Hypothesis - Meaning - Types of Hypotheses with Examples

1. BUSINESS RESEARCH METHODS
Unit 3
Hypothesis
Dr. Thulasi Krishna. K, Ph.D.
Dept. of Management Studies, MITS, Madanapalle,
A.P.
tkk2007@gmail.com

2. HYPOTHESIS
Hypothesis is a tentative statement showing the relationship
between two or more variables, the reliability and validity of
which is to be tested and verified.
The Characteristics of a Testable Hypothesis
(i) Hypothesis should be clear and precise
(ii) Hypothesis should be capable of being tested
(iii) Hypothesis should state relationship between variables, if it
happens to be a relational hypothesis

3.  (iv) Hypothesis should be limited in scope and must be
specific
(v) Researchers should state hypothesis as far as possible in
most simple terms so that the same is easily understandable
by the all concerned
(vi) Hypothesis should be consistent with most known facts
i.e., it must be consistent with a substantial body of
established facts
(vii) Hypothesis must explain the facts that gave rise to the
need for explanation

4. Sources of Hypothesis
• Observation –based on the behaviour pattern
• Relation between price and demand is hypothesized
• The sales and advertisement may be hypothesized
• Analogies (similarities/co-relation) casual observations in
nature
• Poor people buy more lotteries
• Intuitions and personal experiences
• The story of Newton and falling of apple
• The wisdom of Budha under the banyan tree

5. • A sparking in our mind at particular occasions
• Findings of studies
• State of Knowledge – the theorems may be modified
• Culture –castes, beliefs, habits, behaviour
• Contribution of research – the rejection of certain
hypothesis may lead to further research
• Theory –large concerns earn more profit, return on capital
is an index of business success

6. • Examples of Hypothesis
• Health Education programmes influence the
number of people who smoke.
• Newspapers affect people's voting pattern.
• Attendance at lectures influences marks in the
exam.
• Diet influences intelligence.

7. Different Types of Hypothesis
Null Hypothesis: A type of hypothesis used in statistics that proposes that no statistical
significance exists in a set of given observations is called a null hypothesis. It is denoted
by ‘H0’.
Alternative Hypothesis: The alternate hypothesis is just an alternative to the null. When
we reject the null hypothesis, we accept another hypothesis known as alternate
hypothesis. The alternative hypothesis is denoted by ‘H1’.
For example, the null hypothesis might be “There will be no change in the water level this
Spring,” and the alternative hypothesis would be “There will be a change in the water level
this Spring.”

8. Descriptive Hypothesis: It simply describes the characteristics of a variable (may be an
object, person, organisation, event, and situation) to give general direction to observations.
Descriptive hypothesis contains only one variable thereby it is also called as univariate
hypothesis.
Ex. Employment opportunity of Commerce graduates is more than the Arts students.
What is the level of commitment of the officers in your organization?
Relational Hypothesis or Directional Hypotheses: It establishes relationship between
two variables. Words like positive, negative, more than, less than, are used, then these
hypotheses are directional
Example: 1. The greater the stress experienced in the job, the lower the job satisfaction of employees.
2. Women are more motivated than men.

9. Non-directional Hypotheses: These are those that do assume
a relationship or difference, but offer no indication of the
direction of these relationships or differences.
Ex. 1. There is a relationship between age and job satisfaction
2. There is a difference between the work ethic values of
American and Asian employees.
Causal Hypothesis: It proposes a cause and effect interaction
between two or more variables.
Ex: Null hypothesis: There will be no change or there will be
more absenteeism as a result of training.
Alternate hypothesis: There will be less absenteeism as a result
of training.
Casual hypothesis: Employee training programme will reduce
employee absenteeism.

10. • Statistical Hypothesis: A statistical hypothesis is an assumption about a
population parameter. This assumption may or may not be true.
Ex: There is no difference in the data entry input of personnel who are evaluated on a weekly basis
and those who are evaluated on a six months basis.
• Complex Hypothesis: It is the hypothesis which predicts the relationship
between two or more independent variables and two or more dependent variables.
Ex: i. Smoking and other drugs leads to cancer, tension and chest infections
iii. The higher ratio of unemployment, poverty, illiteracy leads to crimes like dacoit,
robbery, rapes, prostitution and killing etc.

11. • Thank You