Four Comprehensive Exam Questions
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Hi Dear,
This is the continuation of comprehensive exam, question 3. This question is based on what you provided on the two previous questions. Please pay special attention to the three pars of the question. Additionally, I will provide my last paper regarding my research questions of my topic of interest below:
Introduction
The compensation of construction workers that is based on the prevailing wage and its consequent effect, positive or negative, on construction in general and specifically on affordable housing for senior inhabitants is the subject matter of this concept paper. The prevailing wage paid to construction workers for government-funded construction projects as compared to market rate compensation on privately owned and financed construction projects was the perceptible experience that is the basis of undertaking this study. Dunn, S., Quigley, J. M., and Rosenthal, L.A. (2005) emphasized on the prevailing wage law as factors in increasing the costs of construction. The costs of construction with market rate compensation to the construction workers seem to be lower than the prevailing wage. Carr (2008) stated that lowering high construction wages would lead to lower construction expenses and consequently more affordable housing. Carr (2008) also claimed the price of low-income affordable housing is already high; the application of prevailing wage creates an additional burden on the end users.
The objective of this investigation is to explore the effects of the prevailing wage versus market wage rate on the construction industry and in particular low-income housing for the senior populace. The cost efficacy of low-income housing construction for senior citizens constructed with the prevailing wage as a medium of payment to the workforce on construction projects is the target of this investigation. The factors that impact the affordability of senior citizens housing, when utilizing prevailing wage, are targeted in this study. The line of reasoning is about the elements that could have an impact on the affordability of low-income housing in general and the factors that influence the cost of affordable housing for seniors in particular when the prevailing wage is used in the course of construction. There is limited research directly related to the topic of this study, but a combination of past five years and older studies would serve the purpose.
Statement of the Problem
The elevated costs of construction have greatly decreased the production of affordable housing for seniors (Scanlon & Cohen, 2009). One of the most prominent causes for this decrease in production is the currently high construction wages. Lowering construction wages will lead to lower construction expenses and consequently more affordable housing for this vulnerable population (Carr, 2008). One of the major factors that affect construction cost is labor wage rate that when combined with other related elements will establish the construction cost. The senior affordable housing is the targeted picture of publically funded projects in which the high construction cost is the conclusion of many factors that have caused it. The high labor wage rate is one of the construction cost determinants among the list of other elements. Applying lower construction wages so as to have lower construction cost is the reasonable correlation between labor wage and construction cost. Some states have repealed the Act and some others have enforced it. Construction workers who are working on public construction projects that are compensated on prevailing wage standard in average receive $3.68 an hour more than the workers paid with market wage rate. This assumption may lead to conclusion that public construction could costs less without prevailing wage (Clark, 2005). The findings of a study showed construction costs amplifies considerably, ranging from 9% to 37%, when prevailing wage regulations utilized (Dunn, et al., 2005). The price of affordable housing is already high and applying the prevailing wage laws will create extra burden on the end users (Carr, 2008). Every state, district, and county may have their own prevailing wage laws, policies, regulations, and guidelines. Therefore, generalization of the topic of study should be contained within different states, districts, or counties.
Purpose of the Study
The purpose of this quantitative study is determine the effect of the prevailing construction worker wage on construction costs of affordable housing for seniors in California as compared to the market construction workers wage rate. Also, the affordability of affordable housing for seniors in California with the prevailing construction worker wage as compared to the market construction wage will be examined.
Research Questions
Q1. What is the effect of the prevailing construction worker wage on construction costs of affordable housing for seniors in California?
Q2. What is the effect of the market construction worker wage on construction costs of affordable housing for seniors in California?
Q3. What is the effect of the prevailing construction worker wage on the affordability of affordable housing for seniors in California?
Q4. What is the effect of the market construction worker wage on the affordability of affordable housing for seniors in California?
Hypotheses
Hypotheses for question one, are illustrated as follows:
H10. There is no relationship between the prevailing construction worker wage and the construction costs of affordable housing for seniors in California?
H11. There is a positive relationship between the prevailing construction worker wage and the construction costs of affordable housing for seniors in California?
H20. There is no relationship between the market construction worker wage and the construction costs of affordable housing for seniors in California?
H21. There is a positive relationship between the market construction worker wage and the construction costs of affordable housing for seniors in California?
H30. There is no relationship between the prevailing construction worker wage and the affordability of affordable housing for seniors in California?
H31. There is a positive relationship between the prevailing construction worker wage and the affordability of affordable housing for seniors in California?
H40. There is no relationship between the market construction worker wage and the affordability of affordable housing for seniors in California?
H41. There is a positive relationship between the market construction worker wage and the affordability of affordable housing for seniors in California.
Theoretical Framework
Stigler as cited in Oslington (2012) quoted Adam Smith when he stated that human being demeanors are to follow their own interest within competing environment. Naturally, human behavior is founded on the desire for competition. Since the childhood, individuals are either part of competing challengers or had desire to be competitive (if not practically, at the minimum dreaming of being better than others). Smith as cited in Evensky (2005) stated that self-love is the driving force within the market structure. Smith’s emphasis of market organization in his Wealth of Nations is around self-interest and self-love that drive the individuals to be better than their competitors and eventually profit more in cases of businesses. Smith, as cited in Bayer (2012), believed people will perform what benefit them through producing goods and services that are necessities to the public. The Wealth of Nations in which Smith asserted the theory of invisible hand of the market, works like a self-regulating device. As expressed by Smith a free marketplace economy is capable of taking its course routinely without needing government to interfere. Smith outspokenly challenged involvement of government regarding product regulatory enforcement, trade restriction, and labor law as it is understood market will take care of its issues. As suggested by Smith the mixture of the elements of self-interest, competition, and supply and demand are the components of invisible hand of the market, and believed these elements unavoidably are capable in resource distribution within the community (Bayer, 2012). Theoretical structure of this study is based on the theory of Smith’s market invisible hand.
Brief Review of the Literature
Examination of the prevailing wage laws have provided evidence that the prevailing wages are influential factors in increasing the costs of construction (Dunn, et al. 2005). The prevailing wage laws in the Unites States established as part of public policy at the federal and state levels since the first half of twentieth century (Prus, 1996). This means workers will be compensating with the prevailing wage rate when working on publicly funded construction projects. The available literature for the effect and impact of the prevailing wage on senior affordable housing is incredibly limited. There is no solid experimental study of the economic effects of prevailing wage in general and on senior affordable housing in California in particular. Although there are some researches in the subject of prevailing wage impact on the costs of senior affordable housing (Prus, 1996), there is a gap of understanding in the area of the impact of prevailing wage on construction costs of affordable housing for seniors. For higher understanding of the prevailing wage requirements, it would be better to start from early labor movement literature. Labor movement primarily began with requesting to have “eight-hour legal working day” (Yeagle, 1997, p.7). The movement led into three laws, the Davis-Bacon Act, Walsh-Healey Public Contracts, and the Service Contract Act (Yeagle, 1997). The Davis-Bacon Act law essentially enforces the wages and benefits of construction workers on the basis of prevailing wage rate (Price, 2005).
Subsequent to the impassionate political argument in October 2001, the legislature in California passed a bill in broadening the use of state’s prevailing wage laws to cover numerous construction projects that were not covered before; this include subsidized housing financed through public entity, and some of the privately owned construction project covered under this law (Dunn, et al., 2005). The policy argument and dispute will have an added heat by introduction of the new law, particularly in the area of subsidized low-income housing. Dunn, et al. also expressed in view of the fact that market wage rates are almost always lower than the prevailing wage rates. The extended application of this law could considerably increase the costs of public construction, conceivably to the extent that they may not be economically viable (Dunn, et al., 2005), which mean enormous impact on construction cost.
Low Income Housing Tax Credit (LIHTC) law has passed by Congress as to divert the problem of housing for low income citizens (Wright, 2003). Contractors pay nine to $12 for simple laborer and about $20 to $24 for skilled workers based on the market rate, comparing to union wages, market rate is half the amount (Kennedy, 1993). In order to have affordable housing it is required to lower high construction wages (Carr, 2011). Carr argues that the price of affordable housing is already high and having prevailing wage in effect, creates extra burden on the end users. As a result, production of affordable housing is reducing dramatically due to high cost of construction (Scanlon & Cohen, 2009). Scanlon and Cohen brought up this subject and compare the hard cost of a condominium in Manhattan with union labor versus non-union labor. In this regard hard cost of construction of condominium in Manhattan is about $450 per square foot (psf) with union wage rate against $300 psf with market wage rate (Scanlon & Cohen, 2009). In comparing union wage rate with prevailing wage rate the findings show that most of the requirements for both are the same with minor differences (Wilder, 2010). Opponents of union wage rate emphasize that union control the market power which in turn increasing pay rates (Bennett & Kaufman (2002).
The cost and quality of construction always debated between policymakers (Clark, 2005). The costs of projects run through Davis Bacon are 23 percent higher than the projects governed by the funding of private sector without prevailing wage application (Prus, 1996). The United States founded on competition that is the principal factor of capitalism, which in turns supported by anti-trust law (Leef, 2010). Leef claims that prevailing wage is against competition. The Florida’s low-income rental housing for senior citizen that is subsidized by government demonstrates the non-affordability of such rental housing (Golant, 2002). Construction cost analyses that are based on wage differences between market wage and prevailing wage are inappropriate, as many other factors in addition to labor wage are involved in construction cost. Therefore, the cost savings dialog that some investigators are claiming application of lowering wage will lower construction cost is uncertain and for this reason requires further investigation (Prus, 1996). The incentive for publically funded affordable housing called the tax-exempt bond program might not be sufficient in order to keep the construction cost down; also the prevailing wage may not be the reason for having lower construction production of low-income housing. However, there is no research literature emphasizing on California or other states’ prevailing wage necessities regarding correlation to construction cost (Newman, Blosser & Haycock, 2004). The school construction projects in the Washington State that had paid market price to the construction workforce would cost taxpayers 12.7% cheaper than when constructed under prevailing wage requirements (Washington Research Council, 1999). The Washington Research Council reveals that the market will lay down prices more efficiently than any authoritarian methodology even though well directed and managed. In other hand, decreasing prevailing wage rates will threaten the skill-centered construction industry of Pennsylvania State and will lead toward the opposite direction through which requires decreasing costs in a long run (Wial, 1999).
Literature Review of Experimental and Quasi-
Experimental
Looking for appropriate research design is the ground for this section of the literature review. The objective of experimental and quasi-experimental research designs is to test the effect of remedial function applied on a dependent variable (Kovera, 2010). Once the remedy methodically differs from other variable, it is referred to as the variables confounded, which denotes that the remedy effect is associated with other variables effects. Kovera also stated that although the target of performing an experiment is to have the effect of probable confounding variables under control by means of manipulating the independent variable and arbitrary allocation of partakers to the situation within the experiment that are still probable to have confounded variable in an experiment.
Random allocation of partakers to numerous treatments is the distinguishing factor of an experiment (Anderman, 2009). Random allocation to either an investigational group or a control group is among the elementary factors involved in the experimental approaches. In such case, investigational group would receive certain type of treatment while, control group will not receive treatment. Anderman also asserted when the treatment differs between the investigational (experimental) and the control group and this differences are controlled firmly, and when after the experiment measureable variances exist amid the two groups in which did not existed before the start of experiment, the researchers could then conclude the investigational manipulation was the cause for the differences.
The advantages of experimental design include investigator trying to eradicate unsolicited extraneous variables, controlling extraneous variables normally are better performed than other researches design (Kikishin, 2012). The methodology contains manipulation of independent variable in order to observe the influence on dependent variable, which provides a situation to discover the cause and effect correlation, and the sever conditions and controlling will provide a condition that experimenter can rearrange the experiment and repeat to check the outcome (Kikishin, 2012). Kikishin also denotes the Disadvantages of experimental design as extraneous variables cannot be removed in every instances of experimental environment as may not associate to real life events. Random assignment of participants to groups might be unethical or impossible, which would count toward the disadvantages of the design (Kikishin, 2012).
Independent variable is the corresponding balance to dependent variable (Fan, 2010). In contrast, dependent and independent notions are initially utilized as in mathematical logic, which denotes that dependent variable value alters as the value of independent variable changes (Fan, 2010). Fan also stated that independent variables in a research study are the variables that investigator can influence and control; while dependent variables are replies to the outcomes resulted from independent variables. Variable in the simplest form is measurement of some elements that embraces minimum of two separate values over the span of the research that partakers are involved (Brown, 2010). On the contrary, dependent variable is the outcome resulted from the deed of minimum of one or more independent variable (Salkind, 2010).
In an investigational and observational approach through data examination, control variable is counted as variables without having major emphasis on such variables, therefore establishes extraneous or confound variable that controlling or eliminating of its impact will be necessary (Pole & Bondy, 2010). The purpose of controlling possible confounder is to separate the influence of the exposure element over the concluding factors where decreasing or removing possible bias obtained through differences in the outcomes detected amid exposed and unexposed partakers that are determinable to the probable confounder. Control is realized once the possible confounder is incapable to differ between exposure groups and because of this the detected relationship amid the exposure and concluding result is independent from possible confounder. Pole and Bondy described the achievement of control in an example when chemical reaction rate is investigated and shows how it varies with different substances as exposures in the process. The researchers by keeping the rate of temperature constant in different substances under investigation will make sure that temperature differences will not affect the outcome of the series of experiments. A group within an experimental study that is alienated from the remainder of the examinational study that is testing the independent variable so as to prevent its impact is referred to control group. Through segregating the effect of independent variable of the research, every other clarification of the outcome of the experiment is eliminated (Pole & Bondy, 2010).
Reviewing Project Trade-Offs
There are three tradeoffs present in an experiment as follows (Wiley, 2009). First, there are unavoidable tradeoffs in experiments regarding blocking or to standardize conditions. When deciding to incorporate blocking in any experimental design, it is needed to iterate treatment on any of the experimental unit. Second, clarifying interpretation of multiple tests of a hypothesis undertaken. Just at the time of interest, emphasize on any instead of each for N number of probable responses, which would be the suitable time to adjust criteria for statistical significance of the outcomes. Third, misunderstanding regarding disadvantage of large experiments be corrected. There are possibilities of small biases even after randomization of treatments in experiments with considerable amount of sample size. As these small biases are hard for investigators to detect, therefore large experiments need special attention and examination (Wiley, 2009). Wiley asserted that these types of experiments could be justified only at the time the least amount of human involvement with highest amount of standardization is in place. In experimental design justifying unavoidable tradeoffs necessitate vigilant consideration at the time of attesting any experiment.
Theme/Sub-Topic
Knowing these facts leads to a question: Can public housing that are built under the term affordable housing, be really affordable? Affordable housing for seniors is the target of this paper so as to look for the effect of prevailing wage rate on affordability of such housing in California, and in general any construction project that are publicly funded. This research intends to answer five extensive questions as sub-problems:
1. The prevailing wage effect on production of affordable housing.
2. The prevailing wage effect on employment in construction industry.
3. The prevailing wage effect on government-subsidized rental housing for low-income seniors, and in particular California.
4. The prevailing wage effect on political inclination related to affordable housing.
5. The prevailing wage effect on anti-trust laws.
Research Method
The literature from the past researches and the directional guidelines of NCU (2013) concept paper template was the most valuable material and information to utilize for this concept paper. The Dissertation Journey presented broad walkthrough for development and writing a dissertation for novice researchers. Roberts (2004) emphasized on learners’ responsibility after graduations so as to have their research findings publicly shared and distributed for the use of other upcoming learners. As Leedy and Ormrod (2010) stated there are two main steps involved in descriptive quantitative research. Identifying the characteristics and attributes of a professed events or facts is the first thing to start with. The second one is to determine possible correlation between two or more events or facts. There are four foremost approaches to descriptive research. These are developmental designs, observation studies, survey research, and correlational research. In continuation of this assertion Leedy and Ormrod described that correlational research “examines the extent to which differences in one characteristic or variable are related to differences in one or more other characteristics or variables. A correlation exists if, when one variable increases, another variable either increases or decreases in a somewhat predictable fashion” (Leedy and Ormrod, 2010, p. 183).
Creswell (2005) designated that the correlational research is used when the purpose is to look for the presence of relation between two or more variables with the intention of discovering if they have effect on each other. This practice is best pertinent when scholars are capable of utilizing statistical data in calculating the correlation through statistical analyses. Creswell went on indicating that the two major correlation approaches are explanatory and prediction. The explanatory design is the one that the objective of examiners is to discover two or more variables named co-vary, which designates that the deviation applied to one variable will show deviation occurring in other variable(s). The researchers in the prediction approach are focusing on predicting the results through explicit variable named as predictors (Creswell, 2005).
When the relation between two variable exist, such as wage rate and construction cost, choosing the correlational research design for the topic of interest would be the most attractive and common sense to establish our research based on this phenomenon. The independent variable of labor cost and dependent variable of construction cost are the foundation for the research. In either case of increase or decrease in labor cost, in the form of the prevailing wage or the market wage, there could be raise or drop in construction cost that illustrates evidence of correlation relationship between the two variables. The prevailing wage as an independent variable may influence construction cost, positive or negative, and or a number of other variables. Exploring correlation relationship between the prevailing wage and other dependent variables assists in comprehension of such relationship. When Type I error considered in hypothesis testing, the statistical significance is accentuated on diminishing Type I error. This means with the assumption of null hypothesis being true, what would be the probability of rejecting it by mistake.
In this concept paper we established controlled research based on two groups of the prevailing wage rate and the market labor wage. Two groups of A and B were proposed. Group A presumes construction cost using workers with the prevailing wage rate, and Group B considered construction cost using workers with the market labor wage. We also assumed to study Group A for the situation that the prevailing wage is applied as compared to the application of the market wage, then examining causes of higher cost of construction. Next moving to analyzing the causes that if it is because of the chance or having the higher prevailing wage as compared to the market labor wage rate. We as well assumed the case if the Group A of construction cost with the prevailing wage to be either a little lower or higher than that of Group B of the market wage. In such case having the prevailing wage rate or the market wage causing the impact on the construction cost are not probable, since the two groups of events would probably have small differences due to the random selections. In the same manner, if there are a small number of participants in the investigation, having the outcome by chance are more probable. For the purpose of determining statistical significance we depend on the actual rates of labor costs in each of the two groups as well as the number of partakers in each group. These processes will be repeating for the other three pair of hypotheses as well.
Operational Definition of Variables
Construction costs principally consist of cost of land, hard costs, soft costs, and developers’ profit. Fundamentally, hard costs include the cost of labor and material. While soft cost comprise of the cost of financing, insurance, professional fees, and the cost of complying with codes, regulations and environment (Scanlon & Cohen, 2009). Therefore, major variables in the construction can be classified as land, labor rate, material, and funding. Land can be measured under nominal scale in that land is categorized to those that have views, which can be further divided to hill side view, ocean view, lake view, water front, flat land, and steep hill side lands.
Labor rate as the second variable in our list is measured with interval scales, and depending on the type of funding (publicly funded projects either totally or partially are subject to prevailing wage or union rate), prevailing wage, union rate, and market standard pay can be analyzed precisely through this method of measurement. Material is the third variable in our inventory. Any data that orders are based on species, grades, levels, and strength, are best suited to place them in the ordinal scale of measurement. Building materials are classified under species, grades, strength, levels, and structural features, are the best example of ordinal scale of measurement. Finally, funding that is the groundwork of any construction project is based on time, mathematics, accounting, and related ratios. Hence, the best suggestible scale of measurement for funding variable is ratio measurement.
Construct/Variable 1.
A moderator variable affects the direction and or power of the association between independent variable and dependent variable (Petty, 2006; Bauman, et al., 2002). To clarify moderator and mediator variable in the scenario of this study, it will be appropriate to start with couple of examples. The extension of the application of prevailing wage requirements to construction workers working on subsidized low-income housing projects (Dunn, et al., 2005) is the moderator variable. Generally, researches reach to a level for examining relationship between theoretical constructs through measurement of variables that are matching up with the said constructs and monitoring statistical correlation between the variables. This study emphasizes on current legislation in California that prolonged the application of prevailing wage law and its requirements to subsidized low-income housing projects, mandating prevailing wage payment to construction workers employed to build such housing (Dunn, et al., 2005).
The effect of the initiating and spreading out the prevailing wage regulations over the cost effectiveness of construction of public schools in British Columbia was examined (Duncan, et. Al., 2012). The key constructs in this study was the prevailing wage regulations, construction cost inefficiency, and best-practice cost frontier. The prevailing wage is taken as the cause and construction cost inefficiency as the effect. The moderator variable in this study would be the impact of this law on total construction cost. On the other hand, the reasons and the way prevailing wage have impact on the construction cost is the mediator variable in the study (Duncan, et. al., 2012).
Knowing construct of similar projects will assist in pin pointing the moderator and mediator variables of this study. For the topic of this study, the variables, the level of measurement of the variable, and how each variable will vary are classified below:
1. Land: Nominal, Ratio, and Interval
1.1. Land purchase: Interval scale of measurement (Ratio can also be used)
1.2. Land development cost: Interval scale of measurement
1.3. Land location: Nominal scale of measurement (Ordinal can also be used)
1.4. Views: Nominal scale of measurement
1.5. Terrain/Topography – Ratio and Interval scale of measurement
2. Labor rate: According to the exhibited table below:
Variable Name Level of Measurement
1 Direct labor cost Interval –
2 Fringe benefit cost Interval Ratio
3 Worker’s compensation cost Interval Ratio
4 Medicare cost Interval Ratio
5 Group (health, life and accident) insurance cost – Ordinal
6 Retirement benefit cost Interval Ratio
7 Sick leave cost – Binary
8 Vacation cost Interval Ratio
9 Social security cost Interval Ratio
10 Mandatory safety training cost Interval Ratio
11 Perk cost (Daycare and tuition reimbursement, etc.) – Nominal
3. Material: Nominal and Ordinal
4. Costs: Ratio, Interval
1.6. Financing costs – interval and Ratio scale of measurement
1.7. Insurance cost – measured with Ordinal scale of measurement
1.8. Professional fees – measured with Interval and Ratio scale of measurement
1.9. Cost of complying with codes – Nominal and Interval scale of measurement
1.10. Cost of regulations and environment – Interval scale of measurement
1.11. Cost of political issues and changes – Ordinal and interval scale of measurement
1.12. Cost of applied taxes – Interval and Ratio scale of measurement
5. Project Time: Ratio and Interval measurement
In this section the two research method design of experimental and coorelational are defined so as to perceive the better fit for the topic of interest. Several times I switched between the two methods of experimental and correlational as either technique practically could apply to the topic of my interest. According to Field (2009) in correlational study observation of the events occurs without straightforwardly manipulating it. While, in experimental examination variable is influenced to observe its consequence on another variable. Lastly the correlational research method looks more logical for the topic of interest and has no manipulation of variables and would demonstrate real variation in different selected samples. Exploring construction costs are about real numbers and are best to study any variation with no manipulations of the samples (Field, & Mills, 2010).
In statistics, when it is referred to population it means a certain group that are under study or information are being gathered about them for further decision making based on information collected. A proportion of the group under study or in other words randomly picking a section of population with all its characteristics referred to as sample. Random samples contribute to generalization of population under study (Field, & Mills, 2010). The construction cost is generally high, and when manifold of projects are studied for the investigation intentions, the projects’ costs of study will go skyrocket that would not be affordable by any researcher, unless being supported by grant or some kind of government assistance. Because of this fact, it is suggested to produce a list of constructors and developers that have performed a number of projects in the past five years. These projects will be used in this study. The projects under investigation in this study will be categorized based on the financial sizes of the project. Then, five levels of projects scoring of $100,000, $500,000, $1,000,000, $10,000,000, and over $100,000,000 will be produced that are tabulated and illustrated bellow:
Project Size Sample Size Prevailing Wage Samples Market
Wage Samples
$ 100,000 60 30 30
$ 500,000 30 15 15
S 1,000,000 20 10 10
$ 10,000,000 14 7 7
$100,000,000 and more 6 3 3
Measurement
The pre-acquired list of builders, contractors, and developers will be contacted to obtain their consent regarding participating in the research. The sample size as illustrated in the table above could be 60, 30, 20, 14, and six correspondingly. The selected and consented companies will arrange for information gathering regarding their most recent project completed. The samples are divided into two groups of projects in each category of the prevailing wage and market wage rate. The wage rates will serve as independent variables accordingly. This will decrease massive amount of examination and its resulting observation costs, as studying projects that already completed in the most recent year are going to serve the purpose. Observing and inspecting projects under construction at the same time require several observant to record their findings within which the cost of so many personnel is horrendous. While, randomly selected companies with their latest completed project will serve the research needs in the same manner as would have started from ground zero without any manipulation of numbers. A hypothetical matrix prepared below with various probable covariate that could possibly have impact on the construction cost as dependent variable.
Contractor’s Name Date Established No. of Employees Payment Schedule Wage Rate of Non-skilled Workers Benefit Paid to Workers Mandatory Safety Training Cost Sick Leave Cost Vacation Cost Social Security Cost Const. Cost per square foot
Ridge Homes 07/25/89 38 MW Rate 8.5 3.4 0.68 0.085 0.85 0.85 $ 205
Market Builder 08/12/99 17 MW Rate 10 4 0.8 0.1 1 1 195
On-Price Home 03/03/85 25 MW Rate 9 3.6 0.72 0.09 0.9 0.9 185
Logical Corp. 02/10/01 32 MW Rate 10 4 0.8 0.1 1 1 215
Cheap Homes 10/02/02 21 MW Rate 9 3.6 0.72 0.09 0.9 0.9 200
Picky Homes 01/15/02 37 PW Rate 34 20.4 2.72 0.68 3.4 5.1 285
Ridicules Builder 07/23/85 31 PW Rate 32.5 19.5 2.6 0.65 3.25 4.875 270
Stimulus Building 03/01/01 24 PW Rate 33 19.8 2.64 0.66 3.3 4.95 300
Suspicious Homes 02/25/98 20 PW Rate 35 21 2.8 0.7 3.5 5.25 290
Expensive Builder 09/10/88 23 PW Rate 32 19.2 2.56 0.64 3.2 4.8 325
Nominal Nominal Ordinal Binary Ratio Ratio Ratio Ratio Ratio Ratio Ratio
Ranges Range = Range = Range = Range = Range = Range = Range = Range =
21 26.5 17.6 2.12 0.615 2.65 4.4 140
Where: Market Wage = MW, and Prevailing wage =PW
During the course of acquiring the charges for the test statistics, when getting to the value that is less than 0.05 commonly we accept the examination of hypothesis as true, which means an effect exist in population. This terminology is normally stated as significant effect. On the other hand, when the effect is not substantially large and is more of a chance in its occurrence, then it is called non-significant result (Field, 2009). Then, p-value that is the probability value and resulted after test statistic is calculated. When we set alpha at 0.05 and the p-value found smaller than 0.05 (alpha) then we conclude it is statistically significant, with the same analogy when alpha is considered as 0.01then the p-value must stay smaller than 0.01 to consider the condition as statistically significant. Principally, p-value must be smaller than alpha in order to consider it statistically significant in which case we reject the null hypothesis and this is the time to call there is a difference between the groups (NCU, 2010).
As acknowledged by NCU (2010) statistical inference is constituent of business statistics when estimating a population stricture anchored in a statistical sample. Hypothesis testing is a significant part of statistical inference. When performing hypothesis testing, the identified population stricture related to the hypothesis will be confirmed to be true only if enough sample evidence is available. The denial or confirmation of the validity of the suggested hypothesis can be judged thereafter. Any information within a sample is subject to sampling error. Based on this statement, a sample mean more or less undeniably will not equal the population mean. Therefore, a testing process need to be applied that integrates the probabilities for sampling error. There are two potential error that can happen at the time of hypothesis testing due to probability for tremendous sampling error that are referred to as Type I and Type II errors. Type I error is defined as rejecting the null hypothesis where it is actually true. Type II error is identified as failing to reject the null hypothesis where it is actually false. The argument that many statisticians unanimously agreed upon is that the expression accept the null hypothesis should not be used at all. The term do not reject the null hypothesis should be used in its place. Therefore, reject H0 or do not reject H0 should be the only two testing decision on hypothesis to be made (NCU, 2010).
The correlational design is quite simpler than other experimental research approaches as there is no control group to deploy. A correlation illustrates the existence of positive or negative relationship between two or more variables. In such case, the weakness of the design could be that the verification of cause and effect would not be possible, as it is not known which variable comes first. Another alternative approach that would work with our scenario is the survey design a quantitative research that includes assembling of information from one or multiple group of people, their opinion, feature, or past experiences, and placing them in a matrix for in-depth examination. Leedy and Ormrod, (2010) stated that for this type of research design, a number of questions are presented by the researchers from consented partakers and then summarizing the answers and placing percentage to the responses. Then, setting number of frequencies of the replies, or employing statistical index. This procedure is used for survey research as to determine the answer required in the study about certain population through responses received via sample of that population (Leedy, & Ormrod, 2010). This research approach could be another design to use in the topic of interest that would work decent. In my opinion for every 100 questionnaire sent out, receiving 10% responses would be considering optimistic. In the range of $ 100,000 projects we may find thousands of builders and contractors. Whereas, the higher the range of project budget size the lesser number of constructor exist. This design is less costly as compared to the correlational approach, but has a weaker status regarding logical explanation compared to correlational design.
Summary
The productions of affordable housing for seniors have significantly decreased because of high costs of construction (Scanlon & Cohen, 2009). The high cost of construction wages are one of the major elements in the reduction of such housing. Lessening construction wages will lead to lower construction expenses and consequently more affordable housing for these susceptible citizens (Carr, 2008). Among all others, one of the major factors that influences construction cost is labor wage. The construction of affordable housing for seniors was the target of the study when are publically funded.
The intention of this quantitative study is to determine the impact of the prevailing construction worker wage on construction costs of affordable housing for seniors in California as compared to the market construction workers wage. Additionally, the affordability of construction of low-income housing for seniors in California with the prevailing construction worker wage as compared to the market construction wage will be scrutinized. In order to collect data for this study, it is suggested to construct a list of constructors and developers that have performed several projects in the past five years. These projects will be used in this study for information gathering. The projects under investigation in this study will be categorized based on the financial sizes of the project. The chosen and consented builders will cooperate for collecting information concerning their most recent project accomplished. The samples are divided into two groups of projects in the prevailing wage and market wage. The wage rates will serve as independent variables correspondingly.
References
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SAMPLE ANSWER
Four Comprehensive Exam Questions
Question One
Introduction
Theories contribute significantly to the guiding of research/study and organizing and creating sense of findings of a research. This paper is divided into three Parts. Part I focuses on the scholarly views on the nature and types of theories, and offering a comparison and contrast of three scholarly views of what constitutes a theory. Part II focuses on revealing the scholarly literature on the association between research and theory. This part also addresses three through which research contributes to theory. Part III of the paper explains how grounded theory contributes to the reader’s understanding of my research topic. Consequently, this part proceeds to discuss and analyze two controversial areas that are associated with the grounded theory.
Part 1
Scholarly Views on Nature and Types of Theories
Examples of theories include deductive, inductive and grounded theories. Deductive theory is based on reasoning on one or more statements with the aim of reaching a logical conclusion. Inductive theory involves the movement from specific observations to the broader or wider generalizations of assumptions (Cameron, 2013). Grounded theory refers to the method of research/study that can help the researcher develop an assumption on the principle concern of a community or population being investigated, and how the concern can be processed or resolved. This theory can be employed in explaining my research as will be shown in Part III of the paper.
Various opinions exist concerning what constitutes a theory. Some researchers define theory as the association/relationship between variables, while other refers to theory as an abstract (Gelso, 2006). Other researchers such as Wacker refer to theory as a trial and error, as opposed to a systematic examination/investigation. Moreover, other authors argue that a theory reveals clearly how it is measured. As a framework for evaluation, a theory should manage to address all the primary questions that a researcher aims at answering such as what, who, where, why and when. In relation to this, it can be argues that the measurable or quantifiable dimensions of a theory arises from data and research (Amseus, 2014). Some of the measurable aspects of theory are the relationship between describable and observable data. According to Wacker, a theory refers to the association among units that can be observed in an empirical manner. Besides, this scholar adds that as sound theory aims at explaining why and how certain associations lead to certain events/phenomenon (Wacker, 1999). Some researchers such as Harlow argue that a theory is not a global or a fixed notion, but tends to evoke series of constructs. Furthermore, this researcher argues that a theory can be employed in determining a law. Modern psychology takes into consideration a broad range of use of the term theory. These uses are aligned in different levels in relation to how the term is employed in scientific explanation (Stam, 2010). As such, the establishment of theory within psychology relates directly to the manner in which methods have prepared and dispersed. Taking these aspects into consideration, it can be noted that theory differs from elements such as concept, model, paradigm and hypothesis.
A concept refers to the components or constituents of the thought, while a model refers to a composition of concepts that are employed in making individuals comprehend certain phenomena. On the other hand, a paradigm refers to a framework that contains all the accepted views concerning a given topic, the format of the directions that should be adopted by a research and how the research should be executed (Mercer, 2014). Hypothesis refers to an informed or educated guess concerning the ways in which things work. It can also refer to the tentative/uncertain statement about the association between two variables.
Comparison and Contrast of three Views of what constitutes a Theory
The views presented by researchers about what constitutes a theory have similarities and differences. Taking this aspect into consideration, three views that can be compared and contrasted are reductionism, realism and instrumentalism. According to the view of reductionism, theories are considered reducible to observables. Realism considers theories as statements about events that exist in the real sense (Mayer, 2013). On the other hand, instrumentalism argues that theories are employed as tools of executing operation or performing thing in the world.
The three views on theory contribute significantly to the establishment of theory in the scientific discipline. Reductionism and determinism can be employed in the comprehension of theory development within psychology (Stam, 2010). As a view on theory, reductionism targeted at observable vents/phenomena. This view strives to explain and describe events and to distinguish whether such phenomena are physical or not. In addition, this view focuses on explaining and describing whether events can be accounted for within the context/realm of scientific theory or not.
Being connected to reductionism, determinism is perceived as an account of results of theories. In relation to this, determinism argues that for a given set of conditions, there exists a single outcome (Stam, 2010). As such, determinism and reductionism act a perfect reflection of methods/ways of delimiting the description of events or phenomena. According to instrumentalism, a theory refers to a tool that can be employed in comprehending the world. This view argues that the significance of a theory is founded on how effective it is to predict an event or phenomenon, as opposed to how such a theory illustrates objective reality.
While the view of instrumentalism focuses on events that exist, the view of realism focuses on finding or identifying deliverables beyond what can be observed, and establishing the knowledge that is applicable beyond a theory despite a theory being employed in grounding knowledge. Moreover, realism argues that in a situation in which there exist several explanations for a single event or phenomenon, only one out of the various theories and hypotheses can be true. In relation to the view of scientific realism, characteristics such as warfare, differentiation, parsimony and theoretical specifications are perceived as components of good theory (Gelso, 2006). Contrary to the realism view, instrumentalism focuses on the presentation of an antirealism view. Instrumentalism considers theories as devices, instruments or tools that allow scientists to move from a set of statements to observations that are predictable. In addition, while the view of realism focuses on theory validation to a greater extent, instrumentalism focuses on the aspect of discovery. Instrumentalism perceives a good theory as an outcome or product of integration. On the other hand, realism focuses on the aspect of precision.
Instrumentalism, realism and reductionism argue that a theory should be focus on addressing significant practical issues to clarify complex events or phenomena. As a result, the three views on theories have been integrated in several ways within the psychological theory (Naor & Coman, 2013). Among the three views, both instrumentalism and scientific realism have impacted significantly on mainstreaming psychological discipline theory. The integration of the two views in the psychological theory resulted from the need to establish valid theories such as those witnessed in the psychological discipline and science. In relation to this, the discipline of psychology has adapted characteristics that are promoted as components of good psychology such as delimitation, internal consistency and integration (Gelso, 2006). Within the realm of psychology discipline, instrumentalism happens to be more process-driven, and aims at identifying significant theoretical systems/ or frameworks for localized phenomena. Recently, psychology advocated for the adoption of views related to non-reductive materialism. In relation to this, materialism presents a platform on which some features or elements cannot be reduced to physical properties (Harlow, 2009). Examples of such elements include functional, informational, cultural, mental and linguistic features. In psychology, theory has embraced the need to provide an explanation for unobservable events such as cultural, mental and functional elements among others.
Part 2
Scholarly Literature on the Relationship between Research and Theory
The association/relationship between research and theory can be explained by focusing on the various research designs that are employed in developing different types of theories. As mentioned in part 1, there exist three types of theories that include descriptive, explanatory and relational theories. There exists a robust relationship between descriptive research and descriptive theory. Descriptive theories focus on the classification of specific characteristics or dimensions of groups, individuals, events or situations (Mercer, 2014). This goal is accomplishing by the summarization of the commonalities existing in discrete observations. As such, these theories often state the aspect of what is? Besides, these theories are often required when there is inadequate knowledge about the phenomenon being investigated.
There are two categories/forms of descriptive theories, which include classification and naming. A classification theory is more elaborate than the naming theory. This theory states that the characteristic or dimensions of a certain phenomenon are interrelated in a structural manner. These dimensions may be overlapping, mutually exclusive, sequential or hierarchical. As such classification theories are often known as taxonomies or typologies (Cameron, 2013). On the other hand, a naming theory refers to the description of the characteristics or dimensions of some phenomenon.
Descriptive theories are created and tested using descriptive research. This form is also known as exploratory research, and it is aimed at answering questions like:
What is this?
What are the existing features of the real world in relation to the mentioned question? Descriptive research/study may or may not employ an empirical method. Non-empirical mechanisms include historic and philosophic inquiries (Mercer, 2014). Historic research is targeted at describing an event/phenomenon that happened at an earlier time. On the other side, philosophic inquiry classifies and describes an event/phenomenon via a critical discussion.
An example of descriptive research that employs empirical methods is the observation of an event its natural setting. In these forms of research, data are often collected by non-participant or participant observation. Besides, data can be gathered by questionnaires, structured interview schedules or open-ended interviews. The raw data collected is a descriptive research may be quantitative or qualitative (Cameron, 2013). The analysis of qualitative research may be conducted using content analysis. This technique is employed in sorting data into categories that may appear during analysis. It can also be employed in sorting data into priori categories. Quantitative data are evaluated using various parametric and non-parametric measures of variability and central tendency.
Empirical descriptive research covers case studies, phenomenological studies, ethnographies, grounded theories and surveys. Case studies are systematic and intensive investigations of several factors for a few individuals, community or group. Phenomenological studies produce descriptions of human experience. Here, Investigators often collect data without priori identification of terms or preconceived expectations. As such, emphasis is place on comprehending people’s subjective and cognitive perceptions, and how such perceptions impact on behavior (Cameron, 2013). Surveys yield accurate and factual descriptions of intact events/phenomena. In the real, sense surveys employed structured instruments in gathering data. However, they may also takes into consideration the use of open-ended questions in such instruments.
There also exists a robust relationship between correlational research and relational theory. Relational theories focus on the specification of the relations that exist between dimensions/characteristics of situations, events, groups and individuals. These theories focus on explaining how parts of events relate to one another. As such, these theories can be established after the identification of the essential dimensions of an event. Relational theories are established by correlational research (Mayer, 2013). This form of research often focuses on answering questions like:
What is taking place here?
At what level do two dimensions tend to happen together?
Correlational studies employ empirical method. Such studies always need the measurement of the dimension of events in their natural settings. Surveys and interviews are the common methods employed in these studies. The collection of data is often accomplished by self-report measures and non-participant observation. Contrary to descriptive study, correlational research often employs instruments such as fixed-choice observation rating scales, checklists and standardized questionnaires. The accomplishment of this goal is often enhanced by the fact that characteristics or dimensions are known (Mercer, 2014). These techniques always yield quantitative and qualitative data. Since data must be attached to un-interpreted data to allow for the calculation of correlation coefficients, qualitative data should be categorized, and numbers assigned to those categories.
Experimental research and explanatory theory have a strong relationship. Explanatory theories supersede relational statements. As such, they focus on the prediction of associations existing between dimensions of phenomena. They also aim at predicting the dimensions of differences between groups. Explanatory theories produced and examined by experimental research. This form study always asks questions like:
What will occur if…?
Is treatment B different from treatment C?
Experimental study employs empirical mechanisms of experimentation (Bradbury-Jones & Caroline, 2014). It takes into consideration the manipulation of some events to determine its impacts on some characteristics or dimensions of another phenomenon/event. Experimentation consists of several different designs with the inclusion of pre-experiments like pretest-posttest-no control group design.
Three Ways through which Research (Quantitative and Qualitative) Contributes to Theory
Ways through which research contribute to the development of a theory are manifested in the observations, research design, case studies and hypothesis testing. Research contributes to the development of the theory via observations. In research, observations impact significantly on theories. Observations can lead to the changing of a theory when the events under observations are not in line with the theory applied in the research. Moreover, observation can lead to the confirmation of a theory in case the events being investigated are in line with theory on which the research is established or founded (Harlow, 2009). Theories often change to match the observations that are being investigated. In this way, it can be argued that a research has a greater impact on theory than the impact the theory can have on it. Research serves to influence the theory, as opposed to the theory influencing the research. In order for researchers to accomplish their objectives, they should engage in an active quality control. Besides, researchers should ensure that they monitor the relationship between observations and theory so that they can manage to tell whether the two elements match or not. In a case observations and theory do not match, researchers should ensure that they adjust the theories on which their research is founded. One of the principle aims of researcher is to ensure that observations and theory correlate. This goal can be accomplished verifying observations followed by the determination of whether the verified observations match the selected theory. The success of a research is determined by its ability to prove or disapprove a theory. Researchers should note that theories are subject to delimitation. In relation to this, a theory can be delimited based on the aspects or dimensions of the issue being investigated (Harlow, 2009). For instance, the type of the study that has been conducted in reference to the problem under investigation can lead to the delimitation of a theory.
Research also contributes to the development of a theory via research design. Taking into consideration the research’s theory driven aspect, it can be noted that research can help in the construction of a theory. A research design affects several factors such as the association of theory construction, results of empirically based research and observed. Some of the methods and research designs that are employed in psychology are qualitative, quantitative, case study and mixed methods (Levis & Ellis, 2006). Every method of research is composed of many different tools, which can be applied in research questions. As such, the methodology of a study should focus on addressing aspects of how, where, why, when and what.
Inductive and deductive research methods determine the approach to be adopted for a research, research question’s data and research goal (Mercer, 2014). It is advisable that researchers employ mixed methods when executing their activities as such an approach ensures that they draw suitable strategies from the two methods (inductive and deductive research). These methods are vital in ensuring that researchers draw appropriate strategies from them.
Case study research and hypothesis testing contributes significantly to the establishment of a theory. While testing for hypothesis takes into consideration the testing of a single statement/account from theory against various observations, case study research focuses on the comparison of several statements to observations. In relation to this, case study research points out the matching of an observation to theory, and how such a theory can predict aspects of certain cases in an adequate manner (Mayer, 2013). Furthermore, case study research relies on many contacts between each theory and each case.
Case study research plays a vital role in the establishment of a theory. Contributions from case studies often provide new data. In established areas, case study research often contributes to incremental advances/developments in the works of previous theorists (Naor & Coman, 2013). Novel evidence that is obtained from case studies can offer theoretical insights, which can be employed in confirming or denying existing theory. In this manner, theoretical contributions establish the knowledge foundation of disciplines.
Grounded theory has been noted to relate the initial question to the course of doing research. Grounded theory refers to an iterative course in which the establishment of the theory and data gathering build on each other. Research always starts with the raising of questions that do not remain static or confine, but help in yielding the research. As such, researchers often operate from a center of theoretical concepts that are employed as baseline in adjusting and asking questions (Levis &Levis, 2006). Thus, research contributes to the establishment of a theory in a direct manner via the creation of linkages between data.
Part 3
How the Grounded Theory adds to the Reader’s Understanding of my Research Topic
Grounded theory can contribute to the reader’s understanding of my research in several ways. First, this theory ensures that the readers develop a deep understanding of the main concern of the issue being investigated in my study (Higginbottom & Lauridsen, 2014). For example, this theory enables the reader comprehend the effect that the prevailing construction worker wage has on the costs of constructions of affordable housing for seniors within California in relation to the workers’ wage rate of market construction. Here, the principle concern is the effects of the prevailing construction worker wage on the expenses of affordable housing for seniors. Besides, the theory will also help readers comprehend or relate how Adam Smith’s invisible hand of the market, which is the base of capitalism, can help determine the market rate compensation that should be paid to construction workers, as opposed to the existing wage (Bradbury-Jones & Caroline, 2014). Second, this theory ensures that the reader develops a deep understating on how the process of data collection was achieved in my study (Cameron, 2013). My study is a qualitative research. As such, the reader can manage to comprehend the method employed in gathering data, which in turn help the reader understand the data evaluation mechanisms employed in accomplishing the objectives of the study. This theory offers a guideline on how data analysis is executed by the researcher, which helps in enhancing the reader’s understanding of the entire data analysis process (Mayer, 2013). Third, grounded theory ensures that the reader understands the structures of the existing construction worker wage via constant process of comparing it to affordable housing for seniors. This process enables the reader to understand the effects that result from the relationship between the two variables (Mello & Flint, 2009). As such, the use of grounded theory in my researcher is significant in eliminating confusions or problems that readers may encounter as they attempt to understand my research.
Discussion and Analysis of Two Controversial Areas associated with the Grounded Theory
Grounded theory’s approach to methodology happens to face controversy. Researchers who are new to the use of this theory can experience problems in comprehending various elements associated with this approach to research methodology (Amsteus, 2014). Besides, the existence of various versions concerning the theory’s approach to methodology can prove daunting to researchers who are new to this theory. Learning and comprehending the differences existing between the grounded theory’s methodologies can be equated to the learning of an individual’s research philosophy, which is always the determining factor in the selection of a methodology. The problem associated with learning various methodologies associated with this theory arises from the fact that terminologies employed in it always sound similar to the new researcher (Mercer, 2014). However, this problem can be addressed when such a researcher focuses on the exploration of the differences existing between such terminologies. One of the methods that researchers can employ in addressing this problem is focusing on comprehending their philosophies. Such an undertaking is vital in ensuring that researchers focus on their objectives. Moreover, another controversial area surrounding the grounded theory is the element of axial coding (Rintala, Paavilainen & Astedt-Kurki, 2014). Addressing this problem requires the researcher not to focus on the approaches to grounded theory as either wrong or right. Instead, the researcher should focus on selecting an approach that fits the goal of his or her study. This approach is significant in ensuring that the researcher avoids facing the confusions that are associated with perceiving the two aspects (grounded theory and axial coding) as bang different (Green, 2014). Focusing on the two approaches as being different often results in the researcher developing a negative attitude towards the use of such a theory in meeting his or her research objectives (Naor & Coman, 2013). As a result, a researcher may face problems comprehending how the tow aspects can be integrated to help the research attain the study’s goals.
Conclusion
Some examples of theories that can be employed in guiding research are deductive, grounded and inductive theories. Various views exist concerning theories. Some researchers such as Gelso (2006) consider theory as relationship between variables, while others such as Wacker consider it trial and error. Three views on theory are reductionism, realism and instrumentalism. Some of the ways through which research contributes to theory are manifested in research design, hypothesis testing, case studies and observations. In relation to this, the grounded theory enables the reader to comprehend the data analysis and data collection process of my research. It also enables the reader to gain an in-depth comprehension of the issue being investigated by engaging in a continuous process of comparing various issues being raised in the study. However, this theory presents problems to new researchers who employ this approach in their study as its methodology involves various approaches.
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