This document discusses defining the research problem, which is the first step of the research process. It is important to carefully select and formulate the research problem. This involves understanding the nature of the problem through literature reviews and discussions, then rephrasing it into specific terms such as a statement of the problem, research purpose, objectives, and questions. A good research problem should be socially and scientifically important. The researcher then develops hypotheses to test, which are tentative predictions about relationships between variables. The hypotheses will be statistically tested against decision criteria to determine whether relationships are significant.

1. Chapter Two
Defining the
Research Problem
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2. Research Problem
 Is the beginning activity of the research
process.
 Is the most difficult phase.
 Is the most critical step in scientific research.
 Reflects a gap in understanding.
 Is some difficulty which a researcher
experiences in the context of either a
practical or theoretical situation.
2

3. Cont…
 A problem is said be occurred if:
 The individual or the organization does not
know what course of action is best
 When the individual or organization is in doubt
about the solution
 Problem definition involves:
 Specifying the symptoms
 Itemizing the possible causes
 Formulating research problem entails asking a
previously unanswered questions for which an
answer is sought. 3

4. Cont…
 A research problem is a set of
conditions that need solution through
data collection and analysis.
 A good research problem should be
one that is socially and scientifically
important to investigation.
4

5. Sources of Research Problem
 Personal Experience of Practical Situation:
 Day to day experience/observation
 unresolved issues in the surrounding environment
 Previous Research and Related Literature
 Articles and journals, books, magazines and other
research outputs
 Indentify research gaps
 Current Social and Political Issues
Contemporary debates, concerns or movements.
Changes in social, economic, political, cultural aspects
Their impacts or influence can be studied
5

6. Cont…
 From Discussions with Peoples
 With friends, students, neighbors, workers of different
organizations, and with different members of the
society
 On various socio-economic, political issues.
 Personal Motivation
 An interest to know certain phenomena or events from
different perspectives
 Lack of Information
 If there is no sufficient or relevant information to
formulate policy in various issues and to make various
decisions 6

7. Components of Research Problem
a. There must be an individual or a group which
has some difficulty or problem.
b. There must be some objective(s) to be attained.
c. There must be alternative means (or courses of
action) for obtaining the objective(s) one wishes
to attain.
d. There must remain some doubt in the mind of a
researcher with regard to the selection of
alternatives.
e. There must be some environment(s) to which the
difficulty pertains.
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8. Selection of Research Problem
 The first step in the problem identification
involves selecting a research topic.
 Statement of the problem is generated from a
research topic.
 The research problem must be carefully
selected
 Problem must spring from the researcher’s
mind.
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9. Cont…
Points to be considered in selecting research
problem.
 Subject which is overdone/difficult task should not
be normally chosen.
 Controversial subject should not become the choice
of researcher.
 Too narrow or too vague/unclear problems should
be avoided.
 The subject selected for research should be familiar
and feasible
9

10. Cont…
 The importance of the subject, the
qualifications and the training of a
researcher, the costs involved, and the time
factor must also be considered in selecting
a problem.
 When the field of inquiry is relatively new
the selection of a problem must be
preceded by a preliminary study.
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11. Cont…
The research topic to be selected should be:
a. The one in which the researcher has an interest
b. The one that the researcher has the background
knowledge
c. The one that address felt need
d. The one on which enough materials could be
obtained
e. The one whose selection is justifiable on social,
scientific or policy grounds.
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12. Techniques of Defining a Research Problem
Involves the following general steps
i. Statement of the problem in a general way
(choice of research topic)
ii. Understanding the nature of the problem
iii. Surveying the available literature
iv. Developing ideas through discussions
v. Rephrasing the research problem into a
working proposition.
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13. Techniques of Defining a Research Problem
i. Statement of the problem in a general way:
 First of all ,the problem should be stated in a broad
general way.
 Then the researcher narrow it down and phrase the
problem in operational terms.
ii. Understanding the Nature of the Problem:
 Understanding its origin and nature clearly.
 The best way of understanding the problem is to
discuss it with those who first raised it. 13

14. Techniques of Defining a Research Problem
iii. Surveying the Available Literatures: -
 All available literatures concerning the problem at
hand must be surveyed and examined.
 It helps a researcher to know if there are certain
gaps in the theories or whether the existing
theories applicable to the problem under study.
 In reviewing literature, it is important to begin with
the most recent publications and work backwards.
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15. Techniques of Defining a Research Problem
iv. Developing Ideas through discussions:
 a researcher must discuss his problem with his
colleagues and others who have enough experience
in the same area.
 concerned with the general approach to the given
problem, techniques that might be used, possible
solutions, etc.
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16. Techniques of Defining a Research Problem
v. Rephrasing the Research Problem: - is putting the
research problem in as specific terms as possible.
 In rephrasing research problem, a researcher has to
narrow a research focus, and develop:
 Statement of the problem
 Statement of research purpose
 Research objectives
 Research questions
 Formulation of research hypothesis
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17. Statement of the problem
 It conveys the specific research problem, usually in a few
paragraphs.
 It should indicate:
the focus area of the research
researches done by other researchers in the area
including their findings
issues that are not yet assessed by other researcher
in the area (the knowledge gap)
difference in the findings of various researchers in
the area (if any)
the study area and the issues or subjects of research
Indicate the purpose of the study
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18. Statement of the problem
 A good research problem should be capable of
being stated in one major research question.
 E.g. Suppose that our title says:
 “Determinants of Microfinance outreach in Ethiopia”
 Then, our main research question might be:
 “What are the determinants of Microfinance outreach
in Ethiopia and how do those factors influence the
outreach of Ethiopian microfinance institutions’?”
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19. Statement of Research Purpose
 conveys the focus of the study and should be spelt out
in:
• clear,
• direct and
• unambiguous manner.
 It is usually expressed in a declarative manner, starting
with the phrase:
• The purpose of the study is …, followed by
neutral verbs such as, to investigate, to examine,
to compare, to explore, to find out , to inquire, to
determine, etc.
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20. Statement of Research Purpose
For example:
 Assuming the previous title, our purpose
statement might be:
“In the context of the problems
highlighted above, the purpose of the
study is to assess the factors that affect
microfinance outreach in Ethiopia.”
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21. Research Objectives
 Specify the issues or area of knowledge that
the researcher wants to examine or explore.
 One general objectives with number of
specific objectives
Research Questions
 Describe the ideas contained in a research
objectives in the form of questions.
 The questions have to be related to three
aspects: What, Why and How?
 What’ questions seek descriptions,
 ‘Why’ questions seek explanation and
understanding
 ‘how’ questions seek interventions to bring
about change.
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22. Formulation of Research Hypothesis
 Is a tentative prediction of the expected
relationships between two or more variables
that can be investigated and tested.
 Derived from a theory, previous research, or
professional experience.
 Until a hypothesis is tested against other
probable propositions, it cannot be accepted
as an answer
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23. Characteristics of Good Hypothesis
Capable of being expressed as a question.
Capable of being stated in a negative way.
Capable of being answered with a “yes”
and “no” or “may be.”
Should clearly show the relationship
between the variables under consideration
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24. Characteristics of Good Hypothesis
 Should be in line with the prevailing research
findings and theories.
 Should be testable: can be accepted or rejected
 Should be in agreement with:
research topic,
problem statement,
research questions and
research objectives.
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25. Types of Research Hypothesis
1. Alternative Hypothesis (H1) – is a researcher’s
proposition about some social fact.
2. Null Hypothesis (Ho) - is the reverse of research
hypothesis. It is a hypothesis of no relationship.
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H0 is true H1 is true
Accept null
hypothesis
Right Decision Wrong Decision
Type II Error
Reject null
hypothesis
Wrong Decision
Type I Error
Right Decision

26. FOUR STEPS TO HYPOTHESIS TESTING
Step 1: State the hypotheses.
Step 2: Set the criteria for a decision.
Step 3: Compute the test statistic.
Step 4: Make a decision.
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27. Step 1: State the hypotheses
 H1. There is significant positive relationship between age of the
institution and outreach.
 H2. There is significant positive relationship between percentage of
voluntary saving and outreach.
 H3. There is significant negative relationship between loan loss rate
and outreach.
 H4. There is significant positive relationship between operational
self-sufficiency and outreach.
 H5. There is significant negative relationship between inflation and
outreach.
 H6. There is significant positive relationship between real gross
domestic product growth and outreach.
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28. Step 2: Set the criteria for a decision
 How do we know whether a relationship between two
variables in an observed sample is significant, and
not a matter of chance?
 Establishing the basic guidelines for significance
testing.
 Statistical result may be considered significant if it
can be shown that the probability of it being rejected
due to chance is 5% or less.
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29. Step 2: Set the criteria for a decision
 In inferential statistics, this probability is called the
p value, 5% is called the significance level (α), and
the desired relationship between the p-value and α
is denoted as: p≤0.05.
 If the p-value is less than 5%, it means that we have
a 5% chance of being incorrect in rejecting the null
hypothesis or having a Type I error.
 If p>0.05, we do not have enough evidence to
reject the null hypothesis or accept the alternative
hypothesis. 29

30. Step 3: Compute the test statistic
Is a mathematical formula that allows
researchers to determine the
likelihood of obtaining sample
outcomes if the null hypothesis were
true.
The value of the test statistic is used
to make a decision regarding the null
hypothesis.
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31. Step 3: Compute the test statistic
Variable Coefficient Std. Error Prob.
C 4.295469 0.371387 0.0000
AGE 0.039662 0.009880 0.0001
OSS 0.154197 0.044153 0.0007
VS 0.048317 0.016309 0.0037
LLR -0.199491 0.279474 0.4768
GDP -1.606719 2.397460 0.5041
INFL -0.086239 0.182329 0.6371 31

32. Step 4: Make a decision
 We use the value of the test statistic to make
a decision about the null hypothesis.
 The decision is based on the probability of
obtaining a sample mean, given that the value
stated in the null hypothesis is true.
 If the probability of obtaining a sample mean
is less than 5% when the null hypothesis is
true, then the decision is to reject the null
hypothesis.
 If the probability of obtaining a sample mean
is greater than 5% when the null hypothesis is
true, then the decision is to retain the null
hypothesis.
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33. Step 4: Make a decision
In sum, there are two decisions a
researcher can make:
1. Reject the null hypothesis. The sample
mean is associated with a low probability
of occurrence when the null hypothesis is
true.
2. Retain the null hypothesis. The sample
mean is associated with a high
probability of occurrence when the null
hypothesis is true.
NOTE: Researchers make decisions
regarding the null hypothesis. The
decision can be to retain the null (p>
.05) or reject the null (p < .05).
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34. THE END
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