Hypothesis Formulation

Business Research Skills Chapter : Theoretical Framework and Formulation of  Hypothesis

Need of Theoretical Framework

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Theoretical Framework is a conceptual model that provides logical relationship between the factors so identified in the research problem.

Need of Theoretical Framework

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Improves the understanding of the situation under study.

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Identify the variables under study.

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Helps to frame hypothesis that are testable.

Variables- Meaning and Types

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A variable is anything that can take on differing or varying values.

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Values vary for different subjects at same time or for same subject at different times.

Examples of Variables

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Production units

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Absenteeism

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Motivation

Types of Variables

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Dependent Variable (DV)

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Independentt Variable (IV) Independen

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Moderating Variable (MV)

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Intervening Variable (IVV)

Dependent Variable (DV)

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The variable under study which is monitored

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Also referred to as the criterion variable or  predicted variable

Examples

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Manager is interested in analyzing DebtEquity Ratio.

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Sales is not picking up.

Independentt Variable (IV) Independen

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The variable that influences the dependent variable in a positive or negative way.

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The variance in the dependent variable is caused by IV.

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Also referred to as explanatory or predictor  variable.

Example: The success of new product influences the stock price levels. New product success

IV

Stock Market Price

DV

Moderating Variable (MV) 

The variable having strong contingent effects on the independent variable. IV DV Availability of  Reference

No. of Defects

Interest and Inclination

MV

Another Example of MV Work force diversity impacts OE. IV

DV Organizational Effectiveness

Workforce Diversity

Managerial Expertise

MV

Intervening Variable (IVV)

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IVV is the one that starts operating between the time the IV starts operating to influence the DV.

Example of IVV IV

Workforce Diversity

IVV

Creative Synergy

DV

Organizational Effectiveness

Extraneous Variable

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Infinite number of variables variables that might affect a given relationship between IV and DV.

Meaning of Hypothesis

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It is a proposition that is formulated for mulated for  empirical testing.

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Proposition is a statement about observable phenomena phenomen a that may be judged as true or  false.

Empirical Testing 

The relationship or the description so stated are tested scientifically using statistical analysis or other qualititative techniques.

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The reliable information is obtained on the relationship under study.

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Changes if any may be required.

Formats of Hypotheses

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If -Then Statements Directional and Non-Directiona Non-Directionall Statements

Types of Hypotheses -

Descriptive Hypotheses

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Relational Hypotheses

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Null Hypotheses

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Alternate Hypotheses

Descriptive Hypotheses 

Describes the existence, size, form or  distribution of some variable.

- 60% of investors favors cash dividend. - MBA institutes facing problems in placement placement

Relational Hypotheses 

Describes the relationship between two or  more variables.

The greater the stress experienced in the job the lower the job-satisfaction. job-satisfaction.(( directional) Women are better than men There is a relationship between age and jobsatisfaction. (non-directional)

Relational Hypotheses 

Correlational Hypotheses

Only shows the correlation between two or  more variables but no claims are made that one causes the other. 

Explanatory Hypotheses.

Claims are made that one variable causes other to occur.

Null Hypotheses 

The definitive statement that explains the relationship.

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The null hypothesis relates to the statement being tested,

Alternate Hypotheses 

All other permissible relationship refers to the

Alternate Hypotheses. •

The alternative hypothesis relates to the statement to be accepted if / when the null hypothesis is rejected.

Importance of Hypotheses 

Guides the direction of study;

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Identifies the facts relevant for the study;

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Helps in the selection of Research Design;

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Helps in providing the framework in which the results have to be given.

Characteristics of a Good Hypothesis H ypothesis 

Adequate for the purpose

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Should address the original problem

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Clearly identifies the variables relevant in the study.

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Helps in knowing the research design

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Helps in organizing the results of the study.

Characteristics of a Good Hypothesis H ypothesis 

Testable

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Uses acceptable techniques

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Simple requiring few conditions

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Explanation can be given from the given theoretical framework.

Characteristics of a Good Hypothesis H ypothesis 

Better than its rivals

iii)

Explains more facts than its rivals

iv)

Greater variety or scope of facts