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Step 2. State the null (Ho) and the Alternative Hypotheses (Ha or H1).
It is necessary that both the null (Ho) and the alternative (Ha) hypotheses are written based
on the flow of thoughts outlined in the statement of the problem above. The Ho always conveys
an equality relationship which can be written either in affirmative or negated form. Always
remember that the Ho is formulated for the purpose of being rejected. Statistically speaking,
you can say: “Reject the null hypothesis” or “Do not reject the null hypothesis”, or “We fail to
reject the null hypothesis”. It is common to write or say, “Accept the null hypothesis” but take
note that you are making a statistical statement, and it is more appropriate to state any of the three
former statements (in italics) when you indicate not to reject the null hypothesis (Ho).
Meanwhile, the Ha can be written in five different ways of relationships (as discussed in
page 37 in this Handbook), but for simplicity the two tailed test pattern of alternative hypothesis
statement is adopted, with the not equal relationship (≠), except for Learning Module No. 4 (see
page 59), where the one tailed test of either greater than (>) or less than (<) relationship is used.
Step 3. Identify the test statistic to be used and state a level of significance.
This is the most crucial part of the hypothesis test since you have to be correct on what
statistical technique (test statistic) you have to employ based on the given problem situation. At
the masters level and for this Handbook, the authors have outlined Learning Modules 1-11 and
just one, and only one, statistical technique will be applicable for every problem statement to be
answered. When you cannot identify the correct test statistic to be used, then you’re solutions and
answers from this step onward will also be statistically and logically wrong. Mann (2004) defines
“test statistic” as a rule or criterion which is used to make the decision whether or not to reject the
null hypothesis.
It is necessary that you state the level of significance as this will be the basis for the
confidence level at which you will decide when to reject or not to reject the null hypothesis you
have stated in step 2.