What is The Null Hypothesis & When Do You Reject The Null Hypothesis

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A null hypothesis is a statistical concept suggesting no significant difference or relationship between measured variables. It’s the default assumption unless empirical evidence proves otherwise.

The null hypothesis states no relationship exists between the two variables being studied (i.e., one variable does not affect the other).

The null hypothesis is the statement that a researcher or an investigator wants to disprove.

Testing the null hypothesis can tell you whether your results are due to the effects of manipulating ​ the dependent variable or due to random chance. 

How to Write a Null Hypothesis

Null hypotheses (H0) start as research questions that the investigator rephrases as statements indicating no effect or relationship between the independent and dependent variables.

It is a default position that your research aims to challenge or confirm.

For example, if studying the impact of exercise on weight loss, your null hypothesis might be:

There is no significant difference in weight loss between individuals who exercise daily and those who do not.

Examples of Null Hypotheses

Research QuestionNull Hypothesis
Do teenagers use cell phones more than adults?Teenagers and adults use cell phones the same amount.
Do tomato plants exhibit a higher rate of growth when planted in compost rather than in soil?Tomato plants show no difference in growth rates when planted in compost rather than soil.
Does daily meditation decrease the incidence of depression?Daily meditation does not decrease the incidence of depression.
Does daily exercise increase test performance?There is no relationship between daily exercise time and test performance.
Does the new vaccine prevent infections?The vaccine does not affect the infection rate.
Does flossing your teeth affect the number of cavities?Flossing your teeth has no effect on the number of cavities.

When Do We Reject The Null Hypothesis? 

We reject the null hypothesis when the data provide strong enough evidence to conclude that it is likely incorrect. This often occurs when the p-value (probability of observing the data given the null hypothesis is true) is below a predetermined significance level.

If the collected data does not meet the expectation of the null hypothesis, a researcher can conclude that the data lacks sufficient evidence to back up the null hypothesis, and thus the null hypothesis is rejected. 

Rejecting the null hypothesis means that a relationship does exist between a set of variables and the effect is statistically significant ( p > 0.05).

If the data collected from the random sample is not statistically significance , then the null hypothesis will be accepted, and the researchers can conclude that there is no relationship between the variables. 

You need to perform a statistical test on your data in order to evaluate how consistent it is with the null hypothesis. A p-value is one statistical measurement used to validate a hypothesis against observed data.

Calculating the p-value is a critical part of null-hypothesis significance testing because it quantifies how strongly the sample data contradicts the null hypothesis.

The level of statistical significance is often expressed as a  p  -value between 0 and 1. The smaller the p-value, the stronger the evidence that you should reject the null hypothesis.

Probability and statistical significance in ab testing. Statistical significance in a b experiments

Usually, a researcher uses a confidence level of 95% or 99% (p-value of 0.05 or 0.01) as general guidelines to decide if you should reject or keep the null.

When your p-value is less than or equal to your significance level, you reject the null hypothesis.

In other words, smaller p-values are taken as stronger evidence against the null hypothesis. Conversely, when the p-value is greater than your significance level, you fail to reject the null hypothesis.

In this case, the sample data provides insufficient data to conclude that the effect exists in the population.

Because you can never know with complete certainty whether there is an effect in the population, your inferences about a population will sometimes be incorrect.

When you incorrectly reject the null hypothesis, it’s called a type I error. When you incorrectly fail to reject it, it’s called a type II error.

Why Do We Never Accept The Null Hypothesis?

The reason we do not say “accept the null” is because we are always assuming the null hypothesis is true and then conducting a study to see if there is evidence against it. And, even if we don’t find evidence against it, a null hypothesis is not accepted.

A lack of evidence only means that you haven’t proven that something exists. It does not prove that something doesn’t exist. 

It is risky to conclude that the null hypothesis is true merely because we did not find evidence to reject it. It is always possible that researchers elsewhere have disproved the null hypothesis, so we cannot accept it as true, but instead, we state that we failed to reject the null. 

One can either reject the null hypothesis, or fail to reject it, but can never accept it.

Why Do We Use The Null Hypothesis?

We can never prove with 100% certainty that a hypothesis is true; We can only collect evidence that supports a theory. However, testing a hypothesis can set the stage for rejecting or accepting this hypothesis within a certain confidence level.

The null hypothesis is useful because it can tell us whether the results of our study are due to random chance or the manipulation of a variable (with a certain level of confidence).

A null hypothesis is rejected if the measured data is significantly unlikely to have occurred and a null hypothesis is accepted if the observed outcome is consistent with the position held by the null hypothesis.

Rejecting the null hypothesis sets the stage for further experimentation to see if a relationship between two variables exists. 

Hypothesis testing is a critical part of the scientific method as it helps decide whether the results of a research study support a particular theory about a given population. Hypothesis testing is a systematic way of backing up researchers’ predictions with statistical analysis.

It helps provide sufficient statistical evidence that either favors or rejects a certain hypothesis about the population parameter. 

Purpose of a Null Hypothesis 

  • The primary purpose of the null hypothesis is to disprove an assumption. 
  • Whether rejected or accepted, the null hypothesis can help further progress a theory in many scientific cases.
  • A null hypothesis can be used to ascertain how consistent the outcomes of multiple studies are.

Do you always need both a Null Hypothesis and an Alternative Hypothesis?

The null (H0) and alternative (Ha or H1) hypotheses are two competing claims that describe the effect of the independent variable on the dependent variable. They are mutually exclusive, which means that only one of the two hypotheses can be true. 

While the null hypothesis states that there is no effect in the population, an alternative hypothesis states that there is statistical significance between two variables. 

The goal of hypothesis testing is to make inferences about a population based on a sample. In order to undertake hypothesis testing, you must express your research hypothesis as a null and alternative hypothesis. Both hypotheses are required to cover every possible outcome of the study. 

What is the difference between a null hypothesis and an alternative hypothesis?

The alternative hypothesis is the complement to the null hypothesis. The null hypothesis states that there is no effect or no relationship between variables, while the alternative hypothesis claims that there is an effect or relationship in the population.

It is the claim that you expect or hope will be true. The null hypothesis and the alternative hypothesis are always mutually exclusive, meaning that only one can be true at a time.

What are some problems with the null hypothesis?

One major problem with the null hypothesis is that researchers typically will assume that accepting the null is a failure of the experiment. However, accepting or rejecting any hypothesis is a positive result. Even if the null is not refuted, the researchers will still learn something new.

Why can a null hypothesis not be accepted?

We can either reject or fail to reject a null hypothesis, but never accept it. If your test fails to detect an effect, this is not proof that the effect doesn’t exist. It just means that your sample did not have enough evidence to conclude that it exists.

We can’t accept a null hypothesis because a lack of evidence does not prove something that does not exist. Instead, we fail to reject it.

Failing to reject the null indicates that the sample did not provide sufficient enough evidence to conclude that an effect exists.

If the p-value is greater than the significance level, then you fail to reject the null hypothesis.

Is a null hypothesis directional or non-directional?

A hypothesis test can either contain an alternative directional hypothesis or a non-directional alternative hypothesis. A directional hypothesis is one that contains the less than (“<“) or greater than (“>”) sign.

A nondirectional hypothesis contains the not equal sign (“≠”).  However, a null hypothesis is neither directional nor non-directional.

A null hypothesis is a prediction that there will be no change, relationship, or difference between two variables.

The directional hypothesis or nondirectional hypothesis would then be considered alternative hypotheses to the null hypothesis.

Gill, J. (1999). The insignificance of null hypothesis significance testing.  Political research quarterly ,  52 (3), 647-674.

Krueger, J. (2001). Null hypothesis significance testing: On the survival of a flawed method.  American Psychologist ,  56 (1), 16.

Masson, M. E. (2011). A tutorial on a practical Bayesian alternative to null-hypothesis significance testing.  Behavior research methods ,  43 , 679-690.

Nickerson, R. S. (2000). Null hypothesis significance testing: a review of an old and continuing controversy.  Psychological methods ,  5 (2), 241.

Rozeboom, W. W. (1960). The fallacy of the null-hypothesis significance test.  Psychological bulletin ,  57 (5), 416.

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  • Null and Alternative Hypotheses | Definitions & Examples

Null & Alternative Hypotheses | Definitions, Templates & Examples

Published on May 6, 2022 by Shaun Turney . Revised on June 22, 2023.

The null and alternative hypotheses are two competing claims that researchers weigh evidence for and against using a statistical test :

  • Null hypothesis ( H 0 ): There’s no effect in the population .
  • Alternative hypothesis ( H a or H 1 ) : There’s an effect in the population.

Table of contents

Answering your research question with hypotheses, what is a null hypothesis, what is an alternative hypothesis, similarities and differences between null and alternative hypotheses, how to write null and alternative hypotheses, other interesting articles, frequently asked questions.

The null and alternative hypotheses offer competing answers to your research question . When the research question asks “Does the independent variable affect the dependent variable?”:

  • The null hypothesis ( H 0 ) answers “No, there’s no effect in the population.”
  • The alternative hypothesis ( H a ) answers “Yes, there is an effect in the population.”

The null and alternative are always claims about the population. That’s because the goal of hypothesis testing is to make inferences about a population based on a sample . Often, we infer whether there’s an effect in the population by looking at differences between groups or relationships between variables in the sample. It’s critical for your research to write strong hypotheses .

You can use a statistical test to decide whether the evidence favors the null or alternative hypothesis. Each type of statistical test comes with a specific way of phrasing the null and alternative hypothesis. However, the hypotheses can also be phrased in a general way that applies to any test.

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The null hypothesis is the claim that there’s no effect in the population.

If the sample provides enough evidence against the claim that there’s no effect in the population ( p ≤ α), then we can reject the null hypothesis . Otherwise, we fail to reject the null hypothesis.

Although “fail to reject” may sound awkward, it’s the only wording that statisticians accept . Be careful not to say you “prove” or “accept” the null hypothesis.

Null hypotheses often include phrases such as “no effect,” “no difference,” or “no relationship.” When written in mathematical terms, they always include an equality (usually =, but sometimes ≥ or ≤).

You can never know with complete certainty whether there is an effect in the population. Some percentage of the time, your inference about the population will be incorrect. When you incorrectly reject the null hypothesis, it’s called a type I error . When you incorrectly fail to reject it, it’s a type II error.

Examples of null hypotheses

The table below gives examples of research questions and null hypotheses. There’s always more than one way to answer a research question, but these null hypotheses can help you get started.

( )
Does tooth flossing affect the number of cavities? Tooth flossing has on the number of cavities. test:

The mean number of cavities per person does not differ between the flossing group (µ ) and the non-flossing group (µ ) in the population; µ = µ .

Does the amount of text highlighted in the textbook affect exam scores? The amount of text highlighted in the textbook has on exam scores. :

There is no relationship between the amount of text highlighted and exam scores in the population; β = 0.

Does daily meditation decrease the incidence of depression? Daily meditation the incidence of depression.* test:

The proportion of people with depression in the daily-meditation group ( ) is greater than or equal to the no-meditation group ( ) in the population; ≥ .

*Note that some researchers prefer to always write the null hypothesis in terms of “no effect” and “=”. It would be fine to say that daily meditation has no effect on the incidence of depression and p 1 = p 2 .

The alternative hypothesis ( H a ) is the other answer to your research question . It claims that there’s an effect in the population.

Often, your alternative hypothesis is the same as your research hypothesis. In other words, it’s the claim that you expect or hope will be true.

The alternative hypothesis is the complement to the null hypothesis. Null and alternative hypotheses are exhaustive, meaning that together they cover every possible outcome. They are also mutually exclusive, meaning that only one can be true at a time.

Alternative hypotheses often include phrases such as “an effect,” “a difference,” or “a relationship.” When alternative hypotheses are written in mathematical terms, they always include an inequality (usually ≠, but sometimes < or >). As with null hypotheses, there are many acceptable ways to phrase an alternative hypothesis.

Examples of alternative hypotheses

The table below gives examples of research questions and alternative hypotheses to help you get started with formulating your own.

Does tooth flossing affect the number of cavities? Tooth flossing has an on the number of cavities. test:

The mean number of cavities per person differs between the flossing group (µ ) and the non-flossing group (µ ) in the population; µ ≠ µ .

Does the amount of text highlighted in a textbook affect exam scores? The amount of text highlighted in the textbook has an on exam scores. :

There is a relationship between the amount of text highlighted and exam scores in the population; β ≠ 0.

Does daily meditation decrease the incidence of depression? Daily meditation the incidence of depression. test:

The proportion of people with depression in the daily-meditation group ( ) is less than the no-meditation group ( ) in the population; < .

Null and alternative hypotheses are similar in some ways:

  • They’re both answers to the research question.
  • They both make claims about the population.
  • They’re both evaluated by statistical tests.

However, there are important differences between the two types of hypotheses, summarized in the following table.

A claim that there is in the population. A claim that there is in the population.

Equality symbol (=, ≥, or ≤) Inequality symbol (≠, <, or >)
Rejected Supported
Failed to reject Not supported

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To help you write your hypotheses, you can use the template sentences below. If you know which statistical test you’re going to use, you can use the test-specific template sentences. Otherwise, you can use the general template sentences.

General template sentences

The only thing you need to know to use these general template sentences are your dependent and independent variables. To write your research question, null hypothesis, and alternative hypothesis, fill in the following sentences with your variables:

Does independent variable affect dependent variable ?

  • Null hypothesis ( H 0 ): Independent variable does not affect dependent variable.
  • Alternative hypothesis ( H a ): Independent variable affects dependent variable.

Test-specific template sentences

Once you know the statistical test you’ll be using, you can write your hypotheses in a more precise and mathematical way specific to the test you chose. The table below provides template sentences for common statistical tests.

( )
test 

with two groups

The mean dependent variable does not differ between group 1 (µ ) and group 2 (µ ) in the population; µ = µ . The mean dependent variable differs between group 1 (µ ) and group 2 (µ ) in the population; µ ≠ µ .
with three groups The mean dependent variable does not differ between group 1 (µ ), group 2 (µ ), and group 3 (µ ) in the population; µ = µ = µ . The mean dependent variable of group 1 (µ ), group 2 (µ ), and group 3 (µ ) are not all equal in the population.
There is no correlation between independent variable and dependent variable in the population; ρ = 0. There is a correlation between independent variable and dependent variable in the population; ρ ≠ 0.
There is no relationship between independent variable and dependent variable in the population; β = 0. There is a relationship between independent variable and dependent variable in the population; β ≠ 0.
Two-proportions test The dependent variable expressed as a proportion does not differ between group 1 ( ) and group 2 ( ) in the population; = . The dependent variable expressed as a proportion differs between group 1 ( ) and group 2 ( ) in the population; ≠ .

Note: The template sentences above assume that you’re performing one-tailed tests . One-tailed tests are appropriate for most studies.

If you want to know more about statistics , methodology , or research bias , make sure to check out some of our other articles with explanations and examples.

  • Normal distribution
  • Descriptive statistics
  • Measures of central tendency
  • Correlation coefficient

Methodology

  • Cluster sampling
  • Stratified sampling
  • Types of interviews
  • Cohort study
  • Thematic analysis

Research bias

  • Implicit bias
  • Cognitive bias
  • Survivorship bias
  • Availability heuristic
  • Nonresponse bias
  • Regression to the mean

Hypothesis testing is a formal procedure for investigating our ideas about the world using statistics. It is used by scientists to test specific predictions, called hypotheses , by calculating how likely it is that a pattern or relationship between variables could have arisen by chance.

Null and alternative hypotheses are used in statistical hypothesis testing . The null hypothesis of a test always predicts no effect or no relationship between variables, while the alternative hypothesis states your research prediction of an effect or relationship.

The null hypothesis is often abbreviated as H 0 . When the null hypothesis is written using mathematical symbols, it always includes an equality symbol (usually =, but sometimes ≥ or ≤).

The alternative hypothesis is often abbreviated as H a or H 1 . When the alternative hypothesis is written using mathematical symbols, it always includes an inequality symbol (usually ≠, but sometimes < or >).

A research hypothesis is your proposed answer to your research question. The research hypothesis usually includes an explanation (“ x affects y because …”).

A statistical hypothesis, on the other hand, is a mathematical statement about a population parameter. Statistical hypotheses always come in pairs: the null and alternative hypotheses . In a well-designed study , the statistical hypotheses correspond logically to the research hypothesis.

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  • Null hypothesis

by Marco Taboga , PhD

In a test of hypothesis , a sample of data is used to decide whether to reject or not to reject a hypothesis about the probability distribution from which the sample was extracted.

The hypothesis is called the null hypothesis, or simply "the null".

Things a data scientist should know: 1) the criminal trial analogy; 2) the role of the test statistic; 3) failure to reject may be due to lack of power; 4) Rejection may be due to misspecification.

Table of contents

The null is like the defendant in a criminal trial

How is the null hypothesis tested, example 1 - proportion of defective items, measurement, test statistic, critical region, interpretation, example 2 - reliability of a production plant, rejection and failure to reject, not rejecting and accepting are not the same thing, failure to reject can be due to lack of power, rejections are easier to interpret, but be careful, takeaways - how to (and not to) formulate a null hypothesis, more examples, more details, best practices in science, keep reading the glossary.

Formulating null hypotheses and subjecting them to statistical testing is one of the workhorses of the scientific method.

Scientists in all fields make conjectures about the phenomena they study, translate them into null hypotheses and gather data to test them.

This process resembles a trial:

the defendant (the null hypothesis) is accused of being guilty (wrong);

evidence (data) is gathered in order to prove the defendant guilty (reject the null);

if there is evidence beyond any reasonable doubt, the defendant is found guilty (the null is rejected);

otherwise, the defendant is found not guilty (the null is not rejected).

Keep this analogy in mind because it helps to better understand statistical tests, their limitations, use and misuse, and frequent misinterpretation.

The null hypothesis is like the defendant in a criminal trial.

Before collecting the data:

we decide how to summarize the relevant characteristics of the sample data in a single number, the so-called test statistic ;

we derive the probability distribution of the test statistic under the hypothesis that the null is true (the data is regarded as random; therefore, the test statistic is a random variable);

we decide what probability of incorrectly rejecting the null we are willing to tolerate (the level of significance , or size of the test ); the level of significance is typically a small number, such as 5% or 1%.

we choose one or more intervals of values (collectively called rejection region) such that the probability that the test statistic falls within these intervals is equal to the desired level of significance; the rejection region is often a tail of the distribution of the test statistic (one-tailed test) or the union of the left and right tails (two-tailed test).

The rejection region is a set of values that the test statistic is unlikely to take if the null hypothesis is true.

Then, the data is collected and used to compute the value of the test statistic.

A decision is taken as follows:

if the test statistic falls within the rejection region, then the null hypothesis is rejected;

otherwise, it is not rejected.

The probability distribution of the test statistic and the rejection region depend on the null hypothesis.

We now make two examples of practical problems that lead to formulate and test a null hypothesis.

A new method is proposed to produce light bulbs.

The proponents claim that it produces less defective bulbs than the method currently in use.

To check the claim, we can set up a statistical test as follows.

We keep the light bulbs on for 10 consecutive days, and then we record whether they are still working at the end of the test period.

The probability that a light bulb produced with the new method is still working at the end of the test period is the same as that of a light bulb produced with the old method.

100 light bulbs are tested:

50 of them are produced with the new method (group A)

the remaining 50 are produced with the old method (group B).

The final data comprises 100 observations of:

an indicator variable which is equal to 1 if the light bulb is still working at the end of the test period and 0 otherwise;

a categorical variable that records the group (A or B) to which each light bulb belongs.

We use the data to compute the proportions of working light bulbs in groups A and B.

The proportions are estimates of the probabilities of not being defective, which are equal for the two groups under the null hypothesis.

We then compute a z-statistic (see here for details) by:

taking the difference between the proportion in group A and the proportion in group B;

standardizing the difference:

we subtract the expected value (which is zero under the null hypothesis);

we divide by the standard deviation (it can be derived analytically).

The distribution of the z-statistic can be approximated by a standard normal distribution .

The z-statistic has a normal distribution with zero mean and variance equal to one.

We decide that the level of confidence must be 5%. In other words, we are going to tolerate a 5% probability of incorrectly rejecting the null hypothesis.

The critical region is the right 5%-tail of the normal distribution, that is, the set of all values greater than 1.645 (see the glossary entry on critical values if you are wondering how this value was obtained).

If the test statistic is greater than 1.645, then the null hypothesis is rejected; otherwise, it is not rejected.

A rejection is interpreted as significant evidence that the new production method produces less defective items; failure to reject is interpreted as insufficient evidence that the new method is better.

The null hypothesis is rejected when the test statistic falls in the tails of the distribution.

A production plant incurs high costs when production needs to be halted because some machinery fails.

The plant manager has decided that he is not willing to tolerate more than one halt per year on average.

If the expected number of halts per year is greater than 1, he will make new investments in order to improve the reliability of the plant.

A statistical test is set up as follows.

The reliability of the plant is measured by the number of halts.

The number of halts in a year is assumed to have a Poisson distribution with expected value equal to 1 (using the Poisson distribution is common in reliability testing).

The manager cannot wait more than one year before taking a decision.

There will be a single datum at his disposal: the number of halts observed during one year.

The number of halts is used as a test statistic. By assumption, it has a Poisson distribution under the null hypothesis.

The manager decides that the probability of incorrectly rejecting the null can be at most 10%.

A Poisson random variable with expected value equal to 1 takes values:

larger than 1 with probability 26.42%;

larger than 2 with probability 8.03%.

Therefore, it is decided that the critical region will be the set of all values greater than or equal to 3.

If the test statistic is strictly greater than or equal to 3, then the null is rejected; otherwise, it is not rejected.

A rejection is interpreted as significant evidence that the production plant is not reliable enough (the average number of halts per year is significantly larger than tolerated).

Failure to reject is interpreted as insufficient evidence that the plant is unreliable.

Failure to reject the null hypothesis is interpreted as insufficient evidence.

This section discusses the main problems that arise in the interpretation of the outcome of a statistical test (reject / not reject).

When the test statistic does not fall within the critical region, then we do not reject the null hypothesis.

Does this mean that we accept the null? Not really.

In general, failure to reject does not constitute, per se, strong evidence that the null hypothesis is true .

Remember the analogy between hypothesis testing and a criminal trial. In a trial, when the defendant is declared not guilty, this does not mean that the defendant is innocent. It only means that there was not enough evidence (not beyond any reasonable doubt) against the defendant.

In turn, lack of evidence can be due:

either to the fact that the defendant is innocent ;

or to the fact that the prosecution has not been able to provide enough evidence against the defendant, even if the latter is guilty .

This is the very reason why courts do not declare defendants innocent, but they use the locution "not guilty".

In a similar fashion, statisticians do not say that the null hypothesis has been accepted, but they say that it has not been rejected.

Failure to reject does not imply acceptance.

To better understand why failure to reject does not in general constitute strong evidence that the null hypothesis is true, we need to use the concept of statistical power .

The power of a test is the probability (calculated ex-ante, i.e., before observing the data) that the null will be rejected when another hypothesis (called the alternative hypothesis ) is true.

Let's consider the first of the two examples above (the production of light bulbs).

In that example, the null hypothesis is: the probability that a light bulb is defective does not decrease after introducing a new production method.

Let's make the alternative hypothesis that the probability of being defective is 1% smaller after changing the production process (assume that a 1% decrease is considered a meaningful improvement by engineers).

How much is the ex-ante probability of rejecting the null if the alternative hypothesis is true?

If this probability (the power of the test) is small, then it is very likely that we will not reject the null even if it is wrong.

If we use the analogy with criminal trials, low power means that most likely the prosecution will not be able to provide sufficient evidence, even if the defendant is guilty.

Thus, in the case of lack of power, failure to reject is almost meaningless (it was anyway highly likely).

This is why, before performing a test, it is good statistical practice to compute its power against a relevant alternative .

If the power is found to be too small, there are usually remedies. In particular, statistical power can usually be increased by increasing the sample size (see, e.g., the lecture on hypothesis tests about the mean ).

The best practice is to compute the power of the test, that is, the probability of rejecting the null hypothesis when the alternative is true.

As we have explained above, interpreting a failure to reject the null hypothesis is not always straightforward. Instead, interpreting a rejection is somewhat easier.

When we reject the null, we know that the data has provided a lot of evidence against the null. In other words, it is unlikely (how unlikely depends on the size of the test) that the null is true given the data we have observed.

There is an important caveat though. The null hypothesis is often made up of several assumptions, including:

the main assumption (the one we are testing);

other assumptions (e.g., technical assumptions) that we need to make in order to set up the hypothesis test.

For instance, in Example 2 above (reliability of a production plant), the main assumption is that the expected number of production halts per year is equal to 1. But there is also a technical assumption: the number of production halts has a Poisson distribution.

It must be kept in mind that a rejection is always a joint rejection of the main assumption and all the other assumptions .

Therefore, we should always ask ourselves whether the null has been rejected because the main assumption is wrong or because the other assumptions are violated.

In the case of Example 2 above, is a rejection of the null due to the fact that the expected number of halts is greater than 1 or is it due to the fact that the distribution of the number of halts is very different from a Poisson distribution?

When we suspect that a rejection is due to the inappropriateness of some technical assumption (e.g., assuming a Poisson distribution in the example), we say that the rejection could be due to misspecification of the model .

The right thing to do when these kind of suspicions arise is to conduct so-called robustness checks , that is, to change the technical assumptions and carry out the test again.

In our example, we could re-run the test by assuming a different probability distribution for the number of halts (e.g., a negative binomial or a compound Poisson - do not worry if you have never heard about these distributions).

If we keep obtaining a rejection of the null even after changing the technical assumptions several times, the we say that our rejection is robust to several different specifications of the model .

Even if the null hypothesis is true, a wrong technical assumption can lead to reject the null too often.

What are the main practical implications of everything we have said thus far? How does the theory above help us to set up and test a null hypothesis?

What we said can be summarized in the following guiding principles:

A test of hypothesis is like a criminal trial and you are the prosecutor . You want to find evidence that the defendant (the null hypothesis) is guilty. Your job is not to prove that the defendant is innocent. If you find yourself hoping that the defendant is found not guilty (i.e., the null is not rejected) then something is wrong with the way you set up the test. Remember: you are the prosecutor.

Compute the power of your test against one or more relevant alternative hypotheses. Do not run a test if you know ex-ante that it is unlikely to reject the null when the alternative hypothesis is true.

Beware of technical assumptions that you add to the main assumption you want to test. Make robustness checks in order to verify that the outcome of the test is not biased by model misspecification.

$H_{0}$

More examples of null hypotheses and how to test them can be found in the following lectures.

Where the example is found Null hypothesis
The mean of a normal distribution is equal to a certain value
The variance of a normal distribution is equal to a certain value
A vector of parameters estimated by MLE satisfies a set of linear or non-linear restrictions
A regression coefficient is equal to a certain value

The lecture on Hypothesis testing provides a more detailed mathematical treatment of null hypotheses and how they are tested.

This lecture on the null hypothesis was featured in Stanford University's Best practices in science .

Stanford University Best Practices in Science.

Previous entry: Normal equations

Next entry: Parameter

How to cite

Please cite as:

Taboga, Marco (2021). "Null hypothesis", Lectures on probability theory and mathematical statistics. Kindle Direct Publishing. Online appendix. https://www.statlect.com/glossary/null-hypothesis.

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Null Hypothesis

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In mathematics, Statistics deals with the study of research and surveys on the numerical data. For taking surveys, we have to define the hypothesis. Generally, there are two types of hypothesis. One is a null hypothesis, and another is an alternative hypothesis .

In probability and statistics, the null hypothesis is a comprehensive statement or default status that there is zero happening or nothing happening. For example, there is no connection among groups or no association between two measured events. It is generally assumed here that the hypothesis is true until any other proof has been brought into the light to deny the hypothesis. Let us learn more here with definition, symbol, principle, types and example, in this article.

Table of contents:

  • Comparison with Alternative Hypothesis

Null Hypothesis Definition

The null hypothesis is a kind of hypothesis which explains the population parameter whose purpose is to test the validity of the given experimental data. This hypothesis is either rejected or not rejected based on the viability of the given population or sample . In other words, the null hypothesis is a hypothesis in which the sample observations results from the chance. It is said to be a statement in which the surveyors wants to examine the data. It is denoted by H 0 .

Null Hypothesis Symbol

In statistics, the null hypothesis is usually denoted by letter H with subscript ‘0’ (zero), such that H 0 . It is pronounced as H-null or H-zero or H-nought. At the same time, the alternative hypothesis expresses the observations determined by the non-random cause. It is represented by H 1 or H a .

Null Hypothesis Principle

The principle followed for null hypothesis testing is, collecting the data and determining the chances of a given set of data during the study on some random sample, assuming that the null hypothesis is true. In case if the given data does not face the expected null hypothesis, then the outcome will be quite weaker, and they conclude by saying that the given set of data does not provide strong evidence against the null hypothesis because of insufficient evidence. Finally, the researchers tend to reject that.

Null Hypothesis Formula

Here, the hypothesis test formulas are given below for reference.

The formula for the null hypothesis is:

H 0 :  p = p 0

The formula for the alternative hypothesis is:

H a = p >p 0 , < p 0 ≠ p 0

The formula for the test static is:

Remember that,  p 0  is the null hypothesis and p – hat is the sample proportion.

Also, read:

Types of Null Hypothesis

There are different types of hypothesis. They are:

Simple Hypothesis

It completely specifies the population distribution. In this method, the sampling distribution is the function of the sample size.

Composite Hypothesis

The composite hypothesis is one that does not completely specify the population distribution.

Exact Hypothesis

Exact hypothesis defines the exact value of the parameter. For example μ= 50

Inexact Hypothesis

This type of hypothesis does not define the exact value of the parameter. But it denotes a specific range or interval. For example 45< μ <60

Null Hypothesis Rejection

Sometimes the null hypothesis is rejected too. If this hypothesis is rejected means, that research could be invalid. Many researchers will neglect this hypothesis as it is merely opposite to the alternate hypothesis. It is a better practice to create a hypothesis and test it. The goal of researchers is not to reject the hypothesis. But it is evident that a perfect statistical model is always associated with the failure to reject the null hypothesis.

How do you Find the Null Hypothesis?

The null hypothesis says there is no correlation between the measured event (the dependent variable) and the independent variable. We don’t have to believe that the null hypothesis is true to test it. On the contrast, you will possibly assume that there is a connection between a set of variables ( dependent and independent).

When is Null Hypothesis Rejected?

The null hypothesis is rejected using the P-value approach. If the P-value is less than or equal to the α, there should be a rejection of the null hypothesis in favour of the alternate hypothesis. In case, if P-value is greater than α, the null hypothesis is not rejected.

Null Hypothesis and Alternative Hypothesis

Now, let us discuss the difference between the null hypothesis and the alternative hypothesis.

1

The null hypothesis is a statement. There exists no relation between two variables

Alternative hypothesis a statement, there exists some relationship between two measured phenomenon

2

Denoted by H

Denoted by H

3

The observations of this hypothesis are the result of chance

The observations of this hypothesis are the result of real effect

4

The mathematical formulation of the null hypothesis is an equal sign

The mathematical formulation alternative hypothesis is an inequality sign such as greater than, less than, etc.

Null Hypothesis Examples

Here, some of the examples of the null hypothesis are given below. Go through the below ones to understand the concept of the null hypothesis in a better way.

If a medicine reduces the risk of cardiac stroke, then the null hypothesis should be “the medicine does not reduce the chance of cardiac stroke”. This testing can be performed by the administration of a drug to a certain group of people in a controlled way. If the survey shows that there is a significant change in the people, then the hypothesis is rejected.

Few more examples are:

1). Are there is 100% chance of getting affected by dengue?

Ans: There could be chances of getting affected by dengue but not 100%.

2). Do teenagers are using mobile phones more than grown-ups to access the internet?

Ans: Age has no limit on using mobile phones to access the internet.

3). Does having apple daily will not cause fever?

Ans: Having apple daily does not assure of not having fever, but increases the immunity to fight against such diseases.

4). Do the children more good in doing mathematical calculations than grown-ups?

Ans: Age has no effect on Mathematical skills.

In many common applications, the choice of the null hypothesis is not automated, but the testing and calculations may be automated. Also, the choice of the null hypothesis is completely based on previous experiences and inconsistent advice. The choice can be more complicated and based on the variety of applications and the diversity of the objectives. 

The main limitation for the choice of the null hypothesis is that the hypothesis suggested by the data is based on the reasoning which proves nothing. It means that if some hypothesis provides a summary of the data set, then there would be no value in the testing of the hypothesis on the particular set of data. 

Frequently Asked Questions on Null Hypothesis

What is meant by the null hypothesis.

In Statistics, a null hypothesis is a type of hypothesis which explains the population parameter whose purpose is to test the validity of the given experimental data.

What are the benefits of hypothesis testing?

Hypothesis testing is defined as a form of inferential statistics, which allows making conclusions from the entire population based on the sample representative.

When a null hypothesis is accepted and rejected?

The null hypothesis is either accepted or rejected in terms of the given data. If P-value is less than α, then the null hypothesis is rejected in favor of the alternative hypothesis, and if the P-value is greater than α, then the null hypothesis is accepted in favor of the alternative hypothesis.

Why is the null hypothesis important?

The importance of the null hypothesis is that it provides an approximate description of the phenomena of the given data. It allows the investigators to directly test the relational statement in a research study.

How to accept or reject the null hypothesis in the chi-square test?

If the result of the chi-square test is bigger than the critical value in the table, then the data does not fit the model, which represents the rejection of the null hypothesis.

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Null Hypothesis

Null Hypothesis , often denoted as H 0, is a foundational concept in statistical hypothesis testing. It represents an assumption that no significant difference, effect, or relationship exists between variables within a population. It serves as a baseline assumption, positing no observed change or effect occurring. The null is t he truth or falsity of an idea in analysis.

In this article, we will discuss the null hypothesis in detail, along with some solved examples and questions on the null hypothesis.

Table of Content

What is Null Hypothesis?

Null hypothesis symbol, formula of null hypothesis, types of null hypothesis, null hypothesis examples, principle of null hypothesis, how do you find null hypothesis, null hypothesis in statistics, null hypothesis and alternative hypothesis, null hypothesis and alternative hypothesis examples, null hypothesis – practice problems.

Null Hypothesis in statistical analysis suggests the absence of statistical significance within a specific set of observed data. Hypothesis testing, using sample data, evaluates the validity of this hypothesis. Commonly denoted as H 0 or simply “null,” it plays an important role in quantitative analysis, examining theories related to markets, investment strategies, or economies to determine their validity.

Null Hypothesis Meaning

Null Hypothesis represents a default position, often suggesting no effect or difference, against which researchers compare their experimental results. The Null Hypothesis, often denoted as H 0 asserts a default assumption in statistical analysis. It posits no significant difference or effect, serving as a baseline for comparison in hypothesis testing.

The null Hypothesis is represented as H 0 , the Null Hypothesis symbolizes the absence of a measurable effect or difference in the variables under examination.

Certainly, a simple example would be asserting that the mean score of a group is equal to a specified value like stating that the average IQ of a population is 100.

The Null Hypothesis is typically formulated as a statement of equality or absence of a specific parameter in the population being studied. It provides a clear and testable prediction for comparison with the alternative hypothesis. The formulation of the Null Hypothesis typically follows a concise structure, stating the equality or absence of a specific parameter in the population.

Mean Comparison (Two-sample t-test)

H 0 : μ 1 = μ 2

This asserts that there is no significant difference between the means of two populations or groups.

Proportion Comparison

H 0 : p 1 − p 2 = 0

This suggests no significant difference in proportions between two populations or conditions.

Equality in Variance (F-test in ANOVA)

H 0 : σ 1 = σ 2

This states that there’s no significant difference in variances between groups or populations.

Independence (Chi-square Test of Independence):

H 0 : Variables are independent

This asserts that there’s no association or relationship between categorical variables.

Null Hypotheses vary including simple and composite forms, each tailored to the complexity of the research question. Understanding these types is pivotal for effective hypothesis testing.

Equality Null Hypothesis (Simple Null Hypothesis)

The Equality Null Hypothesis, also known as the Simple Null Hypothesis, is a fundamental concept in statistical hypothesis testing that assumes no difference, effect or relationship between groups, conditions or populations being compared.

Non-Inferiority Null Hypothesis

In some studies, the focus might be on demonstrating that a new treatment or method is not significantly worse than the standard or existing one.

Superiority Null Hypothesis

The concept of a superiority null hypothesis comes into play when a study aims to demonstrate that a new treatment, method, or intervention is significantly better than an existing or standard one.

Independence Null Hypothesis

In certain statistical tests, such as chi-square tests for independence, the null hypothesis assumes no association or independence between categorical variables.

Homogeneity Null Hypothesis

In tests like ANOVA (Analysis of Variance), the null hypothesis suggests that there’s no difference in population means across different groups.

  • Medicine: Null Hypothesis: “No significant difference exists in blood pressure levels between patients given the experimental drug versus those given a placebo.”
  • Education: Null Hypothesis: “There’s no significant variation in test scores between students using a new teaching method and those using traditional teaching.”
  • Economics: Null Hypothesis: “There’s no significant change in consumer spending pre- and post-implementation of a new taxation policy.”
  • Environmental Science: Null Hypothesis: “There’s no substantial difference in pollution levels before and after a water treatment plant’s establishment.”

The principle of the null hypothesis is a fundamental concept in statistical hypothesis testing. It involves making an assumption about the population parameter or the absence of an effect or relationship between variables.

In essence, the null hypothesis (H 0 ) proposes that there is no significant difference, effect, or relationship between variables. It serves as a starting point or a default assumption that there is no real change, no effect or no difference between groups or conditions.

\alpha

Null Hypothesis Rejection

Rejecting the Null Hypothesis occurs when statistical evidence suggests a significant departure from the assumed baseline. It implies that there is enough evidence to support the alternative hypothesis, indicating a meaningful effect or difference. Null Hypothesis rejection occurs when statistical evidence suggests a deviation from the assumed baseline, prompting a reconsideration of the initial hypothesis.

Identifying the Null Hypothesis involves defining the status quotient, asserting no effect and formulating a statement suitable for statistical analysis.

When is Null Hypothesis Rejected?

The Null Hypothesis is rejected when statistical tests indicate a significant departure from the expected outcome, leading to the consideration of alternative hypotheses. It occurs when statistical evidence suggests a deviation from the assumed baseline, prompting a reconsideration of the initial hypothesis.

In statistical hypothesis testing, researchers begin by stating the null hypothesis, often based on theoretical considerations or previous research. The null hypothesis is then tested against an alternative hypothesis (Ha), which represents the researcher’s claim or the hypothesis they seek to support.

The process of hypothesis testing involves collecting sample data and using statistical methods to assess the likelihood of observing the data if the null hypothesis were true. This assessment is typically done by calculating a test statistic, which measures the difference between the observed data and what would be expected under the null hypothesis.

In the realm of hypothesis testing, the null hypothesis (H 0 ) and alternative hypothesis (H₁ or Ha) play critical roles. The null hypothesis generally assumes no difference, effect, or relationship between variables, suggesting that any observed change or effect is due to random chance. Its counterpart, the alternative hypothesis, asserts the presence of a significant difference, effect, or relationship between variables, challenging the null hypothesis. These hypotheses are formulated based on the research question and guide statistical analyses.

Difference Between Null Hypothesis and Alternative Hypothesis

The null hypothesis (H 0 ) serves as the baseline assumption in statistical testing, suggesting no significant effect, relationship, or difference within the data. It often proposes that any observed change or correlation is merely due to chance or random variation. Conversely, the alternative hypothesis (H 1 or Ha) contradicts the null hypothesis, positing the existence of a genuine effect, relationship or difference in the data. It represents the researcher’s intended focus, seeking to provide evidence against the null hypothesis and support for a specific outcome or theory. These hypotheses form the crux of hypothesis testing, guiding the assessment of data to draw conclusions about the population being studied.

Criteria

Null Hypothesis

Alternative Hypothesis

Definition

Assumes no effect or difference

Asserts a specific effect or difference

Symbol

H

H (or Ha)

Formulation

States equality or absence of parameter

States a specific value or relationship

Testing Outcome

Rejected if evidence of a significant effect

Accepted if evidence supports the hypothesis

Let’s envision a scenario where a researcher aims to examine the impact of a new medication on reducing blood pressure among patients. In this context:

Null Hypothesis (H 0 ): “The new medication does not produce a significant effect in reducing blood pressure levels among patients.”

Alternative Hypothesis (H 1 or Ha): “The new medication yields a significant effect in reducing blood pressure levels among patients.”

The null hypothesis implies that any observed alterations in blood pressure subsequent to the medication’s administration are a result of random fluctuations rather than a consequence of the medication itself. Conversely, the alternative hypothesis contends that the medication does indeed generate a meaningful alteration in blood pressure levels, distinct from what might naturally occur or by random chance.

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Example 1: A researcher claims that the average time students spend on homework is 2 hours per night.

Null Hypothesis (H 0 ): The average time students spend on homework is equal to 2 hours per night. Data: A random sample of 30 students has an average homework time of 1.8 hours with a standard deviation of 0.5 hours. Test Statistic and Decision: Using a t-test, if the calculated t-statistic falls within the acceptance region, we fail to reject the null hypothesis. If it falls in the rejection region, we reject the null hypothesis. Conclusion: Based on the statistical analysis, we fail to reject the null hypothesis, suggesting that there is not enough evidence to dispute the claim of the average homework time being 2 hours per night.

Example 2: A company asserts that the error rate in its production process is less than 1%.

Null Hypothesis (H 0 ): The error rate in the production process is 1% or higher. Data: A sample of 500 products shows an error rate of 0.8%. Test Statistic and Decision: Using a z-test, if the calculated z-statistic falls within the acceptance region, we fail to reject the null hypothesis. If it falls in the rejection region, we reject the null hypothesis. Conclusion: The statistical analysis supports rejecting the null hypothesis, indicating that there is enough evidence to dispute the company’s claim of an error rate of 1% or higher.

Q1. A researcher claims that the average time spent by students on homework is less than 2 hours per day. Formulate the null hypothesis for this claim?

Q2. A manufacturing company states that their new machine produces widgets with a defect rate of less than 5%. Write the null hypothesis to test this claim?

Q3. An educational institute believes that their online course completion rate is at least 60%. Develop the null hypothesis to validate this assertion?

Q4. A restaurant claims that the waiting time for customers during peak hours is not more than 15 minutes. Formulate the null hypothesis for this claim?

Q5. A study suggests that the mean weight loss after following a specific diet plan for a month is more than 8 pounds. Construct the null hypothesis to evaluate this statement?

Summary – Null Hypothesis and Alternative Hypothesis

The null hypothesis (H 0 ) and alternative hypothesis (H a ) are fundamental concepts in statistical hypothesis testing. The null hypothesis represents the default assumption, stating that there is no significant effect, difference, or relationship between variables. It serves as the baseline against which the alternative hypothesis is tested. In contrast, the alternative hypothesis represents the researcher’s hypothesis or the claim to be tested, suggesting that there is a significant effect, difference, or relationship between variables. The relationship between the null and alternative hypotheses is such that they are complementary, and statistical tests are conducted to determine whether the evidence from the data is strong enough to reject the null hypothesis in favor of the alternative hypothesis. This decision is based on the strength of the evidence and the chosen level of significance. Ultimately, the choice between the null and alternative hypotheses depends on the specific research question and the direction of the effect being investigated.

FAQs on Null Hypothesis

What does null hypothesis stands for.

The null hypothesis, denoted as H 0 ​, is a fundamental concept in statistics used for hypothesis testing. It represents the statement that there is no effect or no difference, and it is the hypothesis that the researcher typically aims to provide evidence against.

How to Form a Null Hypothesis?

A null hypothesis is formed based on the assumption that there is no significant difference or effect between the groups being compared or no association between variables being tested. It often involves stating that there is no relationship, no change, or no effect in the population being studied.

When Do we reject the Null Hypothesis?

In statistical hypothesis testing, if the p-value (the probability of obtaining the observed results) is lower than the chosen significance level (commonly 0.05), we reject the null hypothesis. This suggests that the data provides enough evidence to refute the assumption made in the null hypothesis.

What is a Null Hypothesis in Research?

In research, the null hypothesis represents the default assumption or position that there is no significant difference or effect. Researchers often try to test this hypothesis by collecting data and performing statistical analyses to see if the observed results contradict the assumption.

What Are Alternative and Null Hypotheses?

The null hypothesis (H0) is the default assumption that there is no significant difference or effect. The alternative hypothesis (H1 or Ha) is the opposite, suggesting there is a significant difference, effect or relationship.

What Does it Mean to Reject the Null Hypothesis?

Rejecting the null hypothesis implies that there is enough evidence in the data to support the alternative hypothesis. In simpler terms, it suggests that there might be a significant difference, effect or relationship between the groups or variables being studied.

How to Find Null Hypothesis?

Formulating a null hypothesis often involves considering the research question and assuming that no difference or effect exists. It should be a statement that can be tested through data collection and statistical analysis, typically stating no relationship or no change between variables or groups.

How is Null Hypothesis denoted?

The null hypothesis is commonly symbolized as H 0 in statistical notation.

What is the Purpose of the Null hypothesis in Statistical Analysis?

The null hypothesis serves as a starting point for hypothesis testing, enabling researchers to assess if there’s enough evidence to reject it in favor of an alternative hypothesis.

What happens if we Reject the Null hypothesis?

Rejecting the null hypothesis implies that there is sufficient evidence to support an alternative hypothesis, suggesting a significant effect or relationship between variables.

What are Test for Null Hypothesis?

Various statistical tests, such as t-tests or chi-square tests, are employed to evaluate the validity of the Null Hypothesis in different scenarios.

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What Is a Null Hypothesis?

The alternative hypothesis.

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  • Null Hypothesis and Investments

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Null Hypothesis: What Is It, and How Is It Used in Investing?

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

what is null hypothesis meaning

A null hypothesis is a type of statistical hypothesis that proposes that no statistical significance exists in a set of given observations. Hypothesis testing is used to assess the credibility of a hypothesis by using sample data. Sometimes referred to simply as the “null,” it is represented as H 0 .

The null hypothesis, also known as the conjecture, is used in quantitative analysis to test theories about markets, investing strategies, or economies to decide if an idea is true or false.

Key Takeaways

  • A null hypothesis is a type of conjecture in statistics that proposes that there is no difference between certain characteristics of a population or data-generating process.
  • The alternative hypothesis proposes that there is a difference.
  • Hypothesis testing provides a method to reject a null hypothesis within a certain confidence level.
  • If you can reject the null hypothesis, it provides support for the alternative hypothesis.
  • Null hypothesis testing is the basis of the principle of falsification in science.

Alex Dos Diaz / Investopedia

Null Hypothesis Example

For example, a gambler may be interested in whether a game of chance is fair. If it is fair, then the expected earnings per play come to zero for both players. If the game is not fair, then the expected earnings are positive for one player and negative for the other.

To test whether the game is fair, the gambler collects earnings data from many repetitions of the game, calculates the average earnings from these data, then tests the null hypothesis that the expected earnings are not different from zero.

If the average earnings from the sample data are sufficiently far from zero, then the gambler will reject the null hypothesis and conclude the alternative hypothesis—namely, that the expected earnings per play are different from zero. If the average earnings from the sample data are near zero, then the gambler will not reject the null hypothesis, concluding instead that the difference between the average from the data and zero is explainable by chance alone.

The null hypothesis assumes that any kind of difference between the chosen characteristics that you see in a set of data is due to chance. For example, if the expected earnings for the gambling game are truly equal to zero, then any difference between the average earnings in the data and zero is due to chance.

Analysts look to reject   the null hypothesis because doing so is a strong conclusion. This requires strong evidence in the form of an observed difference that is too large to be explained solely by chance. Failing to reject the null hypothesis—that the results are explainable by chance alone—is a weak conclusion because it allows that factors other than chance may be at work, but may not be strong enough for the statistical test to detect them.

A null hypothesis can only be rejected, not proven.

An important point to note is that we are testing the null hypothesis because there is an element of doubt about its validity. Whatever information that is against the stated null hypothesis is captured in the alternative (alternate) hypothesis (H1).

For the examples below, the alternative hypothesis would be:

  • Students score an average that is  not  equal to seven.
  • The mean annual return of a mutual fund is  not  equal to 8% per year.

In other words, the alternative hypothesis is a direct contradiction of the null hypothesis.

More Null Hypothesis Examples

Here is a simple example: A school principal claims that students in her school score an average of seven out of 10 in exams. The null hypothesis is that the population mean is 7.0. To test this null hypothesis, we record marks of, say, 30 students ( sample ) from the entire student population of the school (say, 300) and calculate the mean of that sample.

We can then compare the (calculated) sample mean to the (hypothesized) population mean of 7.0 and attempt to reject the null hypothesis. (The null hypothesis here—that the population mean is 7.0—cannot be proved using the sample data. It can only be rejected.)

Take another example: The annual return of a particular  mutual fund  is claimed to be 8%. Assume that a mutual fund has been in existence for 20 years. The null hypothesis is that the mean return is 8% for the mutual fund. We take a random sample of annual returns of the mutual fund for, say, five years (sample) and calculate the sample mean. We then compare the (calculated) sample mean to the (claimed) population mean (8%) to test the null hypothesis.

For the above examples, null hypotheses are:

  • Example A : Students in the school score an average of seven out of 10 in exams.
  • Example B : The mean annual return of the mutual fund is 8% per year.

For the purposes of determining whether to reject the null hypothesis, the null hypothesis (abbreviated H 0 ) is assumed, for the sake of argument, to be true. Then the likely range of possible values of the calculated statistic (e.g., the average score on 30 students’ tests) is determined under this presumption (e.g., the range of plausible averages might range from 6.2 to 7.8 if the population mean is 7.0). Then, if the sample average is outside of this range, the null hypothesis is rejected. Otherwise, the difference is said to be “explainable by chance alone,” being within the range that is determined by chance alone.

How Null Hypothesis Testing Is Used in Investments

As an example related to financial markets, assume Alice sees that her investment strategy produces higher average returns than simply buying and holding a stock . The null hypothesis states that there is no difference between the two average returns, and Alice is inclined to believe this until she can conclude contradictory results.

Refuting the null hypothesis would require showing statistical significance, which can be found by a variety of tests. The alternative hypothesis would state that the investment strategy has a higher average return than a traditional buy-and-hold strategy.

One tool that can determine the statistical significance of the results is the p-value. A p-value represents the probability that a difference as large or larger than the observed difference between the two average returns could occur solely by chance.

A p-value that is less than or equal to 0.05 often indicates whether there is evidence against the null hypothesis. If Alice conducts one of these tests, such as a test using the normal model, resulting in a significant difference between her returns and the buy-and-hold returns (the p-value is less than or equal to 0.05), she can then reject the null hypothesis and conclude the alternative hypothesis.

How Is the Null Hypothesis Identified?

The analyst or researcher establishes a null hypothesis based on the research question or problem that they are trying to answer. Depending on the question, the null may be identified differently. For example, if the question is simply whether an effect exists (e.g., does X influence Y?), the null hypothesis could be H 0 : X = 0. If the question is instead, is X the same as Y, the H0 would be X = Y. If it is that the effect of X on Y is positive, H0 would be X > 0. If the resulting analysis shows an effect that is statistically significantly different from zero, the null can be rejected.

How Is Null Hypothesis Used in Finance?

In finance , a null hypothesis is used in quantitative analysis. A null hypothesis tests the premise of an investing strategy, the markets, or an economy to determine if it is true or false.

For instance, an analyst may want to see if two stocks, ABC and XYZ, are closely correlated. The null hypothesis would be ABC ≠ XYZ.

How Are Statistical Hypotheses Tested?

Statistical hypotheses are tested by a four-step process . The first step is for the analyst to state the two hypotheses so that only one can be right. The next step is to formulate an analysis plan, which outlines how the data will be evaluated. The third step is to carry out the plan and physically analyze the sample data. The fourth and final step is to analyze the results and either reject the null hypothesis or claim that the observed differences are explainable by chance alone.

What Is an Alternative Hypothesis?

An alternative hypothesis is a direct contradiction of a null hypothesis. This means that if one of the two hypotheses is true, the other is false.

A null hypothesis is a type of statistical hypothesis. It proposes that no statistical significance exists in a set of given observations.

Also known as the conjecture, the null hypothesis is used in quantitative analysis to test theories about economies, investing strategies, or markets to decide if an idea is true or false. Hypothesis testing assesses the credibility of a hypothesis by using sample data. It is represented as H0 and is sometimes simply known as the “null.”

Sage Publishing. “ Chapter 8: Introduction to Hypothesis Testing ,” Page 4.

Sage Publishing. “ Chapter 8: Introduction to Hypothesis Testing ,” Pages 4–7.

Sage Publishing. “ Chapter 8: Introduction to Hypothesis Testing ,” Page 7.

what is null hypothesis meaning

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what is null hypothesis meaning

Null Hypothesis

what is null hypothesis meaning

Understanding the Null Hypothesis

The null hypothesis is a fundamental concept in statistics that serves as a starting point for statistical testing. Often denoted as H0, the null hypothesis is a general statement or default position that there is no relationship between two measured phenomena or no association among groups. In other words, it assumes that any kind of difference or significance you see in a set of data is due to chance.

Role of the Null Hypothesis in Statistical Tests

Statistical hypothesis testing is a method of making decisions using data, whether from a controlled experiment or an observational study (not based on chance). The null hypothesis is what you attempt to disprove or nullify with evidence to the contrary. It is contrasted with the alternative hypothesis, denoted as H1 or Ha, which expresses that there is a statistically significant relationship between two variables.

The process of hypothesis testing involves choosing a null hypothesis which is tested against the alternative hypothesis. If there is enough evidence to suggest that the null hypothesis is not plausible, it is rejected in favor of the alternative hypothesis. This does not mean the null hypothesis is false; rather, it suggests that there is enough evidence to support the alternative hypothesis.

Examples of Null Hypotheses

Here are a few examples of null hypotheses:

  • In a clinical trial of a new drug, the null hypothesis might be that the new drug is no better, on average, than the current drug. We would write H0: there is no difference in effectiveness between the new and current drugs.
  • In a plant growth experiment, the null hypothesis might be that the type of fertilizer does not affect the growth rate of plants. We would write H0: the mean growth rate for plants with fertilizer type A is equal to the mean growth rate for plants with fertilizer type B.
  • In a study on education techniques, the null hypothesis might be that a new teaching strategy has no effect on student performance. We would write H0: the average test score for students taught with the new strategy is the same as the average score for students taught with traditional methods.

Importance of the Null Hypothesis in Research

The null hypothesis is important in research because it can be tested and found to be false, which then implies that there is a relationship between the observed data. Rejecting or failing to reject the null hypothesis does not prove the null or alternative hypotheses. Instead, statistical tests can provide evidence that supports a hypothesis or determines the probability that the observed data occurred by chance.

Decision Making in Hypothesis Testing

When conducting a hypothesis test, a significance level (alpha) must be determined. The significance level is the probability of rejecting the null hypothesis when it is actually true, commonly set at 0.05 (5%). If the p-value of the test is less than the chosen significance level, then the null hypothesis is rejected.

Keep in mind that rejecting the null hypothesis is not a proof of the truth of the alternative hypothesis; it only suggests that there is enough statistical evidence to prefer the alternative hypothesis over the null hypothesis.

Types of Errors in Hypothesis Testing

There are two types of errors that can occur in hypothesis testing:

  • Type I error : This occurs when the null hypothesis is true, but is incorrectly rejected. It is equivalent to a false positive.
  • Type II error : This occurs when the null hypothesis is false, but erroneously fails to be rejected. It is equivalent to a false negative.

Researchers aim to minimize these errors, but they can never be completely eliminated. The design of the study and the choice of significance level can help control the rate of Type I errors.

The null hypothesis is a crucial part of any statistical analysis, representing the theory that there is no effect or no difference, and serves as the assertion to be challenged and potentially rejected in favor of an alternative hypothesis. Understanding the null hypothesis and its role in research is essential for interpreting the results of statistical tests and making informed decisions based on data.

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COMMENTS

  1. What Is The Null Hypothesis & When To Reject It

    A null hypothesis is a statistical concept suggesting that there's no significant difference or relationship between measured variables. It's the default assumption unless empirical evidence proves otherwise.

  2. Null & Alternative Hypotheses | Definitions, Templates & Examples

    The null hypothesis is the claim that theres no effect in the population. If the sample provides enough evidence against the claim that there’s no effect in the population ( p ≤ α), then we can reject the null hypothesis. Otherwise, we fail to reject the null hypothesis.

  3. Null hypothesis | Formulation and test - Statlect

    Null hypothesis. by Marco Taboga, PhD. In a test of hypothesis, a sample of data is used to decide whether to reject or not to reject a hypothesis about the probability distribution from which the sample was extracted. The hypothesis is called the null hypothesis, or simply "the null".

  4. Null Hypothesis - Definition, Symbol, Formula, Types and Examples

    In probability and statistics, the null hypothesis is a comprehensive statement or default status that there is zero happening or nothing happening. For example, there is no connection among groups or no association between two measured events.

  5. Null Hypothesis | Meaning, Symbol, Formula, Test & Alternate ...

    Null hypothesis, often denoted as H0, is a foundational concept in statistical hypothesis testing. It represents an assumption that no significant difference, effect, or relationship exists between variables within a population.

  6. Null Hypothesis: What Is It, and How Is It Used in Investing?

    The null hypothesis, also known as the conjecture, is used in quantitative analysis to test theories about markets, investing strategies, or economies to decide if an idea is true or false....

  7. Null Hypothesis: What It is and How It Works (With Example)

    A null hypothesis is a type of hypothesis that proposes there is no difference or meaningful relationship between two things, either tangible or abstract. It is unnecessary to believe the null hypothesis is true to test it, and the word "null" highlights that scientists are actually attempting to invalidate the stated null hypothesis.

  8. Null hypothesis - Simple English Wikipedia, the free encyclopedia

    In statistics, a null hypothesis, often written as , [1] is a statement assumed to be true unless it can be shown to be incorrect beyond a reasonable doubt. [2] . The idea is that the null hypothesis generally assumes that there is nothing new or surprising in the population.

  9. Null Hypothesis Definition | DeepAI

    The null hypothesis is what you attempt to disprove or nullify with evidence to the contrary. It is contrasted with the alternative hypothesis, denoted as H1 or Ha, which expresses that there is a statistically significant relationship between two variables.

  10. What is a Null Hypothesis? | Monetate

    The null hypothesis is the likelihood that the results of your test are due to chance rather than a causal relationship. Put in technical terms, a null hypothesis claims that an independent variable doesn’t have a significant effect on a dependent variable.