Hypothesis

Meaning The word hypothesis consists of two words:

Hypo + thesis = Hypothesis.
‘Hypo’ means tentative or subject to the verification
‘Thesis’ means statement about solution of a problem.
The word meaning of the term hypothesis is a tentative statement
about the solution of the problem.
Ordinarily, when one talks about hypothesis, one simply means a mere
assumption or some supposition be proved or disproved. But for a
researcher hypothesis is a formal question that he intends toResolve
According to George, J. Mouly
“ Hypothesis is an assumption or proposition whose testability is to be
tested on the basis of the compatibility of its implication with
empirical evidence with /previous knowledge.”
.
NATURE OF HYPOTHESIS
The following are the main features of a Hypothesis –
1.Its conceptual in nature.
2.It is a verbal statement in a declarative form.
3.It has the empirical referent. (means by which you can recognize or
measure the defining characteristics or attributes0
4.It Indicates the tentative relationship between two or more variables.
5.It is a powerful tool of advancement of knowledge, consistent with
existing knowledge and conducive to further enquiry.
6.It Can be tested, verifiable or falsifiable.
7.It is not moral or ethical questions.
8.It is neither too specific nor to general.
9.It is a prediction of consequences.
10.It is considered valuable even if proven false.
Characteristics Good of hypothesis:
 :

1. Should be clear and precise.

2. Hypothesis should be capable of being tested
3. Hypothesis should state relationship between variables
4. Hypothesis should be limited in scope and must be
specific
5. Hypothesis should be stated as far as possible in most
simple terms so that the same is easily understandable by
all concerned
6. Hypothesis should be consistent.
7. Hypothesis should be amenable to testing within a
reasonable time..
8. Hypothesis must explain the facts that gave rise to the need
for explanation..
(i) Hypothesis should be clear and precise.
 If the hypothesis is not clear and precise, the inferences drawn on its basis
cannot be taken as reliable.
(ii) Hypothesis should be capable of being tested.
 A hypothesis “is testable if otherdeductions can be made from it which, in
turn, can be confirmed or disproved by observation.”1
(iii) Hypothesis should state relationship between variables,
 if it happens to be a relational hypothesis.
(iv) Hypothesis should be limited in scope and must be specific
 A researcher must remember that narrower hypotheses are generally more
testable and he should develop such hypotheses.
(v) Hypothesis should be stated as far as possible in most simple terms
so that the same is easily understandable by all concerned.
 But one must remember that simplicity of hypothesis has nothing to do
with its significance.
 (vi) Hypothesis should be consistent with most known
facts
 i.e., it must be consistent with a substantial body of established
facts. In other words, it should be one which judges accept as
being the most likely.
 (vii) Hypothesis should be amenable to testing within a
reasonable time.
 One should not use even an excellent hypothesis, if the same
cannot be tested in reasonable time for one cannot spend a life-
time collecting data to test it.
 (viii) Hypothesis must explain the facts that gave rise to the
need for explanation.
 This means that by using the hypothesis plus other known and
accepted generalizations, one should be able to deduce the
original problem condition. Thus hypothesis must actually
explain what it claims to explain; it should have empirical
reference.
Functions of Hypothesis
Following are the functions performed by the
hypothesis:
1. Hypothesis helps in making an observation and
experiments possible.
2. It becomes the start point for the investigation.
3. Hypothesis helps in verifying the observations.
4. It helps in directing the inquiries in the right
direction.
BASIC CONCEPTS CONCERNING TESTING OF
HYPOTHESES
In research, there are two types of hypotheses: null and
alternative. They work as a complementary pair, each stating
that the other is wrong.
Null Hypothesis (H0) –
“Null” meaning “nothing.”
This hypothesis states that there is no difference between
groups or no relationship between variables.
The null hypothesis is a presumption of status quo or no
change.
Alternative Hypothesis (H1 or Ha) –
This is also known as the claim.
hypothesis should state what you expect the data to show,
based on your research on the topic.
This is your answer to your research question.
 Examples:
Null Hypothesis: H0: There is no difference in the salary
of factory workers based on gender.
Alternative Hypothesis: Ha: Male factory workers have a
higher salary than female factory workers.
Null Hypothesis: H0: There is no relationship between
height and shoe size.
Alternative Hypothesis: Ha: There is a positive
relationship between height and shoe size.
Hypothesis Testing
Hypothesis testing is one of the most important concepts in Statistics which is
heavily used by Statisticians, Machine Learning Engineers, and Data
Scientists.
In hypothesis testing, statistical tests are used to check whether the null
hypothesis is rejected or not rejected.
If your data are normally distributed, parametric tests can usually be used.
If they are not normally distributed, non-parametric tests are usually used.
 T test
sample size <30

Z test
Parametric test
Sample size > 30

Hypothesis
F test
testing

Non Parametric
Chi square
test
What is a t-test?
A t-test (also known as Student's t-test) was introduced by William Sealy Gosset .
t test used to determine the significance of the difference between the mean of two sets of
data.
The question asked is –Is the mean of sample A is significantly different from the mean of
sample B.
Null hypothesis (H0)states- the mean of sample A and B are same
Alternative hypothesis(Ha)-means of sample A and B are different.

t-test may be used to evaluate

 Single sample: This tests the mean from one sample group and compares it to another
mean, such as a standardized value .Eg-Marks of students
 Independent samples test: This t-test compares means from two sample groups. Eg we
compare the mean marks of male and female in class.
 Paired samples test: The paired samples test compares means from the same sample
group for different periods.
 Example-
 Difference in performance of Students before and after Training.
 Z test
What is Z Test?
A z test is a test that is used to check if the means of two populations are
different or not, provided the data follows a normal distribution.
For this purpose, the null hypothesis and the alternative hypothesis must
be set up and the value of the z test statistic must be calculated. The
decision criterion is based on the z critical value.
Z Test Definition
A z test is conducted on a population that follows a normal
distribution with independent data points and has a sample size that is
greater than or equal to 30.
It is used to check whether the means of two populations are equal to
each other when the population variance is known.

The null hypothesis of a z test can be rejected if the z test statistic is

statistically significant when compared with the critical value.

 Uses of Z test-
1. When samples are drawn at random.
2. When the sample are taken from population are
independent.
3. When the standard deviation is known .
4. When no of observation is large (more then 30)
F test
F Test Definition
 F test is a statistical test that 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. An f test can either be one-tailed or
two-tailed depending upon the parameters of the
problem.
chi-squared test
This test was introduced by Karl Pearson in 1900 for categorical data analysis and
distribution. So it was mentioned as Pearson’s chi-squared test.
A chi-squared test (symbolically represented as χ2).
It is one of the simplest and most widely used test in statistical theory.

It is basically a data analysis on the basis of observations of a random set of variables.

Usually, it is a comparison of two statistical data sets.
A chi-square test is a statistical test that is used to compare observed and expected results.
The goal of this test is to identify whether a disparity(difference) between actual and
predicted data is due to chance or to a link between the variables under consideration.

For example, a meal delivery firm in India wants to investigate the link between gender,
geography, and people's food preferences.
It is used to calculate the difference between two categorical variables, which are:
As a result of chance or
Because of the relationship

Degree of freedom=(s-1)(t-1)
S- number of columns
t- number of rows
characteristics of chi-square
The chi-square test has several key characteristics:
1) It is non-parametric, meaning it does not assume a specific
probability distribution for the data.
2) It is sensitive to sample size; larger samples can result in
more significant outcomes.
3) It works with categorical data and is used for hypothesis
testing and analyzing associations.
4) The test output provides a p-value, which indicates the
level of significance for the observed relationship between
variables.
 5)It can be used with different levels of significance (e.g.,
0.05 or 0.01) to determine statistical significance.
 Chi-Square Distribution
 When we consider, the null speculation is true, the
sampling distribution of the test statistic is called as chi-
squared distribution. The chi-squared test helps to
determine whether there is a notable difference between
the normal frequencies and the observed frequencies in
one or more classes or categories. It gives the probability of
independent variables.
 Note: Chi-squared test is applicable only for categorical
data, such as men and women falling under the categories
of Gender, Age, Height, etc.
Applications of Chi-Test
 The applications of χ2 -test statistic can be discussed as
stated below:
 1. Testing the divergence of observed results from expected
results when our expectations are based on the hypothesis
of equal probability.
 2. Chi-square test when expectations are based on normal
distribution.
 3. Chi-square test when our expectations are based on
predetermined results.
 4. Correction for discontinuity or Yates’ correction in
calculating χ 2 .
 5. Chi-square test of independence in contingency tables.
Difficulties in the Formulation of
Hypothesis:
1. Absence of knowledge of a clear theoretical
framework.
2. Lack of ability to make use of the theoretical
framework logically.
3. Inability to assume properly the outcome of research.
4. Inability to to phrase and frame it to fulfill
requirement.
Data analysis/Analysis of Data
Data analysis is the process of collecting, modeling, and
analyzing data using various statistical and logical methods
and techniques.
Data analysis is the process of cleaning, analyzing,
interpreting, and visualizing data using various techniques
and business intelligence tools.
Data analysis tools help you discover relevant insights that
lead to smarter and more effective decision-making.


Types of Data analysis
 There are four main types of data analysis that are used
across all the industries. Let’s understand all the types
of data analytics with examples.
1. Descriptive Analysis
2. Diagnostic Analysis
3. Predictive Analysis
4. Prescriptive Analysis
 1-Descriptive analytics-
 The purpose of descriptive analysis is to take raw data,
identify trends, and offer a mechanism to report on what
happened where, and to how many.
 Descriptive analytics offers a snapshot in time by answering
the most fundamental question: “What happened?”
 Descriptive analytics provides the foundation the other
types of analytics need for more sophisticated inquiries.
 For example
 you’d use descriptive analytics to determine month-to-
month sales growth, gauge how many users visited your
landing page over a certain period, or calculate how much
revenue you realized over a certain number of weeks.
 2-Diagnostic analytics
 Where descriptive analytics wants to answer the question, “What
happened?” diagnostic analytics examines the question, “Why
did it happen?”
 Building on the conclusions gleaned from the fact-finding
mission of descriptive analytics, diagnostic analytics can uncover
causal information through an examination of the variables that
came into play.
 For example,
 if you can conclude that your company’s revenue spiked during
June, you might opt for a particular course of action based on
that information.
 For example, adventuresush sales and rental business might run
a diagnostic analysis regarding a spike in business in June. It
might correlate the increase with a new aggressive advertising
campaign and conclude there’s a causal relationship between the
campaign, the increase in sales, and the rise in revenue.
3-Predictive analytics
 Predictive analytics looks at the question, “What is likely to happen in
the future?” The benefit of this is clear.

 If you can predict future outcomes given a certain set of variables, you
can identify actions to help you obtain favorable outcomes or avoid
unfavorable outcomes.
 Predictive analytics examines historical data in conjunction with other
variables—such as industry trends, economic forecasts, and consumer
confidence—to make enlightened predictions regarding future
occurrences.

Example,
 let’s say you want to know if you should repeat June 2022’s effective—
but expensive—advertising campaign to increase the sale of kayaks in
June 2023 using predictive analytics.
 You might want to consider how watersports equipment sales have
historically trended during the month of June to create a statistical
model that predicts performance in the summer as a whole.
 Engaging in predictive analytics can go a long way in helping you
decide whether, how, and when to increase your advertising spending.
 4-Prescriptive analytics
 Prescriptive analytics can help you decide how to operate aspects of your
business in the future. It answers the question, “What should our next
move be?”
 Taking into account all possible variables that can be known or logically
anticipated, the role of prescriptive analytics is to discern how to proceed
based on an analysis of likely scenarios.

 Let’s refer to our adventuresush sales example.

 We see a trend toward outdoor water sports in June. However, we also
recognize that future sales will likely be tempered by ongoing supply
chain issues that may increase costs and the ability to receive kayaks
from the supplier on time.
 We then need to decide whether we’ll need a big advertising push in
June or if we’ll be scrambling to fill existing orders.
 We want to understand how the economic fallout of supply chain
interruptions can negatively impact our kayak sales business. To do this,
we’ll need advanced technologies—like artificial intelligence and
advanced analytics—for data collection and to sort, report, and analyze
big data to provide different best- and worst-case scenarios.