Business Studies

Describe the nature of hypothesis testing and the difference between null and alternative hypothesis. Cite examples of at least two types of hypothesis tests. What is the value of hypothesis testing?

ANSWER

Hypothesis Testing

The Nature of Hypothesis Testing

Hypothesis testing entails testing an assumption regarding certain parameters. Hypothesis testing facilitates a systematic way of trying ideas or claims about a population or group. Therefore, this is an effective way of testing an experiment or survey results to see if they are meaningful results. The assumptions of a hypothesis are proved with sufficient evidence to make it objectively tested, verified, or rejected (Biau, Jolles, and Porcher, 2010). Hypothesis testing determines the probability that a sample statistic could have been chosen if the hypothesis regarding the population parameter were accurate. All the tested hypotheses follow the hypothesis process, which includes formulating the analysis plan, carrying out the plan, physically analyzing the pan, and examining the results to reject or accept the null hypothesis.

Null Hypothesis

The Null hypothesis is the exact opposite of what an experimenter or investigator expects or predicts (Statistics, 2013). This is a statement that means that there is no actual or exact relationship between the variables. The main aim of the null hypothesis is to disprove/verify the proposed statistical assumptions. For instance, in an experiment on the relationship between age and medication, the hypothesis is that there is a relations research indicated a null hypothesis stating that there is no relation between the age of the patients and some medication. Therefore, the null hypothesis allowed general conclusions through consistent results on multiple experiments.

Alternative Hypothesis

The alternative hypothesis states that there is a relationship between the two variables selected in a study (Statistics, 2013). This indicates that the new theory is superior to the old one. Therefore, the alternative hypothesis has been tested and proved, which means that the study results are significant. For instance, if a study is comparing traditional treatment with non-traditional treatment and their relationship, an alternative hypothesis indicates that traditional treatment is inferior or non-traditional treatment is superior. The alternative hypothesis offers the direction of the study, which an experimenter or researcher can use to gain the desired results.

The value of Hypothesis testing

Hypothesis testing is used in evaluating the strength of evidence or study results from the samples. It also offers a framework for making determinations linked to the study population. Generally, a hypothesis defines the relationship between two variables and draws a conclusion about a study population based on the obtained data.

References

Biau, D. J., Jolles, B. M., & Porcher, R. (2010). P-value and the theory of hypothesis testing: an explanation for new researchers. Clinical Orthopaedics and Related Research®, 468(3), 885-892.

Statistics, L. (2013). Hypothesis testing. The Null and Alternative Hypothesis.