Chapter Two

Problem Definition, Hypothesis

Formulation and Literature Review
Selection and Formulation of Research Problem
➢ The selection of a problem is the first and most
important step in a research process.
➢ It is like determination of the destination before
undertaking a journey.
➢ The term 'problem' means a question or an issue
to be examined.
➢ The selection of a problem for research is not an
easy task;
➢ As a student this selection of problem arises when a
student has to undertake research as a part of his
course requirement.
What is a Research Problem?
• A research problem, in general, refers to some difficulty, which a
researcher faces in the context of theoretical or practical situation
and wants to obtain a solution for the same.
• A research problem is important because:
o It establishes the importance of the topic.
o It creates reader interest.
o It focuses the reader’s attention to understand how the study
will add to the existing literature.
Sources of research problem
❖ Problems may come from:
➢ Reading about a topic you are interested in
➢ Academic Experience
➢ Daily Experience
➢ Exposure to field situations
➢ Consultations
➢ Brain storming (speaking with experts in the field you are
interested in)
➢ Review of literature and related previous works of others.
Considerations for a Problem Selection
➢ When selecting a research problem there are a number of
considerations to keep in mind. Some of these include:
1. The problem is appealing to the researcher (Researcher’s
interest)
2. The scope of the problem is manageable to the researcher
(Magnitude/ Researcher’s competence)
3. The researcher has the knowledge, ability, time, and
resources needed to investigate the problem (Researcher's
own resources and ability)
Considerations …
4. The problem is researchable through the collection and analysis
of numerical data (availability and analysis)
5. the problem has theoretical and practical significance
(importance, urgency and feasibility)
6. Relevance- ensure that the study adds value to the existing
body of knowledge
7. It is ethical to investigate the problem (Originality, Ethical
issues)
Formulating the Research Problem
➢ The problem selected for research may initially be a vague
topic.
➢ Hence the selected problem should be defined and
formulated clearly.
➢ It requires intensive reading of relevant literature in order
to understand the nature of the selected problem.
✓ Then only can a researcher gain clear insights into the
selected problem and be able to define and formulate it.
Problem Formulation…
➢ Formulation is translating and transforming the selected
research problem/topic into a scientifically researchable
question.
✓A research question is a statement that best presents the
objectives of the study in a question form.

➢ It is concerned with specifying exactly what the research

problem is and why it is studied.

➢ Hence, the problem formulation should include both the what

and the why aspects.
Problem Formulation…

➢ three principal components in the progressive formulation

of a research problem are:
i. The original question (what one wants to know?)
ii. The rationale (justification)
iii. The specific questions (possible answers to the original
question).
Importance of Problem Formulation

• It determines the research destiny. It indicates a way for the

researcher.
• Research problem is like the foundation of a building. The
strength of a building is dependent upon the foundation.
➢ If the foundation is well-designed and strong, one can expect
the building to be also strong.
• Similarly, if a problem is well formulated, one can expect a
good study to follow.
 Importance of Problem Formulation…
• The way you formulate your research problem determines
almost every step that follows:
➢ the type of study design that can be used;
➢ the type of sampling strategy that can be employed;
➢ the research instrument that can be used;
➢ the type of analysis that can be undertaken; and
➢ In general, the quality of the research report (output of
the research undertakings) is dependent on the quality
of the problem formulation.
Approaches to Problem Definition
• Problem definition process should include the following components:
a. Theoretical framework: a research should have a theoretical basis
and objective evidence.
➢ theoretical framework is a conceptual scheme containing:
✓ Set of concepts and definitions
✓ a set of statements that describe the situations on which the
theory can be applied
✓ a set of relational statements divided into: axioms and theorems
b. Analytical model:
✓ set of variables and their interrelationships represented in logical
arrangements
✓ it enables the formulation of empirically testable propositions
regarding the nature of some relationship.
 Approaches…
c. Research questions: refined statements of the specific
components of the problem.
o a statement that ascertains the phenomenon to be studied.
o The research questions should be raised in an unambiguous
manner.
o should be strongly guided by the problem definition,
theoretical framework and the analytical model.
o extreme caution should be taken while formulating research
questions as they are the forerunner for developing
hypothesis.
 Approaches…
• Research questions…
➢ A good research question needs to have the following specific
characteristics among others:
✓ It is generally written in the form of a question.
✓ It is well-focused.
✓ It cannot be answered with a simple yes or no.
✓ It should have more than one plausible answers.
✓ It is usually best to pose only one or two questions;
✓ Start questions with terms like, how, who, what, why, and
when.
Approaches…
d. Hypothesis: could be termed as tentative answers to a research
problem.
• hypothesis involves conjectural statements relating to two or
more variables.
• can be deduced from theories, directly from observation,
intuitively, or from a combination of these.
• “Hypothesis is a formal statement that presents the expected
relationship between an independent and dependent
variable.” (Creswell, 1994)
• may show a relationship that will take a specific direction.
• A research question is essentially a hypothesis asked in the
form of a question.
• should be clear, value-free, specific, and amenable to
empirical testing.
 Approaches…
• Types of Hypothesis
• Two types: Null hypothesis and Alternative Hypothesis
a. Null Hypothesis ( Ho)
• is a statistical hypothesis, used to determine whether the
results of an experiment are statistically significant
• Assumes equality and represents no relationship/no
difference between variables (x and y)
• The null hypothesis is often implied rather than directly
stated in research articles
• The null hypothesis may read as “There is no difference
between----”.
• states what the researcher would expect or predict.
Types of Hypothesis
b. Alternate Hypothesis (Ha or H1)
• A definitive statement that there is a relationship/difference
between x and y.
• Two types of alternate hypothesis are:
➢ Non-directional: posits a difference but no specific direction
is implied (yes/no)
• There is a difference in profitability between the public
owned commercial banks and private commercial banks.
➢ Directional: posits a specific type of difference (more
than/less than)
• The profitability of public owned commercial banks is
higher than that of private commercial banks
 Characteristics of good hypothesis
• Should be declarative statement—not a question
• Reflects the theory/literature on the topic area—it is a substantive
link to previous literature and theory
• Is brief and to the point—easy to understand and evaluate
• Hypothesis should be clear and precise.
• Must be testable—can carry out the intention of the research
question
• Hypothesis should state relationship between variables, if it
happens to be a relational hypothesis.
• Proposes a specific relationship between the independent (x)
variable and the dependent (y) variable.
• Thus, hypothesis must actually explain what it claims to explain;
it should have empirical reference.
Individual Assignment

1. Which type of hypothesis is more often stated in a research

paper? Why?

2. What does significance level mean as related to hypothesis?

3. Discuss Type I and Type II errors as related to hypothesis.

 Review of Literature
▪ Literature review examines recent (or historically significant)
research studies, company data, or industry reports that serve as a
basis for the proposed study.

▪ Essential preliminary task in order to acquaint your self with the

available body of knowledge in your area of interest.
▪ The review describes theoretical perspectives and previous
research findings regarding the problem at hand.
▪ Its function is to ‘look again’ (re + view) at what others have done
in areas that are similar though not necessarily identical to one’s
own area of investigation.
Review of Literature…
• It is desirable to examine theoretical, empirical and
conceptual literatures.
• Theoretical is general description (concepts, components---) of
issues under study
• Empirical literature is that which contains studies made earlier
and so it consists of many facts and figures observed in the
earlier studies.
• The conceptual literature is one which deals with variables
considered under the study.
 Reasons for Review of Literature
• means of demonstrating an author’s knowledge about a particular
field of study- vocabulary, theories, key variables and phenomena,
and its methods and history.
• It also informs the student of the influential researchers and
research groups in the field.
• Literature review has the following functions:
̶ gives clarity and focus to the research problem
̶ helps to understand the subject area
̶ conceptualizes your research problem
̶ explains the link between the research problem and body of
knowledge.
̶ improves the methodology
̶ identifies the gaps and broadens the researcher knowledge in
the research area.
̶ contextualizes your findings (compare with others’ findings).
 Conceptual and Operational Definitions
• A conceptual definition uses words and concepts to describe a
variable (as in a dictionary).
• They are important in conveying what is being investigated but
do not indicate precisely what the variable means.
• An operational definition indicates how the concept is
measured or manipulated….what operations are preformed to
measure or manipulate the variable.
• It is essential to understand operational definitions because
researchers will use different ways of measuring or
manipulating the same variable.
• A variable must be operationalized in order test a hypothesis.
 Operational Definitions…
❖ Example:
➢ Socioeconomic Status: High, Middle, Low
➢ The attributes of “High,” “Middle,” and “Low” are meaningless if
we cannot describe the categories...
➢ A subject classified as “High” in one study may be “Middle” in
another study.
❖ Reading Assignment:
➢ How to search for relevant literature
➢ How to take ideas of others and incorporate them into our research.
➢ Which part/section/chapter of our research needs literature review.
➢ How to acknowledge sources of our literature.
End of Chapter