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SYBMS

Hypothesis

$Meaning $Importance $Types Of Hypothesis $Formulation of Hypothesis $Testing of Hypothesis $Chi-Square test $Correlation Coefficient $Regression Analysis

Hypothesis ± Meaning

$Origin: Greek (hypotithenai)

&Meaning: "to put under" or "to suppose"

**$A hypothesis is a proposed
**

explanation for an observable phenomenon. $For Researcher:

$hypothesis is a formal question that he

intends to resolve

Hypothesis ± Definition

A 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

Hypothesis ± Characteristics

$Clear and precise $Capability of being tested $Stating relationship between variables $Limited in scope and must be specific $Stated in Simple terms $Consistent with most known facts $Time-bound $Empirical Reference

Hypothesis ± Importance

$ Offers explanations for the relationships between

those variables that can be empirically tested

**$ Furnishes proof that the researcher has sufficient
**

background knowledge to enable him/her to make suggestions in order to extend existing knowledge

**$ Gives direction to an investigation $ Structures the next phase in the investigation and
**

therefore furnishes continuity to the examination of the problem

Hypothesis ± Types

Hypothesis

Null Alternate

**Basic Concepts in Testing Of Hypothesis
**

Null hypothesis & Alternate Hypothesis The level of Significance Decision Rule or Test of Hypothesis Type I and Type II errors Two tailed and one Tailed tests

**Null & Alternate Hypothesis
**

Example:

± To test Population Mean (µ) is equal to hypothesized mean (µHo = 100) ± Null Hypothesis = Ho = Population mean is equal to hypothesized mean (µ = µHo= 100 ) ± Alternate Hypothesis = Ha = Population mean is not equal to hypothesized mean (µ = µHo) ± Results are verified on sample tests

Reject Ho Accept Ha Reject Ha Accept Ho

** Table of Alternate Hypothesis
**

Alternative Hypothesis Ha: µ = µHo The population mean is not equal to 100 i.e. It may be more or less than 100 Ha: µ > µHo Ha: µ < µHo The population mean is greater than 100 The population mean is less than 100 To be read as follows

Considerations:± Alternate Hypothesis ± to prove & Null hypothesis ± to disprove ± Null hypothesis should always be specific hypothesis (No approximation allowed)

**The level of Significance
**

Maximum Value of probability of rejecting Ho when it is true For example:± Level of significance = 5% ± Researcher is willing to take as much as 5% risk of rejecting Ho when it is true

Determined before testing hypothesis

**Decision Rule or Test of Hypothesis
**

Base rule on which acceptance or rejection of Ho is based Decision Rule:

± Decide number of items to be tested ± Criterion for accepting or rejecting Ho

For example:± Quality check of 1 lakh cartons ± Ho = Certain lot is good (very few defective items) ± Ha = lot is not good (too many defective items)

± Rule:

Number of items to be tested: 100 Criterion: Accept Ho if < or =10 items are defective

**Type I and Type II error
**

Type I ± Rejection of Hypothesis which should have been accepted Type II ± Acceptance of Hypothesis which should have been rejected

Decision Accept Ho Ho (True) Ho (False) Correct Decision Type II Error ( ) Reject Ho Type I Error ( ) Correct Decision

**Two tailed and One Tailed tests
**

Two tailed test ± two rejection areas One tailed test ± one rejection area For example:Ha Ha: µ = µHo

Ha: µ > µHo Ha: µ < µHo

To be read as follows The population mean is not equal to 100 i.e. It may be more or less than 100 The population mean is greater than 100

Tests Two Tailed

Ha: µ > µHo

One tailed Right tailed

Ha: µ < µHo

The population mean is less than 100

One tailed Left tailed

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