Professional Documents
Culture Documents
MBA PROGRAMME
Coordinator : Dr. N. Maruti Rao, Associate Professor, PG Dept. of Business Adm., RCUB
Member
Member
CONTENTS
1.
Introduction
2.
3.
4.
5.
6.
7.
8.
9.
FORMATS
A)
B)
C)
D)
E)
F)
1.
INTRODUCTION
MBA Internship Program (MIP) is an integral part of MBA curriculum. It is an extremely important activity for
management student. It enables all MBA students to hone their management skills. It gives an opportunity to the
student to apply the theoretical concepts in real life situations. The Internship Project also facilitates interaction
between the students and the industry and allows the student to have in depth knowledge about the working of an
industry. Students of MBA IIIrd Semester of Rani Channamma University, Belagavi has to undergo 8-week
Internship Project in companies immediately after the completion of IIIrd Semester end Examination.
It also carries a weightage of 4 Credit and the Credits are included in the IVth Semester Marks Card. The
Internship Project should be conducted by the students with all sincerity and dedication to get the maximum
mileage out of the opportunity. A well done Internship Project adds great value to the Curriculum Vitae of the
student. The experience of project training helps a candidate to improve his practical knowledge and to become
good manager/leader in the future. If the student completes the project successfully and satisfies company
management then there are more chances for him to be absorbed in the same company. Many students are very
much confused regarding project work. They are unaware of what actually a project is? How a project should be
done?, and How a project report is made?. Some students are also unaware about the project report guidelines
and content. In order to assist students, this manual is provided which contains detailed guidelines for preparation
and presentation of Project Report.
2.
3.
3.1. The process of identification of the Project Topic/Organization should commence at the beginning of IIIrd
Semester (students to be encouraged at networking).
3.2 The process of allocation of Internal Guide should be completed at the end of 2nd month of commencement of
IIIrd semester. The affiliated B-Schools should submit the list of Internal Guide Allocation to PG Dept. of Business
Administration, Rani Channamma University, Belagavi in the third week of IIIrd month of IIIrd Semester.
3.3 Internship Project Orientation Training Program should be conducted for the benefit of students and Internal
Guide during the first week of last month of IIIrd semester. A team of experts comprising of faculty members from
the PG. Department of Business Administration, RCU, Belagavi and other Universities and from the Industry
should conduct the training programme. Internship Project Committee is responsible for finalizing the team of
experts for conducting training programme. The TA and DA, remuneration to the experts has to be paid as per
the university norms.
3.4 The students need to finalize the company on or before the closure of IIIrd Semester.
3.5 A personal interface with the Internal Guide to be arranged for giving a final shape to the topic and the objectives
of the project before the commencement of the IIIrd Semester Final Examination.
3.6 The project will start immediately after the IIIrd semester end examination.
3.7 The students need to finalize the topic in the first week of commencement of Project.
3.8 The Internal Guide has to visit the Organization for the interaction with the Company Guide and for guiding the
student on the location at least once during the course of internship preferable within one month of commencement
of the project. The institution should sanction duty leave & TA&DA in case of outstation visit and conveyance
allowance in case of local visit for the Faculty Member.
3.9 The Internal Guide is expected to collect a feedback/evaluation about the performance of the students from the
Company Guide in prescribed Format. Internal Guide should also evaluate the performance of student in a
prescribed format and both the documents need to be submitted in a confidential manner to the Chairman/
Director. PG Department of Business Administration, Rani Channamma University, Belagavi.
3.10 While allocating students, please ensure that the Faculty Member shall have relevant experience to guide
student. An opportunity need to be provided to all Faculty Member working in the Institution.
3.11 Reports prepared without the continuous guidance from the Internal Guide are liable to be rejected.
3.12 In order to ensure fairness and transparency in allocation of students to the concerned faculty members, internship
project work and evaluation of project report, the following guidelines/procedure is adopted:
a. All the affiliated B-Schools are required to send the List of Internship Projects covering details such as
student name, internal guide, title of internship project, organization, etc to PG Dept. of Business Administration,
Rani Channamma University, Belagavi on or before 10th day of commencement of Internship Project.
b. Project on same topic by students of affiliated B-Schools & PG Dept. of Business Administration, RCUB
is strictly prohibited. Therefore, the topics which are repetitive in nature will be reviewed and subjected to
modification. The list of Internship Project approved by Chairman, PG Dept. of Business Administration, Rani
Channamma University is final and the same will be communicated to affiliated B-Schools. However, the internship
project so undertaken by students is very big project (which demands more workforce or coverage of large
geographical area like census survey) than such projects will be permitted subject to approval of Chairman of PG
Dept. of Business Administration, Rabi Channamma University, Belagavi.
c. Every student must submit Weekly Report to their Internal Guide and seek guidance from them on continuous
basis till the completion of the internship project.
d. Students must contact the respective internal guide at least once in a week regarding the progress of the
work done.
e. The Internship Project should have Industry Orientation and the work should be certified by the concerned
Organization, where the student has undertaken the internship project.
3.13. The Internship Report shall be submitted by the students as per the guidelines and format prescribed by Rani
Channamma University, Belagavi.
3.14. The institutions are required to adhere to the guidelines prescribed for Internship Project Report preparation
and submission.
3.15. Professors and Associate Professors of PG Dept. of Business Administration, RCU, Belagavi and Senior
Directors of affiliated B-Schools will be assigned with the responsibility of conducting viva-voce and they will be
termed as the University Examiners.
3.16. Internship Projects are evaluated by using two components Project Report Evaluation and Project Vivavoce. Each component carries 50 Marks. Both components should be evaluated by the same Examiner.
Student Internship Project (SIP) Manual MBA Program
3.17. Internal Evaluation Method is developed to evaluate the performance of student undergoing Internship Project.
The internal assessment will be done by Company Guide as well as Internal Guide as per the prescribed Format.
20% of weightage (combined together) assigned by Company Guide and Internal Guide will be the Internal
Assessment Marks. Therefore, the Examiner has to evaluate Project Report for 30 marks only. The Internal
Assessment Marks (out of 20) should be added to Project Report Marks to be awarded by the Examiner,
making the total Project Report Evaluation Marks equaling to 50 marks. Internship Project Evaluation Format is
as follows:
3.18. The Internal Evaluation Format of Company Guide should be sent to respective Company Guide along with
Internship joining letter requesting him to send the duly filled in Internal Evaluation Format at the end of the project
in a sealed cover directly to Director/ Chairman of respective B-School.
3.19. The Internal Evaluation Format of Internal Guide should be given to respective Internal Guide along with list of
students allocated to him requesting him to send the duly filled in Internal Evaluation Format at the end of the project
in a sealed cover directly to Director/Chairman of respective B-School.
3.20. The Chairman/Director of B-School is required to handover the Internal Evaluation Formats of students to
designated Examiner and finalizing the Project Report Evaluation Marks.
3.21. The Project Report should be sent to the examiner in advance so that the examiners are better prepared for
conduct of Viva-Voce. (Directors are requested to contact the respective University Examiners and arrange to send
the Project Reports on or before deadline stipulated for the same.
3.22. The affiliated B-School can identify a Faculty Member to assist the University Examiner in smooth conduct of
the examination duty.
3.23. The marks awarded in the Viva-Voce and the Project Report Evaluation should be sent to the Registrar
(Evaluation), Rani Channamma University, Belagavi in a sealed cover immediately after the Viva-Voce with due
intimation to the Chairman of PG Dept. of Business Administration, Rani Channamma University, Belagavi.
3.24. All the affiliated B-Schools are requested to adhere to the Calendar of Event of MBA IIIrd Semester Internship
Project.
4.
5.
5.1. Students should get an overview of the Company/Industry in which they are placed. This includes understanding
the core business of the company, organizational chart, key personnel in the company, manufacturing units, marketing
channels, financial policies, etc.
5.2. Obtain a copy of latest annual report and analyze the financial statement, wherever possible.
Be in touch with faculty guide to complete the tasks assigned in stipulated time.
5.11.
5.12.
5.13
Take presentation as an opportunity to impress upon the host company and ensure its success.
6.
Role of the faculty guide is to facilitate the student to undertake a meaningful project work and provide necessary
academic guidance, and to facilitate evaluation, with the help of the company guide, while Internship Project is in
progress. The faculty as guide would be involved at stages of Internship project. The faculty as guide shall:
6.1. Collect Progress Reports from the respective students every week.
6.2. Familiarize students with evaluation Process, Parameters & Schedules.
6.3. Keep the students informed about their performance/progress in the project, their strengths and weaknesses
and also ways for improvement.
6.4. Be in touch with company guide to know the behavior and the performance of the student during Internship
Project.
6.5. Guide/facilitate student intern in achieving the targets/tasks during Internship Project assigned by the Company.
6.6. Faculty as guide should plan for mock presentations by the student interns by involving one of the company
guides. This would help to correct any shortcomings on the part of student interns when the presentation is made to
the target audience.
6.7. Faculty as guide should visit the company once in a month to know the performance of the students.
8.8. A certificate by Director / Head of the Institution indicating the bonafide performance of the project by the
student to be enclosed.
8.9. Internship Report shall have the LOGO of the University (Mandatory)
10
FORMATS
11
NAME OF INSTITUTE
Registration No.
Area of Specialization
Name of Organization
Date:
Signature of Student
Company Guide
Internal Guide
Signature of Director/Chairman
Coordinator
Internship Project
Signature of Chairman
PG Dept. of Business Administration,
PG Dept. of Business Administration,
Rani Channamma University
Rani Channamma University
===========================================================================
Project Proposal format should be submitted to Chairman, MBA Dept. RCU, Belagavi for final approval. The vivavoce will be conducted only for those projects which were approved by RCU, Belagavi.
Student Internship Project (SIP) Manual MBA Program
12
NAME OF INSTITUTE
13
Date:
Signature
(Name of Internal Guide)
14
Date:
Signature
(Name of Company Guide)
15
16
Name of Institute
Rani Channamma University,
Belagavi
A PROJECT REPORT
ON
xxxxx
SUBMITTED
(Name of the student in CAPITAL)
Reg. No.
Batch
IN PARTIAL FULFILLMENT OF
Post Graduate Degree in MBA
MONTH, 200X-0Y
Student Internship Project (SIP) Manual MBA Program
17
TABLE OF CONTENTS
Declaration from student
Certificate from Company Guide
Certificate from Internal Guide
Chairman/Director Certificate
Acknowledgement
Chapter Scheme
List of Tables
List of Graphs
List of Charts
List if Abbreviations, if any
Executive Summary
1. Introduction
1.1. Background of the Study
1.2. Statement of the Problem
1.3. Objectives of the Study
2.
Literature Review
Page. No
i
ii
iii
iv
v
vi
vii
viii
ix
x
xi
Approx No. of Pages. 10 -15
3.
Research Methodology
Approx No. of Pages. 05-07
3.1. Research Design
3.2. Sample Design-Population, Sample Size calculation, Sampling method, Survey Method (If Used)
3.3. Data Sources
3.4. Hypothesis ( If any)
3.5. Data Analysis Tools (If used)
3.6. Limitations of Study (If any)
4. Company Profile
4.1. Historical Background
4.2. Vision & Mission
4.3. Organizational Structure - Different Departments
4.4. Product /Service Profile
4.5. Area of Operation
4.6. Business Practices Finance/HR/Marketing/Operations
4.7. Current Status
4.8. Future Plans
4.9. Any Special Awards
4.10. SWOT Analysis
5. Data Analysis
6. Findings and Conclusions
7. Recommendations
Bibliography
Appendix
18
19
Name of Institute
Rani Channamma University,
Belagavi
A PROJECT REPORT
ON
xxxxx
SUBMITTED
(Name of the student in CAPITAL)
Reg. No.
Batch
IN PARTIAL FULFILLMENT OF
Post Graduate Degree in MBA
MONTH, 200X-0Y
Student Internship Project (SIP) Manual MBA Program
20
TABLE OF CONTENTS
Declaration from student
Certificate from Company Guide
Certificate from Internal Guide
Chairman/Director Certificate
Acknowledgement
Chapter Scheme
List of Tables
List of Graphs
List of Charts
List if Abbreviations, if any
Executive Summary
1. Introduction
1.1. Background of the Study
1.2. Statement of the Problem
1.3. Objectives of the Study
2. Literature Review
Page. No
i
ii
iii
iv
v
vi
vii
viii
ix
x
xi
Approx No. of Pages. 10 -15
3. Company Profile
3.1. Historical Background
3.2. Vision & Mission
3.3. Organizational Structure - Different Departments
3.4. Product /Service Profile
3.5. Area of Operation
3.6. Business Practices Finance/HR/Marketing/Operations
3.7. Current Status
3.8. Future Plans
3.9. Any Special Awards
3.10. SWOT Analysis
4. Product Development
4.1. Introduction
4.2. Problems Identification
4.3. Generating idea
4.4. Screening the Idea
4.5. Product Testing
4.6. Business Analytics
4.7. Marketability Tests
4.8. Product Development
4.9. Commercialization of Product
4.10. Post Launch Review
Or
4. Process/System Development
4.1. Introduction
4.2. Problems Identification
Student Internship Project (SIP) Manual MBA Program
21
22
DIRECTORS CERTIFICATE
This is to certify that Internship Report entitled (Project Title with name of the Organization) is an
individual work of (Student Name), RCU Examination Registration No ________________ of IIIrd Semester,
(Name of Institute), Rani Channamma University, Belagavi, now being submitted in the partial fulfillment of
requirement, for the award of the Degree of Master of Business Administration of Rani Channamma University,
Belagavi.
Date:
Chairman or Director
23
This is to certify that Internship Report entitled (Project Title with name of the Organization) is an
individual work of (Student Name), RCU Examination Registration No. _______________ of IIIrd Semester,
(Name of Institute), Rani Channamma University, Belagavi, now being submitted in the partial fulfillment of
requirement, for the award of the Degree of Master of Business Administration of Rani Channamma University,
Belagavi under my supervision and guidance.
I further certify that the work is original work and student has made his best efforts to bring the work in this
format.
Date:
Internal Guide
24
ANNEXURE
25
26
Select Feasible, Familiar and Practical on the basis of resource availability and acceptance of the Guides.
Developing Solutions
6. Review of Literature
It is a review of published material to study about the concepts, theories, definition, previously done research
findings into the field of research. It includes books, journals, periodicals, thesis etc. the purpose of literature review
should be a) Understand the concept, b) Structure the study and c) to form the Foundation of the study. The
literature review may be Conceptual or Referential.
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B. Sample: A sample is a part of a population, which is chosen to study and make the inference. For Example: If
population is annual incomes of all people in India, then samples would be,
in Mumbai, ii) The annual incomes of all people in India over 40 years of age or iii) The annual incomes of the first
hundred people mentioned in your telephone directory.
C. Parameters: Any characteristics of population are called as parameters. For Example: Average life of a fluorescent
tube.
D. Statistic: Any characteristic of a sample is called as statistic. For Example: Average life of a fluorescent tube of
selected city (i.e. calculated over sample). The following notations are used to denote population parameters and
sample statistics.
E. Sampling: The process of inferring something about a large group of elements by studying only a part of it is
known as sampling. Sampling theory is the study of relationship between population and samples drawn from the
population and is applicable to random sample analysis.
F. Sampling Unit: It is a single element/ group of elements subject to selection in the sample.
G. Sampling Frame: It is a list of elements from which the sample may be drawn.
H. Sample Size: Sample Size is calculated by applying following formula:
Sample size for Mean
2
ZS
where
Sample Size i.e. n =
E
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Z c2.l . pq
where
E2
Z: confidence level in standard error units (e.g.: 95% confidence level, Zc.l. =1.96)
S: sample standard deviation or estimate of the population standard deviation
E: acceptable magnitude of error (how precise the estimate must be)
Sample size may also be determined on the basis of managerial judgment or in comparison with the previous studies
of other researcher.
I. Sampling Technique: Sampling techniques are broadly classified into two categories i.e. Probability/ Non
probability.
J. Sampling Methods: The various sampling methods used by researchers are depicted in the following chart.
Non Random / Non Probability /Judgment Sampling: Here the sample is selected according to the judgment of
the investigators or experts. Hence there is certain subjectivity in the selection. Any sampling process which does not
ensure some non-zero probability for each element in the population to be included in the sample would belong to
the category of Non-Probability Sampling.
Random or Probability Sampling: All probability sampling methods ensure that each element in the population
has non-zero probability of getting included in the sample. The picking up the sample is totally insulted against the
judgment convenience or whims of any person involved with the study. That is why probability sampling procedures
tend to become rigorous and time consuming. It ensure that each element has a non zero probability of getting
included in the sample. There are four types of probability sampling.
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I. Simple Random Sampling: Conceptually, it is one of the simplest sampling designs and can work well for
relatively small populations. However, there are many practical problems when simple random sampling is used for
large population. In this sampling, each possible sample has an equal chance of being selected. Further, each item in
the entire population also has an equal chance of being selected. Suppose a population is of N elements and a
sample of n (<N) has to be picked up, then there are many possible sample of size n. It is imperative to have list
of all the members of the population before a simple random sample can be picked up. Such an exhaustive list of all
population members is called a sampling frame. Example: We write the name of one such member on a chit for each
and thus have N chits in a bowl, one chit for each member of the population. We can then mix the chits well and pick
up one chit at random to represent one member of the sample. If we want a sample size of n, we have to repeat
these process n times and we shall have a simple random sample of size n consisting of sample. A retailer of
electronic goods wants to study her customer purchases in Mumbai city. For this purpose her population is all her
customers in Mumbai. Their names and addresses are on the carbon copies of bills in her bill book. For random
sampling, she can put all the carbon copies in a box and draw out a certain number of copies after thoroughly mixing
them up. The customer so picked would form a random sample. In more refined manner, bill numbers can be
entered in her computer and command it to select bill number at random. The customers related to the bill numbers
so selected would form a random sample. Sample can also be selected through a lottery draw.
II. Systematic Sampling (Interval Sampling): In this sampling, each element has an equal chance of being
selected, but each sample does not have the same chance of being selected. Here, the first element of the population
is randomly selected to begin the sampling. But thereafter the elements are selected according to a systematic plan.
Systematic sampling means that there is a gap or interval, between each selected unit in the sample. In order to select
a systematic sample, the steps should be followed in the following manner: i) Number of units on your frame from 1
to N (N- total population size). ii) Determine sampling interval (skip interval) by dividing the number of units in the
population by the desired sample size. E.g. select a sample from a population of 400, you would need a sampling
interval as 400/100 = 4. Hence k = 4. You will need to select one unit of every 4 units in your sample. iii) Select a
number between 1 and k at random. This number is called the random start and would be the first number included
in your sample. iv) Select every kth unit after that first number. Then the sample may be 3, 7, 11, 15, 19 395, 399.
For Example: If we have to conduct a survey of students housing for in our university or college. Our college has an
enrollment of 10,000 students. We want to take a systematic sample of 500 students for this skip interval.
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pesticides. Mumbai city is divided into 5 zones. Each zone is a cluster in which we may have buyers of TV, VCR &
Stereo. From the addresses on the bills, we would classify the customers and we would then consider every item
within randomly selected customers.
K. Data Collection Methods: Data collection methods are broadly classified into two categories i. e. Primary and
secondary methods. Primary Data refers to collection of first hand data. Commonly used methods to collect primary
data are: i) Direct personal investigation, ii) Indirect personal investigation, iii) Information received through local
agencies, iv) Mailed questionnaire method and v) Schedules sent through enumerators. Secondary data refers to
compilation of existing data. It is the data that already exists which has been collected by some other person or
organization for their use, and is generally made available to other researchers free or at concessional rate. The
sources of secondary data include Websites, Trade Associations, Journals, Books, Government publications, Non
Government Organizations, Periodicals, Directories, etc.
L. Data Presentation Methods: Data can be presented with the help of tables and graphs. Commonly used
graphs are Bar graph, Line graph, Pie chart, Histogram, Scatter plot, Control charts etc.
M. Hypothesis: The hypotheses are often statements about population parameters like expected value and variance.
The hypotheses are classified into two categories i.e. Null Hypothesis and Alternate Hypothesis. The null hypothesis,
H0, represents a theory that has been put forward, either because it is believed to be true or because it is to be used
as a basis for argument, but has not been proved. The alternative hypothesis, H1, is a statement of what a statistical
hypothesis test is set up to establish. Hypothesis testing is done with the help of parametric and non- parametric
tests. A parametric test is used when the distribution of population is known. A non parametric test is used when the
distribution of population is unknown. Commonly used tests for hypothesis are Chi-square test, t-test for paired
data, F test etc.
N. Chi Square Analysis: Chi-square is a statistical measure with the help of which it is possible to access the
significance of the difference between the observed frequencies and the expected frequencies obtained from some
hypothetical universe. Chi-square tests enable us to test whether more than two population proportions can be
considered equal. If we classify a population into several categories with respect to two attributes(such as age and
job performance), we can then use a chi- square test to determine whether the two attributes are independent of
each other. The Chi- square statistic is computed by using the formula
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33
be taken whether these differences are significant enough to warrant setting up the hypothesis and testing it or
whether they are due to chance. This is mandatory as it has a bearing on the future of the firm
Steps involved in testing hypothesis: the followings steps are involved in testing an hypothesis: 1) Setting up on
Hypothesis. 2) Compare the observed and the expected frequencies. If actual and the expected values are nearly
equal to each other we accept the null hypothesis. If there is a large difference between the two values we reject the
null hypothesis. But mathematically, we employ the chi square statistic given by
2 = (f0- fe) 2 /fe
Where,
fo is the observed frequency
fe is the expected frequency.
If this value happens to be smaller, then we conclude that there is a little difference between the actual and the
expected frequencies and if the difference is large, then we conclude that the actual and the expected values are not
equal. Further this value is compared with the value obtained from the table.
O. ANOVA- Analysis of Variance: Statistical techniques used to test the differences between two or more means.
Comparisons of the means of two populations are easy with Z- test and T- test. Objective of ANOVA is to test
whether there is any significant difference between the means of various samples. ANOVA measures the variability
in data points within the samples and also measures the variance between the sample means. Two variations are
compared using F test. If the value of the F- test or the variability between the sample means and variability within
the samples is larger then, we can conclude that there is significant difference between the means of the samples.
between
Student Internship Project (SIP) Manual MBA Program
34
SS between =
n
i =1
P. Non Parametric Tests: Non parametric tests are also called as distribution free tests. Parametric tests are
used in case of normally distributed populations whereas Non- parametric populations are used in certain situations
in which the use of normal curve is not appropriate. Non parametric tests do not make an assumption about the
parameters of the population and thus do not make use of the parameters of the distribution i.e. the hypotheses of a
non parametric test are concerned with something other than the value of a population parameter. E.g. while testing
the two training methods, say A and B, for determining the superiority of one over the other, if we do not assume that
the scores of the trainees are normally distributed or that the mean score of all trainees taking method A would be a
certain value, then the testing method is called as non parametric test.
Types of Non Parametric Tests: 1) Rank sum test: a) The Mann Whitney U Test b) Kruskal Wallis test
2) The one sample runs test 3) Rank correlation
35
The sign test for paired data: It is easiest test to use. It is based on the direction of the plus or minus signs of
observations in a sample, not on their numerical magnitude. It may be of one of the following two types: 1) One
sample sign test 2) Two sample sign test
1) One sample test: This test is applicable when we sample a continuous symmetrical population in which case the
probability of getting a sample value less than mean is 1/2 and the probability of getting a sample greater than mean
is also 1/2. To test the null hypothesis = H0 against an appropriate alternative on the basis of a random sample size
n, replace the value of each item of the sample with a plus sign if it greater than H0 and minus sign if it is less than H0,
but if the value is equal to H0, simply discard it. Test the null hypothesis that these + or signs are values of a random
variable, having a binomial distribution with p = . When the sample is small, use tables of binomial probabilities and
when the sample is large, use normal approximation to binomial distribution.
2) Two sample test: It has important application when paired data is given. Each pair of values can be replaced
with a + sign if the first value of the first sample (say X) is greater than the first value of the second sample (say Y)
and sign if the first value of X is less than the first value of Y. In case the two values are equal, the concerning pair
is discarded. In case the two samples are not of equal size, then some of the values of the larger sample left over after
random pairing will have to be discarded.
Rank Sum Test: Two commonly used tests are the U test and the H test. U test is popularly known as WilcoxonMann Whitney test, whereas H test is also known as Kruskal Wallis test. Use Mann Whitney test when only
two populations are involved. Use Kruskal Wallis test when more than two populations are involved. Use of all
these tests will enable us to determine whether samples have been drawn from the same population (or from different
populations having the same distribution). The use of ranking information rather than pluses and minuses is less
wasteful of data than the sign test. Steps involved in this test: 1) Rank the data jointly, taking them as belonging to a
single sample in either an increasing or decreasing order of magnitude. 2) Usually adopt low to high ranking process
which means we assign rank 1 to an item with lowest value, rank 2 to the next higher item and so on. In case there
are ties, then assign each of the tied observation the mean of the ranks which they jointly occupy. 3) Find the sum of
the ranks assigned to the values of the first sample (call it R1) and also the sum of the ranks assigned to the values of
the second sample (call it R2). 4) Work out the test statistic i.e. U which is given as below:
U= n1.n2 +
n 1 (n 1 + 1)
- R1,
2
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(R1 is the sum of the ranks assigned to the values of the first sample. It is immaterial which sample is called the first
sample. Whichever rank sum can be conveniently obtained can be taken as R1)
5) Assume the null hypothesis as the two samples come from the identical populations.
6) Assume alternative hypothesis as the means of the population are not equal. 7) If the null hypothesis that the
n1 + n2 observations come from identical populations is true, the U statistic has a sampling distribution with Mean
U =
n1 * n 2
2
The Kruskal Wallis Test (H test): It is the extension of Wilcoxon- Mann Whitney test and used test when
more than two populations are involved. Steps involved in this test: 1) Rank the data jointly, taking them as
belonging to a single sample in either an increasing or decreasing order of magnitude. 2) Usually adopt low to high
ranking process which means we assign rank 1 to an item with lowest value, rank 2 to the next higher item and so
on. In case there are ties, then assign each of the tied observation the mean of the ranks which they jointly
occupy. 3) Find the sum of the ranks assigned to the values of the first sample (call it R1) and also the sum of the
ranks assigned to the values of the second sample (call it R2). 4) Work out the test statistic i.e. H which is given
as below:
12
H=
n(n + 1)
Ri 2
- 3 (n+1)
i =1 ni
k
Where n = n1 + n2+ + nk
Ri being the sum of the ranks assigned to ni observations in the ith sample
5) Assume the null hypothesis as the two samples come from the identical populations i.e. there is no difference
between the sample means. 6) Assume alternative hypothesis as the means of the population are not equal. 7) If
the null hypothesis is true that there is no difference between the sample means and each sample has at least five
items, then sampling distribution of H can be approximated by chi- square distribution with (k-1) degrees of freedom.
8) If the samples have less than 5 items, then chi- square distribution cannot be used. 9) If calculated H value
exceeds the concerned table value of chi- square at given significance level, then null hypothesis can be rejected.
The One Sample Runs Test: It was assumed that the samples were selected randomly i.e. chosen without preference
or bias. This test is used to judge the randomness of a sample on the basis of the order in which the observations are
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taken. A run is sequence of identical letters (or other kinds of symbols) which is followed and preceded by different
letters or no letters at all.
Steps involved in the one sample runs test:
1) Sequence the runs. For Example: if the applicants for advanced job training were to be selected without regard
to gender from a large population and they enter in the following manner, W, M, M, M,M, W, then this sequence
has three runs as : W MMMM W
2) Symbols used for a runs test: If a test of runs contains two kinds of occurrences, then,
n1 = number of occurrences of type 1
n2 = number of occurrences of type 2
r = number of runs
E.g. consider a pattern for the arrival of applicants: M, W, W, M, M, M, M, W, W, W, M, M, W, M, W, W, M
n1 = 8 (number of women)
n2 = 9 (number of men)
2 n 1 .n 2 (2n 1 .n 2 - n 1 - n 2 )
n(1n+1 +
n 2n 2 )2 (n 1 + n 2 1)
3) The sampling distribution of the r statistic. The number of runs or r is a statistic with its own special sampling
r = 9 (number of runs)
distribution and its own test. The runs may be of different lengths. The one sample runs test is based on the idea that
too many or too few runs show that the items were not chosen randomly. Mean of the sampling distribution of the r
statistic is given by,
r =
+1
r =
4) Testing the hypothesis: The sampling distribution of r can be closely approximated by the normal distribution
if either n1 or n2 is larger than 20.
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Z=
r r
Find the critical value from z table and test the hypothesis
Rank Correlation: The rank correlation coefficient is a measure of correlation that exists between the two sets of
ranks. It is a measure of association between the variables that we would not have been able to calculate otherwise.
It is used when data is not available to us in numerical form for doing correlation analysis but when the information is
sufficient to rank the data as first, second, third and so forth. The value always lie within 1 and -1,
1 indicates a perfect positive correlation and -1 indicates a perfect negative correlation
Steps involved in calculating Spearmans rank correlation coefficient:1) Assign the ranks to all the observations
from highest to lowest or lowest to highest. 2) If two or more values happen to be equal, then the average of the
ranks which should have been assigned to such vales had they been all different, is taken and the same average rank
is given to concerning value. 3) Record the difference between ranks for each pair of observations (di). 4) Take
square of these differences to obtain a total of di2 . 5) Calculate the coefficient of correlation by the formula:
r=1-{
6 di 2
n(n 2 1)
n 1
Steps involved in testing hypothesis: 1) If n < 30, the distribution of r is not normal and use the values from table
of Spearmans rank correlation to determine acceptance and rejection areas. 2) State the null hypothesis as
H0: there is zero correlation in the concerned ranked data i.e. there is no correlation. 3) State alternative hypothesis
as H1: there is a correlation. 4) Two tailed test is appropriate. 5) At the given significance levels find out the critical
value. 6) Compare the calculated value with critical value to test the hypothesis. 7) If n > 30, the sampling distribution
is approximately normal with a mean of zero and standard deviation of
1
n 1
thus
r =
Refer the z table to test the hypothesis about the rank correlation.
Note: Students should be encouraged to read Research Methodology books and Business Statistics books
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