MA3010 NAU Hypothesis Testing Business Research Methods
We do statistical testing when we have an initial guess-timate of how the results of the study might, or should, turn out. We call such guess-timates a hypothesis.
Such hypotheses come in pairs:
The null hypothesis says there will be none of something. For example: no statistically significant between-group difference, relationship between something and something, or impact or effect of something on something. Sometimes we call this the pessimistic outcome.
In contrast, the alternative hypothesis says there will be something: a statistically significant between-group difference, relationship between something and something, or impact or effect of something on something. Sometimes we call this the optimistic outcome.
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We look at the value of the test statistic to decide which hypothesis to believe, based on the data. We will either retain the null hypothesis, or reject it in favor of the alternativehypothesis.When testing a null hypothesis against its alternative hypothesis, your decision is to either REJECT the null hypothesis or FAIL TO REJECT the null hypothesis. Why dont we claim to ACCEPT the null hypothesis? Give an analogy to explain this concept.
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