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Index Sr no.
1. 2. 3. 4. 5 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
Particulars
introduction Definition Characteristics Process Types of hypothesis Null and alternative hypothesis One tail and two tail Type I and Type II error Level of Significance Rejection and non-rejection criteria Hypothesis testing of one mean Hypothesis testing of two mean Hypothesis testing of one proportion Hypothesis testing of two proportion Hypothesis testing of correlation co-efficient
Page number
Hypothesis
Introduction:
Hypothesis may be defined as a proposition or a set of proposition set forth as an explanation for the occurrence of some specified group of phenomena either asserted merely as a provisional conjecture to guide some investigation or accepted as highly probable in the light of established facts. Quite often a research hypothesis is a predictive statement, capable of being tested by scientific methods, that relates an independent variable to some dependent variable. In fact, many experiments are carried out with the deliberate object of testing hypotheses. Decision-makers often face situations wherein they are interested in testing hypotheses on the basis of available information and then take decisions on the basis of such testing
Definition:
A hypothesis is a conjectural statement of the relation between two or more variables. (Kerlinger, 1956) Hypotheses are single tentative guesses, good hunches assumed for use in devising theory or planning experiments intended to be given a direct experimental test when possible. (Eric Rogers, 1966) Hypothesis is a formal statement that presents the expected relationship between an independent and dependent variable.(Creswell, 1994) A hypothesis is a logical supposition, a reasonable guess, an educated conjecture. It provides a tentative explanation for a phenomenon under investigation." (Leedy and Ormrod, 2001).
Characteristics of Hypothesis:
1. A Hypothesis must be conceptually clear and precise - Concepts should be clearly defined - The definitions should be commonly accepted - The definitions should be easily communicable 2. Hypothesis should state relationship between variables 3. The hypothesis should have empirical reference - Variables in the hypothesis should be empirical realities - If they are not it would not be possible to make the observation and ultimately the test 4. The Hypothesis must be specific and limit in scope - Place, situation and operation 5. A hypothesis should be related to available techniques of research - Either the techniques are already available or - The researcher should be in a position to develop suitable techniques 6. The hypothesis should be related to a body of theory - Hypothesis has to be supported by theoretical argumentation - It should depend on the existing body of knowledge 7. Hypothesis should be test with amenable time In this way - the study could benefit from the existing knowledge and - later on through testing the hypothesis could contribute to the reservoir of knowledge
Problem Definition
Choose the relevant test and the appropriate probability distribution Determine the significance level Choose the critical value
Determine the degree of freedom Decide if one tail or two tail test
The next step for the researcher is to calculate the probability that the sample result would diverge as far as it can from expectations, under the situation when the null hypothesis is actually true. (vi) Comparing the Probability: Another step involved consists of making a comparison of the probability calculated with the specified value for , the significance level. If the calculated probability works out to be equal to or smaller than the value in case of onetailed test, then the null hypothesis is to be rejected. On the other hand, if the calculated probability is greater, then the null hypothesis is to be accepted. In case the null hypothesis H0 is rejected, the researcher runs the risk of committing the Type I error. But, if the null hypothesis H0 is accepted, then it involves some risk (which cannot be specified in size as long as H0 is vague and not specific) of committing the Type II error.
Types of hypothesis:
1. Research Hypothesis: A research hypothesis is a statement of what the researcher believes will be the outcome of the experiment or a study. Some examples of the research hypothesis in business might include: a. Older workers are more loyal to a company b. The implementation of a six sigma quality approach in manufacturing will result in greater productivity. Virtually all inquisitive, thinking business have similar research hypothesis concerning relationships, approaches, and techniques in business. However, to formally test research hypothesis, it is generally best to state them as statistical hypothesis. 2. Statistical Hypothesis: In order to scientifically test research hypothesis, a more formal hypothesis structure needs to be set up using statistical hypothesis. All statistical hypotheses consist of two parts, a null hypothesis and alternate hypothesis. 3. Sustainable hypothesis A business researcher reaches a conclusion based on the data obtained in the study. If the null hypothesis is rejected and therefore the alternative hypothesis is accepted, it is common to say that a statistically significant result has been obtained. A substantive result is when the outcome of a statistical study produces results that are important to the decision maker. The importance to the researcher will vary from study to study.
Null Hypothesis:
The null hypothesis states that null condition exists; that is nothing new is happening, the old theory is true, the old standard is correct, and system is in control. The null hypothesis is an experiment of the independent variable has no effect on the dependent variable
Alternate Hypothesis:
On the other hand states that the new theory is true, there r new standard, the system is out of control and something is happening. The alternate to the null hypothesis is the hypothesis that the independent variable does have an effect on the dependent variable.
Two-sided test is a statistical hypothesis test in which the values for which we can reject the null hypotheses, Ho are located in both tails of the probability. Two tailed tests always use = and in the statistical hypothesis and directionless in that the alternative hypothesis allows for either the greater than (>) or less than (<) possibility.
Type one error is committed by rejecting a true null hypothesis. Type I error rejecting a null hypothesis when it is true is denote by . Thus, = probability of type I error i.e probability of rejecting Ho, when Ho is true.
Type II error is committed when we accept a wrong or incorrect hypothesis. Type II error accepting a null hypothesis when it is not true is denoted by . Thus, = probability of type II error i.e. probability of accepting Ho, when Ho is not true.
Level of significance:
This is a very important concept in the context of hypothesis testing. It is always some percentage (usually 5%) which should be chosen with great care, thought and reason. In case we take the significance level at 5 per cent, then this implies that H0 will be rejected when the sampling result (i.e., observed evidence) has a less than 0.05 probability of occurring if H0 is true. In other words, the 5 per cent level of significance means that researcher is willing to take as much as a 5 per cent risk of rejecting the null hypothesis when it (H0) happens to be true. Thus the significance level is the maximum value of the probability of rejecting H0 when it is true and is usually determined in advance before testing the hypothesis.