MCO 03 Research Methodology and Statistical Analysis Solved Question Paper June 2026 TEE for IGNOU Master of Commerce (M.Com)

Question 1: Methods of Research

Q1. What are the various methods of research ? Explain them briefly with suitable examples. 20

Answer

Research methods are the procedures a researcher uses to collect, organise and analyse information so that a research question can be answered with evidence rather than opinion. In business research the choice of method depends on the nature of the problem, the kind of data needed, the time and money available and the level of accuracy required. The main methods are explained below.

1. Survey method

The survey method collects information from a group of respondents, usually a sample drawn from a larger population, through a questionnaire, a schedule or personal interviews. It is the most widely used method in commerce research because it covers many people at a reasonable cost and produces data that can be tabulated and tested statistically.

Example: a private bank wants to know why customers are slow to adopt its mobile app. It surveys 500 account holders across age groups on ease of use, trust and network problems, and compares the replies of users and non-users. The limitation is that a survey records what people say, not what they actually do.

2. Observation method

Under the observation method the researcher watches and records behaviour as it actually happens, instead of asking people about it. Observation may be participant or non-participant, structured (with a checklist) or unstructured, and carried out in a natural or a controlled setting.

Example: a supermarket chain records how shoppers move through the store, where they stop and how long they wait at the billing counter, to decide where to place high-margin products. Observation gives first-hand evidence of behaviour, but it cannot reveal motives, and the observer’s judgement may colour the record.

3. Case study method

The case method is an intensive study of a single unit, such as one firm, one department, one event or one person. The unit is studied as a whole and over time, using records, interviews and observation, to understand how and why things happened.

Example: a researcher studies one family-owned textile company to see how control passed from the founder to the next generation and how this affected growth. Case studies give deep insight and help to frame hypotheses, but the findings of one case cannot easily be generalised to all firms.

4. Experimental method

In the experimental method the researcher deliberately changes one factor (the independent variable), holds other factors constant and measures the effect on another factor (the dependent variable). It is the strongest method for establishing cause and effect, and it may be carried out in a laboratory or in the field.

Example: an FMCG company sells the same soap at two different prices in two towns that are similar in income and population, keeps advertising identical in both, and compares the change in sales to judge the effect of price. Full control is hard in real markets, and experiments can be costly.

5. Historical method

The historical method studies past events, records and documents to trace how a phenomenon developed and to explain the present in the light of the past. Its sources include company records, annual reports, government publications and published statistics.

Example: a study of the Indian mutual fund industry from the time the Unit Trust of India began operations in 1964, to show how regulation and investor behaviour shaped its growth. Old records may be incomplete or biased, and they cannot be checked by fresh observation.

6. Comparative method

The comparative method studies two or more units, groups, regions or time periods side by side to find similarities and differences and to identify the factors behind them.

Example: comparing the non-performing assets of public sector and private sector banks over five years to see whether ownership affects credit quality. Comparison sharpens analysis, but the units compared must be genuinely comparable, otherwise the conclusions mislead.

Conclusion: in practice a researcher often combines methods. A case study may suggest a hypothesis, a survey may test it on a larger sample and an experiment may confirm the cause. Choosing the right method, or the right mix, is therefore the first step towards reliable business research.

Question 2: Research Design and Workable Hypothesis

Q2. (a) Describe various components of research design. 10

Answer (a)

A research design is the overall plan of a study. It states what is to be studied and why, where and when, from whom data will be collected, how it will be collected and how it will be analysed. A well-drawn design keeps the study focused and saves time and cost. Its main components are as follows.

1. Title of the study: short and precise, indicating the subject and scope of the research.
2. Introduction or statement of the problem: the background, the issue to be studied and why it matters.
3. Review of previous studies: what earlier research has found and the gap this study will fill.
4. Scope of the study: the dimensions the study will cover and those it will leave out.
5. Objectives: specific, achievable aims that guide data collection and analysis.
6. Hypotheses: tentative statements about relationships between variables, to be tested with data.
7. Operational definitions: exact meaning of key terms, for example defining a “small retailer” by annual turnover.
8. Geographical area: the region, city or market the study will cover.
9. Reference period: the time period to which the data will relate.
10. Sampling design: the population, sampling unit, sample size and method of selecting the sample.
11. Sources and tools of data collection: primary or secondary sources, and tools such as a questionnaire, schedule or interview guide.
12. Plan of analysis: how data will be processed and which statistical tools, such as percentages, correlation or chi-square, will be used.
13. Significance and limitations: who will benefit from the findings and the constraints of the study.
14. Chapter scheme: the tentative chapters in which the final report will be presented.

Example: a study on customer satisfaction with UPI payments among small retailers in Delhi would define a small retailer, fix Delhi as the area and 2025-26 as the reference period, draw a stratified sample of shops, use a structured questionnaire and test its hypotheses with chi-square.

Conclusion: each component answers one practical question about the study. Together they turn a broad idea into a workable plan that another researcher could follow and check.

Q2. (b) Explain criteria for workable hypothesis. 10

Answer (b)

A hypothesis is a tentative statement about the relationship between two or more variables that the researcher sets out to test. Not every guess can serve as a hypothesis. To be workable, that is, usable in actual research, it should meet the following criteria.

1. Conceptual clarity: the concepts used must be clearly defined, commonly understood and, where needed, operationally defined, so that everyone reads the hypothesis the same way.
2. Specificity: it should state the expected relationship precisely, including its direction, rather than in vague or general terms.
3. Empirical testability: it must be capable of verification with observable data. Value judgements such as “advertising is harmful” cannot be tested.
4. Related to available techniques: suitable statistical tools and methods of data collection should exist to test it within the time and budget of the study.
5. Related to a body of theory: it should grow out of existing knowledge and add to it, not stand in isolation.
6. Simplicity: it should explain the relationship with as few variables and assumptions as possible.
7. Consistency with known facts: it should not contradict facts that are already well established.
8. Stated in a testable form: it should be expressible as a null hypothesis and an alternative hypothesis, so that a decision to accept or reject can be made.

Example: “Retail investors aged below 35 hold a higher share of equity mutual funds in their portfolios than investors aged above 50” is workable: its terms are clear, the direction is stated and it can be tested with survey data. “Young people are smarter investors” is not workable, because “smarter” cannot be measured.

Conclusion: a workable hypothesis gives direction to data collection and analysis. If these criteria are ignored, the researcher may collect data that cannot settle the question at all.