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STAT 5

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STAT 5

transes

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jakeithshim
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STAT CHAP 5

HYPOTHESIS TESTING
TYPES OF STATISTICAL HYPOTHESIS
1. NULL HYPOTHESIS
denoted by Ho, is a statement which states that there is no significant.

In statistical research, hypotheses should be written in null form.

2. Alternative Hypothesis
denoted by Ha.

This is the hypothesis that challenges the null hypothesis.

Example:
When the p value is
NULL HYPOTHESIS ALTERNATIVE HYPOTHESIS 1. less than 5%,
There is no significant relationship between There is significant relationship between
Reject the Null and Accept the Alternative.
financial Literacy and financial management financial Literacy and financial
practices. management practices. 2. Greater than 5%,
There is no significant difference on the There is significant difference on the level Accept the Null and Reject the Alternative
level of financial literacy when grouped of financial literacy when grouped
according to educational attainment. according to educational attainment.

There is no significant influence/ There is significant influence/


impact/effect of financial literacy on impact/effect of financial literacy on
financial management practices. financial management practices.

LEVEL OF SIGNIFICANCE

💡 When a researcher tests the hypothesis, he is not certain that the decision is 100% correct. However, he
is confident at a certain level that the decision is correct, say 99% of the decision he made is a correct
one.

The confidence level is 99% or the level of significance is 1%.

When the confidence level is 95%, the level of significance is 5%.

On the other hand, when the confidence level is 90%, the level of significance is 10%.

In this case, the higher the confidence level, the more certain that the decision of rejecting the null
hypothesis is correct.

HYPOTHESIS TESTING

STAT CHAP 5 1 STAT CHAP 5 2

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