Question

What are exploratory and explanatory analysis? What is one important distinction to draw between these types of analysis? Why Does Design Matter in Finance and Accounting?

Answer 1

Exploratory research is an important of the business strategy. It is generally used to define company issues and areas of potential growth. The most common example of this research is taken in the form of questionnaire. Asking of questions provides better understanding.

Descriptive research is collecting information so that it is statistically inferred in population. The main idea behind this research is to define an opinion, behavior held by a group of people on a particular subject. This helps us to measure the importance of results regarding the opinion, attitude of people.

This type of research is to gain familiar with a phenomenon in order to formulate a precise problem or to develop a exploratory studies. Explanatory studies always look for explanations for different kind of relationships.

Exploratory research is the best of all the research types. This is because it helps for the outcome of new ideas. In the business environment this type of study will be the best for the outcome of new management technique. This would be the best technique before deciding or embracing the technique.