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Summary Notes of all lectures - Management Research Methods 1

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Notes of all lectures from the course Management Research Methods 1 - 2020. Pre-master/transition minor at UvA.

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Management Research Methods 1

Week 1 – Data
What is data?
 Data has a fixed structure
o It consists of a number of properties (variables)  each column represents
one variable
o Measured from a set of things/people/etc (units)  each row represents one
unit




o The (experimental or observational) unit here is a Case
o For each unit (case) we have measured several variables

Levels of measurement
 Categorical (entitles are divided into distinct categories):
o Binary variable (two outcomes), e.g. dead or alive
o Nominal variable, e.g. whether someone is an omnivore, vegetarian or vegan
o Ordinal variable, e.g. bad, intermediate, good
 Numerical:
o Discrete data (counts), e.g.: number of defects  geen getallen zoals 8,3. Het
is een absoluut getal
o Continious (entitles get a distinct score), e.g. temperature, body length  kan
dus wel 8,3 zijn
 Variables can be converted to a lower level of measurement. For
example, from
 Body length =< 160 cm  small
 Body length > 160 cm and < 180 cm  medium
 Body length >= 180 cm  tall
 This implies a loss of information. It is not reversible
 For example, if you know that “body length = medium”, the exact
amount of cm’s cannot be retrieved

, o Case number= nominal, sender-id= nominal, type= nominal, time=
continuous, pending iterations= discrete data

Data collection
 In qualitative research, you need to motivate and document the way you collected
data
 Is the sample representative?
o Generalize findings in a sample to an entire population
 Measure firm’s revenue for 3 weeks, generalize to the full 52 weeks 
if you measure in October, it’s not valid for July
 Measure outside temperature for 5 days, generalize to the entire
month  if you measure September, it’s not valid for the whole year
 Ask 1000 people who they will vote on at the elections, predict
outcome of entire country  if you ask only a specific group, it’s not
representative for the outcome of the election
o Statistics only gives conclusions about the population you have sampled from
o Questions to ask:
 What is the population? How to make my sample representative for
that population?
 Usually random sampling:
 Assign numbers to all units in the population,
 Let a computer draw randomly 30 numbers,
 Include these observations in your sample
 Is the data valid?
o Validity= do the data reflect what they should reflect? And can they be used
to answer the research question?
 Data should be checked for errors and mistakes (face validity check)
 Multiple people involved in measurement: did everybody know the
measurement procedure?
 Were there other problems / irregularities during measurement?
 Is there measurement error?

, o The discrepancy between the actual value we are trying to measure, and the
number we use to represent that value
 Example: You (in reality) weigh 80 kg. According to your bathroom
scale, you weigh 83 kg. The measurement error is 3 kg.
o There are two types of measurement error: systematic and random

1) Systematic measurement error
o Difference between the average measurement result and the true value
o Consistent errors, it’s consistency off of the centre
o Happens in every case you measure
 NMI calibrates pumps at gas stations at a yearly basis
 Non-digital bathroom scales can be calibrated
 Clocks on mobile phones are regularly synchronized with online time
servers

2) Random measurement error
o Unsystematic deviations due to imprecision of the measurement system
 For ice skating at the winter Olympics, multiple time measurements
systems are used to decide who is the winner
 Ever asked two people to measure your length?

o We have reference material at our disposal that has a ‘true’ value of 5.0
o Measuring device 1 produces the following outcomes: 3.8, 4.4, 4.2, 4.0
o Measuring device 2 produces the following outcomes: 6.5, 4.0, 3.2, 6.3
o Questions:
- Which method has the largest bias?  device 1 (systematic)
- Which one has the largest measurement spread?  device 2 (random)
- Which method do you prefer? Why?  Device 1, je kunt deze kalibreren,
zodat de fout gecorrigeerd wordt. Device 2 kan je niet corrigeren als er
teveel fouten zijn.

Example: lifting weights
 You want to test who is the strongest. You decide to measure strength by the
maximum weight a person can lift.
 Will this give you reliable information to decide who is strongest?  Probably not

Example: train delays
 Claim: the Dutch railway company (NS) has a delay percentage of 14%
 Ligt eraan wat je ziet als vertraging. NS en ProRail hebben beide andere methodes
om het te meten. Sommige zien 3 minuten als vertraging, sommige zien 5 minuten
als vertraging.
 Unit: departures? Arrivals? Trains?
 Measurement procedure: at which stations? Stopwatch or database? When (one day,
one year)?

Data analysis
Describing data

,  You usually do not recite an entire dataset when someone asks you what is in it 
you summarize is in a few numbers (highlights)
 Location
o Median (= the middle score when data is ordered)




Median = 98
This means: 50% from the results is below 98 and 50% from the results
are above 98
 It doesn’t matter how high the minimum or maximum is
o Mean (= the sum of the data divided by the amount of data)




 N = total number of cases (11)




o Which one is more representative?  The median for an indication for the
salary and the mean for the financial controller
o Mode (=most frequent number)
 Dispersion (spread)
o Range (=the smallest value subtracted from the largest)
 The highest value is 234 and the lowest is 22. Rang= 212
 Note: very sensitive to outliers
o Interquartile range (the range of the middle 50% of the data)
 Data verdelen in stukken van 25%, mediaan in het midden
 Interquartile range= the difference between the lower quartile and the
upper quartile (50%)




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