Question

Margaret is engaged in a research project which involves 1,000 listed companies. Her research is based on a hypothesis that there is no significant difference between the discretionary accruals of large and small companies. Margaret hopes her research will provide insight to the practices of all companies around the world

a. State whether Margaret is using a naturalistic or scientific approach

b. Using the information provided, briefly outline at least 3 reasons to support your answer

Answer 1

A. It is a scientific approach towards finding something.

B. Becuse scientific approach involves

1. Making carefully measurements which involves tabulation or graphs or collection of statistical data which then can be correlated or other statistical tool can be used to analyse it. And here the data of 1000 companies are collected which makes it a scientific approach.
2. Forming question and Creating hypothesis. Hypothesis is a way of making a guess towards a possible answer of the question. Here there is a question raised and a hypothesis is created.
3. Predication. This method makes prediction of action and reasons towards the hypothesis, here she has made a prediction that here hypothesis will be useful for insight in the company and her hypothesis will involve questions with respect to this need.
4. Experiments. All the hypothesis questions and data collected are experimented in different ways and then a conclusion is drawn based on these experiments. The same will apply here too.