BUSINESS RESEARCH

TOPIC :- FORMULATION OF
HYPOTHESIS

INTRODUCTION
A HYPOTHESIS is a prediction of a relationship
between one or more factors and the problem
under study that can be tested.
Hypotheses can take various forms, depending on
the question being asked and the type of study
being conducted.
A key feature of all hypotheses is that each must
make a prediction.
These predictions are then tested by gathering
and analyzing data, and the hypotheses can either
be supported or refuted on the basis of the data.

DEFINATION: A proposition which

determine validity.

can

be

put

to

Goode & Hatt

A hypothesis is a statement capable of
being tested and thereby verified or
rejected.
Rummel & Balline

Characteristics of hypotheses
Declarative statement that identifies
the predicted relationship between 2
or more variables
Testability
Based on sound scientific
theory/rationale

TYPES OF HYPOTHESES:
Two types of hypotheses with which you should be
familiar are
the null hypothesis
and the alternate (or experimental) hypothesis.
The null hypothesis always predicts that there will
be no differences between the groups being
studied.
By contrast, the alternate hypothesis predicts that
there will be a difference between the groups.
For example,
the null hypothesis would predict that the
exercise group and the no-exercise group will
not differ significantly on levels of cholesterol.
The alternate hypothesis would predict that the
two groups will differ significantly on cholesterol
levels.

FUNCTION OF HYPOTHESES:1. Hypothesis serves as a basis for a

researchers endeavour.
2. It also serves as a basis for future
knowledge.

FARMING OF HYPOTHESES:1. There is no significant association between Credit

rating and investment of fund.
2. Tax rates and generation of revenue.
3.Highly rated instruments.
4.Effectiveness of training and productivity.
5.Liberal bank credit is the storng reason for
inventory accumulation in indian companise.
6.Less taxation rates have no impact on savings and
investment.
7.Governments apathy is the cause for nondevelopment of small and village industries in india.

SOURCES OF HYPOTHESIS:1.Previous research studies are a great source of

hypothesis.
2.Analogies are a source of hypothesis.
3.Assumption of certain theorise becomes a source
of hypothesis.
4.Exceptions to certain theorise become a source of
hypothesis.
5.social, physical and other theorise and laws
provide a source of hypothesis.
6.Personal experiences of others are another source
of hypothesis.

CRITERIA OF A GOOD HYPOTHESIS

1. It should provide tentative answer to the
proposed problem. This can in the form of
a declaration of statement or in the form of
a directional statement or in a null form.
2. It should be operational, that is, there
should be a method for recording and
measuring the variables involved in the
hypothesis.
3. It should be as simple as possible.

CRITERIA OF A GOOD HYPOTHESIS

4.It should be specific but not trivial or
inconsequential. A very broad hypothesis, no
doubt, makes the problem unworkable. But a
very narrow hypothesis cuts the life out of it.
5.A hypothesis must always be stated in
advance of collecting evidence aimed at its
testing. If and only if a hypothesis is stated in
advance of collecting facts aimed at its testing
will such facts be useful in the verification or
repetition of the hypothesis.

THANK YOU