Formulating A Hypothesis

When you analyses a dataset to determine if two factors might be related you form two hypotheses

The 1st is the null hypothesis: which says factor A doesn’t affect factor B

The 2nd is the alternate hypothesis: which says factor A does affect factor B

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Quick Overview

A hypothesis is an educated guess about a relationship.

Again, with the distanced traveled VS Amounted Spent at your shop.

The data says the further a customer travels the more they are likely to spend per visit. ?

So how would you go about making a hypothesis to examine this case?

Null Hypothesis: “Factor A has no effect on B” distance driven by customers has no effect on how much they spend per visit.

Alternative Hypothesis: “Factor A affect B” the further a customer travels the more they are likely to spend per visit. ??

Alternative Hypothesis can be directional or non-directional.

Further Clarification

Alternative Hypothesis—directional : “Factor A affect B” the further a customer travels the more they are likely to spend per visit. ??

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Alternative Hypothesis -- ?non-directional : “Factor A affect B” customers who come from further away tend to spend either more or less but not approximately ?the same amount as those who travel from near.

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Creating an effective Alternative Hypothesis

·???????? State there is a relationship between the variables

·???????? Base your alternative on your knowledge of the world

·???????? Express your hypothesis simply and briefly

·???????? Make sure you can test your alternative hypothesis

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