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How do you choose which variables to include in a theoretical framework? Survey the existing literature Conduct in-depth interviews with individuals familiar with the problem HYPOTHESES Testable statements of the relationships among variables If the pilots are given adequate training to handle midair crowded situations, air-safety violations will be reduced Statistically significant -- 95% of the observed relationships will hold true HYPOTHESES Formats for expressing hypotheses Directional or nondirectional Greater stress results in lower job satisfaction There’s a relationship between age and income Null and alternate Null statement is expressed as no relationship between two variables or no difference between two groups There’s no relationship between stress and job satisfaction Alternate Greater stress results in lower job satisfaction ASSIGNMENT Each one is to present steps 4 and 5 for the proposed research. Slide from Luke Froeb spring 2003 class presentation OBSERVATION ? PRELIMINARY DATA GATHERING ? PROBLEM DEFINITION ? THEORETICAL FRAMEWORK ? GENERATION OF HYPOTHESIS ? SCIENTIC RESEARCH DESIGN ? DATA COLLECTION, ANALYSIS INTERPRETATION ? DEDUCTION ? REPORT WRITING PRESENATION ? MANAGERIIAL DECISION MAKING ? NO YES Research Process OBJECTIVES Identify and label variables associated with any given situation. Trace and establish the links among the variables and evolve a theoretical framework. Develop a set of hypotheses to be tested and state them in the null and the alternate. Apply what has been learned to a research project. The Method of Economics Descriptive economics, which involves the compilation of data that describe phenomena and facts Reporting facts Theoretical (Analytical) Economics that involves building models of behavior. Abstract reasoning Empirical economics refers to the collection and use of data to test economic theories. Testing theories WHAT ARE THEORIES? A theory is a conceptual model of the relationships among the several fac
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