RESEARCH METHODOLOGY
MID-TERM ASSIGNMENT
Weight: 30%
DUE: OCTOBER 31 2024, BY 5 PM
Word limit: 3,000 words (± 10%)
Overview
In a team of 5 – 7 students, you are tasked with competing business projects by utilizing both
financial and non-financial data. You will present your findings in a compelling report for
management. This task aims to showcase your ability to understand data analysis processes and
apply quantitative models in a research setting. Additionally, the assignment requires you to create
a persuasive report using data visualization techniques to effectively communicate your analysis
and drive positive change within an organization.
Your team has been assigned to focus on one of the following sectors:
Team 1, 4, 7: Manufacturing
Team 2, 5, 8: Retail
Team 3, 6, 9, 10: Real Estate
Select a publicly traded company from your designated sector in any country, ensuring that there
is enough information or data available for the assignment. Not analyzing the specified sector will
lead to a 50% deduction from your assignment grade.
The first page after the cover page must include the names of all team members, along with
details of individual contributions in the team contract. Failing to present this information at the
start will result in a 1-mark deduction. Team contract template can be found at the end of this
assignment brief.
Note: All quantitative analysis must be conducted in STATA. The use of other statistical
softwares is NOT accepted. You must include your STATA codes that implement your analysis at
the end of your report. Failure to provide STATA codes will result in a deduction of 3 points.
Keep in mind you might be asked to run the codes during presentation.
The assignment involves creating a consulting report for a client who aims to improve their
business’ risk management and financial performance. The client has enlisted the help of a
consulting firm to analyze important aspects of their operations. The project will center on several
key causal relationships:
o Capital Expenditures (CapEx) and Net Income: you will investigate how strategic
investments in property, plant, and equipment can boost production capabilities and drive
growth in net income
o Interest rates and Net Income, Revenue, and CapEx: you will investigate how the rising
interest rates are impacting their business operations, financial stability, and overall
performance.
As a business consulting team, your team will perform quantitative analysis and compile a
consultation report for your client. Your report should include the following sections.
Task 1: Theoretical Analysis [1pts]
Utilize academic papers and research articles to explore the theoretical connections between the
following:
o CapEx and net income
o CapEx and revenue
o Interest rates and firm investment (represented by CapEx)
o Interest rates and firm performance (measured by net income and revenue)
In discussing these relationships, explain how and why: (i) firm investment and performance are
likely to be influenced by changes in interest rates, and (ii) net income and revenue may vary in
response to shifts in capital expenditure.
Task 2: Data Collection [1pts]
Collect annual or quarterly data for Interest rates, Net Income, Revenue, and CapEx.
When examining interest rates, utilize reliable sources such as the IMF, World Bank or central
banks. Ensure that the interest rate data matches the frequency (time unit) of the firm-level
variables, i.e. all quarterly or all annual.
You should have a minimum of 20 data points for each variable to enable a thorough analysis.
Describe your dataset. Explain how you process and prepare the data.
Task 3: Exploratory Data Analysis
3.1 Summary Statistics [1pts]
Generate summary descriptive statistics for all gathered data, including the mean, median, standard
deviation, maximum, and minimum values.
Discuss any notable insights from the descriptive statistics, emphasizing any trends or anomalies
that could be pertinent to your analysis.
3.2 Data Visualization [1pts]
Utilize suitable data visualization tools to demonstrate trends and patterns in the data you have
collected. Develop charts or graphs that effectively depict the relationship between interest rates
and firm-level variables collected.
Analyze and discuss the visualizations you produce, explaining what they reveal about the data.
Highlight any significant trends, correlations, or anomalies. Discuss how these insights correspond
with the theoretical expectations outlined in Task 1.
Task 4: Correlation and Causal Analysis [4pts]
Provide the correlation matrix for the variables collected. Discuss the correlational results
Conduct simple linear regression model to investigate the causal relationship between:
o Capital Expenditures (CapEx) and Net Income
o Capital Expenditures (CapEx) and Revenue
o Interest rates and Net Income
o Interest rates and Revenue
o Interest rates and CapEx
Write down the regression equations. Provide a table to show the output.
Interpret the regression results. Compare with the studies you discussed in Task 1.
Task 5: Recommendations [1pts]
Based on your analysis results, offer actionable recommendations for the client.
Task 6: Presentation of Results in a Dashboard [1pts]
Share the results of your team’s research using an informative and visually appealing dashboard
or infographic. Utilize the data visualization techniques covered in the course to create clear and
easily understandable visuals. Ensure that your visualization effectively communicates the
findings to the client.
TOTAL: 10 points
Team Contract Template
Please write the names of all of your group members, including yourself, and evaluate the degree
to which each member fulfilled his/her responsibilities for completing the group assessment report.
They must be on the first page team report, after the cover page. The possible ratings are as
follows:
Excellent (5) Consistently did what he/she was supposed to do, very well prepared and
cooperative.
Very Good (4) Usually did what he/she was supposed to do, acceptably prepared and
cooperative.
Good (3) Often did what he/she was supposed to do, minimally prepared and
cooperative.
Borderline (2) Sometimes failed to show up or contribute to group planning/report and
discussions.
Lacking (1) Consistently failed to show up or contribute to group planning/report and
discussions.
No Contribution (0) No participation at all.
NOTES: These rating should reflect each individual’s level of participation, effort, and sense of
responsibility, not his or her academic ability. It is up to the group to determine a fair process.
Rating is as follow:
5 pts-no deductions
4 pts -10% deduction
3 pts -20% deduction
2 pts -40% deduction
1 pts -60% deduction
0 pts -no contribution, no pts
Name Rating Explanation
