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lecture material on forecasting。 
Causal relationships 
O。。en; when looking at data sets it will be apparent that there is a relationship 
between certain factors。 Look at Figure 11。3。 It is a chart showing the 
monthly sales of barbeques and the average temperature in the preceding 
month for the past eight months。 
It’s not too hard to see that there appears to be; as we might expect; a 
relationship between temperature and sales; in this case。 By drawing the 
line that most accurately represents the slope; called the line of best fit; we 
can have a useful tool for estimating what sales might be next month; given 
the temperature that occurred this month (Figure 11。4)。 
The example used is a simple one and the relationship obvious and 
strong。 In real life there is likely to be much more data and it will be harder 
to see if there is a relationship between the ‘independent variable’; in this 
254 The Thirty…Day MBA 
case temperature; and the ‘dependent variable’; sales volume。 Fortunately; 
there is an algebraic formula known as ‘linear regression’ that will calculate 
the line of best fit for you。 
There are then a couple of calculations needed to test if the relationship 
is strong (it can be strongly positive or even if strongly negative it will still 
be useful for predictive purposes) and significant。 The tests are known as 
R…squared and the Students t…test; and all an MBA needs to know is that 
they exist and you can probably find the so。。ware to calculate them on your 
puter already。 Otherwise you can use Web…Enabled Scientific Services 
& Applications (wessa/slr。wasp) so。。ware; which covers almost 
every type of statistical calculation。 The so。。ware is free online and provided 
Figure 11。4 Sca。。er diagram – the line of best fit 
Figure 11。3 Sca。。er diagram example 
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Quantitative and Qualitative Research and Analysis 255 
through a joint research project with K。U。Leuven Association; a network of 
13 institutions of higher education in Flanders。 
For help in understanding these statistical techniques; read The Li。。le 
Handbook of Statistical Practice by Gerard E Dallal of Tu。。s; available free 
online (tu。。s。edu/~gdallal/LHSP。HTM)。 At Princeton’s website (h。。p:// 
dss。princeton。edu/online_help/analysis/interpreting_regression。htm) you 
can find a tutorial and lecture notes on the subject as taught to its Master of 
International Business students。 
QUALITATIVE RESEARCH AND ANALYSIS 
Qualitative research is a well…entrenched academic tradition in sociology; 
history; geography and anthropology; it is widely used in the medical 
and political fields。 It has made much less of a mark in business; perhaps 
because of its image as a so。。er; more ethereal discipline。 That situation is 
changing with the growing realization that while quantitative research can 
reveal what issues are important and even where they lie; it is of rather 
less use in understanding why they have e about or what to do about 
them。 Qualitative research es into its own particularly when these are 
important factors: 
。 plex issues: Quantitative methods are useful for separating out 
and measuring individual factors; say what percentage of customers 
are dissatisfied with a product or service and how many will defect。 
Qualitative methods can help get an understanding of the linkages 
between these factors and the peting tensions they arouse。 
。 Stakeholders’ differences: Not everyone involved in an organization 
sees ma。。ers from the same perspective。 O。。en the aggregation nature of 
quantitative methods makes it difficult to fully appreciate the position 
of less powerful stakeholders。 Qualitative research gives individuals a 
voice in the analytical process。 
。 Significant remendations: When the consequences of research are 
likely to result in remendations with significant consequences; 
for example changing work pa。。erns; shu。。ing down a unit or altering 
pay and conditions; qualitative research allows a。。itudes and feelings 
towards potential courses of action to be explored; leading hopefully to 
a less contentious oute。 
Researchers used to quantitative analysis frequently dismiss qualitative 
research as ‘unscientific’ and ‘anecdotal’。 It certainly doesn’t have to succumb 
to such criticism; as the array of tools used in qualitative research is 
large and the tools have a well…documented and rigorous methodology for 
their application。
256 The Thirty…Day MBA 
Observation 
The power of observation as a method of gathering data lies in the inconsistency 
between what people will say in an interview; or on a questionnaire; 
and what they actually do。 It’s not that people are necessarily lying; it’s 
just that their capacity for self…deception is o。。en high。 Customers may feel 
foolish admi。。ing they have difficulty finding their way around a shop and 
so would not record that fact。 That doesn’t mean that they don’t have a 
problem and that a pany would not gain valuable information from 
finding out about it。 
So observations can give valuable insights into how things look from an 
outsider such as a customer; supplier or prospective employee。 But such 
insights will only be representative of the time the researcher was observing 
and may not be indicative of the general level of service。 They are o。。en used 
to provide contextual information alongside some other research method。 
Observations themselves generally e in one of two forms: 
。 Participating observation: This is where the observer takes part in at 
least some aspect of what is being assessed in order to get a be。。er understanding 
of insider views and experiences。 This; for example; could 
involve going through the whole procedure of making a purchase or 
using a service; rather than standing on the sidelines watching others。 
This is the methodology used in mystery shopping。 
。 Pure observation: Here the observer stays aloof from the situation under 
assessment so as not to influence it and so perhaps bias the findings。 
The great difficulty in carrying out this type of research is being able to 
record observations accurately。 Taking notes can be conspicuous and will 
almost certainly put those being observed on their guard。 
Interviews 
Talking and listening to people is the most basic and the most used method 
of conducting qualitative research。 Qualitative interviews can take several 
forms and can be incorporated into triangulation methods (see below)。 
These are the main interview types: 
。 Open…ended ad hoc conversations allowing interviewees to drive 
the discussion with minimum intervention by the interviewer; for example 
users of a product or service could be asked to give their feelings 
without being steered towards questions concerning satisfaction or 
dissatisfaction。 This approach can throw up issues that have not been 
explored by the researcher。
Quantitative and Qualitative Research and Analysis 257 
。 Open…ended interviews where the broad issues to be covered are stated; 
but the course of conversation is allowed to decide the order or ways in 
which questions are asked。 
。 Semi…structured interviews where the questions are largely planned in 
advance; with time le。。 for issues that arise mainly as a result of the 
conversation itself。 
。 Qualitative questions built into structured surveys and questionnaires; 
where the main thrust is to gather quantitative data。 For example; in an 
interview carried out to measure staff morale; questions such as ‘how 
do you feel about the new pay scale?’ could be interspersed with questions 
that gather quantitative data such as ‘do you now feel: 10% be。。er 
off; the same; 10% worse off?’。 
。 Cognitive interviews: These are used to test respondents’ understanding 
of the meaning of questions or statements and are eventually to be 
used in questionnaires; user instructions and manuals; for example。 
Qualitative interviews differ from surveys; for example in that t

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