hypothesis formulation and testing

HYPOTHESIS FORMULATION
AND TESTING
DR. YAMINI NEGI
LECTURER – ACCOUNTANCY & TAXATION
CONTACT NO: 9873471411
EMAIL ID: YAMINI142000@GMAIL.COM

MEANING OF HYPOTHESIS:
• Hypothesis is often considered a tentative and testable statement of the possible

relationship between two or more variables under investigation.
• Hypothesis should be conceptually clear & specific, testable, falsifiable, related to

existing body or theory, empirical relevance, identify the variables, observable &
measurable and revisable.
IMPORTANCE OF HYPOTHESIS IN RESEARCH:
• Guides the Research Process.

• Defines the variables.
• Facilitates testability and empirical investigation.
• Enhances objectivity
• Promotes critical thinking and theoretical frameworks.
• Enables structured analysis and interpretation.
• Drives scientific progress.
HOW TO DEVELOP A RESEARCH HYPOTHESIS?
• Identify the research problem or question

• Review of existing literature
• Specify variables
• Formulate a Hypothesis
• Consider Alternate Hypotheses
• Ensure testability
• Write and refine
• Seek feedback
• Finalize your Hypothesis
DIFFICULTIES IN FORMULATION OF
HYPOTHESIS:
• The absence of knowledge of a theoretical framework
• Non availability of detailed theoretical evidences or non-awareness of

the availability of the theoretical evidences.
• Non-awareness of the scientific research techniques.

TYPES OF HYPOTHESIS:
• Simple Hypothesis: one independent variable and one dependent

variable.
• Complex Hypothesis: one or many dependent and independent
variable.
• Associative Hypothesis: no cause and effect relation
• Causal Hypothesis: cause and effect relationship
• Directional Hypothesis:
• Non-Directional Hypothesis
Null Hypothesis (H0):
A null hypothesis is a type of statistical hypothesis that proposes that no statistical

significance exists in a set of given observations and is used to assess the credibility of a
hypothesis by using sample data.
Alternative Hypothesis: (one tailed test, two tailed test)
It is a direct contradiction of a null hypothesis. This means that if one of the two hypotheses is
true, other is false. In other words, it states that there is a statistically significant relationship
exists between two variables.
HYPOTHESIS TESTING:
• Hypothesis testing is a statistical

method used to determine if there is
enough evidence in the sample data to
draw conclusions about a population.
STEPS IN HYPOTHESIS TESTING:
• State the Null Hypothesis

• State the Alternative Hypothesis
• Set α (level of significance and confidence interval)
• Collect Data
• Calculate a test statistic
• Construct Acceptance/Rejection regions (critical value F, test statistic F)
• Draw conclusion about null hypothesis.
ERRORS IN TESTING A HYPOTHESIS:
• Faulty sampling procedure adopted.

• Inaccurate data collection method
• Faulty study design
• Inappropriate statistical method used
• Conclusions drawn are incorrect.
TYPE- I AND TYPE –II ERROR:
PARAMETRIC & NON PARAMETRIC
TESTS:
• It is a statistical test, in which specific assumptions are made about the
population distribution from which the sample is drawn. Parametric tests can be
used if the data is normally distributed. If the data is normally distributed,
parametric tests such as t-test, ANOVA or Pearson correlation are used.
• If the data is not normally distributed, the non parametric tests are used like
Mann-Whitney U-test or the Wilcoxon test.
T-TEST:
• T-test is an inferential statistic used to determine if there is a significant difference
between the means of two groups and how they are related.
• It is used in hypothesis testing, with a null hypothesis that the difference in group
means is zero and an alternate hypothesis that the difference in group means is different
from zero.
• Types of T-test: (a) One sample t-test (reference value) (b) Two sample t-test (c) Paired
sample t-test.
F –TEST:
• It is used in hypothesis testing to check whether the variances of two populations or

two samples are equal or not.
• In an f test, the data follows an f distribution. This test uses the f statistic to compare
two variances by dividing them. It is the basis of ANOVA.
• It is used for independent samples involving three or more groups.
• Common types of F-test include one way ANOVA and Two-way ANOVA.
• F Statistic is calculated by dividing the variance of one group by variance of another
group.
• F critical value is calculated by using degrees of freedom for 2 groups and alpha level.
ANOVA:
• ANOVA is used to compare the means of multiple groups. It uses F-

tests to statistically test the equality of means.
• I can be of One way ANOVA (one independent and one dependent
variable) and Two way ANOVA (2 independent variables).
• In Two factor ANOVA, depending upon the data in the group, one can go
with ANOVA two factor with replication and ANOVA two factor without
replication.
ANCOVA:
• It analyzes the differences between three or more group means while

controlling for the effects of at least one continuous variable.
• Covariance measures the joint variability between two variables.
• Covariances measures direction (+/-): how do large/small values in one
variable compare to large/small in the other.
NON-PARAMETRIC TEST:
• Non-Parametric tests are the methods of statistical

analysis that do not require a distribution to meet the
required assumptions to be analyzed.
• Non parametric tests: Wilcoxon signed rank test, Mann Whitney U test,
the sign test, Kruskal wallis test
CHI-SQUARE TEST:
• The chi-square test is a statistical procedure for determining the

difference between observed and expected data.
• It is used to test the goodness of fit i.e. to test if the frequency
distribution of a categorical variable is different from your expectations.
• It is used to test the independence of attributes i.e. to check if two
categorical variables are related to each other.
SIGN TEST:
• Sign test is used to test for consistent differences between pairs of

observations such as marks of students before and after training (in
place of t-test if distributional conditions are suspected)
• A sign test is a non parametric test that is used to determine whether a
population median is equal to some value.
MEDIAN TEST:
• It is used to determine if there is a difference between two independent

samples even with unequal sample size.
• It is used to test whether two or more independent groups differ in
central tendency – specifically whether the groups have been drawn
from a population with the same median.
KRUSKAL-WALLIS TEST:
• This test is sometimes also called as One way ANOVA

• It is used to determine if there are statistically significant differences
between two or more groups of an independent variable.
WILCOXON SIGNED RANK TEST:
This test is used for comparing two

related samples, matched samples, or to
conduct a paired difference test to assess
whether their population mean ranks
differ.
Thank
You

hypothesis formulation and testing

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hypothesis formulation and testing

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HYPOTHESIS FORMULATION

DR. YAMINI NEGI

LECTURER – ACCOUNTANCY & TAXATION

CONTACT NO: 9873471411

EMAIL ID: YAMINI142000@GMAIL.COM

• Hypothesis is often considered a tentative and testable statement of the possible

• Hypothesis should be conceptually clear & specific, testable, falsifiable, related to

• Guides the Research Process.

• Identify the research problem or question

• The absence of knowledge of a theoretical framework

• Non availability of detailed theoretical evidences or non-awareness of

• Non-awareness of the scientific research techniques.

• Simple Hypothesis: one independent variable and one dependent

A null hypothesis is a type of statistical hypothesis that proposes that no statistical

Alternative Hypothesis: (one tailed test, two tailed test)

• Hypothesis testing is a statistical

• State the Null Hypothesis

• Faulty sampling procedure adopted.

• It is used in hypothesis testing to check whether the variances of two populations or

• ANOVA is used to compare the means of multiple groups. It uses F-

• It analyzes the differences between three or more group means while

• Non-Parametric tests are the methods of statistical

• The chi-square test is a statistical procedure for determining the

• Sign test is used to test for consistent differences between pairs of

• It is used to determine if there is a difference between two independent

• This test is sometimes also called as One way ANOVA

This test is used for comparing two

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