By Pooja Lunia

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.
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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
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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.
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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
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