Testing hypothesis
- 1. BBA V th Sem. MARKETING RESEARCH TOPIC: TESTING HYPOTHESIS Pooja Luniya- Asst. Prof. GD Rungta College of Science & Tech.
- 2. Hypothesis A mere assumption or some supposition to be proved or disproved. But for a researcher hypothesis is a formal question that he intends to resolve. A research hypothesis is a predictive statement, capable of being tested by scientific methods, that relates an independent variable to some dependent variable. “the automobile A is performing as well as automobile B.” These are hypotheses capable of being objectively verified and tested. Note: a hypothesis is either TRUE or FALSE 2Pooja Luniya (Asst.prof)
- 3. Characteristics of hypothesis: • Hypothesis should be clear and precise. • Hypothesis should be capable of being tested. • Hypothesis should state relationship between variables. • Hypothesis should be limited in scope and must be specific. • Hypothesis should be consistent with most known facts • Hypothesis should be amenable to testing within a reasonable time. 3Pooja Luniya (Asst.prof)
- 4. BASIC CONCEPTS Null hypothesis (H0): The hypotheses that are proposed with the intent of receiving a rejection for them are called null hypotheses. For example, if we want to show that sales and advertisement expenditure are related, we formulate the null hypothesis that they are not related. It represents no difference between samples. Alternative hypothesis (Ha): Rejection of null hypotheses leads to the acceptance of alternative hypotheses. Null Hypothesis H0 Population mean is equal to zero Alternative Hypothesis Ha Population mean is less than zero Alternative Hypothesis Ha Population mean is more than zero 4Pooja Luniya (Asst.prof)
- 5. Level of significance & Confidence Interval • Level of significance always some percentage (usually 5%).Remaining 95 % is confidence interval • 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. 5Pooja Luniya (Asst.prof)
- 6. Type I & Type II Error Decision Accept H0 Reject H0 H0 True Correct Decision Type I error (aerror) H0 False Type II error (b error) Correct Decision 6Pooja Luniya (Asst.prof)