2. Business Research Methods Hypothesis Development and Measurement

3. Hypothesis
A logically conjectured relationship between two or more variables expressed in the form of testable statement.
Relationships are conjectured on the basis of the network of associations established in the theoretical framework formulated for the research study.
By testing the hypothesis and confirming the conjectured relationships, it is expected that solutions can be found to correct the problem encountered.

4. Examples of Hypothesis
Employees who are more healthy will take sick leave less frequently
If employees are more healthy, then they will take sick leave less frequently

5. Directional Hypothesis
If, in stating the relationship between two variables or comparing two groups, terms such as positive, negative, more than, less than and the like are used, then these hypothesis are directional
e.g. The greater the stress experienced in the job, the lower the job satisfaction of employees

6. Non-directional Hypothesis
Non-directional Hypotheses are those that do postulate a relationship, but offer no indication of the direction of these relationships.
e.g. There is a relationship between age and job satisfaction.

7. Measurement
By measurement, we usually mean the assigning of number to observations or objects and
Scaling is a process of measuring.
While people measure things casually in daily life, research measurement is more precise and controlled.
Variables being studied in research may be classified as objects or as properties:
Objects include tangible items such as furniture, laundry detergent, people or automobiles.
Properties are the characteristics of the object. A person's physical properties include weight, height etc., and his psychological properties are attitudes and intelligence.

8. Four basic type of Measurement Scales
Scale: Tool or mechanism by which individuals are distinguished as to how they differ from one another on the variables of interest to our study.
Nominal Scale
Ordinal Scale
Interval Scale
Ratio Scale

9. Measurement Scales NOMINAL SCALE---------------------Classification
It enables the classification of individuals, objects, or responses based on common/shared property. Numbers are used to group or sort responses and no order exists. E.g.
Students are classified as male and female. Number 1 and 2 may also be used to identify these two categories.
Rainfall may be classified as heavy, moderate and light. We may use number 1, 2 and 3 to denote the three classes of rainfall.
The numbers when they are used only to identify the categories of the given scale, carry no numerical significance and there is no particular order for the grouping.

11. 2. ORDINAL SCALE------------------Order
It includes the characteristic of a nominal scale and in addition has the property of ordering or ranking of measurements. E.g.
What is the highest level of education you have completed?
O Less than High School
O High School/GED Equivalent
O College Degree
O Masters Degree
O Doctoral Degree
1. The performance of students (or players) is rated as excellent, good fair or poor, etc. Number 1, 2, 3, 4 etc. are also used to indicate ranks.
2. Subcategories are arranged either in ascending or descending order according to the extent a subcategory reflects the magnitude of variation in the variable. E.g. Income

13. 3. INTERVAL SCALE--------------Distance
It has all the characteristics of Ordinal scale. In addition, this measurement scale possess a constant interval size (distance) but not a true zero point OR
The interval scale lets us measure the distance between any two points on the scale.
It has a starting & terminating point that is divided into equally spaced units / intervals.
Starting and terminating point and the number of units / intervals between them are arbitrary and vary from scale to scale.
It is relative scale, hence no mathematical operations can be performed on its readings.
E.g.
Temperature measured on either the Celsius or the Fahrenheit scale or distance between 1 & 2 is equal to 3 & 4.

14. Interval scale
Circle the number that represents your feelings at this particular moment best. There are no right or wrong answers. Please answer every question.
1. I invest more in my work than I get out of it
I disagree completely I agree completely
2. I exert myself too much considering what I get back in return
3. For the efforts I put into the organization, I get much in return

16. It has fixed starting point. It is absolute scale.
4. RATIO SCALE Origin
It is a special kind of an interval scale where the scale of measurement has a true zero point as its origin.
The ratio scale is used to measure weight, volume, distance, money, etc.
The, key to differentiating interval and ratio scale is that the zero point is meaningful for ratio scale.
It has fixed starting point.
It is absolute scale.
Ratio scale can be used for mathematical operations.

17. Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E

18. Types of data
Characteristics of Data
Basic Empirical operation
Example
Nominal
Classification but no order, distance and unique origin
Determination of equality
Gender (Male, Female)
Ordinal
Classification, order but no distance and unique origin
Determination of greater or lesser value
Doneness of meat (well, medium well, medium rare, rare)
Interval
Classification, order and distance but no unique origin
Determination of equality of intervals or differences
Temperature in degree
Ratio
Classification, order, distance and unique origin
Determination of equality of ratios
Age in Years

19. Measurement contd. A. Store Customers:
Nominal – Group them by race, ethnic background, married or single status, etc.
Ordinal – Rank them as very frequent buyers, frequent buyers, infrequent buyers.
Interval – Some scale of attractiveness in which the scale is presumed to be interval.
Ratio – Average size of monthly purchases

20. Measurement contd. Voter Attitudes
Nominal – grouped as Republican, Democrat, Independent, and other;
Ordinal – Rank of candidates in order of preference;
Interval – Likert – type scale;
Ratio – Count of votes for various candidates in each district.

21. Characteristics of Good Measurement
Three major criteria for evaluating a measurement tool are: validity, reliability, and practicality.
Validity is the extent to which a test measures what we actually wish to measure.
Reliability has to do with the accuracy and precision of a measurement procedure.
Practicality is concerned with a wide range of factors of economy, convenience, and interpretability

22. Characteristics of Good Measurement
Two major forms of validity are: External and Internal.
The external validity of research findings is the data ability to be generalized across persons, settings, and times;
The internal validity is the ability of a research instrument to measure what it is purported to measure.
Does the instrument really measure what its designer claims it does?

23. Types of Measurement Scales

24. Dichotomous Scale Q. Do you own a car? Yes No Q. Whether you are a:
Male
Female
A nominal scale is used to elicit the response.

25. Category Scale
It uses a multiple items to elicit a single response. It also used nominal scale.
Q. Which of the following cars do you own at present?
Suzuki Baleno
Honda Civic
Honda City
Toyota Corolla
Any other
Q. While making the car purchasing decision, from which sources did you get information?
Company Web Site
Company Dealerships
Social Sources
Neutral Sources

26. Likert Scale
It is designed to examine how strongly subjects agree or disagree with the statements. This is an interval scale. Response between any two points is same.
Q. To what extent do you agree with the following statements w.r.t. nature of your work?
My work is very interesting
I am not engrossed in my work all day
Life without my work will be dull
My work is not monotonous
Strongly Neither Agree Strongly
Disagree Disagree Nor Disagree Agree Agree

27. Semantic Differential Scale
It is used to assess respondents’ attitude towards a particular brand, advertisement, object, or individual. It uses extreme at both ends. This is treated as an interval scale.
How do you rate BVH w.r.t the following characteristics?
Expensive __ __ __ __ __ __ __ Inexpensive
Inefficient __ __ __ __ __ __ __ Efficient
Outdated __ __ __ __ __ __ __ Modern
Off Located __ __ __ __ __ __ __ Ideally Located

28. Numerical Scale
It is similar to semantic differential scale, with the difference of number on 5 or 7 scale. This is also an interval scale.
Q. How pleased are you with your new brand of car?
Extremely Extremely
Displeased Pleased

29. Itemized rating scale
Q. Respond to each of the following items using the scale below, and indicate your response number on the line by each item.
_______________________________________________________________
Very unlikely Unlikely Neither unlikely Likely Very
Nor Likely Likely
I will be changing my job within next 6 months. ____
I will take on new assignments in the near future. ____
It is possible that I will be out of this organization within ____
the next 6 months.
Balanced Rating Scale with a neutral point
It uses an interval scale

30. Fixed or Constant sum scale
Q. In choosing a toilet soap, indicate the importance you attach to each of the following aspects by allotting points for each to total 100 in all.
Fragrance __
Color __
Shape __
Size __
Texture of leather __
Total 100
Proportions, %, budgets

31. Paired Comparison Scale
It is used when, among a small number of objects, respondents are asked to choose between two objects at a time. This helps to assess preferences.
Q. Which of the following cars do you prefer the most?
__ Suzuki Baleno __ Honda City
__ Honda City __ Honda Civic
__ Suzuki Baleno
__ Honda Civic

32. Forced Choice scale
It enables respondents to rank objectives relatives to one another among the alternative provided.
Q. Rank the following cars with respect to your performance for each, assigning 1 for the most preferred and 4 for the least preferred:
__ Suzuki Baleno
__ Honda City
__ Honda Civic
__ Toyota Corolla

33. Example: Scales of Measurement
Ali scored 1200 on the SAT and entered college as a physics major. As a freshman, he changed to business because he thought it was more interesting.
Because he made the dean’s list last semester, his parents gave him $30 to buy a new Casio calculator.
Identify at least one piece of information in the:

34. Problem 1 b) ordinal scale of measurement
c) interval scale of measurement
d) ratio scale of measurement
Ali is a freshman.
Ali earned a 1200 on the SAT.
Ali’s parents gave him $30.

35. Thanks to Allah