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**CHAPTER THREE ****RESEARCH METHODOLOGY**

**INTRODUCTION**

The process of this research is to analyse the credit management in the banking industry in Nigeria. A research according to Balsley and Clover (1982:2), “is the answers to significant and pertinent question by use of the scientific method of gathering and interpreting information”. On the other hand, methodology simply means method used in certain process of study. Research methodology therefore is a laid down process adopted in a scientific investigation to discover facts.

The methodology used is descriptive and analytic in nature to permit easy combination of ideas, facilitation of understanding as well as making it congruence to the research methodology.

This chapter in strict adherence to the above definitions attempts the methods with which this research intends to adopt in finding out facts on the subjects. This research shall be based on scientific method since it will enable the researcher to systematically conduct this study in such a manner that could be scientifically verified.

**RESEARCH DESIGN**

Nachmais and Nachmais (cited in Baridam 1995:49) posit that research design could be seen as the framework or plan that is used as a guide in collecting and analysing data for a study. It is knowledge of proof that allows the researcher draw inferences concerning causal relationship among the variables under investigation.

This study is made up of Quasi-experimental research otherwise called surveys. This is due to the complex relationship that exists among the variables. According to Baridam (1995:50) “in Quasa-experimental research, the various elements of the design are not under control of the researcher” This type of design is special suited to descriptive studies, which implies natural observation of the characteristics of the research subjects without manipulation of the research.

**SOURCES AND TECHNIQUES OF DATA COLLECTION**

Both primary and secondary data is to be used in this study. The main instrument or tool to be used in the collection of primary data is the questionnaire while the secondary data will be obtained from the works of other researchers.

The primary data was obtained by the researcher from the senior and other staff of the bank where the research was focused on, through the administration of questionnaire. The secondary data was collected through the library of The Central Bank of Nigeria, Enugu..

**DESCRIPTI0N OF POPULATION AND SAMPLE PROCEDURE**

The population of the study refers to the Banks. But since the researcher does not intend to study the population in this case, she has resorted to use sample size of forty (40). This is because it is only the people who are knowledgeable and also have the ability to influence decision in respect to the banking business that information may be obtained.

Consequently, a sample size of forty (40) persons was drawn from the population using a simple random sampling method. Apart from that, questions relating to the subject of the study were asked. Respondents were required to tick right against the letters they feel is correct and to give opinions where it is required. Out of forty (40) questionnaires distributed, only thirty six were completed and returned. However, this is a fair figure representing 90% of the total sample size. This percentage is acceptable because the researcher expected at least 75% in her assumption. Thus certain generalisations are made in the study.

**METHOD OF DATA ANALYSIS**

A frequency count of all responses obtained from the questionnaire in the question for testing are made using chi-square method. The responses are tallied under the following variables:

- Yes
- No
- No idea

A scientific method of data analysis was carried out and the data collected was presented in a table and the necessary computation carried out. The chi-square statistical method used was to aid the researcher to explain the data on the questionnaire. The questionnaire scale is based on the research hypothesis.

The chi-square denoted by the Greek letter X^{2} is frequently used in testing a hypothesis concerning the difference between a set of observed frequencies. A chi-square is a simple statistics (Osuala 1982:72). It is computed as follows:

X^{2}=∑(fo – fe)/^{2}fe, where the parameters are:

X^{2}=chi-square

Fo= observed frequency

Fe =expected frequency

Chi-square test is non-parametric statistical tool which can be conveniently used in testing hypothesis when dealing with discrete data, (that is, the data are not measured in testing hypothesis or ratio scale) and it is not possible to estimate a population parameter from the sample statistics using hypothesis.

In other words, the chi-square test deals with the application of data that is not on continuous scale of measurement. This implies that the sample data is the count for each category and is thus discrete data. The chi-square is particularly important in analysing data presented in the form of contingency tables of more than two categories as in the study.

**DETERMINATIONS OF CRITICAL VALUES**

In determining the critical values or table value, the appropriate number is given or compiled to be able to check up the corresponding value in chi-square using appropriate level of significance.

The degree of freedom is an important feature of the x^{2} distribution for the contingency test used. This is given as df=(r-1)(c-1) Where r = the number of row; C = the number of column.

The degree of freedom for data arranged in series where “n” is the number of observations.

In this case, the observations made are:

- Yes
- NO

The decisions criteria for accepting or rejecting the null hypothesis have the following characteristics.

The smallest possible number of x^{2} is zero. This will only occur when the observed frequencies are equal to the expected frequencies (that is fo-fe=0).

Therefore in all cause, x^{2} will have a positive value which increases as the difference between fo and fe increases.

Although, fo must be whole number, fe under chi-square(x2) must not be applied to percentage in analysis of any cause. The x^{2} test is always a one tailed test with distribution as shown in the diagram below

If a 50% or 0.5 significance level is closed in designing a test of hypothesis, what is mean is that we have a chance of five out of hundred that will reject the hypothesis where it should be accepted. In other words we are about 95% confident that we have made the right decision. In this case, we say that the hypothesis has been rejected at 0.05 level of significance; that is we can be wrong with a probability of 0.05.

Title Page

Approval Page

Certification

Dedication

Acknowledgement

Abstract

Chapter One

1.0 Introduction

1.1 Background Of The Study

1.2 Statement Of The Problem

1:3 Objectives Of The Study

1.4 Research Questions

1.5 Statement Of Hypotheses

16. Scope Of The Study

1.7 Significance Of The Study

1.8 Definition Of Terms

Chapter Two Review Of Related Literature

2.0 Introduction

2.1 Theoretical Review

2.2 Emperical Reviews

CHAPTER THREE Research Methodology

3.1 Introduction

3.2 Research Design

3.3 Sources And Techniques Of Data Collection

3.4 Descripti0n Of Population And Sample Procedure

3.5 Method Of Data Analysis

3:6 Determinations Of Critical Values

Chapter Four Data Presentation, Analysis And Interpretation.

4.1 Introduction

4.2 Presentation Of Data

4.3 Analysis And Interpretation Of Data

Chapter Five Summary, Conclusion And Recommendation

5.1) Introduction

5.2 Summary Of Findings

5.2 Conclusion

5.4 Recommendation

Questionnaire

Appendix

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AN ANALYSIS OF CREDIT MANAGEMENT IN THE BANKING INDUSTRY (A CASE STUDY FIRST BANK OF NIGERIA PLC. ENUGU.)