The Difference Between Null Hypothesis vs Alternative Hypothesis

You might be looking to develop a strategy for entering a new market, where consumer response to your new product is likely to be positive. You make a strategy to test out your theory through a test launch. What happens if your theory ends up being correct? You wouldn’t know until you test out the null hypothesis.

What is a Null Hypothesis?

A statistical hypothesis that points towards no significant information for an observation is called a null hypothesis. In such a hypothesis, the expected outcome is the same as it is predicted to be. Also known as a ‘conjecture’, scientifically speaking, a null hypothesis occurs when no relationship exists between the set of variables or data you are analyzing. The null hypothesis is often used for a quantitative analysis for testing out theories. These might include theories related to markets, an economy, strategy for an investment, etc.

Null Hypothesis can be applied to any form of statistical analysis. Be it population parameters, probability, or other types of analysis. Null in this context is represented by “0”, hence the representation for a Null Hypothesis is H₀.

Examples of Null Hypothesis

The below video provides examples of null hypothesis and how to use it to test out a conjecture.

Null Hypothesis and Alternative Hypothesis

Null Hypothesis is when things are happening as expected. The alternative hypothesis is a claim regarding new information. An alternative hypothesis rejects a null hypothesis. Hence, a null hypothesis is a statistical conjecture that there is no difference between the data or population being analyzed. However, the alternative hypothesis proves otherwise. If the null hypothesis is rejected, it means that the alternative hypothesis is correct. The alternative hypothesis is represented as Ha or H1 whereas the null hypothesis is denoted as H₀.

The null hypothesis is assumed true until proven incorrect, whereas the alternative hypothesis is the one the analyst is trying to prove by testing out the conjecture.

Examples of Null Hypothesis vs. Alternative Hypothesis

The below video provides examples regarding null vs alternative hypothesis.

Final Words

The null hypothesis plays an important role in determining if the outcome is the same as expected. It enables making a decision based on data. An alternative hypothesis can help determine the change from the expected outcome. This can help in scientific research and is helpful for making strategies and estimates regarding markets, economies, product output, and various types of research.