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There are propositions that describe the characteristics (such as size, form,distribution) of variables. The variable may be object, person, organization, situation or event for e.g. 1. The rate of unemployment among arts graduates in higher than that of science graduates 2. Public enterprises are more amenable for centralized planning 3. The educational system is not oriented to human resource needs of a country 4. Husbands and wives agree in their perceptions of their respective role of purchase design 5. The unemployment in Maharashtra is concentrated around male adults under the age of 25 who have less that 12 years of education 6. Private brand purchasers constitutes the identifiable market segment

These are propositions which describe the relationship between two variables. The relationship suggested may be positive/negative correlation or causal relationship. E.g.1. Families with higher income spend more on recreation 2. Participative management promotes motivation among executives 3. The lower the rate of job turnover in a work group, the higher the work productivity. 4. The current unemployment rate in Maharashtra exceeds 20% of the work force 5. Upper class people have fewer children than lower class people

6. Labour productivity decreases as working duration increases

While planning the study of a problem, hypothesis are formed. Initially they may not be very specific. In such cases they are called as Working Hypothesis which are subject to modification as the investigation proceeds.

It states that the existence of or change in one variable causes or leads to an effect on another variable. The first variable is called independent variable and the latter the dependent variable. While dealing with causal relationship between variables the researcher must consider the direction in which such relationship flow i.e. which is a cause and which is effect.

These are hypothetical statements denying what are explicitly indicated in the working hypothesis. They do not, nor were ever intended to exist in reality. They state that no difference exists between the parameters and the statistic being compared to it. For e.g.Even though there is relationship between families income and expenditure on recreation, a null hypothesis may state There is no relationship between families income and expenditure on recreation Null hypothesis are formulated for testing statistical significance, sine, this form is a convenient approach to statistical analysis. As the test would nullify the null hypothesis, they are so called.

There is some justification for using null hypothesis. They conform to the qualities of detachment objectively to be possessed by a researcher. If the attempt to test hypothesis which he assumes to be true, it would appear as if he is not behaving objectively. This problem does not arise when he uses null hypothesis Moreover, null hypothesis are more exact. It is easier to reject the contrary of an hypothesis are more exact. It is easier to reject the contrary of an hypothesis than to confirm it with complete certainty. Hence the concept of null hypothesis is found to be very useful. In scientific theory we often advance hypothesis or hunches. Science by nature is full of skepticism. The scientist never wants to belive anything unless there is proof. A scientist might not believe someone who says that a new drug works, a new therapy is effective or a new teaching method is stimulating. The scientists assumption is that these approaches do not work and that the burden of proof is on the person who makes these claims to provide evidence for their value. In formal studies and experiments scientists typically begin with assumption that there will be no difference between different groups. In case of testing a single sample mean against a hypothetical population the assumption is that the sample mean does not differ significantly from population under parameter. In the case words it is assumed that the sample can be considered representative of the population. As we have seen several times different sample means differ from one another. It would actually be rare to draw two samples and obtain exactly the same mean. Under the null hypothesis we assume that these observed differences are due to sampling error. However there may be substantial evidence that the null hypothesis becomes untenable.

For e.g. there may be substantial evidence that the null hypothesis is incorrect. Under these circumstances, we would reject the null hypothesis in favour of an alternate hypothesis

In statistical analysis the null hypothesis is typically tested against an alternative hypothesis usually sates that observed differences are not attributable to sampling error. To summarise the researcher /investigator has two hypothesis to choose between. The null hypothesis states that observed differences are attributable to chance, whereas the alternative hypothesis states that observed differences are not attributable to chance . Selecting between these two hypothesis requires formal decision rules.