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BA 595 APPIED BUSINESS RESERCH

FALL 2009

MIDTERM EXAM

True-False Questions (Please use answer sheet)

1. Business research is a managerial tool that provides information essential for good
decision making.
2. Basic Research directly involves the solution to a specific business problem.
3. Sometime the urgency of situation precludes the use of research.
4. When a decision must be made about a real-life business problem, this is called basic
research.
5. Both basic and applied researches are systematic and objective, but only basic research
utilizes the scientific method to answer the question at hand.
6. In the scientific method, empirical evidence (such as the result of a survey) is analyzed
and interpreted to confirm or disprove prior conceptions.
7. Being systematic and objective may require that researchers be patient and take several
careful looks at the data to discover all that is known about the subject of study
8. In general, the more strategically important a business decision is to the organization
less likely it is that research will be conducted
9. TQM stands for "total quality management"
10. As a first step in applying the scientific method, we must state a hypothesis.
11. A hypothesis is a proposition that is not empirically testable.
12. Inductive reasoning is the logical process of establishing a general proposition on the
basis of observation of particular facts.
13. Propositions are statements concerned with relationship among concepts.
14. The scientific method refers to techniques or procedures that are used to analyze
empirical evidence in an attempt to confirm or disprove prior conceptions,
15. The purpose of science is to expand knowledge and to discover truth.
16. Prediction and understanding are the two purposes of theory.
17. Theory generation can occur at the conceptual level, but not at the empirical level.
18. Since pilot studies involve informal data collection methods, they should not be used
in business research.
19. The purpose of exploratory research is to provide conclusive evidence about a course
of action.
20. A written research report can be discarded after a study ends, because it has served its
purpose.
21. The focus group interview is not a type of pilot study.
22. The most common way to generate primary data is through personal interviews.
23. In data collection, a pretest means that a small sample of data is collected in order to
test the statistical data analysis procedures being used in the research.
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24. Business research needs clear objectives and definite research designs in order to be
conducted efficiently.
25. Having discussion on research with the members of the company's sales force may be
valuable source of information exploratory research.
26. Sometime events that appear to be the problem are actually symptoms of a deeper
problem.
27. According to the text, the first step in the process of problem definition is to state the
hypotheses and research objectives.
28. Any complete research proposal should include a schedule of how long it takes to
conduct each stage of the research, but a statement of cost is not necessary since there
will vary depending on what occurs during the field work stage.
29. A categorical variable has an infinite number of values.
30. Don't say it, write it is wise advice for the researcher preparing a research proposal.
31. Dummy tables are part of the research proposal that is representations of actual tables
that will be in the finding section of the final report.
32. Budget constraints usually influence the amount of effort that will be used defining the
problem
33. Secondary data can typically be obtained fairly quickly
34. A disadvantage of secondary data is that they were not originally designed to meet the
current researcher's needs.
35. The simplest form of secondary data research is model building.
36. The secondary research, model building is less complicated that fact-finding.
37. The secondary research, model building must include complicated mathematical
processes.
38. Wading through large volumes of data to discover patterns about the organization's
customers is an example of data mining.
39. Data conversion is process of changing the original form of secondary data so that its
format is useful with the context of the research
40. It can reasonably be assumed that most of the data published by the federal
government can be counted on for accuracy and quality.

Question 41-51

41. What role do theories play in business research? Give some examples to illustrate.
50,46-47
42. What is the difference between applied and basic research?7
43. In your own words, describe the scientific method.43,7,33
44. Explain the law of parsimony.
45. Secondary data is very important to the conduct business research. Elaborate.69,136
46. Problem identification and definition has been said to be the most important step in
business research process. Discuss the validity of the statement. 106, 94-97
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47. Not all management problems are translated into research problems. Discuss the
reason for this fact. 99-100
48. How do propositions and hypotheses differ?43-44

Answer Sheet.

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Short Questions Answer Sheet 41-48

41. Theories allow us to generalize beyond individual facts or isolated situations. Theories
provide a framework that can guide managerial strategy by providing insights into general
rules of behavior. When different incidents may be theoretically comparable in some way, the
scientific knowledge gained from theory development may have practical value. A good
theory allows us to generalize beyond individual facts so that general patterns may be
predicted and understood. For this reason it is often said there is nothing so practical as a good
theory.

Take Abraham Maslow’s Need Hierarchy for example. It is a theory that aims at discovering
what kinds of elements motivate people and what the priorities of those elements are. The
Maslow pyramid describes the stratum of human needs and indicates that human needs would
climb up to the higher level as soon as the former needs are satisfied and the former needs
seldom works as a motivator. This theory tries to generalize the whole situation in human
motivation and all motivation elements that affect individuals, rather than explain why Tom
made a good performance through last season or how John motivates his staffers.

Herzberg’s two-factor theory is another example. It centers on what elements are to enhance
people’s satisfaction and what to increase their dissatisfaction and how it works while
different factors are mixed together. This theory, also, provide a general rules that answer
questions of different situations in business field.

42. Basic research does not directly involve the solution to a particular, pragmatic problem
and basic research finds generally cannot be immediately implemented. It has been said that
“there is nothing so practical as a good theory.” Although this statement is true in the long
run, basic research is conducted to verify the acceptability of a given theory or to discover
more about a certain concept.

Meanwhile, applied research is conducted when a decision must be made about a specific
real-life problem. Applied research encompasses those studies undertaken to answer questions
about specific problems or to make decisions about a particular course of action or policy.
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43. In my opinion, scientific method any way (that can be experiment, survey, data analysis,
observation, etc,.) aiming at clarifying problem, enhancing accuracy of the experimental
result, expelling the disruptive or false elements as much as possible and minimizing error, to
detect the truth of the objective world.

44. Briefly, the law of parsimony is entities should not be multiplied unnecessarily. Parsimony
is a 'less is better' economy or caution in arriving at a hypothesis or course of action. The word
derives from Middle English parcimony, from Latin parsimonia, from parsus, past participle
of parcere: to spare. It is a general principle that has applications from science to philosophy
and all related fields.

In science, parsimony is preference for the least complex explanation for an observation. This
is generally regarded as good when judging hypotheses. In fact, parsimony is used as a
heuristic (rule of thumb) to guide scientists in the development of theoretical models rather
than as an arbiter between published models.

45. First, secondary data is almost always less expensive than acquiring primary data and also
can be obtained rapidly. To get primary data is a rather time-consuming and money-
consuming project for an organization. An organization has to spend a great number of money
and a long time to get primary data, and the risk is high that the primary data turns to be
useless or outdated when it comes out, there is less output than it is expected to be, or even
money is wasted without any output. Secondary data reduce the risk to a quite low degree:
much less money has to be paid for data and a lot of time can be saved.

What’s more, sometimes data cannot be obtained using primary data collection procedures.
For example, a manufacturer of farm implements could not duplicate the information in the
Census of Agriculture because much of the information there (for example, amount of taxes
paid) might not be accessible to a private firm.

46. The formal quantitative research process should not begin until the problem has been
clearly defined. However, properly and completely defining a business problem is easier said
than done. When a problem is discovered, managers may have only vague insights about a
complex situation. If quantitative research is conducted before learning exactly what issues
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are important, false conclusions may be drawn from the investigation. The right answer to the
wrong question may be absolutely worthless. A decision made on the basis of a solution to the
wrong problem may actually be harmful.

What’s more, managers are logical people and it seems logical that definition of the problem
is the starting point for any enterprise. The dangerous part of many business problems, like the
submerged portion of the iceberg, is neither visible to nor understood by business managers. If
the submerged portions of the problem are omitted from the problem definition (and
subsequently from the research design), the decisions based on the research may be less than
optimal. Omission of important or a faulty assumption about the situation can be extremely
costly.

47. In some instances the business problems and the research objectives are the same. The
objectives must, however, specify the information needed to make a decision. Identifying the
information needed may require managers or a decision. Identifying the information needed
may require managers or researchers to be as specific as listing the exact wording of the
question in a survey or explaining exactly what behavior might be observed or recorded in an
experiment. Statements about the required precision of the information or the source of the
information may be required to clearly communicate exactly what information is needed.
Many career decisions, for example, are made by both husband and wife. If this is the case,
the husband-and-wife decision-making unit is the unit of analysis. The objective of obtaining
X information about research questions from this unit should be specifically stated.

It is useful to express the research objective as a managerial action standard. If the criterion to
be measured (e.g., absenteeism, sales, or attitude changes) turns out to be higher than some
predetermined level, then management will do A; If it is not, then management will do B. This
type of objective leaves no uncertainty about the decision to be made once the research is
finished.

The number of research objectives should be limited to a manageable quantity. The fewer the
study objectives, the easier it is to ensure that each will be addressed fully.

48. Proposition is a statement concerned with the relationships among concepts; an assertion
of a universal connection between events that have certain properties. Hypothesis is an
unproven proposition or supposition that tentatively explains certain facts or phenomena; a
proposition is empirically testable.
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Exam

BA 595. Fall 2009

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Clear, concise, and exhaustive answers are needed to have a satisfactory grade.

1. Discuss the difference between validity and reliability.

Reliability refers to the degree to which the results of measurements are free from

error and thus produce consistent results. For example, a survey aiming at discovering

how many undergraduates in TAMU-C have breakfast in cafeteria regularly may be

carried out twice. Suppose first result is 23.4% of undergraduates have breakfast in

cafeteria and the second is 70.6%, thus both of the results are reliable because there are

obvious variance between the two. If the first is 45.6% and second is 46.4%, the results

may be reliable for the variance is tinny.

Validity is the ability of a scale or measuring instrument to measure what it is to

measure. For example, a comphrensive analysis on the assignment, performance in class

and scores in exam is a valid way to measure what the percentage of knowledge has been

absorbed by students in a certain class.

Reliability, although necessary for validity, is not sufficient itself. For example, hat

is the difference between a conceptual definition and an operational definition? Let’s take

a look at the aforementioned example about undergraduates. Even though the two results

is close to each other which are reliable results, they may not valid, as there may be a

possibility that during the period that the survey conducted, the final exam is approaching

and a number of undergraduates who used to have breakfast get up so late for staying up at
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night. Thus, only when a method or tool that could prove to measure scientifically and

accurately is used in measurement, a precise and satisfactory conclusion can be drew out.

2. What is the difference between a conceptual definition and an operational definition?

Conceptual definition should be identified before the measurement process is

implemented. A conceptual definition is a generalized idea about a class of objects,

attributes, occurrences, or processes. Some conceptual definition are concrete, or

visible, or touchable or countable, etc., such as engine, oil, gender, color and book;

some are hard to define or invisible or obscure, etc, such as inspiration, talent, scandal,

morale and so on. In a word, conceptual definition are general depiction on what is to

be described.

After conceptual definition is provided, the concept should be operationalized

so that it could be measured in practice. An operational definition gives meaning to a

concept by specifying the activities or operations necessary to measure it. Take

“leadership” for example: the conceptual definition of leadership is process of social

influence in which one person can enlist the aid and support of others in the

accomplishment of a common task. However, after been given the conceptual

definition, leadership is still obscure and cannot be measured by managers and their

subordinates. More detailed information should be unveiled to the staffers, such as “”

how many leadership styles in practice”, “Is micromanagement a proper leadership ”

and “to a certain degree, leadership is to influence others”, then it is possible for

staffers to reach a further understanding on leadership and some types of leadership

may be applied by managers to certain workplace and be recognized by subordinates.

Thus it is more likely to make leadership more feasible and understandable and

operationalized.
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3. Name the various types of scales and name the appropriate descriptive statistics

allowable for each.

Traditionally, there are four types of scales, among which are nominal scale,

ordinal scale, interval scale and ratio scale.

Nominal scale is the simplest among the four and the number or letters assigned to

objects serve as labels for identification or classification. In boxing, referee will introduce

names of both of the opponents before the fighting starts. Actually, the names of the

fighters’ are nominal scale which is to identify both of the competitors.

An ordinal scale arranges objects or alternatives according to their magnitude in an

ordered relationship. In Olympics, player who gets the first place in his or her game will

receive a gold medal and the second place, a silver one and the third place, a bronze. The

conferring of medals follows ordinal scale that marks the rank of players by their

performance in games.

Interval scales not only indicate order, they also measure order (or distance)

in units of equal intervals. Take Celsius degree as example. If a temperature is 40

centigrade, it cannot be said that it is twice as hot as 20 centigrade. Because zero

centigrade does not represent the lack of temperature, but a relative point on the Celsius

scale. Actually, the difference between 40 centigrade and 20 centigrade is the interval.

Ratio scales have absolute rather than relative quantities and possessing an

absolute zero, where there is an absence of a given attribute. Money is weighted by ratio

scales because it possesses an absolute zero and interval properties. Zero dollar means no

money and one cent is the minimum unit, also a interval in daily trade.

4. List some of the weaknesses of one group pretest-posttest design.

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Suppose a institution wants to make a research based on one group pretest-

posttest design aiming at verifying whether A memory method is practical and really

help memorize. Then they randomly select a class in a local elementary as the subjects

and pupils in that class will be tested before and after learning A memory method.

There are some elements that may affect the research negatively. For example,

some children in the class may be talent to memorize and the research on those kids

may show not effective and lead to underestimation.

Some children may strongly refuse to accept new method and still keep

memorizing in their own way, thus the result may not be reflect the real effect of A

memory method.

Also there are certain differences in cognition between male and female, if the

gender have been considered as one of the elements that influence on the results of the

research, the result may be distorted.

5. Using symbols write the following designs: static group design and post-only control

group design.

In static group design, no pretreatment measure is taken; subjects in the experimental

group are measured after being exposed to the experimental treatment, and the control

groups is measured without having been exposed to the experimental treatment.

Experimental group : X O1

Control group : O2

The results of the static group design are (O2 - O1 ) .

_____________________________________________________________________

The diagram for the after-only with control group design is as follows:
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Experimental group : R X O1

Control Group: R O2

The effect of the experimental equals O2 –O1 ___________ __________

___________________________________________________________________

6. Under what conditions are observation studies most appropriate?

Generally speaking, observation studies would be most appropriate when it

serves a formulated research purpose, when it is planned systematically, when it is

recorded systematically and related to general propositions rather than being presented

as reflecting a set of interesting curiosities, and when it is subjected to checks or

controls on validity and reliability.

A hidden observation is better than visible observation because there are more

negative impact on subjects while hidden, unobtrusive observation minimizes

respondent error.

The results of observation studies may amplify the results of other forms of

research by providing complementary evidence concerning individuals’ “true ” feeling

which would make the result more accurate and more close to the truthfulness.

Before you carry out the research, you should know about those questions: 1

The participants (because it is helpful to the observers to know more about the

subjects.) 2 The setting (Social interactioin may occur in different settings) 3 The

purpose. 4The social behavior 5Frequency and duration.

What's more , ethical issues should be avoid as much as possible. For example,

questions like how often women have period might violate the privacy of those

respondents.

_____________________________________________________________________
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7. Explain the following:

a. Sample selection error

As sample selection error is an administrative procedural error caused by

improper selection of a sample, thus introducing bias.

b. Random sampling error

A random sampling error is a statistical fluctuation that occurs because

of chance variation in the elements for a sample.

c. Hawthorne effect

The Hawthorne effect is a form of reactivity whereby subjects improve an

aspect of their behavior being experimentally measured simply in response to the

fact that they are being studied, not in response to any particular experimental

manipulation. In a research at the purpose of discovering the efficiency of workers

in some factory, when the observers are present, workers would work more quick

but errors occur more frequently than usual which may belongs to Hawthorne

effect, and would decrease the accuracy of the research.

d. Internal validity

Internal validity is validity determined by whether an experimental

treatment was the sole cause of changes in a dependent variable. If the

observed results are influenced by the confounding effects of extraneous

factors, the researcher has problems making valid conclusive about the

relationship between the experimental treatment and the dependent variable.

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e.External validity

External validity is the ability of an experiment to generalize the results

to the external environment. Problems of external validity generally relate to

the possibility that a specific but limited set of experimental conditions may

not deal with the interactions of untested variables in the real world. To

discover a chemical character of a new drug, research have to make sure that

all the hamsters that are taken as subjects should only be influenced by the new

drug rather than other materials.

Fill in the blanks.

e. Solomon four-group design involves random assignment of subjects to each of

four groups. Two groups are pretested and two groups are not; one of the

pretested groups and one of the unpretested groups receive the experimental

treatment. All control groups are posttested.

f. One-shot design (after only design) is a case study fraught with problems.

g. Selection of the dependents variable_ is a crucial decision in the design of an

experiment.