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What is a Hypothesis?
A hypothesis is a testable statement or assumption made about a relationship between variables. It forms the foundation of scientific research, data analysis, and evidence-based decision-making.
Definition
A hypothesis is a proposed explanation or prediction that can be tested using observation, experimentation, or data analysis.
Key Takeaways
- Must be testable and falsifiable.
- Used in research, analytics, and experimentation.
- Serves as the starting point for hypothesis testing.
Understanding Hypotheses
Hypotheses are developed based on existing knowledge, theory, or observation. They provide direction for research by clearly stating what is being tested.
In statistics and research design, hypotheses are often framed as null hypotheses (H₀) and alternative hypotheses (H₁). The research process then evaluates whether available evidence supports or rejects the stated assumption.
Clear hypotheses improve study design, data collection, and interpretation of results.
Real-World Example
A business hypothesizes that offering free delivery will increase online sales. This assumption is then tested using controlled experiments or sales data analysis.
Importance in Business or Economics
Hypotheses matter because they:
- Enable structured experimentation and learning
- Reduce bias in decision-making
- Support data-driven strategies
- Improve clarity in research and analysis
Types or Variations
- Null Hypothesis — Assumes no effect or relationship
- Alternative Hypothesis — Assumes an effect or relationship
- Directional Hypothesis — Specifies the direction of impact
- Non-Directional Hypothesis — Tests for existence of an effect
Related Terms
- Hypothesis Testing
- Experiment Design
- Statistical Inference
Sources and Further Reading
- Khan Academy – Statistics
- [Research Methodology Texts]
Quick Reference
- Testable assumption
- Foundation of research
- Evaluated using data
Frequently Asked Questions (FAQs)
What makes a good hypothesis?
It is clear, specific, and testable.
Is a hypothesis the same as a theory?
No, a hypothesis is tested; a theory is well-supported over time.
Can hypotheses change?
Yes, they may evolve as new evidence emerges.
