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One of the basic desires of man is to know of things around him. He wants to
understand fully the things of the world. No wonder does a man wish to
acquire knowledge by enquiry. He asks so many questions such as why?
How? When? He is desirous of finding answers to such questions.
Moreover, in day-to-day life, man confronts numerous problems, for which he
wants to find immediate solution. Thus, man asks questions and finds
answers. His effort to find answers is the outcome of a mans thirst for
knowledge. This prompts him to find solutions to problems and urges hit to do
something better or more efficiently.
Such questions and problems crop up from the observation of an event or
series of events. Sir Isaac Newton propounded the Law of Gravitation by
observing the apples falling from the apple tree. He started asking questions
why do apples regularly fall to the ground instead of floating off into space?
This enquiry led to the discovery of the Law of Gravitation.
Research
The Word Research is derived form the French word, Researcher meaning
to search back. A man in his social, economic, educational, political and
business life faces many problems.
Definition of research
Some of the important definitions of research by well known authors are given
below:
Fred Kerlinger: Research is an organized enquiry designed and carried out to
provide information for solving a problem.
Francis Rummel: Research is a careful inquiry of examination to discover
new information or relationships and to expand and to verify existing
knowledge.

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Robert Ross: Research is essentially an investigation, a recording and

analysis of evidence for the purpose of gaining knowledge.
According to Professor Glifford Moody, research is a method of discovering
truth, through critical thinking. He says, Research comprises defining and
redefining problems; formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and making
conclusions; and at last, carefully testing the conclusions to determine
whether they fit the formulated hypothesis. This definition emphasizes three
types of research : Firstly, the discovery of facts as in social surveys, secondly
the analysis and interpretation of secondary data already collected and finally
building up of theory based on primary and secondary data and sometimes on
the basis of pure reasoning. In theory building, thinking of the highest order is
quite essential; whereas in the survey variety, it is least important. Research
of scientific method is nothing but a systematic process and it is composed of
several prescribed steps:
Identification of a research question.
Formulation of hypothesis or predictions about the question in
advance of the study.
Design of the study to test the hypothesis.
Observation of variables.
Examination of relationships between the variables observed and
Drawing conclusions about the research questions based on
observed relationship.
Classification of Research
Great difficulties beset the classification of research into some universally
accepted categories. The distinctions among the different types of studies are
not clear-cut; nevertheless the need for formulating appropriate research
designs has made the classification of research essential. Different authors
have classified research in different ways. One hears different types of
research such as action research, descriptive research, exploratory research,
historical research, comparative research, theory construction, model building,
pure research, applied research, operations research, library research,
individual research, group research and so on.

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Objectives of the research:

The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find out the
truth which is hidden and which has not been discovered yet. Though each
research study has its own specific purpose, we may think of research
objectives as falling into number of following broad groupings:
To gain familiarity with a phenomenon or to achieve new insights
into it (studies with this object in view are termed as exploratory or
formative research studies);
To portray accurately the characteristics of a particular individual,
situation or a group (studies with this object in view are known as
descriptive research studies);
To determine the frequency with which something occurs or with
which it is associated with something else (studies with this object
in view are known as diagnostic research studies);
To test a hypothesis of a casual relationship between variables
(such studies are known as hypothesis-testing research studies).
Present study mainly focuses on the following points to be studied:
To study the value creation for shareholders in the automobile industry.
To study the profitability of the companies.
To study the economic value added of the company.
To study market value added of the company.
Steps in implementing EVA:
The implementation of EVA is a 4-step process which includes:
(a) measurement
(b) management system
(c) motivation
(d) mindset
(a) Measurement:

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Any company that wishes to implement EVA should institutionalize the

process of measuring the metric, regularly. This measurement should be
carried out after carrying out of the prescribed accounting adjustments.
(b) Management System:
The company should be willing to align its management system to the EVA
process. The EVA based management system is the basis on which the
company should take decisions related to the choice of strategy, capital
allocation, mergers and acquisition, divesting business and goal setting.
(c) Motivation:
The companies should decide to implement EVA only if they are prepared to
implement the incentive plan that goes with it. An EVA based incentive
system, however, encourages managers to operate in such a way as to
maximize the EVA, not just of the operations they oversee but of the company
as whole.
(d) Mindset:
The effective implementation of EVA necessitates a change in the culture and
mindset of the company. All constituents of the organization need to be taught
to focus on one objective-maximizing EVA. This singular focus leaves no
room for ambiguity and also it is not difficult for employees to know just what
actions of their will create EVA, and what will destroy it.

Types of research:
The basic types of research are as follows:
Descriptive vs. Analytical:
Descriptive research includes surveys and fact-finding enquiries of
different kinds. The major purpose of descriptive research is
description of the state of affairs as it exists at present. In social
science and business research we quite often use the term Ex post
facto research for descriptive research studies. The main characteristic
of this method is that the researcher has no control over variables; he
can only report what is happening. Most ex post facto studies also
include attempts by researcher to discover causes even when they
cannot control the variables. The methods of all kinds, including

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comparative and co relational methods. In analytical research, on the

other hand, the researcher has to use facts or information already
available, and analyze these to make a critical evaluation of the
material.
Applied vs. Fundamental:
Research can either be applied (or action) research or fundamental (or
basic or pure) research. Applied research aims at finding a solution for an
immediate problem facing a society or an industrial/business organization,
whereas fundamental research is mainly concern with the formulation of a
theory. Gathering knowledge for knowledges sake is termed pure or
basic research. Research concerning some natural phenomenon or
relating to pure mathematics are examples of fundamental research.
Similarly, research studies, concerning human behavior, carried on with a
view to make generalizations about human behavior, are also examples of
fundamental research, but research aimed at certain conclusions (say, a
solution) facing a concrete social or business problem is an example of
applied research. Research to identify social, economic or political trends
that may affect a particular institution or the copy research (research to
find out whether certain communications will be read and understood) or
the marketing research or evaluation research are examples of applied
research. Thus, the certain aim of applied research is to discover a
solution for some pressing practical problem, whereas basic research is
directed towards finding information that has a broad base of application
and thus, adds to the already existing organized body of scientific
knowledge.

Quantitative vs. Qualitative:

Qualitative research is based on the measurement of quantity or amount.
It is applicable to phenomena that can be expressed in terms of quantity.
Qualitative research, on the other hand, is concerned with qualitative
phenomenon, i.e. , phenomena relating to or involving quality or kind. For
instance, when we are interested in investigating the reasons for human
behavior (i.e. why people think or do certain things,), we are quite often
talk of Motivation Research , an important type of research aims at
discovering the underlying motives and desires, using in depth interviews
for the purpose. Other techniques of such research are word association
tests, sentence completion tests, story completion tests and similar other

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projective techniques. Attitude or opinion research i.e. , research designed

to find out how people feel or what they think about the particular subject
or institution is also qualitative research. Qualitative research is specially
important in the behavioral sciences where the aim is to discover the
underlying motives of human behavior. Through such research we can
analyze the various factors which motivate people to behave in a particular
manner or which make people like or dislike a particular thing. It may be
stated, however, that to apply qualitative research in practice is relatively
difficult job and therefore, while doing such research, one should seek
guidance from experimental psychologists.
Conceptual vs. Empirical:
Conceptual research is that related to some abstract idea(s) or theory. It is
generally used by philosophers and thinkers to develop new concepts or to
reinterpret existing ones. One the other hand, empirical research relies on
experience or observation alone, often without due regard for system and
theory. It is data-based research, coming up with conclusions which are
capable of being verified by observation or experiment. We can also call it
as experimental type of research. In such a research it is necessary to get
at facts firsthand, at their source, and actively to go about doing certain
things to stimulate the production of desired information. In such a
research, the researcher must first provide himself with a working
hypothesis or guess as to the probable results. He then works to get
enough facts (data) to prove or disprove his hypothesis. He then sets up
experimental designs which he thinks will manipulate the persons or the
materials concerned so as to bring forth desired information. Such
research is thus characterized by the experimenters control over the
variables under study and his deliberate manipulation of one of them to
study its effects. Empirical research is appropriate when proof is sought
certain variables in some way. Evidence gathered through experiments or
empirical study is today considered to be the most powerful support
possible for a given hypothesis.
Some other types of research:
All other types of research are variations of one or more of above stated
approaches, based on either the purpose of research, or the time required to
accomplish research, or the environment in which research is done, or on the
basis of some other similar factor. From the point of view of time, we can think
of research either as one-time research or longitudinal research. In the former
case the research is confined to a single time-period, where as the letter case
the research is carried on over several time periods. Research can be field-

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setting research or laboratory research or simulation research, depending

upon the environment in which it is to be understood as clinical or diagnostic
research. Such research follows case study methods on in depth approaches
to reach the basic casual relations. Such studies unusually go deep into the
causes of things or events that interest us, using very small samples and very
deep probing data gathering service devices. The research may be
exploratory or it may be formalized. The objective of exploratory research is
the development of hypothesis rather than their testing, where as formalized
research studies are those with substantial structure and with specific
hypothesis to be tested. Historical research is that which utilizes historical
sources like documents, remains etc. to study events or ideas of the past,
including the philosophy of persons and groups at any remote point of time.
Research can also be classified as conclusion-oriented and decision-oriented.
While doing conclusion-oriented research, a researcher is free to pick-up a
problem, redesign the inquiry as he proceeds and is conceptualize as he
wishes. Decision-oriented research is always for the need of a decision maker
and the researcher is in this case is not free to embark upon research
according to his own inclination. Operations research is an example of
decision oriented research since it is a scientific method of providing
executive departments with a quantitative basis for decisions regarding
operations under their control.
Exploratory Study:
An exploratory study is undertaken when not much is known about the
situation at hand, or no information is available on how similar problems or
research issues have been solved in the past. In such cases, extensive
preliminary work needs to be done to gain familiarity with the phenomena in
the situation and understand what is occurring before we develop a model
and set up a rigorous design for comprehensive investigation.
Exploratory studies are also necessary when some facts are known, but more
information is needed for developing a viable theoretical framework. In sum,
exploratory studies are important for obtaining a good grasp of phenomena of
interest and advancing knowledge through subsequent theory building and by
hypothesis testing.
The research design in the problem is exploratory design. The data are
analyzed and based on the data suggestions are given.

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Significance of the study:

Research is a foundation of knowledge. Hudson Maxin says, all progress is
born of inquiry. Doubt is better than overconfidence, for it leads to inquiry, and
inquiry leads innovation. which shows the importance of research. Today,
the role of research is not limited to any one field, but it is applied in different
fields like,
Economics
As a base of government policies
In different industries for decision making
For solving operation and planning related problems
In social sciences
Research provides a good guideline for solving problems. For making
decisions, for establishing some facts and further more increased
amounts of research make progress possible. Research inculcates
scientific and inductive thinking and promotes the development of
logical habits of thinking.
Identification of research problems
Research may be motivated by the desire to know for the sake of knowing or
by the desire to solve practical problems. The researcher, who is associated
with practical problems, need not identify problems, since he has many
problems on hand. But the research, who is associated with academic
institutions, has to identify possible problems for investigation.
In simple words problem means a question thrown forward for solution. A
problem exists when an individual interact with his environment and finds
himself in an indeterminate situation, or in a state of questioning, doubting or
uncertainly.
Problems may be classified as conceptual problems, which can be solved by
creative thinking, selection and synthesis, logical problems which are solved
by deductive methods and empirical problems, which are solved by inductive
reasoning based upon observation of phenomena.

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In specific problem-solving research, a research is concerned with application

of research methods to find satisfactory solution to a pressing problem. In a
business there are numerous problems which need solutions. As resources
are limited, it is indispensable to identify only the important problems. In the
field of academic research also, the researcher will be able to identify several
problems but he can screen them out by preliminary selection.
A problem clearly and accurately stated is a problem that is often well on its
way to being solved. Before research or fact finding can successfully start, the
investigator must know what he problem is and why a solution is wanted. The
what of a problem is answered by an accurate definition of the situation? The
why can be established by the determination of the uses to which the
findings will be or can be put?
Formulation of a Problem
Formulation of a research problem is translating and transforming the
selected problem into a scientific research question. A problem well put is half
solved. There are seven factors strengthening such careful formulation.
Proper formulation of the problem provides a sense of direction to
the research;
Proper formulation specifies the scope of research;
Proper formulation indicates the limitations of the research;
Proper formulation clarifies the problem;
Proper formulation establishes the major assumptions;
Proper formulation expresses the context of the problem; and
Proper formulation provides economy in research.
The great scientist Dr. Chandrasekar, who has written his thesis on How
stars are born and what there are made of, opined that he worked for his
personal satisfaction on things generally outside the scientific mainstream.
It is impossible to set forth any rigid formulation of methods or procedures to
be followed by all researchers. The researchers, the research undertakings
and the conditions and circumstances are not alike. Therefore, it is not
possible to follow a formula or standard procedure in all circumstances.

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Statement of problem:
Problem definition is the most important research. Problem definition includes
stating the problem and identifying the specific components of research
problem. The research can be conducted properly only when research
problem has been clearly defined.
Shareholder value creation in the automobile industry in India
It is a comparative study of Tata motors and Mahindra and Mahindra Ltd.

Research Design
Research Design is the blue print of the proposed study. It represents the
overall scheme of the study. A research design is a logical and systematic
planning and it helps directing a piece of research.
A research design is a pattern or an outline of a research problems working.
It is a statement of only the essential elements of a study, those that provide
the basic guidelines for the details of the problem. It comprises a series of
prior decisions that are taken for executing a research problem.
A research design serves as bridge between what has been established. i.e.
the research objectives and what is to be done, in conduct of study to realize
those objectives. If there were no research design, the researcher would have
only foggy notion about is to be done.
In fact, the research design is the conceptual structure within which research
is conducted; it constitutes the blueprint for the collection, measurement and
analysis of the data. As such the design includes an outline of what the
researcher will do from writing the research hypothesis and its operational
implications to the final analysis of data. More explicitly, the design decisions
happen to be in respect of:
What is the study about?
Why is the study being made?
Where will the study be carried out?
What type of data is required?

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Where can the required data be found?

What period of time will the study include?
What will be the sample design?
What techniques of data collection will be used?
How will the data be analyzed?

Keeping in view the above stated design decisions; one may split the overall
research design into following parts:
The sampling design which the method of
observed for the given study;

selecting items to be

The observational design which relates to the conditions under which

the observations are to be made;
The statistical design which concerns with the question of how many
items are to be observed and how the information and data gathered
are to be analyzed;
The operational design which deals with the techniques by which
procedures specified in the sampling, statistical and observational
designs can be carried out.

From what has been stated above, we can state the important features of
research design as under:
It is a plan that specifies the sources and types of information relevant
to the research problem.
It is a strategy specifying which approach will be used for gathering and
analyzing the data.
It also includes the time and cost budgets since most studies are done
under these two constrains.

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In brief, research design must, at least, contain1. A clear statement of the research problem;
2. Procedures and techniques to be used for gathering information;
3. The population to be studied; and
4. Methods to be used in processing and analyzing data.
The research design is divided into three broad categories:
Research design in case of descriptive and diagnostic research studies
Research design in case of experimental research studies
Research design in case of exploratory research studies

Research design in case of descriptive and diagnostic research studies:

Descriptive research studies are those studies which are concern with
describing the characteristics of a particular individual, or of a group, where as
diagnostic research studies determine the frequency with which something
occurs or its association with something else. The studies concerning whether
certain variables are examples of diagnostic research studies. As against this,
studies concern with specific predictions, with narration of facts and
characteristics concerning individual, group or situation are all examples of
descriptive research studies. Most of the social research comes under this
category. From the point of view of the research design, the descriptive as
well as diagnostic studies share common requirements and such we may
group together these two types of research studies. In descriptive as well as
in diagnostic studies, the researcher must be able to define clearly, what he
wants to measure and must find adequate methods for measuring it along a
clear cut definition of population he wants to study. Since the aim is to obtain
complete and accurate information in the said studies, the procedure to be
used must be carefully planned. The research design must take enough
provision for protection against bias and must maximize reliability, with due
concern for the economical completion of the research study. The design in
such studies must be rigid and not flexible and must focus on the following:
Formulating the objective of the study.

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Designing the methods of data collection.

Selecting the sample.
Collecting the data.
Processing and analyzing the data.
Reporting the findings.
In descriptive and diagnostic one must consider the points mentioned above.

Research design in case of experimental (hypotheses-testing) research

studies:
Hypothesis-testing research studies are those where the researcher tests the
hypotheses of casual relationship between variables. Such studies required
procedures that will not only reduce bias and increase reliability, but will
permit drawing inferences about causality. Usually experiments meet this
requirement. Hence, when we talk of research design in such studies, we
often mean the design of experiments.
Professor R.A.Fishers name is associated with experimental designs.
Beginning of such designs was made by him when he was working at
Rothamsted Experimental Station (Centre for Agricultural research in
England). As such the study of experimental designs has its origin in
agricultural research. Professor Fisher found that by dividing agricultural fields
or plots into different blocks and then by conducting experiments in each of
this blocks, whatever information is collected and inferences drawn from
them, happens to be more reliable. This facts inspired him to develop certain
experimental designs for testing hypotheses concerning scientific
investigations. Today, the experimental designs are being used in researches
relating to phenomena of several disciplines. Since experimental designs
originated in the context of agricultural operations, we still use, though in a
technical sense, several terms of agriculture in experimental designs.

Research design in case of exploratory research studies:

The present research study is exploratory study. Exploratory research studies
are also termed as formulative research studies. The main purpose of such
studies is that of formulating problem for more precise investigation or of
developing the working hypotheses from an operational point of view. The

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major emphasis in such studies is on the discovery of ideas and insights. As

such the research design appropriate for such studies must be flexible
enough to provide opportunity for considering different aspects of a problem
under study. Inbuilt flexibility in research design is needed because the
research problem, broadly defined initially, is transformed into one with more
precise meaning in exploratory studies, which fact may necessitate changes
in the research procedure for gathering relevant data. Generally, the following
three methods in the context of research design for such studies are talked
about:
1. The survey of concerning literature;
2. The experience survey;
3. The analysis of insight-stimulating examples.
The survey of concerning literature happens to be the most simple and fruitful
method of formulating precisely the research problem or developing
hypothesis, hypotheses stated by earlier workers may be reviewed and their
usefulness be evaluated as a basis for further research. It may also be
considered whether the already stated hypotheses suggest new hypothesis.
In this way the researcher should review and build upon the work already
done by others, but in cases where hypotheses have not yet been formulated,
his task is to review the available material for deriving the relevant hypotheses
from it.
Besides, the bibliographical survey of studies, already made in ones area of
interest may as well be made by researcher for precisely formulating the
problem. He should also make an attempt to apply concepts and theories
developed in different research contexts to the area in which he himself
working. Sometimes the works of creative writers also provide a fertile ground
for hypothesis-formulation and as such may be looked into by the researcher.
Experience survey means the survey of the people who have had practical
experience with the problem to be studied. The object of such a survey is to
obtain insight into the relationships between variables and new ideas relating
to the research problem. for such a survey people who are competent and
can contribute new ideas may be carefully selected as respondents to ensure
a representation of different types of experience. The respondents to ensure a
representation of different types of experience. The respondents so selected
may then be interviewed by the investigator. The researcher must prepare an
interview schedule for the systematic questioning of informants. But the
interview must ensure flexibility in the sense that the respondents should be
allowed to raise issues and questions which the investigator has not

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previously considered. Generally, the experience-collecting interview is likely

to be long and may last for few hours. Hence, it is often considered desirable
to send a copy of the questions to be discussed to the respondents well in
advance. This will also give an opportunity to the respondents for doing some
advance thinking over the various issues involved so that, at the time of
interview, they may be able to contribute effectively. Thus, an experience
survey may enable the researcher to define the problem more concisely and
help in the formulation of the research hypothesis. This survey may as well
provide information about the practical possibilities for doing different types of
research.
Analysis of insight-stimulating examples is also a fruitful method suggesting
hypotheses for research. It is particularly suitable in areas where there is a
little experience to serve as a guide. This method consists of the intensive
study of selected instances of the phenomenon in which one interested. For
this purpose the existing records, if any, may be examined, the unstructured
interviewing may take place, or some other approach may be adopted.
Attitude of the investigator, the intensity of the study and the ability of the
researcher to draw together diverse information into a unified interpretation
are the main features which make this method an appropriate procedure for
evoking insights.
Now, what sort of examples are to be selected and studied? There is no clear
cut answer to it. Experience indicates that for particular problems certain
types of instances are more appropriate than others. One can mention few
examples of insight-stimulating cases such as the reactions of strangers, the
reactions of marginal individuals, the study of individuals who are in transition
from one stage to another, the reactions of individuals from different social
strata and the like. In general, cases that provide sharp contrasts or have
striking features are considered relatively more useful while adopting this
method of hypotheses formulation.
Thus, in exploratory or formulative research study which merely leads to
insights or hypotheses, whatever method or research design outlined above is
adopted, the only thing essential is that it must continue to remain flexible so
that many different facets of a problem may be considered as and when they
arise and come to the notice of researcher.

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Data collection:
Once we define the research problem and once research design has been
planned out the study needs to collect proper data for the same. Mainly there
are two types of data: Primary data and Secondary data. The primary data are
those which are collected a fresh for the first time, and thus happen to be
original in character. The secondary data, on the other hand, are those which
have already been collected by someone else and which have already been
passed through the statistical process. The researcher would have to decide
which sort of data he would be using (thus collecting) for his study and
accordingly he will have to select one or more method of data collection. The
methods for collecting primary data and secondary data differ since primary
data are to be originally collected, while in case of secondary data the nature
of data collection work is merely compilation.
Dr. A.L.Bowley says that in collection of statistical data common sense is the
chief requisite and experience the chief teacher. While selecting the method
of data collection a researcher should consider the following factors:
Nature, scope and object of the inquiry.
Availability of funds.
Time factor.
Precision required.
As far as present study is concern, the main source of data collection is
based on secondary data, which is collected through:
Annual reports published by the companies.
Financial reports of the firm in the automobile industry.
Data related to the calculation of shareholder value creation by the
companies in the automobile industry.

Hypothesis of the study:

In simple terms, hypothesis means an assumption or some preposition to be
proved or disproved. But for a researcher hypothesis is a formal question that

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he intends to resolve. Thus a hypothesis may be defined as a proposition or a

set of propositions set forth an explanation for the occurrence of some
specified group of phenomena either asserted merely as a provisional
conjecture to guide some investigation or accepted as highly probable in the
light of established facts.
Hypothesis is usually considered as the principal instrument in research. Its
main function is to suggest new experiments and observations. In fact, many
experiments are carried out without the deliberate object of testing hypothesis
on the basis of available information and than take decisions on the basis of
such testing.
Thus hypothesis testing enables to make probability statements about
population parametere(s). The hypothesis may not be proved absolutely, but
in practice it is accepted if it has withstood a critical testing.
Hypothesis should possess the following points:
Hypothesis should be clear and precise.
Hypothesis should be capable of being tested.
Hypothesis should state the relationship between variables.
Hypothesis should consist established facts.
Hypothesis should be stated as far as possible in most simple terms.
Hypothesis should be tested within reasonable time.
Hypothesis should explain what it claims to explain.

Null hypothesis and alternative hypothesis:

If we are to compare method A with method B about its superiority and if we
processed on assumption that both methods are equally good, then this
assumption is termed as Null hypothesis. As against this, we may think that
the method A is superior or method B is inferior, we can then stating what is
termed as Alternative hypothesis. The null hypothesis is generally symbolized
as Ho and the alternative hypothesis as H1.
For the present study-

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H0: There would be no significant difference in the shareholder value creation

by the Companies in the automobile industry.
H: There would be significant difference in the shareholder value creation by
the Companies in the automobile industry.

Procedure for testing hypothesis:

Null hypothesis and alternative hypothesis:
Alternate hypothesis is usually the one which one wishes to
prove and the Null hypothesis is the one which one wishes to
disprove. Thus, a Null hypothesis represents all other
possibilities.
The level of significance:
It is very important concept in the context of hypothesis testing. It is
always some percentage (usually 5%) which should be chosen with
great care, though and reason. The 5 percent level of significance
means that researcher is willing to take as much as 5 percent risk in
rejecting Null hypothesis (Ho).
Tools of analysis:
(A)Economic Value Added Statement:
Economic value Added is a basic and important measurement to
judge the performance of the enterprise. It can be prepared by
subtracting the weighted average cost of capital from the
NOPAT.
(B )Statistical techniques:
T-test:
t-test is based on t-distribution and is considered an
appropriate test for judging the significance of a sample
mean or for judging the significance of the difference
between the means of two samples in case of small
sample(s). When population variance is not known (in
which case we use variance of the sample as an estimate

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of the population variance). In case two samples are

related, we use paired t-test (what is known as difference
test) for judging the significance of the mean difference
between two related samples.
t-test: paired for two sample for means: This analysis for
tool and its formula a paired two sample students t-test to
determine whether a samples mean are distinct. This ttest form does not assume that the variances of both
populations are equal. You can use a paired test when
there is a natural pairing of observations in the samples,
such as when sample group is tested twice-before and
after an experiment. The statistical hypothesis for the t
test is stated as Null hypothesis concerning differences.
There is no significant difference in achievement between
group 1 and group 2 on the welding test.

t=

Where, x= mean of sample 1

x = mean of sample 2
n = number of subjects in sample 1
n = number of subjects in sample 2
s =

s =

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Mean (u) or (X) Arithmetical mean:

A number having an intermediate value between several other
numbers in a group from which it was derived and of which it
expressed the average value. It is the simple average formed by
adding the numbers together and dividing by the number of
numbers in the group.

Beta:
Beta measure the systematic risk, it shows how prices of
securities respond to the market forces. Beta is calculated by
relating the return on a security with return for market. Market
will have beta1. If beta is greater than 1 the stock is said to be
riskier than market and vice-versa. If the value of beta is zero
than the risk is same as of the market. Negative beta is rare.
Karl Pearsons correlation coefficient:
Karl Pearsons coefficient of correlation is the best measure for
representing the relationship between the two variables. The
degree and direction of relationship between the variables can
be obtained by it. Karl Pearson is the most accurate and it is
very widely used. By this method the amount of relationship
between two variables can be numerically measured. The
formula for finding out correlation coefficient isr=

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Limitations of the study:

The major limitations of the study are as followings:
The study is undertaken for a particular period of time. So findings
can not be applicable for a very long period of time.
The data is taken from the secondary source and hence it is taken
to be the authenticate resource.
The data taken for analysis may affect the results of the study.
Limitations of correlation might affect the results of the study.
Statistical tests have their own limitation which might affect the
conclusions.

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The role of computer in research work:

At present computers are widely used for different purposes. Performing
calculations almost at the speed of light, the computer has become one of the
most useful research tools in the modern times. Computers are ideally suited
for data analysis concerning large research projects. Researchers are
essentially concerned with huge storage of data, their faster retrieval when
required and processing of data with the aid of various techniques. In all this
operations, computers are of great help. Their use, apart expediting the
research work, has reduced human drudgery and added to the quality of
research actively. Researchers in economic and other social sciences have
found, by now, electronic computers to constitute an indispensable part of
their research equipment. The computers can perform many statistical
calculations easily and quickly. Computation of means, standard deviations,
correlation coefficients, t-tests, analysis of variance, analysis of covariance,
multiple regression, factor analysis and various nonparametric analysis are
just a few of programs and subprograms that are available at almost all
computer centers. Similarly canned programs for linear programming,
multivariate analysis, monte carlo simulation etc.. are also available in the
market. In brief, software packages are readily available for the various simple
and complicated analytical and quantitative techniques of which researcher
generally make use of. The only work a researcher has to do is to feed in the
data he/she gathered after loading the operating system and particular
software package on the computer. The output or to say the result, will be
ready within the seconds or minutes depending upon the quantum of the
work.
Techniques involving trial and error process are quite frequently employed in
research methodology. This involves lot of calculations and work of repetitive
nature. Computer is the best suited for such techniques, thus reducing the
drudgery of researchers on the one hand and producing the final result rapidly
on the other. Thus, different scenarios are made available to researchers by
computers in to time which otherwise might have taken days or even months.
The storage facility which the computers provide is of immense help to a
researcher for he can make use of stored up data whenever he requires doing
so.
Thus, computers do facilitate the research work. Innumerable data can be
processed and analyzed with greater ease and speed. Moreover, the results
obtained are generally correct and reliable. Not only this, even the design,
pictorial graphing and report are being developed with the help of computers.
Hence, researchers should be given computer education and be trained in the

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line so that they can use computers for their research work but, one need to
be aware about the limitations of computer-based analysis:
Computerized analysis requires setting up of an elaborate
system of monitoring, collection and feeding of data. All these
require time, effort and money. Hence, computer based
analysis may not prove economical in case of small projects.
Various items of detail which are not being specifically fed to
computer may get lost of sight.
The computer does not think; it can only execute the
instructions of a thinking person. If poor data or faulty programs
are introduced into the computer, the data analysis would not
be worthwhile.
But, the above mention limitations do not reduce the importance of the
computer in research study. Even though it obviously has some limitations
but, undoubtedly today, educational, commercial, industrial, administrative,
transport, medical, social, financial and several other organizations are
increasingly depending upon the help of computers to some degree or the
other.

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