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H0

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Intro to Business Statistics

Definition

H0, also known as the null hypothesis, is a statistical term that represents the default or initial assumption about a population parameter or the relationship between variables. It is the hypothesis that is tested against the alternative hypothesis (H1) to determine if there is sufficient evidence to reject the null hypothesis and support the alternative.

5 Must Know Facts For Your Next Test

  1. The null hypothesis (H0) represents the status quo or the assumption that there is no difference or relationship between the variables being studied.
  2. The null hypothesis is assumed to be true until there is sufficient statistical evidence to reject it in favor of the alternative hypothesis (H1).
  3. The decision to reject or fail to reject the null hypothesis is based on the p-value, which represents the probability of obtaining the observed test statistic or a more extreme value if the null hypothesis is true.
  4. If the p-value is less than the predetermined significance level (α), the null hypothesis is rejected, and the alternative hypothesis is supported.
  5. Failing to reject the null hypothesis does not mean that the null hypothesis is true, but rather that there is insufficient evidence to conclude that the alternative hypothesis is true.

Review Questions

  • Explain the role of the null hypothesis (H0) in hypothesis testing.
    • The null hypothesis (H0) is the starting point for hypothesis testing. It represents the default or initial assumption about a population parameter or the relationship between variables. The researcher's goal is to determine whether there is sufficient statistical evidence to reject the null hypothesis in favor of the alternative hypothesis (H1). The null hypothesis is assumed to be true until proven otherwise, and the decision to reject or fail to reject it is based on the p-value and the predetermined significance level (α).
  • Describe the relationship between the null hypothesis (H0) and the alternative hypothesis (H1).
    • The null hypothesis (H0) and the alternative hypothesis (H1) are complementary and mutually exclusive. The null hypothesis represents the status quo or the assumption that there is no difference or relationship between the variables being studied. The alternative hypothesis, on the other hand, contradicts the null hypothesis and represents the researcher's belief about the population parameter or relationship. The decision to reject or fail to reject the null hypothesis is based on the statistical evidence provided by the sample data, which is used to determine the likelihood of the observed results under the assumption that the null hypothesis is true.
  • Analyze the implications of failing to reject the null hypothesis (H0) in the context of hypothesis testing.
    • Failing to reject the null hypothesis (H0) does not necessarily mean that the null hypothesis is true. It simply means that the sample data does not provide sufficient statistical evidence to conclude that the alternative hypothesis (H1) is true. This can occur for several reasons, such as the sample size being too small, the effect size being too small to detect, or the null hypothesis being true. When the null hypothesis is not rejected, it is important to consider the power of the statistical test, the practical significance of the findings, and the potential limitations of the study before drawing conclusions. Failing to reject the null hypothesis does not preclude the possibility that further research with a larger sample or different methods may provide evidence to support the alternative hypothesis.
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