Business Research Methodology PDF

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Business Research Methodology
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INTRODUCTION
In the last year, an organization made an annual profit of £1203 per employee while the average
for organizations within the sector is £1228 per employee. The sector had a standard deviation of
£104 per employee. We are required to use the data to carry out hypothesis and determine
whether there is an evidence that the organization is on average not as profitable as the
competitors.
Answers to Questions
1. State the null and the alternative hypothesis to prove the claim.
The null hypothesis is the expression of equality that will indicate that there is no
difference from the given specification (Bruce, 2015). In this case it will indicate that
there is no difference between the organization’s profit and that of the sector. The
alternative hypothesis is the compliment of the null hypothesis indicating non-equality or
difference from a given specification (Bruce, 2015). In this case, since we want to know
whether the profit is less than that of other sector, it will have a greater than or equal to
sign indicating that if the null hypothesis is not true, then the profit of the organization is
greater than that of competitors. The expression can be summarized as:
NullhypothesisHo : P=1228
Alternative HypothesisHi : P≥1228
2. With the assumption that the profit per annum per employee follows a normal
distribution and the resulting P-value from the hypothesis test is, P=0.405 (3 d.p).
What can we conclude from the test?
The p-value indicates the probability of the null hypothesis being true or otherwise being
false (Croucher, 2016). In this a P-value of 0.405 is quite high and therefore we cannot
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