Hypotheses

• A testable statement showing the logically

conjecture relationship between two or more
variables...
• The relationship is being defined by
theoretical framework...
• Hypotheses can be developed for both
quantitative and qualitative research...
 Hypotheses Formats
• If-then Statements
– If advertisement are increased, then earnings will
enhance.
• Directional and Non-directional Statements
– The relationship or comparing variables in a form
of positive, negative, more or less is directional
– Non-directional shows the relationship without
direction....
 Example...
• There is impact of earnings on share prices
(Non-Directional); two-tailed
• Increase in earnings has positive impact of
share prices (Directional); one-tailed
• Decrease in earnings has negative impact of
share prices (Directional); one-tailed
 Null and Alternative Hypotheses
• Null – is expressed in ‘No’ significant relationship
between variables...
– H0.....no relationship between earnings and share price
• Alternative – the opposite of null in which the
researcher is interested to find out the relationship
between variables...
– H1...there is relationship between earnings and share
prices
– H2...the impact of increase in earnings is positive on share
price
– H3...the impact of decrease in earnings is negative on
share price
 The Class Performance Level of Girls
and Boys
• Null – There is no difference between the
performance level of boys and girls....
o Ho... μ (boys) = μ (girls)
• Alternative - there is difference between the
performance level of boys and girls...
– H1.... μ (boys) ≠ μ (girls).......(two-tailed)
– H2... μ (boys) > μ (girls).......(one-tailed)
– H3.... μ (boys) < μ (girls)......(one-tailed)
Steps in Hypotheses Development
1. Identify the null and alternative hypotheses
2. Appropriate statistical test (parametric or non-
parametric tests) – parametric for normal and
non-parametric tests for non-normal data...t-
test for normal and Wilcoxon Signed Rank test
for non-normal
3. Level of significance level (90%, 95% and 99%)
4. Using statistical analysis...
5. Compare the results with Critical Value for
rejection or acceptance of null hypothesis....