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A Markov model is a decision-analytic tool that simulates disease progression through defined health states over time, calculating cumulative costs and quality-adjusted life years (QALYs) to enable cost-effectiveness analysis. Developed by Beck and Pauker in 1983, Markov models are now the standard framework for projec
Material Requirements Planning (MRP) is a computerized system developed by Joseph Orlicky in the 1970s that calculates material requirements based on master production schedules and bill-of-materials data. MRP determines what materials to buy, how much to order, and when to order them to meet production demand while mi
Mean-variance portfolio optimization is the foundational model of modern portfolio theory, introduced by Harry Markowitz in 1952. It describes portfolios in an expected-return versus risk (variance) plane and traces the efficient frontier of allocations that offer the highest expected return for each level of risk, cov
The Merton model (1974) is a structural approach to credit risk in which a firm defaults when its asset value falls below liabilities at maturity. Equity is viewed as a call option on firm value, and debt is an implicit short put position. The model links company fundamentals (asset volatility) to default probability a
The Minnesota Satisfaction Questionnaire (MSQ), developed by Weiss, Dawis, England, and Lofquist in 1967, is a widely used measure of job satisfaction emphasizing intrinsic and extrinsic satisfaction dimensions. Available in long-form (100 items) and short-form (20 items) versions, the MSQ assesses satisfaction with di
Monetary Unit Sampling (MUS) is a statistical sampling method widely used in audit substantive testing that selects individual dollar amounts from an account population rather than individual transactions. This approach is particularly effective for testing the correctness of financial statement balances because large-
The Negative Acts Questionnaire (NAQ) measures exposure to workplace bullying and harassment—persistent negative social interactions including exclusion, denigration, and intimidation. Developed by Einarsen and colleagues in 1994, the 22-item scale captures a range of harmful workplace behaviors. Bullying exposure corr
Net Promoter Score (NPS) is a customer loyalty and satisfaction metric developed by Fred Reichheld in 2003, measured through a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The metric categorizes respondents into promoters, passives, and detractors, pro
The Occupational Stress Index (OSI) is a comprehensive self-report measure of job-related stress and coping resources. Developed by Osipow and Spokane in 1987, the 140-item scale (abbreviated versions also exist) captures role overload, role boundary, role insufficiency, role ambiguity, physical environment demands, an
The Organizational Citizenship Behavior Scale (OCBS) is a 16-item instrument measuring discretionary employee contributions beyond formal job requirements. Developed by Organ in 1988 and operationalized by Williams and Anderson in 1991, the OCBS assesses two dimensions: helping behaviors toward coworkers and support fo
The Organizational Commitment Scale (OCS), developed by Meyer and Allen in 1991, measures three distinct dimensions of organizational commitment: affective commitment (emotional attachment), continuance commitment (perceived cost of leaving), and normative commitment (sense of obligation). This three-component model ha
The Organizational Culture Assessment Instrument (OCAI) is a 24-item diagnostic tool that identifies dominant organizational culture types based on the Competing Values Framework (CVF). Developed by Kim S. Cameron and Robert E. Quinn, the OCAI measures cultures across four archetypes: Clan, Adhocracy, Market, and Hiera
The Organizational Justice Scale (OJS) measures employees' perceptions of fairness in organizational settings across four dimensions: distributive justice (fairness of outcomes), procedural justice (fairness of decision-making processes), interpersonal justice (respectful and dignified treatment), and informational jus
The Organizational Learning Scale (OLS) is a 21-item instrument measuring organizational capacity to learn and adapt, based on Senge's learning organization framework. Formalized by Goh in 2003, the OLS assesses five dimensions: systems thinking, shared vision, team learning, shared mental models, and personal mastery.
Organizational Resilience refers to an organization's capacity to anticipate disruptions, withstand shocks, and adapt effectively to changing circumstances while maintaining core identity and functionality. Weick and Sutcliffe (2007) argue that resilience is not primarily about avoiding disruption but about developing
The Organizational Trust Scale (OTS) is a 12-item instrument designed to measure interpersonal trust and organizational confidence across four dimensions. Developed by Aneil K. Mishra in 1996, the scale addresses how employees perceive trustworthiness in their organization and leadership.
Overall Equipment Effectiveness (OEE) is a composite key performance indicator that quantifies how effectively a manufacturing operation uses its equipment relative to its full potential. Developed by Seiichi Nakajima in 1988 as a cornerstone metric of Total Productive Maintenance (TPM), OEE multiplies three loss facto
The Overlapping Generations Model, pioneered by Paul Samuelson in 1958 and extended by Peter Diamond in 1965, is a macroeconomic framework where successive generations of individuals live for finite periods and coexist at any point in time. It addresses how consumption, savings, and capital accumulation evolve across g
The Overtourism Perception Scale (OPS) measures residents' and visitors' concerns about excessive tourism, measuring crowding, environmental degradation, cultural erosion, infrastructure strain, and resulting experience quality diminishment. Rooted in carrying capacity theory (Shelby & Heberlein, 1986) and resident imp
Pairs trading is a quantitative trading strategy that takes a long-short position on two cointegrated assets when the gap (spread) between their prices shows mean reversion. It was popularised as a relative-value arbitrage rule by Gatev, Goetzmann and Rouwenhorst (2006) and framed quantitatively by Vidyamurthy (2004).
Discrete Event Simulation (DES) is a computational technique that models the movement of patients through healthcare facilities by simulating individual patient journeys and interactions with resources (staff, beds, equipment). DES allows realistic representation of complex, stochastic healthcare processes and supports
The Patient Reported Experience Measure (PREM) framework is a methodological approach for systematically collecting, analyzing, and acting on patient feedback about healthcare experiences. Unlike HCAHPS, which is a specific, standardized survey, PREM is a flexible framework that can be adapted to different care setting
The Patient Safety Climate Scale (PSCS) is a focused, brief assessment tool designed to measure staff perceptions of the safety climate within a specific healthcare unit or department. Unlike broader safety culture instruments, the PSCS concentrates on the immediate work environment—how safety is prioritized at the tea
The Perceived Organizational Support Scale (POSS) measures employees' beliefs about the degree to which their employing organization values their contributions and cares about their well-being. Developed by Eisenberger and colleagues in 1986, it is a foundational construct in organizational psychology that predicts emp
The Perceived Stress Scale (PSS), developed by Cohen, Kamarck, and Mermelstein in 1983, is the most widely used measure of subjective stress in research and clinical practice. Available in 10-item (PSS-10) and 14-item (PSS-14) versions, the PSS assesses the degree to which individuals perceive situations as unpredictab
The Perceived Value Scale for Tourism (PVST) measures visitors' judgments of whether tourism experiences deliver fair value—balancing perceived benefits (quality of experience, emotional satisfaction, novelty) against perceived costs (monetary price, time investment, effort). Rooted in Zeithaml's value perception theor
The Place Attachment Scale (PAS), developed by Williams & Vaske (1992) and refined by Jorgensen & Stedman (2001), measures individuals' emotional and functional bonds to destinations—the extent to which places become integral to identity and sense of belonging. Comprising dimensions of place identity (destination as se
The Porter Organizational Commitment Questionnaire (OCQ) measures an employee's emotional attachment to, identification with, and involvement in their employing organization. Developed by Porter and colleagues in 1974, the original 15-item scale captures affective commitment—the genuine belief in and support for the or
The Practice Environment Scale of the Nursing Work Index (PES-NWI) is a 31-item instrument designed to measure nurses' perceptions of their practice environment, particularly factors related to autonomy, control over practice, and organizational support. Developed by Lake in 2002 and based on foundational work by Krame
The Price Fairness Scale (PFS), developed by Xia, Monroe, and Cox (2004), measures customer perception of whether a charged price is fair and reasonable relative to value received and market comparison. Price fairness assessment differs from absolute price satisfaction: customers may perceive a price as high but fair i
Risk Factor PCA is a dimension-reduction method that decomposes the return covariance matrix of many assets into a small set of orthogonal principal components interpreted as systematic risk factors. Litterman and Scheinkman (1991) used it to show that bond returns are driven by a few common factors, and Connor and Kor
The Proactive Personality Scale (PPS) measures individual differences in the inclination to take action to shape one's environment and future. Developed by Bateman and Crant in 1993, it quantifies the stable tendency to anticipate and initiate change rather than react passively. The scale predicts career advancement, e
The Psychological Capital Questionnaire (PCQ-24) measures psychological capital—the positive psychological resources of efficacy, hope, resilience, and optimism—that enable individuals to thrive in demanding work environments. Developed by Luthans, Youssef, and Avolio in 2007, it operationalizes a positive organization
The Psychological Safety Scale (PSS), developed by Amy Edmondson in 1999, measures team members' shared perception that they can take interpersonal risks—speaking up, asking questions, admitting mistakes, proposing new ideas—without fear of embarrassment, punishment, or rejection. The 7-item scale captures a team-level
The Public Service Motivation Scale (PSMS), developed by Perry (1996) and refined by Kim et al. (2013), measures the intrinsic motivation of public sector employees to serve the public interest, contribute to civic good, feel compassion for others, and make self-sacrifices for collective benefit. Public service motivat
A QALY measures health benefit as utility weight (0 = death, 1 = perfect health) multiplied by time lived. Developed by Alan Williams in 1985, QALYs enable comparison of disparate health interventions on a common metric. Used globally by health technology assessment bodies—NICE (UK), HAS (France), CADTH (Canada), WHO—t
Queuing theory is a mathematical discipline that models waiting lines, service capacity, and customer (patient) flow. Developed initially by Agner Erlang for telecommunications in 1909, it has been extensively applied to healthcare to analyze and optimize emergency departments, outpatient clinics, surgical suites, and
The Ramsey-Cass-Koopmans model, developed initially by Frank Ramsey in 1928 and formalized by David Cass and Tjalling Koopmans in 1965, is the workhorse model of macroeconomic growth theory. It describes how rational consumers optimize consumption and savings over an infinite horizon, subject to an aggregate production
The Real Business Cycle (RBC) model, developed by Finn Kydland and Edward Prescott in 1982, is a dynamic stochastic general equilibrium framework that explains macroeconomic fluctuations as rational responses to exogenous technological shocks. Unlike Keynesian models that emphasize demand-side factors and nominal rigid
Realized volatility estimates an asset's variance directly from high-frequency intraday returns rather than from a parametric latent process. The Heterogeneous Autoregressive (HAR) model of Corsi (2009), building on the realized-volatility framework of Andersen, Bollerslev, Diebold and Labys (2003), forecasts this meas
The Markov regime-switching model, introduced by James D. Hamilton in 1989, is a hidden-state time-series model in which financial series such as returns or volatility behave with different parameters across distinct economic regimes (bull/bear or high/low volatility). It is the financial application of Hamilton's MS-A
A Reliability Block Diagram (RBD) is a visual representation of a system's architecture that models how component reliabilities combine to determine overall system reliability. Each block represents a component or subsystem with a known reliability (probability of functioning without failure), and connections between b
The Retail Service Quality Scale (RetSQ) is a 17-item instrument developed by Dabholkar, Thorpe, and Rentz (1996) to measure customer perceptions of service quality in retail store environments. Adapted from SERVQUAL but customized for the unique context of in-store shopping, RetSQ measures five dimensions: Physical As
Risk parity is a portfolio weighting model, formalised by Maillard, Roncalli and Teïletche (2010), in which every asset contributes an equal share of the total portfolio risk. It needs only the covariance (risk) structure of the assets and no forecast of expected returns, and it underpins Bridgewater's All Weather stra
Risk-neutral valuation (1979) is the fundamental principle that derivative prices equal the expected payoff discounted at the risk-free rate, computed under a risk-neutral probability measure (Q-measure). This principle, formalized by Harrison and Kreps, eliminates the need to estimate risk premia and is the foundation
Root Cause Analysis (RCA) is a structured, systematic method for identifying the fundamental causes of defects, failures, or undesirable outcomes rather than treating surface-level symptoms. Popularised by Japanese quality engineer Kaoru Ishikawa in the 1960s–1980s, and formally codified in his 1986 Guide to Quality Co
The SABR (Stochastic Alpha-Beta-Rho) model is a stochastic volatility framework introduced by Hagan et al. in 2002 for valuing interest rate derivatives. It captures the smile effect in implied volatility through correlated Brownian motions and has become industry standard for swaption and caplet pricing.
The Safety Attitudes Questionnaire (SAQ) is a 60-item self-report instrument developed by Sexton and colleagues in the early 2000s to measure organizational safety culture in healthcare settings. Adapted from crew resource management research in aviation, the SAQ assesses clinician and non-clinician perceptions of safe
The Supply Chain Operations Reference Model is a standardized framework for supply chain management developed by the Supply Chain Council (now APICS) in 1996. SCOR provides a structured approach to identify, evaluate, and improve supply chain processes across organizations, regardless of industry. It integrates plannin
The Servant Leadership Scale (SLS), developed by Liden and colleagues in 2008, measures the extent to which leaders prioritize others' well-being and development. Building on Robert Greenleaf's 1970 concept of servant leadership, the SLS operationalizes servant leadership across seven dimensions: emotional healing, cre
SERVPERF, developed by Cronin and Taylor in 1992, is a streamlined service quality measurement instrument that evaluates perceived service performance only, without the expectation component. Using 22 items identical in content to SERVQUAL but applied to perception alone, SERVPERF reduces survey burden while maintainin
SERVQUAL is a 22-item, multi-dimensional scale developed by Parasuraman, Zeithaml, and Berry in 1988 to measure consumer perceptions of service quality. It captures the gap between customer expectations and actual service performance across five core dimensions: Tangibles, Reliability, Responsiveness, Assurance, and Em
Six Sigma DMAIC is a data-driven, five-phase process improvement methodology — Define, Measure, Analyze, Improve, and Control — used to reduce defects and process variation to fewer than 3.4 defects per million opportunities. Originating at Motorola in the 1980s and systematized by practitioners including Pyzdek and Ke
Six Sigma is a data-driven quality improvement methodology originating at Motorola in 1986 that aims to reduce process variation and defects to achieve near-perfect quality (3.4 defects per million opportunities). In healthcare, Six Sigma uses statistical analysis and structured project methodology (DMAIC: Define-Measu
The Slutsky equation, derived by Russian economist Eugen Slutsky in 1915, is a fundamental identity in microeconomics that decomposes the total change in demand for a good into two effects: the substitution effect and the income effect. Formalizing John Hicks' later interpretation, it provides the mathematical foundati
Single Minute Exchange of Die (SMED) is a systematic approach developed by Shigeo Shingo in the 1980s to drastically reduce the time required to changeover equipment from producing one product to another. The methodology, part of the Toyota Production System, aims to reduce setup time to a single-digit minute range (id
Staffing Ratio Analysis is a systematic method for determining appropriate healthcare worker levels (nurses, physicians, technicians) based on patient volume, acuity, and task requirements. Research shows that staffing levels directly impact patient safety, quality, and staff burnout; systematic analysis supports evide
The stochastic volatility model is a continuous-time option-pricing and risk framework in which volatility follows its own random process rather than staying constant. The Heston model, introduced by Steven Heston in 1993, gives the variance a mean-reverting square-root (CIR) dynamic and yields a closed-form option pri
Strategic Orientation refers to the fundamental approach an organization adopts when competing in its market, encompassing its competitive strategy, market focus, and organizational design. Miles and Snow's (1978) foundational framework identifies four strategic postures: Defenders (focus on stable market segments, ope
Supply Chain Integration (SCI) refers to an organization's capacity to seamlessly coordinate and align processes, information, and incentives across internal functions and with external suppliers and customers. Flynn et al. (2010) operationalized SCI into three complementary dimensions in the Journal of Operations Mana