ASSIGNMENT SOLUTIONS

GUIDE (2019-2020)
 ASSIGNMENT SOLUTIONS
GUIDE (2019-2020)

M.C.O.-3
Research Methodology and
Statistical Analysis
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information, data and solution. Student should must read and refer the official study material provided by the university.

Attempt all the questions

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Ans. The research problem undertaken for study must be carefully selected. The task is a difficult one, although

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it may not appear to be so. The following points may be observed by a researcher in selecting a research problem or

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a subject for research:

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1. Two narrow or too vague problems should be avoided.

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2. The selection of a problem must be preceded by a preliminary study.

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Q. 2. (a) What do you mean by an index number? Explain the uses of index number for analyzing the
data.
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Ans. An index number is a statistical measure used to compare the average level of magnitude of a group of

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distinct but related variables in two or more situations. As an average of data is its representative summary figure. In

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a similar way, in index number is also an average, often a weighted average, computed for a group. It is a specialized
average because index number is often used to average a characteristic expressed in different units for different

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items of a group e.g., the price of wheat may be quoted as Rs/kg, price of milk as Rs/litre, etc. Secondly, it is used to

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measure the changes in characteristics which is not capable of being directly measured. For example, it is not
possible to measure business activity in a direct way, however, relative changes in a business activity can be measured
the direct measurement of changes in some factors that affect it.
Another important feature of index number is that the changes in magnitude of a group are expressed in terms of
percentages which are independent of unit of measurement. This facilitates the comparison of two or more index
numbers in different situation.
Uses of Index Numbers.
1. Index Numbers as Economic Barometers: Index numbers are indispensable tools for the management
personnel of any government organization or individual business concern and in business planning and formulation
of executive decisions. The indices of prices (wholesale and retail), output (volume of trade, import and export,

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industrial and agricultural production) and bank deposits, foreign exchange and reserves etc., throw light on the
nature of and variation in the general economic and business activity of the country.
2. Index Numbers Help in Studying trends and Tendencies: Since the index numbers study the relative
changes in the level of a phenomenon at different periods of time, they are specially useful for the study of the
general trend for a group phenomena in a time series data. The indices of output (industrial and agricultural production),
volume of trade, import and export, etc., are extremely useful for studying the changes in the level of phenomenon
due to the various components of a time series, viz., secular trend, seasonal and cyclical variations and irregular
components and reflect upon the general trend of production and business activity. As a measure of average change
in extensive group, the index number can be used to forecast future events. For instance, if a businessman is interested
in establishing a new industry, the study of the trend of changes in the prices, wages and incomes in different
industries is extremely helpful to him to frame a general idea of the comparative courses which the future holds for
different undertakings.

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3. Index Numbers Helps in Formulating Decisions and Policies: Index numbers of the data relating to prices,

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production, profits, imports and exports, personnel and financial matters are indispensable for any organization in

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efficient planning and formulation of executive decisions. For example, the cost of living index numbers are used by

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the government and the industrial and business concerns for the regulation of Dearness Allowance (D.A.) or grant of

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bonus to the workers so as to enable them to meet the increased cost of living from time to time.

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4. Helps in deflating various values: Index numbers are very helpful in deflating national income on the basis

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of constant prices, to enable us to find out whether there is any change in the real income of the people. Figures of

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national income at current prices very often give misleading notions about the income level of the people and unless

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they are deflated the effects of inflationary or deflationary policies cannot be understood. Similarly the nominal

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sales can be deflated to give an idea about the real sales, and nominal wages can be deflated to give an idea about the

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real wages.

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5. Price Indices Measure the Purchasing Power of Money: The cost of living index numbers determine

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whether the real wages are rising or falling, money wages remaining unchanged. In other words, they help us in

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computing the real wages which are obtained on dividing the money wages by the corresponding price index and

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multiplying by 100. Real wages help us in determining the purchasing power of money.

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6. Useful to Politicians: The analysis of index number helps politicians to know about the actual economic

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condition of the country. Accordingly, they offer constructive criticism to the government and make useful suggestions
for improvement.
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7. Useful in Contract Escalation: The study of index numbers (i.e. past behaviour or trends) help in adjusting

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price in contracts extending over long periods of time.

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8. Index numbers indicate the state of balance between aggregate supply and demand at the primary market
level.
9. Index numbers of stock price are used by economists, speculators and other financial institutions.
(b) What is reporting? What are the different stages in the preparation of a report?
Ans. After the collected data had been drawn, the report has to be prepared. It is the last phase of the research.
Thus, a research report is a formal statement of the research process and its results. It narrates the problem studied,
methods used for studying it and the findings and conclusions of the study.
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 the validity of the

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conclusions. The aim of the report is not to convince the reader of the value of the result, but to convey to him what
was done, why it was done and what was its outcome.
As a research is a means of communication, we have to consider some basic questions which determine the
effectiveness of communications, namely, ‘who’ says “what” to “whom” in “which way” and with “what effect”.
1. The Target Audience: The first step in planning report writing is to determine the target audience. The form
and style of reporting and other aspects depend upon the type of the reader, for whom the report is intended.
The target audiences, may be classified into:
(1) the academic community
(2) the sponsors of research and
(3) the general public.
2. The Communication Characteristics of the Audience: The second step in planning report writing is to
consider the selected audience’s communication characteristics. What is their level of knowledge and understanding?

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What is the gap in knowledge on the subject between the readers and the writer. What is the kind of language–

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scientific or journalistic.

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The purpose of report is not communication with oneself, but communication with the target audience.

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3. The Intended Purpose of the Report: Is it meant for evaluation by experts for the award of a degree or

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diploma? It is to be used as a reference material by researcher and fellow scientists? Or it is meant for implementation

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by a user organization? This intended purpose also determines the type and its contents and form the presentation.

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4. The Type of Report: With reference to the intended use, the type of report to be prepared should be determined.

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When the research is undertaken to fulfil the requirements of a degree or diploma, or funded by a research promotion

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agency, the report is prepared as a comprehensive technical report.

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5. The Scope of the Report: The next step is to determine the scope of the contents with reference to the type of

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the report and its intended purpose.

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6. The Style of Reporting: What should be the style of reporting? Should it be simple and clear or elegant and

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pompous. These questions are decided with reference to the target audience.

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7. The format of the Report: The next step is to plan the format of the report, which varies according to the type

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of report.

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8. Outline/Table of Contents: The final step in planning report writing is to prepare a detail outline for each of
the proposed chapters of the Report.
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Q. 3. Briefly comment on the following :

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(a) Classification of data provides a basis for tabulation of data

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Ans. Classification of Data: If a large number of different kinds of responses are to be organized so that they
can be used in answering the research questions or drawing generalizations, they must be grouped into a limited
number of categories or classes. This is called “classification of data”.
Basis of Classification
Though there are many possible ways of analysing data, the most widely used basis of classification are:
1. By size or magnitude
2. By place of location
3. By kind or type
4. By time.

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Tabulation: Tabulation is the summarization of results in the form of statistical tables. Objectives of tabulation
are:
1. to make the purpose of enquiry clear
2. to make the significance clear
3. to express the data in least space
4. to make comparison easy.
After completing the processing, the data has to be analyzed and interpreted.
(b) Statistics are like clay, with which one can make God or the Devil
Ans. Statistical methods are the most dangerous tools in the hands of inexperts. Statistics deals with figures
which are innocent in themselves and do not bear on their face or the label of their quality and can be easily distorted,
manipulated or moulded by unscrupulous people for personal self-motives. Statistics neither prove or disprove
anything. It is merely a tool which, if rightly used may prove extremely useful but if misused by inexperience,

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unskilled and dishonest statistician might lead to very fallacious conclusions and even prove to be disastrous. Therefore,

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it is said statistics are like clay of which you can make a God or Devil, as you want.

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(c) Visual presentation of statistical data has become more popular

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Ans. Researcher must invariably satisfy himself that:

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(i) the data are appropriate, trustworthy and adequate for drawing inferences.

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(ii) the data reflect good homogeneity and
(iii) proper analysis has been done through statistical methods.

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The researcher must remain cautious about the errors that can possibly arise in the process of interpreting

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results.

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The collected data are to be presented in tabular or diagrammatic or graphic form. The data presented in a
systematic order will facilitate further analysis.
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(d) Figures don’t lie but liers can figure
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Ans. The reason for the remark may be due to following reasons:

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(i) Figures are innocent and believable and the facts based on them are psychologically more convincing. But

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it is pity that figures do not have the label of quality on their face.

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(ii) Though accurate, the figures might be moulded and manipulated by dishonest statistician to conceal the

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truth and present a working and distorted picture of the facts to the public for personal and selfish motives.

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Q. 4. Write short notes on the following:

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(a) Historical Research

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Ans. Historical Research: Its objective is to draw explanations and generalizations from the past trends in
order to understand the present and to anticipate the future. It enables us to grasp our relationship with the past and

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to plan more intelligently for the furture.
It is descriptive in nature. It is a difficult task; it must often depend upon inference and logical analysis of
recorded data and indirect evidences rather than upon direct observations.
The sources of data for historical research consists of:
1. eyewitness accounts narrated by an actual observer or participant in an event,
2. oral testimony by elders,
3. records and other documentary materials, and
4. relics.

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(b) Variation
Ans. Concept of variation: Measures of central tendency, we have studied, were in the form of an average. An
average is a single value which represents a set of values in a distribution. The measures of central tendency–mean,
median and mode are based on the real value of items of a series and are called Averages of the First Order. The
measures of variation are called Averages of the Second Order. A. L. Bowley says that dispersion is the measure of
the variation of the items. Dispersion signifies variability of a series and its precise measure is quite indispensable.
In short, to study dispersion, deviations of the size of items from the central tendency are calculated and averaged so
as to give an additional knowledge about the formation and composition of the given series. Since, the deviations on
the basis of central position, are to be averaged, it is known as averages of the second order.
An average by itself has little significance unless the degree of variation in the distribution is known. If the
variation is small, an average becomes meaningful and useful; and if the variation is large, the average has only
limited significance. In brief, dispersion is a lack of uniformity in the sizes of items of group and is useful for

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ascertaining to what extent the average is typical or representative.

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Significance of Measuring Variation

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Measures of variation are needed for four basic purposes:

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(i) To determine the reliability of an average.

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(ii) To serve as a basis for the control of the variability.

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(iii) To compare two or more series with regard to their variability.

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(iv) To facilitate the use of other statistical measures.

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A brief explanation of their points is given below:

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(i) Measures of variation point out as to how far an average is representative of the mass. When dispersion is

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small, the average is a typical value in the sense that it closely represents the individual value and it is reliable in the

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sense that it is a good estimate of the average in the corresponding universe. On the other hand, when dispersion is

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large the average is not so typical, and unless the sample is very large, the average may be quite unreliable.

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(ii) Another purpose of measuring dispersion is to determine nature and cause of variation in order to control the

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variation itself. In matters of health, variations in body temperature, pulse beat and blood pressure are the basic

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guides to diagnosis. Prescribed treatment is designed to control their variation. In industrial production efficient

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operation requires control of quality variation, the causes of which are sought through inspection and quality control

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programmes. Thus, measurement of dispersion is basic to the control of causes of variation. In engineering problems

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measures of dispersion are often specially important. In social sciences a special problem requiring the measurement

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of variability is the measurement of ‘inequality’ of the distribution of income or wealth, etc.

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(iii) Measure of dispersion enable a comparison to be made of two or more series with regard to their variability.

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The study of variation may also be looked upon as a means of determining uniformity of consistency. A high degree
of variation would mean little uniformity or consistency whereas a low degree of variation would mean great uniformity
or consistency.
(iv) Many powerful analytical tools in statistics such as correlation analysis, the testing of hypothesis, the analysis
of variance, the statistical quality control, regression analysis are based on measures of variation of one kind or
another.
(c) Splicing of Indices
Ans. Splicing of Indices: The articles which are included in an index number may become out of fashion or go
out of the market. New articles come into the market, for which relative importance may also change. So it is

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necessary to include the articles in the index number. The old series of index number is discontinued and we must
construct a new series and must take the year of discontinuation as the first base.
Thus we connect the new set of index with the old discontinued one. The statistical method connects an old
index number series with a revised series in order to make the series continuous is called splicing. The formula is:
Index No. of Current year × Old Index No. of
New base year
Spliced Index No. =
100
(d) Bayer’s theorem in probability
Ans. Bayer’s Theorem: Revising Prior Estimates of Probabilities: Let A1 and A2 are two mutually exclusive
and exhaustive events and let B be an event arbitrarily defined over the same sample space such that P(E) > 0. It is
shown in the following Venn Diagram

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ea
 B 
R P A1  E

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Then P  =
 
 A1  P A1

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 P (A1  E) = P (A1) P  
 A1 

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r  -
 
 B  P A2  E

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P A 

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Similarly, =

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 2  P A2

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 P  = P (A2) P  A 
 A2   2

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Thus, P (B) = P (A1  B) + P (A2  B)

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Now according to Bayers Theorem

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P 1 
 B 
=
P  A1  B 
P  B

A2 P  A2  B
and P =
B P  B

where (i) P (A1) and P (A2) are called prior probabilities because they are probabilities before any further
information is available.

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Q. 5. Distinguish between the following :
(a) Inductive and Deductive logic
Ans. Induction is one of the methods of logical reasoning process. The inductive method consists of studying
several individual cases and drawing a generalization. Therefore, induction involves two processes–observation and
generalization. Conclusions from induction are tentative inferences and they are subject to further confirmation
based on more evidences.
This method is followed when new facts are studied, new truths are uncovered and new generalizations are
formulated from a research project.
Deduction is reasoning process of applying a general principle to a specific individual case falling under the
general principle. It is regarded “as reasoning from the general to a particular”.
The deductive method of moving from the general assumption to the specific application is useful for solving
problems. But it is not useful in arriving at new truths. The inductive process overcomes this limitation of deductive

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process.

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(b) Pilot study and Pre-test

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Ans. Meaning: A pilot study is a “small scale replica” of the main study. It is rehearsal of the main study. It
covers the entire process of research: Preparation of the broad plan of the study, construction of tools, collection of
data, processing and analysis of data and report-writing.

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Whereas, pre-test is a trial test of a specific aspect of the study such as method of data collection or data

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collection instrument-interview schedule, mailed questionnaire of measurement scale.

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Pilot study helps the researcher to determine whether or not a more substantial study is warranted. In the light of

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the results of the pilot study, the researcher will be able to take a pragmatic view on the main study’s potentialities

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and feasibility.

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On the other hand, pre-testing helps in developing appropriate procedure for administering the instrument with
reference to field conditions.

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Need for Pilot Study: It is difficult to plan a major study or project without adequate knowledge for its subject

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matter, the population is to cover, their level of knowledge and understanding and the like. What are the issues

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involved? What are the concepts associated with the subject matter? How can they be operationalized? What method
of study is appropriate? How long the study will take? How much money it will cost? These and other related

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questions call for a good deal of knowledge for the subject matter of the study and its dimensions. In order to gain

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such pre-knowledge of the subject matter of an extensive study, pilot study is conducted.

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Need for pre-testing: An instrument of data collection is designed with reference to the data requirements of
the study. But it cannot be perfected purely on the basis of a critical scrutiny by the designer and other researchers.

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It should be empirically tested. Hence, pre-testing of a draft instrument is indispensable. Pre-testing means trial
administration of the instrument to a sample of respondents before finalizing it.

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(c) Random Sampling and Non-random Sampling
Ans. Random sampling is also known as probability sampling. It is a scientific technique of drawing samples
from the population according to some laws of chance in which each unit in the universe has some definite pre-
assigned probability of being selected in the sample. Different types of sampling are in which:
(i) Each sample unit has an equal chance of being selected.
(ii) Sampling units have varying probability of being selected.
(iii) Probability of selection of a unit is proportional to the sample size.
A non-random sample is selected on a basis other than probability consideration such as expert judgment,
convenience or some other criteria.

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An obvious and serious drawback of this sampling scheme is that it is highly subjective in nature since the
selection of the sample depends entirely on the personal convenience, beliefs, biases and prejudices of the investigator.
(d) Correlation and Regression
Ans. The difference between Correlation and Regression are:

Correlation Regression

1. Correlation is the relationship between two or more 1. Regression means going back and it is a
variable, which vary in sympathy with the other in mathematical measure showing the average
the same or the opposite direction. relationship between two variables.
2. Both the variables X and Y are random variables. 2. Here x is a random variable and y is a fixed variable.

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Sometimes both the variables may be random

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variables.
3. It finds out the degree of relationship between two

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variable and not the cause and effect of the variable. between the variables and establishes a function

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relationship.

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4. It is used for testing and verifying the relation 4. Besides, verification, it is used for the prediction of

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between two variables and gives limited one value, in relationship to the other given value.

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information.

The range of relationship lies between ± 1. l

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5. Regression coefficient is an absolute figure. If we
know the value of the independent variable, we can

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6. There may be non-sense correlation between two 6. In regression there is no such non-sense regression.

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variables.

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7. It has limited applica-tion, because it is confined

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7. It has wider application, as it studies linear and non-

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only to linear relationship between the variables. linear relationship between the variables.

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8. It is not very useful for further mathematical 8. It is widely used for further mathematical treatment.

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treatment.

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9. If the coefficient of correlation is positive, then the
two variables are positively correlated and vice
9. The regression co-efficient explains that the
decrease in one variable is associated with the
increase in the other variable.
versa.
10. There is a functional relationship between the two
10. It is immaterial wheher X depends upon Y depends
variables so that we may identify between the
upon X.
independent and dependent variables.