topic there is a

number of considerations to keep in mind.
• These considerations are:
A. Interest
B. Magnitude-(scope)
C. Measurement of concepts-Do not use concepts in your research
problem that you are not sure how to measure.

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Cont’d

[Link] of expertise-Make sure you have an adequate level of

expertise for the task you are proposing.
E. Relevance
F. Availability of data
[Link] issues

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2.1.4. Formulating (Definition and
Statement) of the problem

 To define a problem means to put a fence

round it, to separate it by careful distinctions
from like questions found in related situations
of need.
 Defining a problem involves the task of laying
down boundaries within which a researcher
shall study the problem.

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Cont’d

 Formulation of a problem involves the following

steps/techniques involved in defining a problem:
 Statement of the problem in a general way
 Understanding the nature of the problem
 Surveying the available literature
 Developing the idea through discussion
 Rephrasing the research problem into a working proposition.

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Cont’d

 In addition to what has been stated above, the following

points must also be noted while defining a research
problem:
[Link] terms and words or phrases should be clearly
defined.
[Link] assumptions or postulates (if any) relating to the
research problem should be clearly stated.
3.A straight forward statement of the value of the
investigation (i.e., the criteria for the selection of the
problem) should be provided.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Cont’d

4. The suitability of the time period and the sources of the

data available must also be considered .
5. The scope of the investigation or the limits within which
the problem is to be studied must be mentioned
explicitly.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

2.1.5. Importance of formulating a research problem

It determines the research destine.

• It indicates a way for the researcher.
• Without it a clear and economical plan is impossible.
Research problem is like the foundation of a building.
 The research problem serves as the foundation of a
research study: if it is well formulated, one can expect a
good study to follow.

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Cont’d

The way you formulate your research problem determines

almost every step that follows:
 the type of study design that can be used;
 the type of sampling strategy that can be employed;
 the research instrument that can be used; and
 the type of analysis that can be undertaken.
The quality of the research report (output of the research
undertakings) is dependent on the quality of the problem
formulation.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
2.2. Literature review
2.2.1. Reasons for reviewing the literature

 Is one of the essential preliminary tasks of a researcher.

A literature review has three functions. It helps you to:
1. Bring clarity and focus to your research problem.
2. Improving the methodology
3. Broadening the researcher knowledge in the research
area.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

2.2.2. Procedures in reviewing the literature

 Reviewing a literature is a continuous process.

 Often it begins before a specific research problem has been
formulated and continues until the report is finished.

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Cont’d

 There are four steps involved in conducting a literature

review:
 Search for existing literature in your area of study
 Review the literature selected
 Develop a theoretical framework
 Develop a conceptual framework.
 The skills required for these tasks are different. Developing
theoretical and conceptual frameworks are more difficult
than the other tasks.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Step 1. Search for Existing
Literature
 Effectively search for literature in your field of inquiry.
 Next compile a bibliography.
 There are two sources that you can use to prepare a
bibliography:
Books ; and
Journals
 The best way to search for a book is to look at a library
catalogues
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Cont’d

 There are several sources designed to make your search for

journals easier and these can save enormous time. They
are:
Indices of journals e.g SSRN, JSTOR, BLACKWELL,
EMERALDS, ..
Abstract of articles e.g. ERIC
Citation indices, e.g. social sciences Citation Index

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Step 2. Review the selected
Literature
 Now that you have identified several books and articles as
useful, the next step is to start reading them critically to
pull together theme and issues that belong together.
 If you do not have a theoretical framework in mind, to start
with, use separate sheets of paper for each article or book.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Step 3. Develop a Theoretical
Framework
 The information obtained from different books and journals
needs to be sorted under the main themes and theories
 Highlight agreements and disagreements among the
authors and identify the unanswered questions or gaps.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Step 4. Develop a Conceptual
Framework
 The conceptual framework stems from the theoretical
framework and concentrates, usually, on one section of the
theoretical framework.
 It describes the aspects you selected from the theoretical
framework to become the basis of your study.
 It is the basis for your research problem.

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Cont’d

 Literature relevant to your study deal with two types of

information:
 Universal; and
 More specific, i.e., local trends or a specific program.
 In writing about such information you should start with the
general information, gradually narrowing it down to the
specific.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Theoretical Framework

 The theoretical framework is the foundation on which the entire research

work is based.
 It is logically developed, described and elaborated network of associations
among variables deemed relevant to the problem situation.
 To arrive at good solution to the problem, one should first correctly identify
the problem, and then the variable that contribute to it.

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Cont’d

 After identifying the appropriate variables, the next step is to elaborate

the network the association among the variables,
 Then relevant hypothesis can be developed and subsequently tested.
 Based on the results of hypothesis testing, the extent to which the
problem can be solved become evident.
 The theoretical framework is thus an important step in the research
process.

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Relationship b/n LR. And TFW

 Literature review identifies the variables that might be important, as determined by

previous research findings.
 The theoretical framework represents and elaborates the relationships among variables,
explain the theory underlying these relations, and describe the nature and directions of
the relationships.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Components of the theoretical framework

A. The variables considered relevant to the study should be

clearly defined.
It will help you to provide an explanation for the relationships between
the variables in the model.
And serve as a base for the operationalization or measurement of your
concept.

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Cont’d

B. A conceptual model that describe the relationships b/n the variables

in the model should be given.
C. There should be a clear explanation of why we expect these
relationship to exist.

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 2.3. Hypothesis Development

Once we have identified the important variables in a situation and established the relationships
among them through logical reasoning in the theoretical framework, we are in a position to
test whether the relationships that have been theorized do, in fact, hold true?
By testing these relationships scientifically through appropriate statistical tools we are able to
obtain reliable information on what kind of relationships exist among the variables operating
in the problem situation.
The result of these test offer us some clues as to what could be changed in the situation to
solve the problem.
Formulating such testable statements is called hypothesis development.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Definition of Hypothesis

 Hypothesis can be defined as a tentative, yet testable, statement, which predicts what you
expect to find in your empirical data.
 Hypotheses are derived from the theory on which your conceptual model is based and are
often relational in nature.
 It is logically guess relationships b/n two or more variables expressed in the form of
testable statement.
 By testing the hypothesis and confirming the estimated relationships, it is expected that
solution can be found to correct the problem encountered.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Statement of Hypothesis: Format

If -then statement
Hypothesis can be set as propositions or in the form of if-then
statements.
a. Employees who are more healthy will take sick leave less
frequently.
b. If employees are more healthy, then they will take sick leave less
frequently.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Directional and Non-directional hypothesis

 In stating the relationships b/n two variables or comparing two groups, terms such as
positive, negative, more than, less than and the like are used these are directional hypothesis.
 On the other hand, non-directional hypotheses are those that do postulate a relationship or
difference, but offer no indication of the direction of these relationships or differences.
 There is relationship b/n age and job satisfaction.
 There is a difference b/n the work ethics of American and Asian employees.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Null hypothesis and Alternate
hypothesis
 In hypothesis testing, we have two options to choose from.
 These are termed as null hypothesis and alternate hypothesis.
 Null Hypothesis (Ho)-It is the presumption that is accepted as correct unless there is
strong evidence against it.
 Null hypothesis represents the status quo
 Alternative Hypothesis (H1)—It is accepted when Ho is rejected.

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Cont’d

 Null hypothesis represents the status quo and alternate hypothesis is the negation of the
status-quo situation.
 Proper care should be taken while formulating null and alternate hypotheses.
 One way to ensure that null hypothesis is formulated correctly is to observe that when
null hypothesis is accepted, no corrective action is needed.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Type I and Type II Errors

 While testing a hypothesis, if we reject it when it should be accepted, it amounts to Type I error.
 On the other hand, accepting a hypothesis when it should be rejected amounts to Type II error.
 Generally, any attempt to reduce one type of error results in increasing the other type of error.
 The only way to reduce both types of errors is to increase the sample size.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Significance Level (p-value)

 There is always a probabilistic component involved in the accept–reject decision in testing

hypothesis.
 The criterion that is used for accepting or rejecting a null hypothesis is called significance
level or p-value.
 For example, if two samples are being compared in a t-test, a p-value of 0.05 means there is
only a 5% chance that you would be wrong in concluding that the populations are different
or 95% confident of making a right decision.
 For social sciences research, a p-value of 0.05 is generally taken as standard.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Chapter 3
Writing Research Proposal

MWU Research Methods By Dr Teshale Terefe 09/13/2025

3.1. Meaning of Research Proposal

 Research Proposal is an overall plan, scheme or system,

structure and strategy designed to obtain answers to the
research problems or questions.
 It outlines the various tasks you plan to undertake.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

4.2. Importance of Research Proposal

a) It serves as a basis for determining the feasibility of the

project.
b) It provides a systematic plan of procedures for the
researcher to follow.
c) It gives the research supervisor a basis for guiding the
researcher while conducting the study.
d) It reduces the possibility of costly mistakes.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

4.3. Basic Components of a
Research Proposal

a. Preliminary parts
b. Chapter One-Introduction/the problem and its
Background
c. Chapter Two-Literature Review
d. Chapter Three-Methodology
e. Annex

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Components… cont’d

a. Preliminary parts
1. Title Page
 On separate lines and centered, the title page has the title
of the study, the author’s name, the institutional affiliation,
and date.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

cont’d

 The title should not be too lengthy or too short.

 It should provide sufficient information about the nature of
the study.
 The title should not be burdened by pompous (arrogant)
words.
 The language in the title should be professional in nature.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Components…cont’d

2. Abstract
 At the top of the page, centered, you should have the word
“Abstract.”
 It is a concise summary of the entire paper, including the
problem, major hypotheses, sample and population, a brief
description of the measures, the name of the design or a
short description.
 Fits to one page, sometimes 250 words.
 It should be placed before table of content.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Chapter 1.
Introduction/Background of the Problem/study
1.1. General Background
Generally introduce the problem to the readers.
Historical perspective of the problem you want to study.

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Ch1 cont’d

1.2. Statement of the problem

 Having provided a broad introduction to the area under
study, now focus on issues relating to the central theme,
identify some of the gaps in the existing body of
knowledge.
 Identify some of the main an unanswered questions.
 It elaborates about the problem.

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Ch1 …cont’d

1.3. The objective of the Study

 In this section include a statement of both your study’s
general and specific objectives.
 The objective of the study should be clearly stated and
specific in nature.
1.3.1. General Objective of the study
 The main/general objective indicates the central thrust of
your study

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d

1.3.2. Specific Objectives

 The specific objectives identify the specific issues you
propose to examine.
 Each specific objective should explain only one issue.
 Use action oriented verbs such as “to determine, to find
out, to ascertain” in formulating specific objectives which
should be numerically listed.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch1. cont’d

1.4. The hypotheses to be tested

 If you are going to test hypotheses, list them in this section.
 In a study you may have as many hypotheses as you want
to test.
 However, it is not essential to have a hypothesis in order to
undertake a study. You can conduct a perfectly satisfactory
study without formulating a hypothesis.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch1… cont’d

1.5. The scope of the study

 Depth
 Detailness

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Ch1…cont’d

1.6. Significance of the Study

 Justifies the need, importance and urgency of the study;
and as to how the results of his/her study will be useful to
the beneficiaries.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch1… cont’d

1.7. Definition of terms and concepts

 The technical terms or words and phrases having special
meaning need to be defined operationally.

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Ch1…cont’d

1.8. Problems and limitations

 Problems refer to difficulties relating to logistical details,
whereas limitations designate structural problems relating
to methodological aspects of the study.

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Ch1…cont’d

 For example, problems may be related to

 the availability of data.
 securing permission from the agency/ organization to carry out the
study.
 obtaining the sample.
 In your opinion the study design you chose may not be the
best but you might have had to adopt it for a number of
reasons. This is classified as limitation of the study. Such
limitations should be communicated to readers.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Chapter Two
2.. Literature Review
2.1. General Overview
2.2. Theoretical Framework
2.3. Conceptual Framework

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 Chapter Three: Research Design/Methodology

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Cha3… cont’d

3.1. The study design

 Describe the study design you plan to use. (For example,
say whether it is a cross sectional’, ‘before-and-after’,
experimental’ or non-experimental’ design.)
 Identify the strength and weaknesses of your study design.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

cont’d

3.2. The setting

 Briefly describe the organization, agency or community in
which you will conduct your study.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

cont’d

 If your research concerns an agency, office or organization,

include the following in your description:
The main services provided by the agency, office or
organization;
Its administrative structure;
The type of clients served; and
Information about the issues that are central to your
research.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch3… cont’d

 If you are studying a community, briefly describe some of

the main characteristics, such as:
The size of the community;
A brief social profile of the community (i.e., the composition
of the various groups within it); and
Issues of relevance to the central theme of your study.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch3… cont’d

3.3. Measurement procedures

 This section should contain a discussion of your instrument
and the details of how you plan to operationalize your
major variables
 Justify your choice of research tool, highlighting its strength
and pointing out its weaknesses.
 Then outline the major segments of your research tool and
their relevance to the main objectives of the study.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch3…cont’d

 If you are using a standard instrument, briefly discuss the

availability of evidence on its reliability and validity.
 If you adapt or modify it in any way, describe and explain
the changes you have made.
 Ideally you should attach a copy of the research instrument
to your proposal.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch3…Cont’d

3.4. Sampling
 Under this section of the proposal include the following
 The size of the sampling population (if known)
 Where (sample frame) and how this information will be obtained;
 The size of the sample you are planning to select, and your reasons for
choosing this size; and
 An explanation of the sampling design you are planning to use in the
selection of the sample (simple random sampling, stratified random
sampling, quota sampling etc.).

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch3…cont’d

3.5. Sources of Data

 Primary sources
 Secondary sources

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch3…cont’d

3.6. Analysis of data

 In general terms, describe the strategy you intend to use
for data analysis .
 Specify whether the data will be analysed manually or by
computer.
 For computer analysis, identify the program and the
statistical procedures you plan to perform on the data.
 The details of the statistical techniques and the rationales
for using such techniques should be described.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Ch3…cont’d

3.7. The structure of the report

 As clearly as possible, state how you intend to organize the
final report.
 Plan to develop your chapters round the main themes or
your study.
 The title of each chapter should around the main themes of
your study.
 The title of each chapter should clearly communicate the
main thrust of its contents.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Ch3…cont’d

3.8. Work schedule and Financial Budget

 You must set yourself dates as you need to complete the
research within a certain time- frame.
 List the various operational steps you need to undertake
and indicate against each the date by which you aim to
complete that task.
 Keep some time towards the end as a ‘cushion’ in case the
research process does not go as smoothly as planned.
 Develop a chart.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Cont’d

References and Bibliography

 Attach list of references and bibilography before appendix.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Appendix

 As an appendix, attach your research instrument and other

bulky information, if any.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Chapter 4
Sampling Design

MWU Research Methods By Dr Teshale Terefe 09/13/2025

4.1. Introduction

 Sampling is the process of selecting units from a population

of interest so that by studying the sample we generalize
our results back to the population from which they were
chosen.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

4.2. Important terminologies and concepts in
sampling

A. External Validity
 External validity is the degree to which the conclusions in
your study would hold for other persons in other places and
at other times.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Important…Cont’d…

 External validity can be improved by:

Using random selection rather than a nonrandom
procedure while sampling.
By keeping the dropout rates of the selected respondents
low.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

B. Population/universe
 Is the group you wish to generalize to.
 Is the group you would like to sample from.
 It is an aggregate of items (individual, organizations…).

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

 There is a distinction between the population you would like

to generalize to, and the population that will be accessible
to you.
 We'll call the former the theoretical population and the
latter the accessible population.
 Furthermore, population could be finite or infinite.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

C. Sampling Frame
 The listing of the accessible population from which you'll
draw your sample is called the sampling frame.
D. Sample
 The sample is the group of people who you select to be in
your study

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

E. Statistic and Parameter

 If you measure the sample and calculate a value like a
mean or average, we call it a statistic.
 If you measure the entire population and calculate a value
like a mean or average, we call it a parameter of the
population.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Important…cont’d…

F. Sampling Theory
 Sampling theory is a study of relationships existing
between a population and samples drawn from the
population.
 The main concern of sampling theory is the relationship
between a parameter and a statistic.
 Sampling theory is applicable only to (probability) random
samples.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

 The sampling theory is concerned with estimating the

properties of the population from those of the sample.
 This sort of movement from particulars (samples) towards
general (population) is known as statistical induction or
statistical inference.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

4.3. Sampling Design

 A sample design is a definite plan for

obtaining a sample from a given
population.
 It refers to the technique or the
procedure the researcher would adopt
in selecting items for the sample.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Design…cont’d…

4.3.1. Steps in sample Designing

 While developing a sampling design, the researcher must
pay attention to the following points:
a. Defining clearly the population/ universe to be studied.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Steps…Cont’d

b. Determination of the sampling unit.( Sampling unit may be a

geographical one such as state, district, village, etc., or a
construction unit such as house, flat, etc., or it may be a social unit
such as family, club, school, etc., or it may be an individual.
c. Identifying the sampling frame or source list. (Sampling
frame contains the names of all items of universe). If a source list is
not available, a researcher has to prepare it.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Steps…cont’d

d. Determining the sample size. (This refers to determining the

number of items to be selected from the population to constitute a
sample.)

e. Identifying the parameters of interest (what type of

population characteristic the researcher wants to study i.e.,
proportion, mean, variation…)

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Steps…

f. Determining the Budgetary Constraints (cost consideration

has effect not only the size of the sample but also on overall sample
design to be pursued).
g. Determining the Sampling Procedure (what type of sample is
to be used that can minimize the sampling error).

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

4.3.2. Errors in Sampling

 There are two types of errors in sample studies or in
inference making: sampling error and non-sample
errors.
1. Non –sampling errors, called systematic bias, results
from errors in the sampling procedures, it can not be
reduced or eliminated by increasing the sample size.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Error…cont’d

 Usually a systematic bias is the result of one or more of

the following factors:
a) Inappropriate sampling frame
b) Defective measurement device (questionnaire or
interview guide)
c) Non respondents
d) Indeterminacy principle( individuals may act differently
when put under observation)
e) Natural bias in the reporting of data basically by the
respondents.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Errors…Cont’d…

2. Sampling errors are the random variation in the sample

estimates.
• Sampling error decreases with the increase in the size of
the sample.
• It happens to be of a smaller magnitude in case of
homogeneous population.
• It is measured for each sample size and design. Doing so is
called measuring the precision of the sampling plan.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

4.3.3. Characteristics of Good Sample Design

 The characteristics of good sample design are
 Representativeness.
 Small sampling error.
 Systematic bias can be controlled in a better way.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

4.4. Sampling techniques

 There are different ways of classifying sampling methods.

 Sometimes they are classified as:
 Random sampling (where the members of
the sample are chosen by some
random/probability mechanism)
 Non-random sampling where the sample is
specifically selected rather than randomly
selected.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
 Classification of Sampling Techniques

Fig. 11.2
Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster Other Sampling

Sampling Sampling Sampling Sampling Techniques
© 2007 Prentice Hall

11- 116
Techniques…cont’d…

 However, the dominant classification is the probability-non

probability continuum.
a. Probability Sampling
 A probability sampling method is any method of
sampling that utilizes some form of random selection.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cont’d…

• In case of probability sample method:

The probability or chance of every unit in the population
being included in the sample is known.
Selection of the specific units in the population depends
entirely on chance.
Different units in a population have equal probabilities of
being chosen.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Simple Random Sampling

• Each element in the population has a known and equal

probability of selection.

• Each possible sample of a given size (n) has a known and

equal probability of being the sample actually selected.

• This implies that every element is selected independently

of every other element.

© 2007 Prentice Hall

11- 119
A Graphical Illustration of
Simple Random Sampling
Fig. 11.4
11-
120
A B C D E

1 6 11 16 21

Select five random numbers

2 7 12 17 22
from 1 to 25. The resulting
sample consists of population
elements 3, 7, 9, 16, and 24.
3 8 13 18 23
Note, there is no element from
Group C.

4 9 14 19 24

© 2007 Prentice Hall

5 10 15 20 25
Stratified Sampling

• A two-step process in which the population is partitioned into

subpopulations, or strata.

• The strata should be mutually exclusive and collectively exhaustive

in that every population element should be assigned to one and
only one stratum and no population elements should be omitted.

• Next, elements are selected from each stratum by a random

procedure, usually SRS.

• A major objective of stratified sampling is to increase precision

without increasing cost.

© 2007 Prentice Hall

11- 121
Stratified Sampling

• The elements within a stratum should be as homogeneous as

possible, but the elements in different strata should be as
heterogeneous as possible.

• The stratification variables should also be closely related to

the characteristic of interest.

• Finally, the variables should decrease the cost of the

stratification process by being easy to measure and apply.

© 2007 Prentice Hall

11- 122
A Graphical Illustration of
Stratified Sampling
Fig. 11.4
11-
123
A B C D E

1 6 11 16 21

Randomly select a number from 1 to 5

for each stratum, A to E. The resulting
2 7 12 17 22
sample consists of population
elements
4, 7, 13, 19 and 21. Note, one element
3 8 13 18 23
is selected from each column.

4 9 14 19 24

© 2007 Prentice Hall

5 10 15 20 25
C. Systematic Random Sampling

The steps you need to follow are:

1. Number the units in the population from 1 to N
2. decide on the n (sample size) that you want
3. k = N/n = the interval size
4. randomly select an integer between 1 to k
5. then take every kth unit

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Systematic…cont’d

 For this to work, it is essential that the units in the

population are randomly ordered, at least with respect to
the characteristics you are measuring.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Systematic Sampling

• The sample is chosen by selecting a random starting point and

then picking every kth element in succession from the sampling
frame.

• The sampling interval, k, is determined by dividing the

population size N by the sample size n and rounding to the
nearest integer.

• When the ordering of the elements is related to the

characteristic of interest, systematic sampling increases the
representativeness of the sample.

© 2007 Prentice Hall

11- 126
Systematic Sampling

• If the ordering of the elements produces a cyclical pattern,

systematic sampling may decrease the representativeness of
the sample.

For example, there are 100,000 elements in the population

and a sample of 1,000 is desired. In this case the sampling
interval, k, is 100. A random number between 1 and 100 is
selected. If, for example, this number is 23, the sample
consists of elements 23, 123, 223, 323, 423, 523, and so on.

© 2007 Prentice Hall

11- 127
A Graphical Illustration of
Systematic Sampling
Fig. 11.4 11-
128
A B C D E

1 6 11 16 21

Select a random number between 1 to

2 7 12 17 22 5, say 2.
The resulting sample consists of
population 2,
(2+5=) 7, (2+5x2=) 12, (2+5x3=)17, and
3 8 13 18 23
(2+5x4=) 22. Note, all the elements are
selected from a single row.

4 9 14 19 24

© 2007 Prentice Hall

5 10 15 20 25
D. Cluster (Area) Random Sampling

 Concerns with the natural geographic area.

 In cluster sampling, we follow these steps:
1. Divide population into clusters (usually along geographic
boundaries)
2. Randomly sample clusters
3. Measure all units within sampled clusters

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Cluster Sampling

• The target population is first divided into mutually exclusive

and collectively exhaustive subpopulations, or clusters.

• Then a random sample of clusters is selected, based on a

probability sampling technique such as SRS.

• For each selected cluster, either all the elements are included in
the sample (one-stage) or a sample of elements is drawn
probabilistically (two-stage).

© 2007 Prentice Hall

11- 130
Cluster Sampling

• Elements within a cluster should be as heterogeneous as

possible, but clusters themselves should be as homogeneous
as possible. Ideally, each cluster should be a small-scale
representation of the population.

• In probability proportionate to size sampling, the

clusters are sampled with probability proportional to size. In
the second stage, the probability of selecting a sampling unit
in a selected cluster varies inversely with the size of the
cluster.

© 2007 Prentice Hall

11- 131
A Graphical Illustration of
Cluster Sampling (2-Stage)
Fig. 11.4
11-
132
A B C D E

1 6 11 16 21

Randomly select 3 clusters, B, D and E.

2 7 12 17 22
Within each cluster, randomly select
one
or two elements. The resulting sample
3 8 13 18 23 consists of population elements 7, 18,
20, 21, and 23. Note, no elements are
selected from clusters A and C.
4 9 14 19 24

© 2007 Prentice Hall

5 10 15 20 25
E. Multi-Stage Sampling

- combines the simple methods described earlier in a variety of useful

ways.
 For example, consider the problem of sampling students in schools.
 We might begin with a national sample of school districts stratified by
economy and educational level.
 Within selected districts, we might do a simple random sample of
schools.
 Within schools, we might do a simple random sample of classes or
grades.
 And, within classes, we might even do a simple random sample of
students.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Multi-Stage…cont’d

 In this case, we have three or four stages in the sampling

process and we use both stratified and simple random
sampling.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Convenience Sampling

Convenience sampling attempts to obtain a sample of

convenient elements. Often, respondents are selected because
they happen to be in the right place at the right time.

• use of students, and members of social organizations

• mall intercept interviews without qualifying the respondents
• department stores using charge account lists
• “people on the street” interviews

© 2007 Prentice Hall

11- 135
A Graphical Illustration of Convenience
Sampling
Fig. 11.3 11-
136

A B C D E

1 6 11 16 21 Group D happens to
assemble at a convenient
time and place. So all the
2 7 12 17 22
elements in this Group are
selected. The resulting
sample consists of elements
3 8 13 18 23
16, 17, 18, 19 and 20. Note, no
elements are selected from
4 9 14 19 24 group A, B, C and E.

© 2007 Prentice Hall

5 10 15 20 25
Judgmental Sampling

Judgmental sampling is a form of convenience sampling in

which the population elements are selected based on the
judgment of the researcher.

• test markets
• purchase engineers selected in industrial marketing
research
• Bellwether precincts selected in voting behavior research
• expert witnesses used in court

© 2007 Prentice Hall

11- 137
Graphical Illustration of Judgmental
Sampling
Fig. 11.3 11-
138
A B C D E

1 6 11 16 21 The researcher considers groups

B, C and E to be typical and
convenient. Within each of these
2 7 12 17 22 groups one or two elements are
selected based on typicality and
convenience. The
3 8 13 18 23 resulting sample consists of
elements 8, 10, 11, 13, and 24.
Note, no elements are selected
4 9 14 19 24 from groups A and D.

© 2007 Prentice Hall

5 10 15 20 25
Quota Sampling

 In quota sampling, you select sample members according to

some fixed quota.
 This method is the non-probabilistic analogue of stratified
random sampling.
 There are two types of quota sampling: proportional and non
proportional.
In proportional quota sampling is sampling a proportional
amount of each group.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

 Quota Sampling

Quota sampling may be viewed as two-stage restricted judgmental sampling.

• The first stage consists of developing control categories, or quotas, of population

elements.
• In the second stage, sample elements are selected based on convenience or
judgment.

Population Sample
composition composition
Control
Characteristic Percentage Percentage Number
Sex
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000
© 2007 Prentice Hall

11- 140
Snowball Sampling

In snowball sampling, an initial group of respondents is

selected, usually at random.

• After being interviewed, these respondents are asked to

identify others who belong to the target population of
interest.

• Subsequent respondents are selected based on the referrals.

© 2007 Prentice Hall

11- 141
A Graphical Illustration of
Snowball Sampling
Random Selection
Referrals

A B C D E

1 6 11 16 21

Elements 2 and 9 are selected randomly

from groups A and B. Element 2 refers
2 7 12 17 22
elements 12 and 13. Element 9 refers
element 18. The resulting sample
consists of elements 2, 9, 12, 13, and 18.
3 8 13 18 23
Note, there are no element from group E.

4 9 14 19 24

11-
5 10 15 20 25
© 2007 Prentice Hall
142
4.5. Sample Size

 When considering collecting data, it is important to ensure

that the sample contains a sufficient number of members
of the population for adequate analysis to take place.

 Larger samples will generally give more precise information

about the population.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Size…cont’d

 Size of the sample can be determined by a researcher

keeping in view the following points:
a) Nature of the universe
 Universe may be either homogeneous or heterogeneous in
nature.
 If the items of the universe are homogeneous, a small
sample can serve the purpose.
 If the items are heterogeneous, a large sample would be
required.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Size…cont’d

b) Number of classes proposed

 If many class-groups (groups and sub groups) are to be

formed, a large sample would be required because a
small sample might not be able to give a reasonable
number of items in each class groups.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Size…cont’d

c) Nature of the study

 If items are to be intensively and continuously studied,

the sample should be small.

 For a general survey the size of the sample should be

large, but small sample is considered appropriate in
technical surveys.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Size…cont’d

D. Standard of accuracy and acceptable confidence

level

 If the standard of accuracy or the level of precision is to be

kept high, we shall require relatively larger sample.

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Size…cont’d

E. Availability of finance

 In practice, size of the sample depends upon the amount

of money available for the study purposes.

 This factor should be kept in view while determining the

size of sample for large samples result in increasing the
cost of sampling estimates.
MWU Research Methods By Dr Teshale Terefe 09/13/2025
Size…cont’d

F. Other considerations

 Nature of units

 Size of the population

 Size of the questionnaire,

 Availability of trained investigators

 The condition under which the sample is being conducted

 The time available for completion of the study

MWU Research Methods By Dr Teshale Terefe 09/13/2025
4.6 Sample Size Determination

Learning Objectives

➢ Know the concepts relating to sample error

➢ Understand the concept of sampling distribution

➢ Explain the method of sample size determination

1. Sampling Error

Any characteristic of the population related measure is called a

parameter.

It is a fixed value as long as the population does not change.

 Say it includes 1000 people and the average of their response is

3.72. It is known as population mean –a parameter.

 Let us say, it consists of 100 people. The sample mean is 3.75 and it
is called a statistic.
Cont…

 The difference between the statistic and the parameter is

called sampling error. Each sample will generate a different
amount of sampling error. In this case it is 3.75-3.72 =
0.03.
2. Sampling Distribution of Mean

 The distribution of responses of sample elements form a

sampling distribution with a mean and variations. To
understand, let us to do an exercise. Imagine the
population of 5 elements say [1, 2, 3, 4, 5]. The mean
value of the population = [1+2+3+4+5]/5 =3

 Let us assume that you have taken sample sizes of 2, 3 and

4.
Sample Size -2 units

 For the sample size of 2, you know that a maximum of 10

possible unique samples can be selected NCn= N!/n!(N-n)!
[5C2 = 5 X 4 /1X2 = 10]. If you look at a glance of this
distribution of sampling means, it is varying from 1.5 to 4.5.
Distribution of sample mean for a
sampleSample
[Link]
size 2
Elements Mean of the sample
1 1,2 1.5
2 1,3 2
3 1,4 2.5
4 1,5 3
5 2,3 2.5
6 2,4 3
7 2,5 3.5
8 3,4 3.5
9 3,5 4
10 4,5 4.5
Sample Size of 3

 A maximum of 10 possible unique samples can be selected

[5C3 = (5 X 4 X 3) / (1X2X3) = 10]. If you look at a glance
of this distribution of sampling means, it is varying from 2.0
to 4.0
Distribution of sample mean for a
sample size 3 Sample elements
S. NO Mean of the sample
1 1,2,3 2
2 1,2,4 2.33
3 1,2,5 2.667
4 1,3,4 2.667
5 1,3,5 3
6 1,4,5 3.333
7 2,3,4 3
8 2,3,5 3.33
9 2,4,5 3.667
10 3,4,5 4
Sample Size of 4

A maximum of 5 possible unique samples can be selected

[5C4 = (5 X 4 X 3 X 2) / (1X2X3X4) = 5]. If you look at a
glance of this distribution of sampling means, it is varying
from 2.5 to 3.5.
 Distribution of sample mean for a
sample
[Link]
size 4 Sample Elements Mean of Sample
1 1,2,3,4 2.5
2 1,2,4,5 3
3 1,3,4,5 3.25
4 1,2,3,5 2.75
5 2,3,4,5 3.5

Distribution of sample mean for a sample size 4

Cont…

 In each case the average of means is equal to 3. Therefore we

can say, for a finite population, different sample may or may not
have mean equal to population. But the mean of the distribution
will be equal to population mean.

 The standard deviation of each of these samples represents the

distribution of potential sampling error, which in statistical
terminology is known as standard error.
Cont…

 Even though all three samples came from the same

population, you would not expect to get the exact same
statistic from each. They would differ marginally just due to
the random or to the natural fluctuations or vagaries of
drawing a sample.
Concept of Standard Error

We will now try to understand two important concepts

1. Standard deviation is the spread of the scores around the average in a

single sample.

2. Standard error is the spread of the averages around the average of

averages in a sampling distribution.

One can see from the above illustration, when the sample size increases,
the range in which the sampling means fall is getting narrow.
Cont….

Sample size Range of means

2 1.5 to 4.5

3 2 to 4

4 2.5 to 3.5
Cont…

 It means is Standard Deviation is getting smaller and

smaller with increase in the sample size.

 The larger the sample size, the less variability there is in

the sampling distribution.
 Symbols for Population and
Sample Variables
Table 12.1

Variable Population Sample

_
Mean µ X

Proportion  p

Variance 2 s2

Standard deviation  s

Size N n

Standard error of the mean x _ S_x

Standard error of the proportion p Sp
_
Standardized variate (z) (X-µ)/  (X-X)/ S
_
Coefficient of variation (C) / µ S/ X

© 2007 Prentice Hall

12-165
Concept of Normal Distribution

 One of the most useful probability distributions in statistics

is the normal distribution which is also called the normal
curve. The normal curve is bell shaped and almost all (99
percent) of its values are within + or - standard deviations
from its mean.
Standard Normal Distribution
characteristics:

➢ It is symmetrical about its mean.

➢ The mean of the normal curve identifies its highest point (the
mode) and vertical line about which this curve is symmetrical.

➢ The normal curve has an infinite number of cases (it is a

continuous distribution), and the area under the curve has a
probability density equal to 1.0;
Cont…

 The computation of the standardized value, Z, is a simple one.

All we need to do is subtract the mean from the value to be
transformed and divide by the standard error. In the following
formula note that σ, the population standard deviation, is utilized
as the standard error value and µ is the hypothesized or
expected value of the mean:

 Z = X – µ/ σ
Confidence Level

 Confidence level is the probability associated with an

interval estimate. The interval is known as confidence

interval. The confidence level is a percentage indicating the
long-run probability that the results will be correct.
Traditionally, researchers have utilized the 95 percent
confidence level.
Determining Sample Size

 Let us assume that we are interested to find the sample

size based on average / sample mean. Three factors are
required to specify sample size:
1. Standard Deviation of the Population

 Ideally, similar studies conducted in the past will be used as a

basis for judging the standard deviation.

 In practice, researchers without prior information conduct a pilot

study for the purpose of estimating population parameters. This
procedure is called sequential sampling,

 A rule of thumb for estimating the value of the standard deviation

is to expect it to be one sixth of the range.
2. Standard Error

 It is the second necessary bit of information. Defined in

statistical terms as E, the magnitude of error indicates how
precise the estimate must be. From a managerial
perspective, the importance of the decision in terms of
profitability will influence the researcher’s specifications of
the range of error.
3. Confidence Level

 We will typically use the 95 percent confidence level.

 If our concern is to estimate the mean of a particular population, the formula for
sample size is

n = (ZS/E) 2 where

 Z = confidence level

 S = sample standard deviation or estimate of the population standard deviation

 E = acceptable magnitude of error

Example

 The following standards have been set: a confidence level of 99 percent and
an error of less than five units. Past research has indicated the standard
deviation should be six units. What would be the required sample size?

 We know that the sample size estimation equation, n = ( ZS

/E )2------------------------- (1)

 Error limit, E = 5

 Population standard deviation, which is estimated from the past records, S=

6
Cont….

 The required confidence level = 99%, for which the Z-score [standard normal
score for 0.495 area of the one side of the normal curve – 49.5% area] Z =
2.575 at 99% confidence. n = 9.5

 The students should be asked why sample size is so low if the confidence level
is at 99%. Of course, it is because such a large magnitude of error is tolerable.
You can check up that if you reduce the E to 1 resulting in increasing the
sample size to 238. n = [( 2.575*6)/5]2= 15.42/5 2 n=[3.084]2= 9.5

 n = ( 2.57*6) 2 = (15.42) 2 = 237.7

 Chapter 5
Measurement and Scaling

MWU Marketing research Methods By Dr Teshale Terefe 09/13/2025

 What is Measurement?

 Measurement is the assignment of numbers or other symbols to characteristics of

objects according to certain specified rules

 Measurement is the process of describing some property of a phenomenon of

interest, usually by assigning numbers in a reliable and valid way.

 We do this because numbers facilitate statistical analysis and interpretation of data.

 Measurement is the foundation of any scientific investigation

 Everything we do
MWU Marketing begins
research Methodswith the measurement
By Dr Teshale Terefe of whatever it is we want to study
09/13/2025
 What is scaling?

 Scaling is the generation of a continuum upon which measured objects are located
 It is the process of locating the respondent
 1 = extremely unfavorable, 100 = extremely favorable

Scales of Measurment
A. Nominal Scales
B. Ordinal Scales
C. Ratio Scales
D. Interval Scales
MWU Marketing research Methods By Dr Teshale Terefe 09/13/2025
 Scales of Measurment

a. Nominal Scales
 Nominal scales allow for only qualitative classification.
 That is, they can be measured only in terms of whether the individual items belong to
some distinctively different categories, but we cannot quantify or even rank order those
categories.
 For example, all we can say is that two individuals are different in terms of variable A
(e.g., they are of different race), but we cannot say which one "has more" of the quality
represented by the variable.
 Typical examples of nominal variables are:
 Gender
 Race
 Color
MWU Marketing research Methods
 City etc… By Dr Teshale Terefe 09/13/2025
 Scales ...

b. Ordinal Scales
 Ordinal Scales allow us to rank order the items we measure in terms of which
has less and which has more of the quality represented by the variable,
 but still they do not allow us to say "how much more."
 A typical example of an ordinal variable is the socioeconomic status of
families.
 For example, we know that upper middle is higher than middle but we
cannot say that it is, for example, 18% higher.
 We can say that nominal measurement provides less information than
ordinal measurement,
MWU Marketing research Methods By Dr Teshale Terefe 09/13/2025
 but we cannot say "how much less" or how this difference compares to the
difference between ordinal and interval scales.
 Scales ...

c. Interval Scale
 An interval scale is a scale on which equal intervals between
objects, represent equal differences
 The interval differences are meaningful
 But, we can’t defend ratio relationships
 Example: Number of children, family size, number of cities, number
of students in a class etc.

MWU Marketing research Methods By Dr Teshale Terefe 09/13/2025

 Scales ...

d. Ratio Scales
 Ratio scales are very similar to interval variables;
 But, in addition to all the properties of interval variables, they feature an
identifiable absolute zero point, thus, they allow for statements such as x is two
times more than y.
 Typical examples of ratio scales are measures of time or distance.
 For example, as temperature scale is a ratio scale, not only can we say that a
temperature of 200 degrees is higher than one of 100 degrees, we can
correctly state that it is twice as high.
 Interval scales do not have the ratio property.
 Most MWU
statistical data
Marketing research analysis procedures
Methods By Dr Teshaledo not distinguish between
Terefe the
09/13/2025

interval and ratio properties of the measurement scales.

 Attitude
Measurement Scales

MWU Marketing research Methods By Dr Teshale Terefe 09/13/2025

 Likert Scale

 It is a psychometric scale commonly involved in research

that employs questionnaires.
 It is the most widely used approach to scaling responses in
survey research.
 Likert scales are a non-comparative scaling technique and
are one-dimensional in nature.
 When responding to a Likert questionnaire item respondents
specify their level of agreement or disagreement on a
symmetric agree-disagree scale for a series of statements.
 LikertMWUitem is consideredBy symmetric
Marketing research Methods Dr Teshale Terefe
or balanced because
09/13/2025

there are equal amounts of positive and negative positions.

Example

MWU Marketing research Methods By Dr Teshale Terefe 09/13/2025

MWU Marketing research Methods By Dr Teshale Terefe 09/13/2025
Chapter 6

 The sources and collection of Data

 Data collection is a critical phase in research. It requires
proper identification of data sources and accessing them
through appropriate data collection formats or instruments.
Data collection methods are primarily classified into
primary and secondary data sources.
Objectives of Secondary Data Research

 Secondary data are gathered and recorded by “someone

else” prior to (and for purposes other than) the current
needs of the researcher.
 Secondary data are usually historical in nature, have
already been assembled, and do not require access to
respondents or subjects. Data are simply facts.
 There are two general categories of research objectives:
fact finding and model building.
Model building -

 As a general objective for secondary research, it is more

complicated than simple fact finding. Model building
involves specifying relationships between two or more
variables. Model building can involve the development of
descriptive or predictive equations.
 Sales forecasting is the process of predicting sales totals
over a specific future time period. Different models are
used for predicting the sales. Managers often estimate
market potential using secondary data. The researcher may
estimate market potential by converting different types of
data that are available from two or more sources.
 For example, if you are consulting for a real estimate
equipment manufacturer, if one source of data indicates
that 10 percent of all electrical contractors intend to buy a
drill and another source indicates that there are 80,000
electrical contractors then it may be estimated that 8,000
drills will be sold to electrical contractors
 Business researchers often use internal company sales
records to project sales. This is a popular method adopted
by many organizations. The term data mining refers to the
use of powerful computers, to dig through volumes of data
to discover patterns about an organization’s customers and
products.
Classification of Secondary Data

 The sources of secondary data can be classified as internal

or external.
1. Internal Data
 Data that are internal to the organization refers to data
created, recorded, or generated by another entity. Most
organizations routinely gather, record, and store internal
data for solving future problems. For example, sales
departments continually gather data through their sales
representatives
 Aggregating or desegregating internal data is a frequent
form of internal research. To collect the internal data more
efficiently and effectively, the researcher should know the
company’s operating procedures very clearly; then only he
can establish very systematic methods for gathering /
recording the information required.

External Data

 External data sources can be broadly classified into

 1) Books and periodical,
 2) Web sources
 3) Media sources
 4)Government Sources, and
 5) Commercial Sources.
Books and periodicals -

 Books and periodicals provide a wealth of information.

Libraries stock many bibliographies, guides, directories,
and indexes. Professional journals can be especially
valuable sources of data. Original research works, research
abstracts, opinions and discussions are available for
researcher.
 Besides this, reports are found in library. They include
reports published by state and central governments,
colleges and universities, professional associations like
Chambers of Commerce.
Web sources -

 The web has become a rich repository of information.

Different search engines like Google, Yahoo and others
provide access to a variety of data sources.
Government sources:

 Ethiopian government provides census data, which can give

important information on demographics, manufacturers,
retail trade agriculture, transportation, and so on. Moreover,
we know that the quality of census data is very high, making
it a very reliable and useful source.
 State and federal government’s ministries periodically
publishes many reports on census, industrial production,
production details of various products and commodities,
human resources development activities, policy documents;
again, these reports provide depth insight about the research
topics / objectives / problems.
Media sources:

 Information on a broad range of subjects is available from

broadcast and print media. Annual Industry surveys,
periodical reports on Industry banking and finance and
reviews of stock markets, are common products in news
papers. Dedicated News channels daily present some
reviews and trends on business, markets and interviews
with experts. Besides this there are advertisements.
Commercial sources:

 Numerous firms specialize in selling information. They

present Demographic and census updates, Attitude and
public opinion research, Stock market trends and many
compilations of data on other interesting aspects.
 The growing demand for marketing data in recent years
has given rise to a number of companies which make a
business of collecting and selling marketing information.
Few companies restrict their activities to research on
specific issues faced by their clients; certain others collect
certain marketing data on a continuing basis.
Advantages of Secondary Data

 Secondary data can cover a broad range of factors that

affect the problem at hand. It does not always fit the
specific problem at hand, but can be useful in developing
an approach to the problem and providing a comprehensive
understanding of the problem environment. Examination of
available secondary data is a prerequisite to the collection
of primary data. Proceed to primary data only when the
secondary data sources have been exhausted or yield
marginal returns.
Disadvantages -

 Because secondary data have been collected for purposes

other than the problem at hand, their usefulness to the
current problem may be limited in several important ways,
including relevance and accuracy.
Criteria for Evaluating the Quality of Secondary Data

 The marketing researchers have to be very careful when

using secondary data sources; he may evaluate the data
based on criteria like - error, currency, objectives, nature,
and dependability.
Error -

 Researchers should be aware of the fact that no single

source of secondary data can provide information that
completely answers the need of the present problem.
Moreover, methods used for analysis by different sources
may have certain weaknesses.
 One may suffer from biases, the other may be older and
the third may not be very accurate, and so on.
Currency -

 the data may not be recent one. Sometimes it may be

outdated too.
Objectives –

 The objective of the researcher in compiling data may be

different from the objective of research. In such cases, its
use will be limited to providing back ground information.
Nature -

 The data may be different in terms of quantitative or

qualitative aspects and researcher may not be able to
appreciate it.
Dependability-(reliability)

 Four ethical issues that are the most relevant are:

1. The researcher should aware of the unnecessary collection of
primary data when the problem can be addressed based only on
secondary data.
2. Also, overriding importance to secondary data sources whereby,
limiting the research to only secondary data when primary data
are needed to answer the research question.
3. The use of secondary data that is not relevant or applicable to the
research problem.
4. The use of secondary data that has been gathered through morally
questionable means.
Chapter 7

 Methods of data presentation, Analysis and

Interpretation
Frequency Distribution

• In a frequency distribution, one variable is considered

at a time.

• A frequency distribution for a variable produces a table

of frequency counts, percentages, and cumulative
percentages for all the values associated with that
variable.
Frequency Distribution of Familiarity
with the Internet

Table 15.2

Valid Cumulative
Value label Value Frequency (N) Percentage percentage percentage

Not so familiar 1 0 0.0 0.0 0.0

2 2 6.7 6.9 6.9
3 6 20.0 20.7 27.6
4 6 20.0 20.7 48.3
5 3 10.0 10.3 58.6
6 8 26.7 27.6 86.2
Very familiar 7 4 13.3 13.8 100.0
Missing 9 1 3.3

TOTAL 30 100.0 100.0

 Frequency Histogram
Fig. 15.1
8
7
6
Frequency

5
4
3
2
1
0
2 3 4 5 6 7
Familiarity
SPSS Windows: Frequencies
1. Select ANALYZE on the SPSS menu bar.
2. Click DESCRIPTIVE STATISTICS and select FREQUENCIES
3. Move the variable “Familiarity [familiar]” to the
VARIABLE(s) box.
4. Click STATISTICS
5. Select MEAN, MEDIAN, MODE, STD. DEVIATION, VARIANCE,
and RANGE.
SPSS Windows: Frequencies

6. Click CONTINUE
7. Click CHARTS
8. Click HISTOGRAMS, then click CONTINUE
9. Click OK
Statistics Associated with Frequency
Distribution Measures of Location
• The mean, or average value, is the most commonly used measure of
central tendency. The mean, ,is given by
X
n
X = S
i=1
X i /n
Where,
Xi = Observed values of the variable X
n = Number of observations (sample size)

• The mode is the value that occurs most frequently. It represents the
highest peak of the distribution. The mode is a good measure of
location when the variable is inherently categorical or has otherwise
been grouped into categories.
Statistics Associated with Frequency
Distribution Measures of Location

• The median of a sample is the middle value when the data are
arranged in ascending or descending order. If the number of data
points is even, the median is usually estimated as the midpoint
between the two middle values – by adding the two middle values
and dividing their sum by 2. The median is the 50th percentile.
Statistics Associated with Frequency
Distribution Measures of Variability

• The range measures the spread of the data. It is simply the

difference between the largest and smallest values in the
sample.
Range = Xlargest – Xsmallest.
• The interquartile range is the difference between the 75th
and 25th percentile. For a set of data points arranged in
order of magnitude, the pth percentile is the value that has p
% of the data points below it and (100 - p)% above it.
Statistics Associated with Frequency
Distribution Measures of Variability

• The variance is the mean squared deviation from the mean. The
variance can never be negative.
• The standard deviation is the square root of the variance.
n 2
(X i - X )
sx = S
i =1 n - 1
• The coefficient of variation is the ratio of the standard deviation to
the mean expressed as a percentage, and is a unitless measure of
relative variability.

C V = s x /X
Cross-Tabulation
• While a frequency distribution describes one variable at a time, a
cross-tabulation describes two or more variables simultaneously.

• Cross-tabulation results in tables that reflect the joint distribution of

two or more variables with a limited number of categories or distinct
values, e.g., Table 15.3.
Gender and Internet Usage
Table 15.3

Gender
Row
Internet Usage Male Female Total

Light (1) 5 10 15

Heavy (2) 10 5 15

Column Total 15 1 5
Statistics Associated with
Cross-Tabulation Chi-Square
• To determine whether a systematic association exists, the probability of
obtaining a value of chi-square as large or larger than the one
calculated from the cross-tabulation is estimated.
• An important characteristic of the chi-square statistic is the number of
degrees of freedom (df) associated with it. That is, df = (r - 1) x (c -1).
• The null hypothesis (H0) of no association between the two variables
will be rejected only when the calculated value of the test statistic is
greater than the critical value of the chi-square distribution with the
appropriate degrees of freedom, as shown in Figure 15.8.
Ownership of Expensive Automobiles
by Education Level
Table 15.8
Own Expensive Education
Automobile
College Degree No College Degree

Yes 32% 21%

No 68% 79%
Column totals 100% 100%
Number of cases 250 750
Chi-square
Fig. 15.8 Distribution

Do Not Reject H0

Reject H0

2
Critical
Value
 Statistics Associated with
Cross-Tabulation Chi-Square

• The chi-square statistic ( c) 2 is used to test the

statistical significance of the observed association in a
cross-tabulation.
• The expected frequency for each cell can be calculated
by using a simple formula:

f e = n rnn c
where nr = total number in the row
nc = total number in the column
n = total sample size
Statistics Associated with
Cross-Tabulation Chi-Square
For the data in Table 15.3, the expected frequencies for
the cells going from left to right and from top to bottom,
are:

15 X 15 = 7.50 15 X 15 = 7.50
30 30

15 X 15 15 X 15
= 7.50 = 7.50
30 30
c2
Then the value of is calculated as follows:

c2 = S ( fo - fe ) 2
fe
all
cells
Statistics Associated with
Cross-Tabulation Chi-Square

For the data in Table 15.3, the value of is c2

calculated as:

= (5 -7.5)2 + (10 - 7.5)2 + (10 - 7.5)2 + (5 - 7.5)2

7.5 7.5 7.5 7.5

=0.833 + 0.833 + 0.833+ 0.833

= 3.333
Statistics Associated with
Cross-Tabulation Chi-Square
• The chi-square distribution is a skewed distribution whose shape
depends solely on the number of degrees of freedom. As the number of
degrees of freedom increases, the chi-square distribution becomes
more symmetrical.
• Table 3 in the Statistical Appendix contains upper-tail areas of the chi-
square distribution for different degrees of freedom. For 1 degree of
freedom the probability of exceeding a chi-square value of 3.841 is
0.05.
• For the cross-tabulation given in Table 15.3, there are (2-1) x (2-1) = 1
degree of freedom. The calculated chi-square statistic had a value of
3.333. Since this is less than the critical value of 3.841, the null
hypothesis of no association can not be rejected indicating that the
association is not statistically significant at the 0.05 level.
Statistics Associated with
Cross-Tabulation Phi Coefficient
f as a measure of the strength of
• The phi coefficient ( ) is used
association in the special case of a table with two rows and two
columns (a 2 x 2 table).
• The phi coefficient is proportional to the square root of the chi-
square statistic
c2
f =
n
• It takes the value of 0 when there is no association, which would
be indicated by a chi-square value of 0 as well. When the
variables are perfectly associated, phi assumes the value of 1 and
all the observations fall just on the main or minor diagonal.
SPSS Windows: Cross-tabulations
1. Select ANALYZE on the SPSS menu bar.
2. Click on DESCRIPTIVE STATISTICS and select
CROSSTABS
3. Move the variable “Internet Usage Group
[iusagegr]” to the ROW(S) box.
4. Move the variable “Sex[sex]” to the COLUMN(S)
box.
5. Click on CELLS.
6. Select OBSERVED under COUNTS and COLUMN
under PERCENTAGES.
SPSS Windows: Cross-tabulations

7. Click CONTINUE
8. Click STATISTICS
9. Click on CHI-SQUARE, PHI AND CRAMER’S V.
10. Click CONTINUE.
11. Click OK.
Parametric Tests
• The t statistic assumes that the variable is normally distributed
and the mean is known (or assumed to be known) and the
population variance is estimated from the sample.
• Assume that the random variable X is normally distributed, with
mean and unknown population variance that is estimated by the
sample variance s 2.
t = ( X - m) / s X
•
• Then, is t distributed with n - 1 degrees of freedom.
• The t distribution is similar to the normal distribution in
appearance. Both distributions are bell-shaped and symmetric. As
the number of degrees of freedom increases, the t distribution
approaches the normal distribution.
Frequency Distribution of Familiarity
with the Internet

Table 7.2

Valid Cumulative
Value label Value Frequency (N) Percentage percentage percentage

Not so familiar 1 0 0.0 0.0 0.0

2 2 6.7 6.9 6.9
3 6 20.0 20.7 27.6
4 6 20.0 20.7 48.3
5 3 10.0 10.3 58.6
6 8 26.7 27.6 86.2
Very familiar 7 4 13.3 13.8 100.0
Missing 9 1 3.3

TOTAL 30 100.0 100.0

One Sample : t Test
For the data in Table 15.2, suppose we wanted to test
the hypothesis that the mean familiarity rating exceeds
4.0, the neutral value on a 7 point scale. A significance
level of a = 0.05 is selected. The hypotheses may be
formulated as:

H0: < 
4.0
H1:  >
4.0
t = (X - )/s X
s X = s/ n
sX = 1.579/ 29

= 1.579/5.385 = 0.293

t = (4.724-4.0)/0.293 = 0.724/0.293 = 2.471

One Sample : t Test

The degrees of freedom for the t statistic to test the hypothesis

about one mean are n - 1. In this case,
n - 1 = 29 - 1 or 28. From Table 4 in the Statistical Appendix,
the probability of getting a more extreme value than 2.471 is
less than 0.05 (Alternatively, the critical t value for 28 degrees
of freedom and a significance level of 0.05 is 1.7011, which is
less than the calculated value). Hence, the null hypothesis is
rejected. The familiarity level does exceed 4.0.
SPSS Windows:
One Sample t Test
1. Select ANALYZE from the SPSS menu bar.
2. Click COMPARE MEANS and then ONE SAMPLE T
TEST.
3. Move “Familiarity [familiar]” in to the TEST
VARIABLE(S) box.
4. Type “4” in the TEST VALUE box.
5. Click OK.
Product Moment Correlation

• The product moment correlation, r, summarizes the strength

of association between two metric (interval or ratio scaled)
variables, say X and Y.

• It is an index used to determine whether a linear or straight-line

relationship exists between X and Y.

• As it was originally proposed by Karl Pearson, it is also known as

the Pearson correlation coefficient.
It is also referred to as simple correlation, bivariate correlation,
or merely the correlation coefficient.

© 2007 Prentice Hall

17-237
Product Moment Correlation
From a sample of n observations, X and Y, the product moment
correlation, r, can be calculated as:
n
S (X i - X )(Y i - Y )
r = i= 1
n n
S (X i - X ) 2 S (Y i - Y )2
i=1 i=1

D iv is io n o f th e n u m e r a to r a n d d e n o m in a to r b y ( n - 1 ) g iv e s

n
S (X i - X )(Y i - Y )
n -1
r = i=1

S
n
(X i - X ) 2 Sn ( Y i - Y ) 2
n -1 n -1
i=1 i=1

© 2007 Prentice Hall

C O V x y
=
S xS y 17-238
Product Moment Correlation

• r varies between -1.0 and +1.0.

• The correlation coefficient between two variables will be

the same regardless of their underlying units of
measurement.

© 2007 Prentice Hall

17-239
Explaining Attitude Toward
the City of Residence
Table 17.1
Respondent No Attitude Toward Duration of Importance
the City Residence Attached to
Weather
1 6 10 3

2 9 12 11

3 8 12 4

4 3 4 1

5 10 12 11

6 4 6 1

7 5 8 7

8 2 2 4

9 11 18 8

10 9 9 10

11 10 17 8
© 2007 Prentice Hall

12 2 2
17-240
5
 Product Moment Correlation
The correlation coefficient may be calculated as follows:

X= (10 + 12 + 12 + 4 + 12 + 6 + 8 + 2 + 18 + 9 + 17 + 2)/12
= 9.333

= (6 + 9 + 8 + 3 + 10 + 4 + 5 + 2=+ 11
(10+-9.33) (6-6.58)
9 + 10 + 2)/12+ (12-9.33)(9-
Y
6.58) = 6.583
n
+ (12-9.33)(8-6.58) + (4-9.33)(3-6.58)
+ (12-9.33)(10-6.58) + (6-9.33)(4-
S
6.58)
(X i - X )(Y i - Y )
i=1
+ (8-9.33)(5-6.58) + (2-9.33) (2-6.58)
+ (18-9.33)(11-6.58) + (9-9.33)(9-
6.58)
+ (17-9.33)(10-6.58) + (2-9.33)(2-
6.58)
= -0.3886 + 6.4614 + 3.7914 + 19.0814
+ 9.1314 + 8.5914 + 2.1014 + Hall
© 2007 Prentice
33.5714
17-241
+ 38.3214 - 0.7986 + 26.2314 +
 Product Moment Correlation
n
2 (10-9.33)2 + (12-9.33)2 + (12-9.33)2 + (4-9.33)2
S (X i - X )=
i=1 + (12-9.33)2 + (6-9.33)2 + (8-9.33)2 + (2-9.33)2
+ (18-9.33)2 + (9-9.33)2 + (17-9.33)2 + (2-9.33)2
= 0.4489 + 7.1289 + 7.1289 + 28.4089
+ 7.1289+ 11.0889 + 1.7689 + 53.7289
+ 75.1689 + 0.1089 + 58.8289 + 53.7289
= 304.6668

n
S (Y i - Y=) 2(6-6.58)2 + (9-6.58)2 + (8-6.58)2 + (3-6.58)2
i=1 + (10-6.58)2+ (4-6.58)2 + (5-6.58)2 + (2-6.58)2
+ (11-6.58)2 + (9-6.58)2 + (10-6.58)2 + (2-6.58)2
= 0.3364 + 5.8564 + 2.0164 + 12.8164
+ 11.6964 + 6.6564 + 2.4964 + 20.9764
+ 19.5364 + 5.8564 + 11.6964 + 20.9764
= 120.9168

Thus, r= 179.6668 © 2007 Prentice Hall

= 0.9361
(3 0 4 . 6 6 6 8 ) (1 2 0 . 9 1 6 8 )
17-242
Decomposition of the Total Variation
The test statistic is:
1 /2
t = r n -2 2
1 - r
which has a t distribution with n - 2 degrees of freedom.
For the correlation coefficient calculated based on the
data given in Table 17.1,
1 2 - 2 1 /2
t = 0.9361
1 - (0 . 9 3 6 1 )2
= 8.414
and the degrees of freedom = 12-2 = 10. From the
t distribution table (Table 4 in the Statistical Appendix),
the critical value of t for a two-tailed test and
=a0.05 is 2.228. Hence, the null hypothesis of no
relationship between X and Y is rejected. © 2007 Prentice Hall

17-243
SPSS Windows: Correlations

1. Select ANALYZE from the SPSS menu bar.

2. Click CORRELATE and then BIVARIATE..
3. Move“Attitude[attitude]” in to the VARIABLES box.. Then move
“Duration[duration]” ]” in to the VARIABLES box..
4. Check PEARSON under CORRELATION COEFFICIENTS.
5. Check ONE-TAILED under TEST OF SIGNIFICANCE.
6. Check FLAG SIGNIFICANT CORRELATIONS.
7. Click OK.

© 2007 Prentice Hall

17-244
Regression Analysis
Regression analysis examines associative relationships
between a metric dependent variable and one or more
independent variables in the following ways:
• Determine whether the independent variables explain a significant variation
in the dependent variable: whether a relationship exists.
• Determine how much of the variation in the dependent variable can be
explained by the independent variables: strength of the relationship.
• Determine the structure or form of the relationship: the mathematical
equation relating the independent and dependent variables.
• Predict the values of the dependent variable.
• Control for other independent variables when evaluating the contributions of
a specific variable or set of variables.
• Regression analysis is concerned with the nature and degree of association
between variables and does not imply or assume any causality.

© 2007 Prentice Hall

17-246
 Cont…

In the bivariate regression^model, the general form of a

straight line is y = a + bx

Y = dependent or criterion variable

X = independent or predictor variable
Sxy - nxy
b=
Sx2 - nx2

a = y - bx
MWU Sales Management By Dr Teshale Terefe
 Model Example
Time Electrical Power
Year Period (x)Demand (megawatt)x2 xy
2006 1 74 1 74
2007 2 79 4 158
2008 3 80 9 240
2009 4 90 16 360
2010 5 105 25 525
2011 6 142 36 852
2012 7 122 49 854
∑x = 28 ∑y = 692 ∑x2 = 140 ∑xy = 3,063
x=4 y = 98.86

∑xy - nxy 3,063 - (7)(4)(98.86)

b= = = 10.54
∑x2 - nx2 140 - (7)(4 )
2

a = y - bx =By 98.86
MWU Sales Management
- 10.54(4) = 56.70
Dr Teshale Terefe November 1, 2018
 Least Squares Example
Time Electrical Power
Year Period (x) Demand x2 xy
2003 1 74 1 74
2004 2 79 4 158
The trend
2005 3 line is
80 9 240
2006 4 90 16 360
^
2007 y5 = 56.70105 + 10.54x25 525
2008 6 142 36 852
2009 7 122 49 854
∑x = 28 ∑y = 692 ∑x2 = 140 ∑xy = 3,063
x=4 y = 98.86

∑xy - nxy 3,063 - (7)(4)(98.86)

b= = = 10.54
∑x - nx 140 - (7)(4 )
2 2 2

Sales Management
a = y - bx = 98.86 - 10.54(4) = 56.70
By Dr Teshale Terefe
November 1, 2018
 SPSS Windows: Bivariate Regression

1. Select ANALYZE from the SPSS menu bar.

2. Click REGRESSION and then LINEAR.
3. Move “Attitude[attitude]” in to the DEPENDENT box..
4. Move “Duration[duration]” in to the INDEPENDENT(S) box..
5. Select ENTER in the METHOD box.

6. Click
on STATISTICS and check ESTIMATES under REGRESSION
COEFFICIENTS.
7. Check MODEL FIT.
8. Click CONTINUE.
9. Click OK.
© 2007 Prentice Hall

17-250
Chapter 8

 Report Writing

MWU Research Methods By Dr Teshale Terefe 09/13/2025

Importance of the Report
and Presentation
For the following reasons, the report and its presentation
are important parts of the research project:

1. They are the tangible products of the research effort.

2. Management decisions are guided by the report and the
presentation.
3. The involvement of many managers in the project is limited to the
written report and the oral presentation.
4. Management's decision to undertake business research in the
future or to use the particular research supplier again will be
influenced by the perceived usefulness of the report and the
presentation.
Report Format
I. Title page
II. Letter of transmittal
III. Letter of authorization
IV. Table of contents
V. List of tables
VI. List of graphs
VII. List of appendices
VIII. List of exhibits
IX. Executive summary
a. Major findings
b. Conclusions
c. Recommendations
Report Format
X. Problem definition
a. Background to the problem
b. Statement of the problem
XI. Approach to the problem
XII. Research design
a. Type of research design
b. Information needs
c. Data collection from secondary sources
d. Data collection from primary sources
e. Scaling techniques
f. Questionnaire development and pretesting
g. Sampling techniques
h. Fieldwork
 Report Format
XIII. Data analysis
a. Methodology
b. Plan of data analysis
XIV. Results
XV. Limitations and caveats
XVI. Conclusions and recommendations
XVII. Exhibits
a. Questionnaires and forms
b. Statistical output
c. Lists
 Thank you!1cG E q1

MWU Research Methods By Dr Teshale Terefe 09/13/2025