Reference no: EM132204674
Please read the following case and answer the questions followed by it.
The Enthusiastic Banker
Ms. Sarah De Silva is a bank manager and wanted to analyze the relationship between interest rates and bank deposit patterns of clients. She tries to correlate the two by looking at deposits into different kinds of accounts; Such as, Saving accounts, Fixed Deposits..etc., as interest rate change. Later, she was interested to determine the cause and effect relationship between the interest rate and the inducement if offers to clients to save and deposit money in the bank. She selected four branches within a 60 mile radius for the experiment. For one week only she advertises the annual rate for new certificates of deposit received during that week in the following manner: the interest rate will be 9% in one branch, 8% in another and 10% in the third. In the fourth branch, the interest rate remains unchanged at 5%. Within the week, she was able to determine the effects, if any of interest rates on deposit mobilization.
After the completion of first year of her employment as the Bank Manager, Ms. Sarah wanted to establish the casual connection between interest rate and the savings, beyond a doubt. Because of this, she wants to create an artificial environment and trace the cause and effect relationship. She recruited 40 students who are all business majors in their final year of study and are more or less of the same age. She splits them into four groups and gives each one of them chips that count for Rs.1000.00, which they are told they might utilize to buy their needs, or save for the future, or both. She offers them, by way of incentives, interest on what they save but manipulates the interest rates by offering a 6% interest rate on savings for the group 01, 8% for group 02, 9% for group 03 and keeps the interest at the low rate of 1% for group 04.
Questions;
What are the types of research designs that can be identified through the given case study? Explain them briefly.
Why is it important to consider basic design issues before conducting the study and even as early as at the time of formulating the research question? Support the answer using the given case study.