Research Design and Statistics Concepts Worksheet

Research Design and Statistics Concepts Worksheet

University of Phoenix

Managerial Decision Making

MBA 510

G. Mark Waltensperger

April 2, 2008

Research Design and Statistics Concepts Worksheet

Concept Application of Concept in Scenario Reference to Concept in Reading

Concepts of validity, reliability and practicality. Research must be valid and reliable. Validity insures that what is being measured is actually being measured. With out reliability and validity the research becomes questionable and is no longer a good source on which to base business decisions. Sound measurement must meet the tests of validity, reliability and practicality (Lind, 2005).

The USA World Bank directors were very cautious with the new Reward Program and Brian had to make sure the data was thoroughly reviewed and asked Mary if the information was reliable and valid (Anonymous, 2008). This is because omission of significant procedural details makes it difficult to estimate the validity and reliability of the data and justifiably weakens the confidence of the reader in the research itself. In the scenario Aaron tells Jim that he will lose 40% of his customers if the small business card does not get launched. Jim questions Aaron how he comes to the conclusion of 40% (Anonymous, 2008). Aaron states he bases this percentage on his discussions with his customers. Jim is correct in identifying research must be valid and reliable before business decisions are made.

Secondary and Primary Research

Conducting a research study, all available data should be analyzed to learn more about their project. However, after reviewing, management can then move forward and collect their own primary data by way of questionnaires and obtaining answers they have carefully prepared for more precise information on their target group (Scenario, 2008).

In general there are two types of research, primary and secondary. Management must understand the difference between the two types of research and be able to identify when it is appropriate to utilize each. Secondary research can be much cheaper and provide very valuable information (Lind, 2005). However, there are times primary research is the approach to use.

In the simulation, Coffee Time always follows a two stage market research design (Simulation, 2008). For example, they identify which cities should be researched and then secondary information is gathered such as how many competitors there are and how many shopping malls and restaurants there are in each city. These aspects are identified as having impact on the success or failure of the expansion. Once this descriptive data is tabulated, they then use it to identify which cities are best to conduct their next stage of research, primary research on. This is cheaper and more efficient as they have now been able to streamline and focus on their target audience.

Knowable, Unknowable

Researchable.

The research firm, Best Market Research will provide services to provide an organized inquiry to assist them in decisions. The research includes reporting, descriptive, explanatory, and predictive studies. They know that these types of ventures can be successful and believe their bank is ready. They will need to know more about their customers to be able to move forward. USA World Bank will need to know if their new program they want to launch is possible. They know that these types of ventures can be successful and believe their bank is ready.

Misleading Statistics

Many abusers of statistics are simply ignorant or careless, while others have an objective to mislead the reader by emphasizing data that support their position while leaving out data that may be detrimental to their position. As Bea Hansen pointed out, the sample size is not the only item that may be misleading. How the data was collected, the timeframe in which it was collected, as well as gender, age, and income can affect the outcome of the data. Bea believes that a truly random sample is the best method to analyze a target segment.

Best Market Research used a sample size of 140,000 which was too large and resulted in skewed data. Because of Best Market’s reputation, Mary was willing to implement