what is a hypothesis statement in business

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A Beginner’s Guide to Hypothesis Testing in Business

• 30 Mar 2021

Becoming a more data-driven decision-maker can bring several benefits to your organization, enabling you to identify new opportunities to pursue and threats to abate. Rather than allowing subjective thinking to guide your business strategy, backing your decisions with data can empower your company to become more innovative and, ultimately, profitable.

If you’re new to data-driven decision-making, you might be wondering how data translates into business strategy. The answer lies in generating a hypothesis and verifying or rejecting it based on what various forms of data tell you.

Below is a look at hypothesis testing and the role it plays in helping businesses become more data-driven.

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What Is Hypothesis Testing?

To understand what hypothesis testing is, it’s important first to understand what a hypothesis is.

A hypothesis or hypothesis statement seeks to explain why something has happened, or what might happen, under certain conditions. It can also be used to understand how different variables relate to each other. Hypotheses are often written as if-then statements; for example, “If this happens, then this will happen.”

Hypothesis testing , then, is a statistical means of testing an assumption stated in a hypothesis. While the specific methodology leveraged depends on the nature of the hypothesis and data available, hypothesis testing typically uses sample data to extrapolate insights about a larger population.

Hypothesis Testing in Business

When it comes to data-driven decision-making, there’s a certain amount of risk that can mislead a professional. This could be due to flawed thinking or observations, incomplete or inaccurate data , or the presence of unknown variables. The danger in this is that, if major strategic decisions are made based on flawed insights, it can lead to wasted resources, missed opportunities, and catastrophic outcomes.

The real value of hypothesis testing in business is that it allows professionals to test their theories and assumptions before putting them into action. This essentially allows an organization to verify its analysis is correct before committing resources to implement a broader strategy.

As one example, consider a company that wishes to launch a new marketing campaign to revitalize sales during a slow period. Doing so could be an incredibly expensive endeavor, depending on the campaign’s size and complexity. The company, therefore, may wish to test the campaign on a smaller scale to understand how it will perform.

In this example, the hypothesis that’s being tested would fall along the lines of: “If the company launches a new marketing campaign, then it will translate into an increase in sales.” It may even be possible to quantify how much of a lift in sales the company expects to see from the effort. Pending the results of the pilot campaign, the business would then know whether it makes sense to roll it out more broadly.

Related: 9 Fundamental Data Science Skills for Business Professionals

Key Considerations for Hypothesis Testing

1. alternative hypothesis and null hypothesis.

In hypothesis testing, the hypothesis that’s being tested is known as the alternative hypothesis . Often, it’s expressed as a correlation or statistical relationship between variables. The null hypothesis , on the other hand, is a statement that’s meant to show there’s no statistical relationship between the variables being tested. It’s typically the exact opposite of whatever is stated in the alternative hypothesis.

For example, consider a company’s leadership team that historically and reliably sees $12 million in monthly revenue. They want to understand if reducing the price of their services will attract more customers and, in turn, increase revenue.

In this case, the alternative hypothesis may take the form of a statement such as: “If we reduce the price of our flagship service by five percent, then we’ll see an increase in sales and realize revenues greater than $12 million in the next month.”

The null hypothesis, on the other hand, would indicate that revenues wouldn’t increase from the base of $12 million, or might even decrease.

Check out the video below about the difference between an alternative and a null hypothesis, and subscribe to our YouTube channel for more explainer content.

2. Significance Level and P-Value

Statistically speaking, if you were to run the same scenario 100 times, you’d likely receive somewhat different results each time. If you were to plot these results in a distribution plot, you’d see the most likely outcome is at the tallest point in the graph, with less likely outcomes falling to the right and left of that point.

With this in mind, imagine you’ve completed your hypothesis test and have your results, which indicate there may be a correlation between the variables you were testing. To understand your results' significance, you’ll need to identify a p-value for the test, which helps note how confident you are in the test results.

In statistics, the p-value depicts the probability that, assuming the null hypothesis is correct, you might still observe results that are at least as extreme as the results of your hypothesis test. The smaller the p-value, the more likely the alternative hypothesis is correct, and the greater the significance of your results.

3. One-Sided vs. Two-Sided Testing

When it’s time to test your hypothesis, it’s important to leverage the correct testing method. The two most common hypothesis testing methods are one-sided and two-sided tests , or one-tailed and two-tailed tests, respectively.

Typically, you’d leverage a one-sided test when you have a strong conviction about the direction of change you expect to see due to your hypothesis test. You’d leverage a two-sided test when you’re less confident in the direction of change.

4. Sampling

To perform hypothesis testing in the first place, you need to collect a sample of data to be analyzed. Depending on the question you’re seeking to answer or investigate, you might collect samples through surveys, observational studies, or experiments.

A survey involves asking a series of questions to a random population sample and recording self-reported responses.

Observational studies involve a researcher observing a sample population and collecting data as it occurs naturally, without intervention.

Finally, an experiment involves dividing a sample into multiple groups, one of which acts as the control group. For each non-control group, the variable being studied is manipulated to determine how the data collected differs from that of the control group.

Learn How to Perform Hypothesis Testing

Hypothesis testing is a complex process involving different moving pieces that can allow an organization to effectively leverage its data and inform strategic decisions.

If you’re interested in better understanding hypothesis testing and the role it can play within your organization, one option is to complete a course that focuses on the process. Doing so can lay the statistical and analytical foundation you need to succeed.

Do you want to learn more about hypothesis testing? Explore Business Analytics —one of our online business essentials courses —and download our Beginner’s Guide to Data & Analytics .

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“A fact is a simple statement that everyone believes. It is innocent, unless found guilty. A hypothesis is a novel suggestion that no one wants to believe. It is guilty until found effective.”

– Edward Teller, Nuclear Physicist

During my first brainstorming meeting on my first project at McKinsey, this very serious partner, who had a PhD in Physics, looked at me and said, “So, Joe, what are your main hypotheses.” I looked back at him, perplexed, and said, “Ummm, my what?” I was used to people simply asking, “what are your best ideas, opinions, thoughts, etc.” Over time, I began to understand the importance of hypotheses and how it plays an important role in McKinsey’s problem solving of separating ideas and opinions from facts.

What is a Hypothesis?

“Hypothesis” is probably one of the top 5 words used by McKinsey consultants. And, being hypothesis-driven was required to have any success at McKinsey. A hypothesis is an idea or theory, often based on limited data, which is typically the beginning of a thread of further investigation to prove, disprove or improve the hypothesis through facts and empirical data.

The first step in being hypothesis-driven is to focus on the highest potential ideas and theories of how to solve a problem or realize an opportunity.

Let’s go over an example of being hypothesis-driven.

Let’s say you own a website, and you brainstorm ten ideas to improve web traffic, but you don’t have the budget to execute all ten ideas. The first step in being hypothesis-driven is to prioritize the ten ideas based on how much impact you hypothesize they will create.

The second step in being hypothesis-driven is to apply the scientific method to your hypotheses by creating the fact base to prove or disprove your hypothesis, which then allows you to turn your hypothesis into fact and knowledge. Running with our example, you could prove or disprove your hypothesis on the ideas you think will drive the most impact by executing:

1. An analysis of previous research and the performance of the different ideas 2. A survey where customers rank order the ideas 3. An actual test of the ten ideas to create a fact base on click-through rates and cost

While there are many other ways to validate the hypothesis on your prioritization , I find most people do not take this critical step in validating a hypothesis. Instead, they apply bad logic to many important decisions . An idea pops into their head, and then somehow it just becomes a fact.

One of my favorite lousy logic moments was a CEO who stated,

“I’ve never heard our customers talk about price, so the price doesn’t matter with our products , and I’ve decided we’re going to raise prices.”

Luckily, his management team was able to do a survey to dig deeper into the hypothesis that customers weren’t price-sensitive. Well, of course, they were and through the survey, they built a fantastic fact base that proved and disproved many other important hypotheses.

Why is being hypothesis-driven so important?

Imagine if medicine never actually used the scientific method. We would probably still be living in a world of lobotomies and bleeding people. Many organizations are still stuck in the dark ages, having built a house of cards on opinions disguised as facts, because they don’t prove or disprove their hypotheses. Decisions made on top of decisions, made on top of opinions, steer organizations clear of reality and the facts necessary to objectively evolve their strategic understanding and knowledge. I’ve seen too many leadership teams led solely by gut and opinion. The problem with intuition and gut is if you don’t ever prove or disprove if your gut is right or wrong, you’re never going to improve your intuition. There is a reason why being hypothesis-driven is the cornerstone of problem solving at McKinsey and every other top strategy consulting firm.

How do you become hypothesis-driven?

Most people are idea-driven, and constantly have hypotheses on how the world works and what they or their organization should do to improve. Though, there is often a fatal flaw in that many people turn their hypotheses into false facts, without actually finding or creating the facts to prove or disprove their hypotheses. These people aren’t hypothesis-driven; they are gut-driven.

The conversation typically goes something like “doing this discount promotion will increase our profits” or “our customers need to have this feature” or “morale is in the toilet because we don’t pay well, so we need to increase pay.” These should all be hypotheses that need the appropriate fact base, but instead, they become false facts, often leading to unintended results and consequences. In each of these cases, to become hypothesis-driven necessitates a different framing.

• Instead of “doing this discount promotion will increase our profits,” a hypothesis-driven approach is to ask “what are the best marketing ideas to increase our profits?” and then conduct a marketing experiment to see which ideas increase profits the most.

• Instead of “our customers need to have this feature,” ask the question, “what features would our customers value most?” And, then conduct a simple survey having customers rank order the features based on value to them.

• Instead of “morale is in the toilet because we don’t pay well, so we need to increase pay,” conduct a survey asking, “what is the level of morale?” what are potential issues affecting morale?” and what are the best ideas to improve morale?”

Beyond, watching out for just following your gut, here are some of the other best practices in being hypothesis-driven:

Listen to Your Intuition

Your mind has taken the collision of your experiences and everything you’ve learned over the years to create your intuition, which are those ideas that pop into your head and those hunches that come from your gut. Your intuition is your wellspring of hypotheses. So listen to your intuition, build hypotheses from it, and then prove or disprove those hypotheses, which will, in turn, improve your intuition. Intuition without feedback will over time typically evolve into poor intuition, which leads to poor judgment, thinking, and decisions.

Constantly Be Curious

I’m always curious about cause and effect. At Sports Authority, I had a hypothesis that customers that received service and assistance as they shopped, were worth more than customers who didn’t receive assistance from an associate. We figured out how to prove or disprove this hypothesis by tying surveys to transactional data of customers, and we found the hypothesis was true, which led us to a broad initiative around improving service. The key is you have to be always curious about what you think does or will drive value, create hypotheses and then prove or disprove those hypotheses.

Validate Hypotheses

You need to validate and prove or disprove hypotheses. Don’t just chalk up an idea as fact. In most cases, you’re going to have to create a fact base utilizing logic, observation, testing (see the section on Experimentation ), surveys, and analysis.

Be a Learning Organization

The foundation of learning organizations is the testing of and learning from hypotheses. I remember my first strategy internship at Mercer Management Consulting when I spent a good part of the summer combing through the results, findings, and insights of thousands of experiments that a banking client had conducted. It was fascinating to see the vastness and depth of their collective knowledge base. And, in today’s world of knowledge portals, it is so easy to disseminate, learn from, and build upon the knowledge created by companies.

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How Is a Hypothesis Important in Business?

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Much of running a small business is a gamble, buoyed by boldness, intuition and guts. But wise business leaders also conduct formal and informal research to inform their business decisions. Good research starts with a good hypothesis, which is simply a statement making a prediction based on a set of observations. For example, if you’re considering offering flexible work hours to your employees, you might hypothesize that this policy change will positively affect their productivity and contribute to your bottom line. The ultimate job of the hypothesis in business is to serve as a guidepost to your testing and research methods.

Importance of Hypothesis Testing in Business

Essentially good hypotheses lead decision-makers like you to new and better ways to achieve your business goals. When you need to make decisions such as how much you should spend on advertising or what effect a price increase will have your customer base, it’s easy to make wild assumptions or get lost in analysis paralysis. A business hypothesis solves this problem, because, at the start, it’s based on some foundational information. In all of science, hypotheses are grounded in theory. Theory tells you what you can generally expect from a certain line of inquiry.

A hypothesis based on years of business research in a particular area, then, helps you focus, define and appropriately direct your research. You won’t go on a wild goose chase to prove or disprove it. A hypothesis predicts the relationship between two variables. If you want to study pricing and customer loyalty, you won’t waste your time and resources studying tangential areas.

Marketing Support

One of the most important hypotheses you’ll make in growing your small business is the cost of acquiring a customer. Your viability as a business is founded on ensuring that your customers bring you more money than it costs you to get them in the door. Hypothesizing this number informs not only your pricing strategy but also your marketing efforts and the rest of your overhead expenses. You can also make predictions about the lifetime value of each customer to determine how much marketing you need to do. Businesses frequently attempt to guesstimate how long a customer will stick around and how much sales to each one will contribute to your profit.

In real life, hypotheses are honed and perfected over time through refining of your basic questions, assumptions and research methods, suggests Quickbooks. In addition, you may have more than one hypothesis to explain your observations, such as why your product failed or why morale is sinking in the office.

Forming a Hypothesis

To form a good hypothesis, you should ensure certain criteria are met when making your prediction statements. The hypothesis must be testable as a start, reports Corporate Finance Institute . Don’t make the mistake of trying to prove a tautology, or a hypothesis that is always true. For example, “Our social media strategy will succeed if it’s social or it will fail.” In addition, your hypothesis should be based on the most up-to-date research and knowledge on the subject matter.

Don't Forget to Test It

The most important part of having a hypothesis is determining whether it’s supported by the facts. The scope and formality of your research depend on your research and may simply involve examining the literature, polling your stakeholders or researching other areas. For example, in determining whether to locate your business in a pricey downtown or an exurb with no public transportation, you may look at commuting statistics of your general metropolitan area, the prevalence of carpooling, the socioeconomic status of most of your employees, as well as where your competitors are located.

• Corporate Finance Institute: Hypothesis Testing

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Your Strategy Should Be a Hypothesis You Constantly Adjust

• Amy C. Edmondson
• Paul J. Verdin

Too many leaders think it should be set in stone.

Strategies must be constantly adjusted to incorporate information from operations and the market. Research on recent dramatic cases of strategic failure in different industries and involving vastly different business models and strategies shows a common pattern: What started as small gaps in execution spiraled into business failures when initial strategies were not altered based on new information provided by experience. These companies’ strategies were viewed by their top executives as analytically sound; performance gaps were blamed on execution. An alternative perspective on strategy and execution — one that is more in tune with the nature of value creation in a world marked by volatility, uncertainty, complexity, and ambiguity — conceives of strategy as a hypothesis rather than a plan. Like all hypotheses, it starts with situation assessment and analysis — strategy’s classic tools. Also like all hypotheses, it must be tested through action. With this lens, encounters with customers provide data that is of ongoing interest to senior executives — vital inputs to dynamic strategy formulation. The authors call this approach strategy as learning , which contrasts sharply with the view of strategy as a stable, analytically rigorous plan for execution in the market. Strategy as learning is an executive activity characterized by ongoing cycles of testing and adjusting, fueled by data that can only be obtained through execution.

The widely accepted view that strategy and execution are separable activities sets companies up for failure in a fast-paced world.

• Amy C. Edmondson is the Novartis Professor of Leadership and Management at Harvard Business School. Her latest book is Right Kind of Wrong: The Science of Failing Well (Atria Books, 2023).
• Paul J. Verdin is the chair in strategy and organization at Solvay Brussels School of Economics and Management.

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Home » What is a Hypothesis – Types, Examples and Writing Guide

What is a Hypothesis – Types, Examples and Writing Guide

Table of Contents

Definition:

Hypothesis is an educated guess or proposed explanation for a phenomenon, based on some initial observations or data. It is a tentative statement that can be tested and potentially proven or disproven through further investigation and experimentation.

Hypothesis is often used in scientific research to guide the design of experiments and the collection and analysis of data. It is an essential element of the scientific method, as it allows researchers to make predictions about the outcome of their experiments and to test those predictions to determine their accuracy.

Types of Hypothesis

Types of Hypothesis are as follows:

Research Hypothesis

A research hypothesis is a statement that predicts a relationship between variables. It is usually formulated as a specific statement that can be tested through research, and it is often used in scientific research to guide the design of experiments.

Null Hypothesis

The null hypothesis is a statement that assumes there is no significant difference or relationship between variables. It is often used as a starting point for testing the research hypothesis, and if the results of the study reject the null hypothesis, it suggests that there is a significant difference or relationship between variables.

Alternative Hypothesis

An alternative hypothesis is a statement that assumes there is a significant difference or relationship between variables. It is often used as an alternative to the null hypothesis and is tested against the null hypothesis to determine which statement is more accurate.

Directional Hypothesis

A directional hypothesis is a statement that predicts the direction of the relationship between variables. For example, a researcher might predict that increasing the amount of exercise will result in a decrease in body weight.

Non-directional Hypothesis

A non-directional hypothesis is a statement that predicts the relationship between variables but does not specify the direction. For example, a researcher might predict that there is a relationship between the amount of exercise and body weight, but they do not specify whether increasing or decreasing exercise will affect body weight.

Statistical Hypothesis

A statistical hypothesis is a statement that assumes a particular statistical model or distribution for the data. It is often used in statistical analysis to test the significance of a particular result.

Composite Hypothesis

A composite hypothesis is a statement that assumes more than one condition or outcome. It can be divided into several sub-hypotheses, each of which represents a different possible outcome.

Empirical Hypothesis

An empirical hypothesis is a statement that is based on observed phenomena or data. It is often used in scientific research to develop theories or models that explain the observed phenomena.

Simple Hypothesis

A simple hypothesis is a statement that assumes only one outcome or condition. It is often used in scientific research to test a single variable or factor.

Complex Hypothesis

A complex hypothesis is a statement that assumes multiple outcomes or conditions. It is often used in scientific research to test the effects of multiple variables or factors on a particular outcome.

Applications of Hypothesis

Hypotheses are used in various fields to guide research and make predictions about the outcomes of experiments or observations. Here are some examples of how hypotheses are applied in different fields:

• Science : In scientific research, hypotheses are used to test the validity of theories and models that explain natural phenomena. For example, a hypothesis might be formulated to test the effects of a particular variable on a natural system, such as the effects of climate change on an ecosystem.
• Medicine : In medical research, hypotheses are used to test the effectiveness of treatments and therapies for specific conditions. For example, a hypothesis might be formulated to test the effects of a new drug on a particular disease.
• Psychology : In psychology, hypotheses are used to test theories and models of human behavior and cognition. For example, a hypothesis might be formulated to test the effects of a particular stimulus on the brain or behavior.
• Sociology : In sociology, hypotheses are used to test theories and models of social phenomena, such as the effects of social structures or institutions on human behavior. For example, a hypothesis might be formulated to test the effects of income inequality on crime rates.
• Business : In business research, hypotheses are used to test the validity of theories and models that explain business phenomena, such as consumer behavior or market trends. For example, a hypothesis might be formulated to test the effects of a new marketing campaign on consumer buying behavior.
• Engineering : In engineering, hypotheses are used to test the effectiveness of new technologies or designs. For example, a hypothesis might be formulated to test the efficiency of a new solar panel design.

How to write a Hypothesis

Here are the steps to follow when writing a hypothesis:

Identify the Research Question

The first step is to identify the research question that you want to answer through your study. This question should be clear, specific, and focused. It should be something that can be investigated empirically and that has some relevance or significance in the field.

Conduct a Literature Review

Before writing your hypothesis, it’s essential to conduct a thorough literature review to understand what is already known about the topic. This will help you to identify the research gap and formulate a hypothesis that builds on existing knowledge.

Determine the Variables

The next step is to identify the variables involved in the research question. A variable is any characteristic or factor that can vary or change. There are two types of variables: independent and dependent. The independent variable is the one that is manipulated or changed by the researcher, while the dependent variable is the one that is measured or observed as a result of the independent variable.

Formulate the Hypothesis

Based on the research question and the variables involved, you can now formulate your hypothesis. A hypothesis should be a clear and concise statement that predicts the relationship between the variables. It should be testable through empirical research and based on existing theory or evidence.

Write the Null Hypothesis

The null hypothesis is the opposite of the alternative hypothesis, which is the hypothesis that you are testing. The null hypothesis states that there is no significant difference or relationship between the variables. It is important to write the null hypothesis because it allows you to compare your results with what would be expected by chance.

Refine the Hypothesis

After formulating the hypothesis, it’s important to refine it and make it more precise. This may involve clarifying the variables, specifying the direction of the relationship, or making the hypothesis more testable.

Examples of Hypothesis

Here are a few examples of hypotheses in different fields:

• Psychology : “Increased exposure to violent video games leads to increased aggressive behavior in adolescents.”
• Biology : “Higher levels of carbon dioxide in the atmosphere will lead to increased plant growth.”
• Sociology : “Individuals who grow up in households with higher socioeconomic status will have higher levels of education and income as adults.”
• Education : “Implementing a new teaching method will result in higher student achievement scores.”
• Marketing : “Customers who receive a personalized email will be more likely to make a purchase than those who receive a generic email.”
• Physics : “An increase in temperature will cause an increase in the volume of a gas, assuming all other variables remain constant.”
• Medicine : “Consuming a diet high in saturated fats will increase the risk of developing heart disease.”

Purpose of Hypothesis

The purpose of a hypothesis is to provide a testable explanation for an observed phenomenon or a prediction of a future outcome based on existing knowledge or theories. A hypothesis is an essential part of the scientific method and helps to guide the research process by providing a clear focus for investigation. It enables scientists to design experiments or studies to gather evidence and data that can support or refute the proposed explanation or prediction.

The formulation of a hypothesis is based on existing knowledge, observations, and theories, and it should be specific, testable, and falsifiable. A specific hypothesis helps to define the research question, which is important in the research process as it guides the selection of an appropriate research design and methodology. Testability of the hypothesis means that it can be proven or disproven through empirical data collection and analysis. Falsifiability means that the hypothesis should be formulated in such a way that it can be proven wrong if it is incorrect.

In addition to guiding the research process, the testing of hypotheses can lead to new discoveries and advancements in scientific knowledge. When a hypothesis is supported by the data, it can be used to develop new theories or models to explain the observed phenomenon. When a hypothesis is not supported by the data, it can help to refine existing theories or prompt the development of new hypotheses to explain the phenomenon.

When to use Hypothesis

Here are some common situations in which hypotheses are used:

• In scientific research , hypotheses are used to guide the design of experiments and to help researchers make predictions about the outcomes of those experiments.
• In social science research , hypotheses are used to test theories about human behavior, social relationships, and other phenomena.
• I n business , hypotheses can be used to guide decisions about marketing, product development, and other areas. For example, a hypothesis might be that a new product will sell well in a particular market, and this hypothesis can be tested through market research.

Characteristics of Hypothesis

Here are some common characteristics of a hypothesis:

• Testable : A hypothesis must be able to be tested through observation or experimentation. This means that it must be possible to collect data that will either support or refute the hypothesis.
• Falsifiable : A hypothesis must be able to be proven false if it is not supported by the data. If a hypothesis cannot be falsified, then it is not a scientific hypothesis.
• Clear and concise : A hypothesis should be stated in a clear and concise manner so that it can be easily understood and tested.
• Based on existing knowledge : A hypothesis should be based on existing knowledge and research in the field. It should not be based on personal beliefs or opinions.
• Specific : A hypothesis should be specific in terms of the variables being tested and the predicted outcome. This will help to ensure that the research is focused and well-designed.
• Tentative: A hypothesis is a tentative statement or assumption that requires further testing and evidence to be confirmed or refuted. It is not a final conclusion or assertion.
• Relevant : A hypothesis should be relevant to the research question or problem being studied. It should address a gap in knowledge or provide a new perspective on the issue.

Advantages of Hypothesis

Hypotheses have several advantages in scientific research and experimentation:

• Guides research: A hypothesis provides a clear and specific direction for research. It helps to focus the research question, select appropriate methods and variables, and interpret the results.
• Predictive powe r: A hypothesis makes predictions about the outcome of research, which can be tested through experimentation. This allows researchers to evaluate the validity of the hypothesis and make new discoveries.
• Facilitates communication: A hypothesis provides a common language and framework for scientists to communicate with one another about their research. This helps to facilitate the exchange of ideas and promotes collaboration.
• Efficient use of resources: A hypothesis helps researchers to use their time, resources, and funding efficiently by directing them towards specific research questions and methods that are most likely to yield results.
• Provides a basis for further research: A hypothesis that is supported by data provides a basis for further research and exploration. It can lead to new hypotheses, theories, and discoveries.
• Increases objectivity: A hypothesis can help to increase objectivity in research by providing a clear and specific framework for testing and interpreting results. This can reduce bias and increase the reliability of research findings.

Limitations of Hypothesis

Some Limitations of the Hypothesis are as follows:

• Limited to observable phenomena: Hypotheses are limited to observable phenomena and cannot account for unobservable or intangible factors. This means that some research questions may not be amenable to hypothesis testing.
• May be inaccurate or incomplete: Hypotheses are based on existing knowledge and research, which may be incomplete or inaccurate. This can lead to flawed hypotheses and erroneous conclusions.
• May be biased: Hypotheses may be biased by the researcher’s own beliefs, values, or assumptions. This can lead to selective interpretation of data and a lack of objectivity in research.
• Cannot prove causation: A hypothesis can only show a correlation between variables, but it cannot prove causation. This requires further experimentation and analysis.
• Limited to specific contexts: Hypotheses are limited to specific contexts and may not be generalizable to other situations or populations. This means that results may not be applicable in other contexts or may require further testing.
• May be affected by chance : Hypotheses may be affected by chance or random variation, which can obscure or distort the true relationship between variables.

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer

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A Beginner’s Guide to Hypothesis Testing in Business Analytics

• December 5, 2023
• Analytics , Statistics

Hypothesis testing is a statistical method used to make decisions about a population based on a sample. It helps business analysts draw conclusions about business metrics and make data-driven decisions. This beginner’s guide will provide an introduction to hypothesis testing and how it is applied in business analytics.

What is a Hypothesis?

A hypothesis is an assumption about a population parameter. It is a tentative statement that proposes a possible relationship between two or more variables.

In statistical terms, a hypothesis is an assertion or conjecture about one or more populations. For example, a business hypothesis could be –

“Our social media advertising results in an increase in sales.”

“Customer ratings of our product have decreased this month compared to last month.”

A hypothesis can be:

• Null hypothesis (H0) – a statement that there is no difference or no effect.
• Alternative hypothesis (H1) – a claim about the population that is contradictory to H0.

Hypothesis testing evaluates two mutually exclusive statements (H0 and H1) to determine which statement is best supported by the sample data.

Why Hypothesis Testing is Important in Business

Hypothesis testing allows business analysts to make statistical inferences about a business problem. It is an objective data-driven approach to:

• Evaluate business metrics against a target value. For example – is the current customer satisfaction score significantly lower than our target of 85%?
• Compare business metrics across time periods or categories. For example – has website conversion rate increased this month compared to last month?
• Quantify the impact of business initiatives. For example – did the email marketing campaign result in a significant increase in sales?

Some key benefits of hypothesis testing in business analytics:

• Supports data-driven decision making with statistical evidence.
• Helps save costs by making decisions backed by data insights.
• Enables measurement of success for business initiatives like marketing campaigns, new product launches etc.
• Provides a structured framework for business metric analysis.
• Reduces the influence of individual biases in decision making.

By incorporating hypothesis testing in data analysis, businesses can make sound decisions that are supported by statistical evidence.

Steps in Hypothesis Testing

Hypothesis testing involves the following five steps:

1. State the Hypotheses

This involves stating the null and alternate hypotheses. The hypotheses are stated in a way that they are mutually exclusive – if one is true, the other must be false.

Null hypothesis (H0) – represents the status quo, states that there is no effect or no difference.

Alternative hypothesis (H1) – states that there is an effect or a difference.

For example –

H0: The average customer rating this month is the same as last month.

H1: The average customer rating this month is lower than last month.

2. Choose the Significance Level

The significance level (α) is the probability of rejecting H0 when it is actually true. It is the maximum risk we are willing to take in making an incorrect decision.

Typical values are 0.10, 0.05 or 0.01. A lower α indicates lower risk tolerance. For example α = 0.05 indicates only a 5% risk of concluding there is a difference when actually there is none.

3. Select the Sample and Collect Data

The sample should be representative of the population. Data is collected relevant to the hypotheses – for example, customer ratings this month and last month.

4. Analyze the Sample Data

An appropriate statistical test is applied to analyze the sample data. Common tests used are t-tests, z-tests, ANOVA, chi-square etc. The test provides a test statistic that can be compared against critical values to determine statistical significance.

5. Make a Decision

If the test statistic falls in the rejection region, we reject H0 in favor of H1. Otherwise, we fail to reject H0 and conclude there is not enough evidence against it.

The key question is – “Is the sample data unlikely, assuming H0 is true?” If yes, we reject H0.

Types of Hypothesis Tests

There are two main types of hypothesis tests:

1. Parametric Tests

These tests make assumptions about the shape or parameters of the population distribution.

Some examples are:

• Z-test – Tests a population mean when population standard deviation is known.
• T-test – Tests a population mean when standard deviation is unknown.
• F-test – Compares variances from two normal populations.
• ANOVA – Compares means of two or more populations.

Parametric tests are more powerful as they make use of the distribution characteristics. But the assumptions need to hold true for valid results.

2. Non-parametric Tests

These tests make no assumptions about the exact distribution of the population. They are based on either ranks or frequencies.

• Chi-square test – Tests if two categorical variables are related.
• Mann-Whitney U test – Compares medians from two independent groups.
• Wilcoxon signed-rank test – Compares paired observations or repeated measurements.
• Kruskal Wallis test – Compares medians from two or more groups.

Non-parametric tests are distribution-free but less powerful than parametric tests. They can be used when assumptions of parametric tests are violated.

The choice of statistical test depends on the hypotheses, data type and other factors.

One-tailed and Two-tailed Hypothesis Tests

Hypothesis tests can be one-tailed or two-tailed:

• One-tailed test – When H1 specifies a direction. For example: H0: μ = 10 H1: μ > 10 (or μ < 10)
• Two-tailed test – When H1 simply states ≠, not a specific direction. For example: H0: μ = 10 H1: μ ≠ 10

One-tailed tests have greater power to detect an effect in the specified direction. But we need prior knowledge on the direction of effect for using them.

Two-tailed tests do not assume any direction and are more conservative. They are used when we have no clear prior expectation on the directionality.

Interpreting Hypothesis Test Results

Hypothesis testing results can be interpreted based on:

• p-value – Probability of obtaining sample results if H0 is true. Small p-value (< α) indicates significant evidence against H0.
• Confidence intervals – Range of likely values for the population parameter. If it does not contain the H0 value, we reject H0.
• Test statistic – Standardized value computed from sample data. Compared against critical values to determine statistical significance.
• Effect size – Quantifies the magnitude or size of effect. Important for interpreting practical significance.

Hypothesis testing indicates whether an effect exists or not. Measures like effect size and confidence intervals provide additional insights on the observed effect.

Common Errors in Hypothesis Testing

Some common errors to watch out for:

• Having unclear, ambiguous hypotheses.
• Choosing an inappropriate significance level α.
• Using the wrong statistical test for data analysis.
• Interpreting a non-significant result as proof of no effect. Absence of evidence is not evidence of absence.
• Concluding practical significance from statistical significance. Small p-values don’t always imply practical business impact.
• Multiple testing without adjustment leading to elevated Type I errors.
• Stopping data collection prematurely when a significant result is obtained.
• Overlooking effect sizes, confidence intervals while focusing solely on p-values.

Proper application of hypothesis testing methodology minimizes such errors and improves decision making.

Real-world Example of Hypothesis Testing

Let’s take an example of using hypothesis testing in business analytics:

A retailer wants to test if launching a new ecommerce website has resulted in increased online sales.

The retailer gathers weekly sales data before and after the website launch:

H0: Launching the new website did not increase the average weekly online sales

H1: Launching the new website increased the average weekly online sales

Significance level is chosen as 0.05. Appropriate parametric / non-parametric test is selected based on data. Test results show that the p-value is 0.01, which is less than 0.05.

Therefore, we reject the null hypothesis and conclude that the new website launch has resulted in significantly increased online sales at the 5% significance level.

The analyst also computes a 95% confidence interval for the difference in sales before and after website launch. The retailer uses these insights to make data-backed decisions on marketing budget allocation between traditional and digital channels.

Hypothesis testing provides a formal process for making statistical decisions using sample data. It helps assess business metrics against benchmarks, quantify impact of initiatives and compare performance across time periods or segments. By embedding hypothesis testing in analytics, businesses can derive actionable insights for data-driven decision making.

Hypothesis Testing in Business Analytics – A Beginner’s Guide

Introduction  

Organizations must understand how their decisions can impact the business in this data-driven age. Hypothesis testing enables organizations to analyze and examine their decisions’ causes and effects before making important management decisions. Based on research by the Harvard Business School Online, prior to making any decision, organizations like to explore the advantages of hypothesis testing and the investigation of decisions in a proper “laboratory” setting. By performing such tests, organizations can be more confident with their decisions. Read on to learn all about hypothesis testing , o ne of the essential concepts in Business Analytics.  

What Is Hypothesis Testing?  

To learn about hypothesis testing, it is crucial that you first understand what the term hypothesis is.   

A hypothesis statement or hypothesis tries to explain why something happened or what may happen under specific conditions. A hypothesis can also help understand how various variables are connected to each other. These are generally compiled as if-then statements; for example, “If something specific were to happen, then a specific condition will come true and vice versa.” Thus, the hypothesis is an arithmetical method of testing a hypothesis or an assumption that has been stated in the hypothesis.  

Turning into a decision-maker who is driven by data can add several advantages to an organization, such as allowing one to recognize new opportunities to follow and reducing the number of threats. In analytics, a hypothesis is nothing but an assumption or a supposition made about a specific population parameter, such as any measurement or quantity about the population that is set and that can be used as a value to the distribution variable. General examples of parameters used in hypothesis testing are variance and mean. In simpler words, hypothesis testing in business analytics is a method that helps researchers, scientists, or anyone for that matter, test the legitimacy or the authenticity of their hypotheses or claims about real-life or real-world events.  

To understand the example of hypothesis testing in business analytics, consider a restaurant owner interested in learning how adding extra house sauce to their chicken burgers can impact customer satisfaction. Or, you could also consider a social media marketing organization. A hypothesis test can be set up to explain how an increase in labor impacts productivity. Thus, hypothesis testing aims to discover the connection between two or more than two variables in the experimental setting.  

How Does Hypothesis Testing Work?  

Generally, each research begins with a hypothesis; the investigator makes a certain claim and experiments to prove that the claim is false or true. For example, if you claim that students drinking milk before class accomplish tasks better than those who do not, then this is a kind of hypothesis that can be refuted or confirmed using an experiment. There are different kinds of hypotheses. They are:  

• Simple Hypothesis : Simple hypothesis, also known as a basic hypothesis, proposes that an independent variable is accountable for the corresponding dependent variable. In simpler words, the occurrence of independent variable results in the existence of the dependent variable. Generally, simple hypotheses are thought of as true and they create a causal relationship between the two variables. One example of a simple hypothesis is smoking cigarettes daily leads to cancer.  
• Complex Hypothesis : This type of hypothesis is also termed a modal. It holds for the relationship between two variables that are independent and result in a dependent variable. This means that the amalgamation of independent variables results in the dependent variables. An example of this kind of hypothesis can be “adults who don’t drink and smoke are less likely to have liver-related problems.  
• Null Hypothesis : A null hypothesis is created when a researcher thinks that there is no connection between the variables that are being observed. An example of this kind of hypothesis can be “A student’s performance is not impacted if they drink tea or coffee before classes.  
• Alternative Hypothesis : If a researcher wants to disapprove of a null hypothesis, then the researcher has to develop an opposite assumption—known as an alternative hypothesis. For example, beginning your day with tea instead of coffee can keep you more alert.  
• Logical Hypothesis: A proposed explanation supported by scant data is called a logical hypothesis. Generally, you wish to test your hypotheses or postulations by converting a logical hypothesis into an empirical hypothesis. For example, waking early helps one to have a productive day.  
• Empirical Hypothesis : This type of hypothesis is based on real evidence, evidence that is verifiable by observation as opposed to something that is correct in theory or by some kind of reckoning or logic. This kind of hypothesis depends on various variables that can result in specific outcomes. For example, individuals eating more fish can run faster than those eating meat.   
• Statistical Hypothesis : This kind of hypothesis is most common in systematic investigations that involve a huge target audience. For example, in Louisiana, 45% of students have middle-income parents.  

Four Steps of Hypothesis Testing  

There are four main steps in hypothesis testing in business analytics :  

Step 1: State the Null and Alternate Hypothesis  

After the initial research hypothesis, it is essential to restate it as a null (Ho) hypothesis and an alternate (Ha) hypothesis so that it can be tested mathematically.  

Step 2: Collate Data  

For a test to be valid, it is essential to do some sampling and collate data in a manner designed to test the hypothesis. If your data are not representative, then statistical inferences cannot be made about the population you are trying to analyze.  

Step 3: Perform a Statistical Test  

Various statistical tests are present, but all of them depend on the contrast of within-group variance (how to spread out the data in a group) against between-group variance (how dissimilar the groups are from one another).  

Step 4: Decide to Reject or Accept Your Null Hypothesis  

Based on the result of your statistical test, you need to decide whether you want to accept or reject your null hypothesis.  

Hypothesis Testing in Business   

When we talk about data-driven decision-making, a specific amount of risk can deceive a professional. This could result from flawed observations or thinking inaccurate or incomplete information , or unknown variables. The threat over here is that if key strategic decisions are made on incorrect insights, it can lead to catastrophic outcomes for an organization. The actual importance of hypothesis testing is that it enables professionals to analyze their assumptions and theories before putting them into action. This enables an organization to confirm the accuracy of its analysis before making key decisions.  

Key Considerations for Hypothesis Testing  

Let us look at the following key considerations of hypothesis testing:  

• Alternative Hypothesis and Null Hypothesis : If a researcher wants to disapprove of a null hypothesis, then the researcher has to develop an opposite assumption—known as an alternative hypothesis. A null hypothesis is created when a researcher thinks that there is no connection between the variables that are being observed.  
• Significance Level and P-Value : The statistical significance level is generally expressed as a p-value that lies between 0 and 1. The lesser the p-value, the more it suggests that you reject the null hypothesis. A p-value of less than 0.05 (generally ≤ 0.05) is significant statistically.  
• One-Sided vs. Two-Sided Testing : One-sided tests suggest the possibility of an effect in a single direction only. Two-sided tests test for the likelihood of the effect in two directions—negative and positive. One-sided tests comprise more statistical power to identify an effect in a single direction than a two-sided test with the same significance level and design.   
• Sampling: For hypothesis testing , you are required to collate a sample of data that has to be examined. In hypothesis testing, an analyst can test a statistical sample with the aim of providing proof of the credibility of the null hypothesis. Statistical analysts can test a hypothesis by examining and measuring a random sample of the population that is being examined.  

Real-World Example of Hypothesis Testing  

The following two examples give a glimpse of the various situations in which hypothesis testing is used in real-world scenarios.  

Example: BioSciences  

Hypothesis tests are frequently used in biological sciences. For example, consider that a biologist is sure that a certain kind of fertilizer will lead to better growth of plants which is at present 10 inches. To test this, the fertilizer is sprayed on the plants in the laboratory for a month. A hypothesis test is then done using the following:  

• H0: μ = 10 inches (the fertilizer has no effect on the plant growth)  
• HA: μ > 10 inches (the fertilizer leads to an increase in plant growth)  

Suppose the p-value is lesser than the significance level (e.g., α = .04). In that case, the null hypothesis can be rejected, and it can be concluded that the fertilizer results in increased plant growth.  

Example: Clinical Trials  

Consider an example where a doctor feels that a new medicine can decrease blood sugar in patients. To confirm this, he can measure the sugar of 20 diabetic patients prior to and after administering the new drug for a month. A hypothesis test is then done using the following:  

• H0: μafter = μbefore (the blood sugar is the same as before and after administering the new drug)  
• HA: μafter < μbefore (the blood sugar is less after the drug)  

If the p-value is less than the significance level (e.g., α = .04), then the null hypothesis can be rejected, and it can be proven that the new drug leads to reduced blood sugar.  

Conclusion  

Now you are aware of the need for hypotheses in Business Analytics . A hypothesis is not just an assumption— it has to be based on prior knowledge and theories. It also needs to be, which means that you can accept or reject it using scientific research methods (such as observations, experiments, and statistical data analysis). Most genuine Hypothesis testing programs teach you how to use hypothesis testing in real-world scenarios. If you are interested in getting a certificate degree in Integrated Program In Business Analytics , UNext Jigsaw is highly recommended.

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Guide: Hypothesis Testing

Author: Daniel Croft

Here’s a graphical example of a hypothesis test, which you can include in the introduction section of your guide. In this graph:

What is Hypothesis Testing?

Hypothesis testing is a structured procedure in statistics used for drawing conclusions about a larger population based on a subset of that population, known as a sample. The method is widely used across different industries and sectors for a variety of purposes. Below, we’ll dissect the key components of hypothesis testing to provide a more in-depth understanding.

The Hypotheses: H 0 and Ha

Significance level ( α ), data collection, statistical test.

Depending on the nature of the data and what you’re trying to prove, different statistical tests can be applied (e.g., t-test, chi-square test , ANOVA , etc.). These tests will compute a test statistic (e.g., t , 2 χ 2, F , etc.) based on your sample data.

Here are graphical examples of the distributions commonly used in three different types of statistical tests: t-test, Chi-square test, and ANOVA (Analysis of Variance), displayed side by side for comparison.

These visual representations provide an intuitive understanding of the different statistical tests and their underlying distributions. Knowing which test to use and when is crucial for conducting accurate and meaningful hypothesis tests.

Decision Making

Interpretation.

To sum it up, hypothesis testing is not just a set of formulas but a methodical approach to problem-solving and decision-making based on data. It’s a crucial tool for anyone interested in deriving meaningful insights from data to make informed decisions.

Why is Hypothesis Testing Important?

Data-driven decisions, risk management.

Hypothesis testing allows you to assign a ‘p-value’ to your findings, which is essentially the probability of observing the given sample data if the null hypothesis is true. This p-value can be directly used to quantify risk. For instance, a p-value of 0.05 implies there’s a 5% risk of rejecting the null hypothesis when it’s actually true. This is invaluable in scenarios like product launches or changes in operational processes, where understanding the risk involved can be as crucial as the decision itself.

The graph above serves as a graphical representation to help explain the concept of a ‘p-value’ and its role in quantifying risk in hypothesis testing. Here’s how to interpret the graph:

Relating to Risk Management

The p-value can be directly related to risk management. For example, if you’re considering implementing a new manufacturing process, the p-value quantifies the risk of that decision. A low p-value (less than α ) would mean that the risk of rejecting the null hypothesis (i.e., going ahead with the new process) when it’s actually true is low, thus indicating a lower risk in implementing the change.

Quality Control

Resource optimization.

In the realm of research and development, hypothesis testing can be a game-changer. When developing a new product or process, you’ll likely have various theories or hypotheses. Hypothesis testing allows you to systematically test these, filtering out the less likely options and focusing on the most promising ones. This not only speeds up the innovation process but also makes it more cost-effective by reducing the likelihood of investing in ideas that are statistically unlikely to be successful.

Step-by-Step Guide to Hypothesis Testing

To make this guide practical and helpful if you are new learning about the concept we will explain each step of the process and follow it up with an example of the method being applied to a manufacturing line, and you want to test if a new process reduces the average time it takes to assemble a product.

Step 1: State the Hypotheses

Null hypothesis ( h 0), alternative hypothesis ( ha or h 1).

The alternative hypothesis is what you want to prove. It is a statement that there is an effect or difference. This hypothesis is considered only after you find enough evidence against the null hypothesis.

Ha :”The new process reduces the average assembly time.”

Types of Alternative Hypothesis

Scenario: reducing assembly time in a car manufacturing plant.

You are a continuous improvement manager at a car manufacturing plant. One of the assembly lines has been struggling with longer assembly times, affecting the overall production schedule. A new assembly process has been proposed, promising to reduce the assembly time per car. Before rolling it out on the entire line, you decide to conduct a hypothesis test to see if the new process actually makes a difference. Null Hypothesis ( H 0​) In this context, the null hypothesis would be the status quo, asserting that the new assembly process doesn’t reduce the assembly time per car. Mathematically, you could state it as: H 0:The average assembly time per car with the new process ≥ The average assembly time per car with the old process. Or simply: H 0​:”The new process does not reduce the average assembly time per car.” Alternative Hypothesis ( Ha ​ or H 1​) The alternative hypothesis is what you aim to prove — that the new process is more efficient. Mathematically, it could be stated as: Ha :The average assembly time per car with the new process < The average assembly time per car with the old process Or simply: Ha ​:”The new process reduces the average assembly time per car.” Types of Alternative Hypothesis In this example, you’re only interested in knowing if the new process reduces the time, making it a One-Sided Alternative Hypothesis .

Step 2: Determine the Significance Level ( α )

Once you’ve clearly stated your null and alternative hypotheses, the next step is to decide on the significance level, often denoted by α . The significance level is a threshold below which the null hypothesis will be rejected. It quantifies the level of risk you’re willing to accept when making a decision based on the hypothesis test.

What is a Significance Level?

Continuing with the manufacturing example, let’s say you decide to set α =0.05, meaning you’re willing to take a 5% risk of concluding that the new process is effective when it might not be.

How to Choose the Right Significance Level?

Continuing the scenario: reducing assembly time in a car manufacturing plant.

After formulating the hypotheses, the next step is to set the significance level ( α ) that will be used to interpret the results of the hypothesis test. This is a critical decision as it quantifies the level of risk you’re willing to accept when making a conclusion based on the test. Setting the Significance Level Given that assembly time is a critical factor affecting the production schedule, and ultimately, the company’s bottom line, you decide to be fairly stringent in your test. You opt for a commonly used significance level: α = 0.05 This means you are willing to accept a 5% chance of rejecting the null hypothesis when it is actually true. In practical terms, if you find that the p-value of the test is less than 0.05, you will conclude that the new process significantly reduces assembly time and consider implementing it across the entire line. Why α = 0.05 ? Industry Standard : A 5% significance level is widely accepted in many industries, including manufacturing, for hypothesis testing. Risk Management : By setting  α = 0.05 , you’re limiting the risk of concluding that the new process is effective when it may not be to just 5%. Balanced Approach : This level offers a balance between being too lenient (e.g., α=0.10) and too stringent (e.g., α=0.01), making it a reasonable choice for this scenario.

Step 3: Collect and Prepare the Data

Types of data, data collection methods, sample size.

Continuing with the manufacturing example, suppose you decide to collect data on the assembly time of 30 randomly chosen products, 15 made using the old process and 15 made using the new process. Here, your sample size n =30.

Data Preparation

With the hypotheses stated and the significance level set, you’re now ready to collect the data that will serve as the foundation for your hypothesis test. Given that you’re testing a change in a manufacturing process, the data will most likely be quantitative, representing the assembly time of cars produced on the line. Data Collection Plan You decide to use a Random Sampling Method for your data collection. For two weeks, assembly times for randomly selected cars will be recorded: one week using the old process and another week using the new process. Your aim is to collect data for 40 cars from each process, giving you a sample size ( n ) of 80 cars in total. Types of Data Quantitative Data : In this case, you’re collecting numerical data representing the assembly time in minutes for each car. Data Preparation Data Cleaning : Once the data is collected, you’ll need to inspect it for any anomalies or outliers that could skew your results. For example, if a significant machine breakdown happened during one of the weeks, you may need to adjust your data or collect more. Data Transformation : Given that you’re dealing with time, you may not need to transform your data, but it’s something to consider, depending on the statistical test you plan to use. Data Coding : Since you’re dealing with quantitative data in this scenario, coding is likely unnecessary unless you’re planning to categorize assembly times into bins (e.g., ‘fast’, ‘medium’, ‘slow’) for some reason. Example Data Points: Car_ID Process_Type Assembly_Time_Minutes 1 Old 38.53 2 Old 35.80 3 Old 36.96 4 Old 39.48 5 Old 38.74 6 Old 33.05 7 Old 36.90 8 Old 34.70 9 Old 34.79 … … … The complete dataset would contain 80 rows: 40 for the old process and 40 for the new process.

Step 4: Conduct the Statistical Test

Choose the right test.

For instance, you might choose a t-test for comparing means of two groups when you have a small sample size. Chi-square tests are often used for categorical data, and ANOVA is used for comparing means across more than two groups.

Calculation of Test Statistic

Obtain the p-value, make the decision.

By the end of Step 4, you will have either rejected or failed to reject the null hypothesis, providing a statistical basis for your decision-making process.

Now that you have collected and prepared your data, the next step is to conduct the actual statistical test to evaluate the null and alternative hypotheses. In this case, you’ll be comparing the mean assembly times between cars produced using the old and new processes to determine if the new process is statistically significantly faster. Choosing the Right Test Given that you have two sets of independent samples (old process and new process), a Two-sample t-test for Equality of Means seems appropriate for comparing the average assembly times. Preparing Data for Minitab Firstly, you would prepare your data in an Excel sheet or CSV file with one column for the assembly times using the old process and another column for the assembly times using the new process. Import this file into Minitab. Steps to Perform the Two-sample t-test in Minitab Open Minitab : Launch the Minitab software on your computer. Import Data : Navigate to File > Open and import your data file. Navigate to the t-test Menu : Go to Stat > Basic Statistics > 2-Sample t... . Select Columns : In the dialog box, specify the columns corresponding to the old and new process assembly times under “Sample 1” and “Sample 2.” Options : Click on Options and make sure that you set the confidence level to 95% (which corresponds to α = 0.05 ). Run the Test : Click OK to run the test. In this example output, the p-value is 0.0012, which is less than the significance level α = 0.05 . Hence, you would reject the null hypothesis. The t-statistic is -3.45, indicating that the mean of the new process is statistically significantly less than the mean of the old process, which aligns with your alternative hypothesis. Showing the data displayed as a Box plot in the below graphic it is easy to see the new process is statistically significantly better.

Why do a Hypothesis test?

You might ask, after all this why do a hypothesis test and not just look at the averages, which is a good question. While looking at average times might give you a general idea of which process is faster, hypothesis testing provides several advantages that a simple comparison of averages doesn’t offer:

Statistical Significance

Quantify the Evidence : With hypothesis testing, you obtain a p-value that quantifies the strength of the evidence against the null hypothesis. A simple comparison of averages doesn’t provide this level of detail.

Decision-making Confidence

Objective Decision Making : The formal structure of hypothesis testing provides an objective framework for decision-making. This is especially useful in a business setting where decisions often have to be justified to stakeholders.

Additional Insights

Basis for Further Analysis : Once you’ve performed a hypothesis test, you can often follow it up with other analyses (like confidence intervals for the difference in means, or effect size calculations) that offer more detailed information.

Step 5: Interpret the Results and Make Conclusions

Having conducted the statistical test and obtained the p-value, you’re now at a stage where you can interpret these results in the context of the problem you’re investigating. This step is crucial for transforming the statistical findings into actionable insights.

Interpret the p-value

Relate to real-world context.

In our manufacturing example, if you’ve found a statistically significant reduction in assembly time with a p-value of 0.03 (which is less than the α level of 0.05), you can confidently conclude that the new manufacturing process is more efficient. You might then consider implementing this new process across the entire assembly line.

Make Recommendations

Document the findings.

By the end of Step 5, you’ll have turned the raw statistical findings into meaningful conclusions and actionable insights. This is the final step in the hypothesis testing process, making it a complete, robust method for informed decision-making.

You’ve successfully conducted the hypothesis test and found strong evidence to reject the null hypothesis in favor of the alternative: The new assembly process is statistically significantly faster than the old one. It’s now time to interpret these results in the context of your business operations and make actionable recommendations. Interpretation of Results Statistical Significance : The p-value of 0.0012 is well below the significance level of = 0.05   α = 0.05 , indicating that the results are statistically significant. Practical Significance : The boxplot and t-statistic (-3.45) suggest not just statistical, but also practical significance. The new process appears to be both consistently and substantially faster. Risk Assessment : The low p-value allows you to reject the null hypothesis with a high degree of confidence, meaning the risk of making a Type I error is minimal. Business Implications Increased Productivity : Implementing the new process could lead to an increase in the number of cars produced, thereby enhancing productivity. Cost Savings : Faster assembly time likely translates to lower labor costs. Quality Control : Consider monitoring the quality of cars produced under the new process closely to ensure that the speedier assembly does not compromise quality. Recommendations Implement New Process : Given the statistical and practical significance of the findings, recommend implementing the new process across the entire assembly line. Monitor and Adjust : Implement a control phase where the new process is monitored for both speed and quality. This could involve additional hypothesis tests or control charts. Communicate Findings : Share the results and recommendations with stakeholders through a formal presentation or report, emphasizing both the statistical rigor and the potential business benefits. Review Resource Allocation : Given the likely increase in productivity, assess if resources like labor and parts need to be reallocated to optimize the workflow further.

Hypothesis testing is more than just a set of formulas or calculations; it’s a holistic approach to problem-solving that incorporates context, statistics, and strategic decision-making. While the process may seem daunting at first, each step serves a crucial role in ensuring that your conclusions are both statistically sound and practically relevant.

Q: What is hypothesis testing in the context of Lean Six Sigma?

Q: how do i determine which statistical test to use for my hypothesis.

A: The choice of statistical test for hypothesis testing depends on several factors, including the type of data (nominal, ordinal, interval, or ratio), the sample size, the number of samples (one sample, two samples, paired), and whether the data distribution is normal. For example, a t-test is used for comparing the means of two groups when the data is normally distributed, while a Chi-square test is suitable for categorical data to test the relationship between two variables. It’s important to choose the right test to ensure the validity of your hypothesis testing results.

Q: What is a p-value, and how does it relate to hypothesis testing?

Q: can you explain type i and type ii errors in hypothesis testing, daniel croft.

Hi im Daniel continuous improvement manager with a Black Belt in Lean Six Sigma and over 10 years of real-world experience across a range sectors, I have a passion for optimizing processes and creating a culture of efficiency. I wanted to create Learn Lean Siigma to be a platform dedicated to Lean Six Sigma and process improvement insights and provide all the guides, tools, techniques and templates I looked for in one place as someone new to the world of Lean Six Sigma and Continuous improvement.

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Educational resources and simple solutions for your research journey

What is a Research Hypothesis: How to Write it, Types, and Examples

Any research begins with a research question and a research hypothesis . A research question alone may not suffice to design the experiment(s) needed to answer it. A hypothesis is central to the scientific method. But what is a hypothesis ? A hypothesis is a testable statement that proposes a possible explanation to a phenomenon, and it may include a prediction. Next, you may ask what is a research hypothesis ? Simply put, a research hypothesis is a prediction or educated guess about the relationship between the variables that you want to investigate.  

It is important to be thorough when developing your research hypothesis. Shortcomings in the framing of a hypothesis can affect the study design and the results. A better understanding of the research hypothesis definition and characteristics of a good hypothesis will make it easier for you to develop your own hypothesis for your research. Let’s dive in to know more about the types of research hypothesis , how to write a research hypothesis , and some research hypothesis examples .  

Table of Contents

What is a hypothesis ?  

A hypothesis is based on the existing body of knowledge in a study area. Framed before the data are collected, a hypothesis states the tentative relationship between independent and dependent variables, along with a prediction of the outcome.  

What is a research hypothesis ?  

Young researchers starting out their journey are usually brimming with questions like “ What is a hypothesis ?” “ What is a research hypothesis ?” “How can I write a good research hypothesis ?”   

A research hypothesis is a statement that proposes a possible explanation for an observable phenomenon or pattern. It guides the direction of a study and predicts the outcome of the investigation. A research hypothesis is testable, i.e., it can be supported or disproven through experimentation or observation.     

Characteristics of a good hypothesis  

Here are the characteristics of a good hypothesis :  

• Clearly formulated and free of language errors and ambiguity  
• Concise and not unnecessarily verbose  
• Has clearly defined variables  
• Testable and stated in a way that allows for it to be disproven  
• Can be tested using a research design that is feasible, ethical, and practical   
• Specific and relevant to the research problem  
• Rooted in a thorough literature search  
• Can generate new knowledge or understanding.  

How to create an effective research hypothesis  

A study begins with the formulation of a research question. A researcher then performs background research. This background information forms the basis for building a good research hypothesis . The researcher then performs experiments, collects, and analyzes the data, interprets the findings, and ultimately, determines if the findings support or negate the original hypothesis.  

Let’s look at each step for creating an effective, testable, and good research hypothesis :  

• Identify a research problem or question: Start by identifying a specific research problem.   
• Review the literature: Conduct an in-depth review of the existing literature related to the research problem to grasp the current knowledge and gaps in the field.   
• Formulate a clear and testable hypothesis : Based on the research question, use existing knowledge to form a clear and testable hypothesis . The hypothesis should state a predicted relationship between two or more variables that can be measured and manipulated. Improve the original draft till it is clear and meaningful.  
• State the null hypothesis: The null hypothesis is a statement that there is no relationship between the variables you are studying.   
• Define the population and sample: Clearly define the population you are studying and the sample you will be using for your research.  
• Select appropriate methods for testing the hypothesis: Select appropriate research methods, such as experiments, surveys, or observational studies, which will allow you to test your research hypothesis .  

Remember that creating a research hypothesis is an iterative process, i.e., you might have to revise it based on the data you collect. You may need to test and reject several hypotheses before answering the research problem.  

How to write a research hypothesis  

When you start writing a research hypothesis , you use an “if–then” statement format, which states the predicted relationship between two or more variables. Clearly identify the independent variables (the variables being changed) and the dependent variables (the variables being measured), as well as the population you are studying. Review and revise your hypothesis as needed.  

An example of a research hypothesis in this format is as follows:  

“ If [athletes] follow [cold water showers daily], then their [endurance] increases.”  

Population: athletes  

Independent variable: daily cold water showers  

Dependent variable: endurance  

You may have understood the characteristics of a good hypothesis . But note that a research hypothesis is not always confirmed; a researcher should be prepared to accept or reject the hypothesis based on the study findings.  

Research hypothesis checklist  

Following from above, here is a 10-point checklist for a good research hypothesis :  

• Testable: A research hypothesis should be able to be tested via experimentation or observation.  
• Specific: A research hypothesis should clearly state the relationship between the variables being studied.  
• Based on prior research: A research hypothesis should be based on existing knowledge and previous research in the field.  
• Falsifiable: A research hypothesis should be able to be disproven through testing.  
• Clear and concise: A research hypothesis should be stated in a clear and concise manner.  
• Logical: A research hypothesis should be logical and consistent with current understanding of the subject.  
• Relevant: A research hypothesis should be relevant to the research question and objectives.  
• Feasible: A research hypothesis should be feasible to test within the scope of the study.  
• Reflects the population: A research hypothesis should consider the population or sample being studied.  
• Uncomplicated: A good research hypothesis is written in a way that is easy for the target audience to understand.  

By following this research hypothesis checklist , you will be able to create a research hypothesis that is strong, well-constructed, and more likely to yield meaningful results.  

Types of research hypothesis  

Different types of research hypothesis are used in scientific research:  

1. Null hypothesis:

A null hypothesis states that there is no change in the dependent variable due to changes to the independent variable. This means that the results are due to chance and are not significant. A null hypothesis is denoted as H0 and is stated as the opposite of what the alternative hypothesis states.   

Example: “ The newly identified virus is not zoonotic .”  

2. Alternative hypothesis:

This states that there is a significant difference or relationship between the variables being studied. It is denoted as H1 or Ha and is usually accepted or rejected in favor of the null hypothesis.  

Example: “ The newly identified virus is zoonotic .”  

3. Directional hypothesis :

This specifies the direction of the relationship or difference between variables; therefore, it tends to use terms like increase, decrease, positive, negative, more, or less.   

Example: “ The inclusion of intervention X decreases infant mortality compared to the original treatment .”   

4. Non-directional hypothesis:

While it does not predict the exact direction or nature of the relationship between the two variables, a non-directional hypothesis states the existence of a relationship or difference between variables but not the direction, nature, or magnitude of the relationship. A non-directional hypothesis may be used when there is no underlying theory or when findings contradict previous research.  

Example, “ Cats and dogs differ in the amount of affection they express .”  

5. Simple hypothesis :

A simple hypothesis only predicts the relationship between one independent and another independent variable.  

Example: “ Applying sunscreen every day slows skin aging .”  

6 . Complex hypothesis :

A complex hypothesis states the relationship or difference between two or more independent and dependent variables.   

Example: “ Applying sunscreen every day slows skin aging, reduces sun burn, and reduces the chances of skin cancer .” (Here, the three dependent variables are slowing skin aging, reducing sun burn, and reducing the chances of skin cancer.)  

7. Associative hypothesis:  

An associative hypothesis states that a change in one variable results in the change of the other variable. The associative hypothesis defines interdependency between variables.  

Example: “ There is a positive association between physical activity levels and overall health .”  

8 . Causal hypothesis:

A causal hypothesis proposes a cause-and-effect interaction between variables.  

Example: “ Long-term alcohol use causes liver damage .”  

Note that some of the types of research hypothesis mentioned above might overlap. The types of hypothesis chosen will depend on the research question and the objective of the study.  

Research hypothesis examples  

Here are some good research hypothesis examples :  

“The use of a specific type of therapy will lead to a reduction in symptoms of depression in individuals with a history of major depressive disorder.”  

“Providing educational interventions on healthy eating habits will result in weight loss in overweight individuals.”  

“Plants that are exposed to certain types of music will grow taller than those that are not exposed to music.”  

“The use of the plant growth regulator X will lead to an increase in the number of flowers produced by plants.”  

Characteristics that make a research hypothesis weak are unclear variables, unoriginality, being too general or too vague, and being untestable. A weak hypothesis leads to weak research and improper methods.   

Some bad research hypothesis examples (and the reasons why they are “bad”) are as follows:  

“This study will show that treatment X is better than any other treatment . ” (This statement is not testable, too broad, and does not consider other treatments that may be effective.)  

“This study will prove that this type of therapy is effective for all mental disorders . ” (This statement is too broad and not testable as mental disorders are complex and different disorders may respond differently to different types of therapy.)  

“Plants can communicate with each other through telepathy . ” (This statement is not testable and lacks a scientific basis.)  

Importance of testable hypothesis  

If a research hypothesis is not testable, the results will not prove or disprove anything meaningful. The conclusions will be vague at best. A testable hypothesis helps a researcher focus on the study outcome and understand the implication of the question and the different variables involved. A testable hypothesis helps a researcher make precise predictions based on prior research.  

To be considered testable, there must be a way to prove that the hypothesis is true or false; further, the results of the hypothesis must be reproducible.  

Frequently Asked Questions (FAQs) on research hypothesis  

1. What is the difference between research question and research hypothesis ?  

A research question defines the problem and helps outline the study objective(s). It is an open-ended statement that is exploratory or probing in nature. Therefore, it does not make predictions or assumptions. It helps a researcher identify what information to collect. A research hypothesis , however, is a specific, testable prediction about the relationship between variables. Accordingly, it guides the study design and data analysis approach.

2. When to reject null hypothesis ?

A null hypothesis should be rejected when the evidence from a statistical test shows that it is unlikely to be true. This happens when the test statistic (e.g., p -value) is less than the defined significance level (e.g., 0.05). Rejecting the null hypothesis does not necessarily mean that the alternative hypothesis is true; it simply means that the evidence found is not compatible with the null hypothesis.  

3. How can I be sure my hypothesis is testable?  

A testable hypothesis should be specific and measurable, and it should state a clear relationship between variables that can be tested with data. To ensure that your hypothesis is testable, consider the following:  

• Clearly define the key variables in your hypothesis. You should be able to measure and manipulate these variables in a way that allows you to test the hypothesis.  
• The hypothesis should predict a specific outcome or relationship between variables that can be measured or quantified.   
• You should be able to collect the necessary data within the constraints of your study.  
• It should be possible for other researchers to replicate your study, using the same methods and variables.   
• Your hypothesis should be testable by using appropriate statistical analysis techniques, so you can draw conclusions, and make inferences about the population from the sample data.  
• The hypothesis should be able to be disproven or rejected through the collection of data.  

4. How do I revise my research hypothesis if my data does not support it?  

If your data does not support your research hypothesis , you will need to revise it or develop a new one. You should examine your data carefully and identify any patterns or anomalies, re-examine your research question, and/or revisit your theory to look for any alternative explanations for your results. Based on your review of the data, literature, and theories, modify your research hypothesis to better align it with the results you obtained. Use your revised hypothesis to guide your research design and data collection. It is important to remain objective throughout the process.  

5. I am performing exploratory research. Do I need to formulate a research hypothesis?  

As opposed to “confirmatory” research, where a researcher has some idea about the relationship between the variables under investigation, exploratory research (or hypothesis-generating research) looks into a completely new topic about which limited information is available. Therefore, the researcher will not have any prior hypotheses. In such cases, a researcher will need to develop a post-hoc hypothesis. A post-hoc research hypothesis is generated after these results are known.  

6. How is a research hypothesis different from a research question?

A research question is an inquiry about a specific topic or phenomenon, typically expressed as a question. It seeks to explore and understand a particular aspect of the research subject. In contrast, a research hypothesis is a specific statement or prediction that suggests an expected relationship between variables. It is formulated based on existing knowledge or theories and guides the research design and data analysis.

7. Can a research hypothesis change during the research process?

Yes, research hypotheses can change during the research process. As researchers collect and analyze data, new insights and information may emerge that require modification or refinement of the initial hypotheses. This can be due to unexpected findings, limitations in the original hypotheses, or the need to explore additional dimensions of the research topic. Flexibility is crucial in research, allowing for adaptation and adjustment of hypotheses to align with the evolving understanding of the subject matter.

8. How many hypotheses should be included in a research study?

The number of research hypotheses in a research study varies depending on the nature and scope of the research. It is not necessary to have multiple hypotheses in every study. Some studies may have only one primary hypothesis, while others may have several related hypotheses. The number of hypotheses should be determined based on the research objectives, research questions, and the complexity of the research topic. It is important to ensure that the hypotheses are focused, testable, and directly related to the research aims.

9. Can research hypotheses be used in qualitative research?

Yes, research hypotheses can be used in qualitative research, although they are more commonly associated with quantitative research. In qualitative research, hypotheses may be formulated as tentative or exploratory statements that guide the investigation. Instead of testing hypotheses through statistical analysis, qualitative researchers may use the hypotheses to guide data collection and analysis, seeking to uncover patterns, themes, or relationships within the qualitative data. The emphasis in qualitative research is often on generating insights and understanding rather than confirming or rejecting specific research hypotheses through statistical testing.

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The Craft of Writing a Strong Hypothesis

Table of Contents

Writing a hypothesis is one of the essential elements of a scientific research paper. It needs to be to the point, clearly communicating what your research is trying to accomplish. A blurry, drawn-out, or complexly-structured hypothesis can confuse your readers. Or worse, the editor and peer reviewers.

A captivating hypothesis is not too intricate. This blog will take you through the process so that, by the end of it, you have a better idea of how to convey your research paper's intent in just one sentence.

What is a Hypothesis?

The first step in your scientific endeavor, a hypothesis, is a strong, concise statement that forms the basis of your research. It is not the same as a thesis statement , which is a brief summary of your research paper .

The sole purpose of a hypothesis is to predict your paper's findings, data, and conclusion. It comes from a place of curiosity and intuition . When you write a hypothesis, you're essentially making an educated guess based on scientific prejudices and evidence, which is further proven or disproven through the scientific method.

The reason for undertaking research is to observe a specific phenomenon. A hypothesis, therefore, lays out what the said phenomenon is. And it does so through two variables, an independent and dependent variable.

The independent variable is the cause behind the observation, while the dependent variable is the effect of the cause. A good example of this is “mixing red and blue forms purple.” In this hypothesis, mixing red and blue is the independent variable as you're combining the two colors at your own will. The formation of purple is the dependent variable as, in this case, it is conditional to the independent variable.

Different Types of Hypotheses‌

Types of hypotheses

Some would stand by the notion that there are only two types of hypotheses: a Null hypothesis and an Alternative hypothesis. While that may have some truth to it, it would be better to fully distinguish the most common forms as these terms come up so often, which might leave you out of context.

Apart from Null and Alternative, there are Complex, Simple, Directional, Non-Directional, Statistical, and Associative and casual hypotheses. They don't necessarily have to be exclusive, as one hypothesis can tick many boxes, but knowing the distinctions between them will make it easier for you to construct your own.

1. Null hypothesis

A null hypothesis proposes no relationship between two variables. Denoted by H 0 , it is a negative statement like “Attending physiotherapy sessions does not affect athletes' on-field performance.” Here, the author claims physiotherapy sessions have no effect on on-field performances. Even if there is, it's only a coincidence.

2. Alternative hypothesis

Considered to be the opposite of a null hypothesis, an alternative hypothesis is donated as H1 or Ha. It explicitly states that the dependent variable affects the independent variable. A good  alternative hypothesis example is “Attending physiotherapy sessions improves athletes' on-field performance.” or “Water evaporates at 100 °C. ” The alternative hypothesis further branches into directional and non-directional.

• Directional hypothesis: A hypothesis that states the result would be either positive or negative is called directional hypothesis. It accompanies H1 with either the ‘<' or ‘>' sign.
• Non-directional hypothesis: A non-directional hypothesis only claims an effect on the dependent variable. It does not clarify whether the result would be positive or negative. The sign for a non-directional hypothesis is ‘≠.'

3. Simple hypothesis

A simple hypothesis is a statement made to reflect the relation between exactly two variables. One independent and one dependent. Consider the example, “Smoking is a prominent cause of lung cancer." The dependent variable, lung cancer, is dependent on the independent variable, smoking.

4. Complex hypothesis

In contrast to a simple hypothesis, a complex hypothesis implies the relationship between multiple independent and dependent variables. For instance, “Individuals who eat more fruits tend to have higher immunity, lesser cholesterol, and high metabolism.” The independent variable is eating more fruits, while the dependent variables are higher immunity, lesser cholesterol, and high metabolism.

5. Associative and casual hypothesis

Associative and casual hypotheses don't exhibit how many variables there will be. They define the relationship between the variables. In an associative hypothesis, changing any one variable, dependent or independent, affects others. In a casual hypothesis, the independent variable directly affects the dependent.

6. Empirical hypothesis

Also referred to as the working hypothesis, an empirical hypothesis claims a theory's validation via experiments and observation. This way, the statement appears justifiable and different from a wild guess.

Say, the hypothesis is “Women who take iron tablets face a lesser risk of anemia than those who take vitamin B12.” This is an example of an empirical hypothesis where the researcher  the statement after assessing a group of women who take iron tablets and charting the findings.

7. Statistical hypothesis

The point of a statistical hypothesis is to test an already existing hypothesis by studying a population sample. Hypothesis like “44% of the Indian population belong in the age group of 22-27.” leverage evidence to prove or disprove a particular statement.

Characteristics of a Good Hypothesis

Writing a hypothesis is essential as it can make or break your research for you. That includes your chances of getting published in a journal. So when you're designing one, keep an eye out for these pointers:

• A research hypothesis has to be simple yet clear to look justifiable enough.
• It has to be testable — your research would be rendered pointless if too far-fetched into reality or limited by technology.
• It has to be precise about the results —what you are trying to do and achieve through it should come out in your hypothesis.
• A research hypothesis should be self-explanatory, leaving no doubt in the reader's mind.
• If you are developing a relational hypothesis, you need to include the variables and establish an appropriate relationship among them.
• A hypothesis must keep and reflect the scope for further investigations and experiments.

Separating a Hypothesis from a Prediction

Outside of academia, hypothesis and prediction are often used interchangeably. In research writing, this is not only confusing but also incorrect. And although a hypothesis and prediction are guesses at their core, there are many differences between them.

A hypothesis is an educated guess or even a testable prediction validated through research. It aims to analyze the gathered evidence and facts to define a relationship between variables and put forth a logical explanation behind the nature of events.

Predictions are assumptions or expected outcomes made without any backing evidence. They are more fictionally inclined regardless of where they originate from.

For this reason, a hypothesis holds much more weight than a prediction. It sticks to the scientific method rather than pure guesswork. "Planets revolve around the Sun." is an example of a hypothesis as it is previous knowledge and observed trends. Additionally, we can test it through the scientific method.

Whereas "COVID-19 will be eradicated by 2030." is a prediction. Even though it results from past trends, we can't prove or disprove it. So, the only way this gets validated is to wait and watch if COVID-19 cases end by 2030.

Finally, How to Write a Hypothesis

Quick tips on writing a hypothesis

1.  Be clear about your research question

A hypothesis should instantly address the research question or the problem statement. To do so, you need to ask a question. Understand the constraints of your undertaken research topic and then formulate a simple and topic-centric problem. Only after that can you develop a hypothesis and further test for evidence.

2. Carry out a recce

Once you have your research's foundation laid out, it would be best to conduct preliminary research. Go through previous theories, academic papers, data, and experiments before you start curating your research hypothesis. It will give you an idea of your hypothesis's viability or originality.

Making use of references from relevant research papers helps draft a good research hypothesis. SciSpace Discover offers a repository of over 270 million research papers to browse through and gain a deeper understanding of related studies on a particular topic. Additionally, you can use SciSpace Copilot , your AI research assistant, for reading any lengthy research paper and getting a more summarized context of it. A hypothesis can be formed after evaluating many such summarized research papers. Copilot also offers explanations for theories and equations, explains paper in simplified version, allows you to highlight any text in the paper or clip math equations and tables and provides a deeper, clear understanding of what is being said. This can improve the hypothesis by helping you identify potential research gaps.

3. Create a 3-dimensional hypothesis

Variables are an essential part of any reasonable hypothesis. So, identify your independent and dependent variable(s) and form a correlation between them. The ideal way to do this is to write the hypothetical assumption in the ‘if-then' form. If you use this form, make sure that you state the predefined relationship between the variables.

In another way, you can choose to present your hypothesis as a comparison between two variables. Here, you must specify the difference you expect to observe in the results.

4. Write the first draft

Now that everything is in place, it's time to write your hypothesis. For starters, create the first draft. In this version, write what you expect to find from your research.

Clearly separate your independent and dependent variables and the link between them. Don't fixate on syntax at this stage. The goal is to ensure your hypothesis addresses the issue.

5. Proof your hypothesis

After preparing the first draft of your hypothesis, you need to inspect it thoroughly. It should tick all the boxes, like being concise, straightforward, relevant, and accurate. Your final hypothesis has to be well-structured as well.

Research projects are an exciting and crucial part of being a scholar. And once you have your research question, you need a great hypothesis to begin conducting research. Thus, knowing how to write a hypothesis is very important.

Now that you have a firmer grasp on what a good hypothesis constitutes, the different kinds there are, and what process to follow, you will find it much easier to write your hypothesis, which ultimately helps your research.

Now it's easier than ever to streamline your research workflow with SciSpace Discover . Its integrated, comprehensive end-to-end platform for research allows scholars to easily discover, write and publish their research and fosters collaboration.

It includes everything you need, including a repository of over 270 million research papers across disciplines, SEO-optimized summaries and public profiles to show your expertise and experience.

If you found these tips on writing a research hypothesis useful, head over to our blog on Statistical Hypothesis Testing to learn about the top researchers, papers, and institutions in this domain.

Frequently Asked Questions (FAQs)

1. what is the definition of hypothesis.

According to the Oxford dictionary, a hypothesis is defined as “An idea or explanation of something that is based on a few known facts, but that has not yet been proved to be true or correct”.

2. What is an example of hypothesis?

The hypothesis is a statement that proposes a relationship between two or more variables. An example: "If we increase the number of new users who join our platform by 25%, then we will see an increase in revenue."

3. What is an example of null hypothesis?

A null hypothesis is a statement that there is no relationship between two variables. The null hypothesis is written as H0. The null hypothesis states that there is no effect. For example, if you're studying whether or not a particular type of exercise increases strength, your null hypothesis will be "there is no difference in strength between people who exercise and people who don't."

4. What are the types of research?

• Fundamental research

• Applied research

• Qualitative research

• Quantitative research

• Mixed research

• Exploratory research

• Longitudinal research

• Cross-sectional research

• Field research

• Laboratory research

• Fixed research

• Flexible research

• Action research

• Policy research

• Classification research

• Comparative research

• Causal research

• Inductive research

• Deductive research

5. How to write a hypothesis?

• Your hypothesis should be able to predict the relationship and outcome.

• Avoid wordiness by keeping it simple and brief.

• Your hypothesis should contain observable and testable outcomes.

• Your hypothesis should be relevant to the research question.

6. What are the 2 types of hypothesis?

• Null hypotheses are used to test the claim that "there is no difference between two groups of data".

• Alternative hypotheses test the claim that "there is a difference between two data groups".

7. Difference between research question and research hypothesis?

A research question is a broad, open-ended question you will try to answer through your research. A hypothesis is a statement based on prior research or theory that you expect to be true due to your study. Example - Research question: What are the factors that influence the adoption of the new technology? Research hypothesis: There is a positive relationship between age, education and income level with the adoption of the new technology.

8. What is plural for hypothesis?

The plural of hypothesis is hypotheses. Here's an example of how it would be used in a statement, "Numerous well-considered hypotheses are presented in this part, and they are supported by tables and figures that are well-illustrated."

9. What is the red queen hypothesis?

The red queen hypothesis in evolutionary biology states that species must constantly evolve to avoid extinction because if they don't, they will be outcompeted by other species that are evolving. Leigh Van Valen first proposed it in 1973; since then, it has been tested and substantiated many times.

10. Who is known as the father of null hypothesis?

The father of the null hypothesis is Sir Ronald Fisher. He published a paper in 1925 that introduced the concept of null hypothesis testing, and he was also the first to use the term itself.

11. When to reject null hypothesis?

You need to find a significant difference between your two populations to reject the null hypothesis. You can determine that by running statistical tests such as an independent sample t-test or a dependent sample t-test. You should reject the null hypothesis if the p-value is less than 0.05.

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How to Generate and Validate Product Hypotheses

Every product owner knows that it takes effort to build something that'll cater to user needs. You'll have to make many tough calls if you wish to grow the company and evolve the product so it delivers more value. But how do you decide what to change in the product, your marketing strategy, or the overall direction to succeed? And how do you make a product that truly resonates with your target audience?

There are many unknowns in business, so many fundamental decisions start from a simple "what if?". But they can't be based on guesses, as you need some proof to fill in the blanks reasonably.

Because there's no universal recipe for successfully building a product, teams collect data, do research, study the dynamics, and generate hypotheses according to the given facts. They then take corresponding actions to find out whether they were right or wrong, make conclusions, and most likely restart the process again.

On this page, we thoroughly inspect product hypotheses. We'll go over what they are, how to create hypothesis statements and validate them, and what goes after this step.

What Is a Hypothesis in Product Management?

A hypothesis in product development and product management is a statement or assumption about the product, planned feature, market, or customer (e.g., their needs, behavior, or expectations) that you can put to the test, evaluate, and base your further decisions on . This may, for instance, regard the upcoming product changes as well as the impact they can result in.

A hypothesis implies that there is limited knowledge. Hence, the teams need to undergo testing activities to validate their ideas and confirm whether they are true or false.

Hypotheses guide the product development process and may point at important findings to help build a better product that'll serve user needs. In essence, teams create hypothesis statements in an attempt to improve the offering, boost engagement, increase revenue, find product-market fit quicker, or for other business-related reasons.

It's sort of like an experiment with trial and error, yet, it is data-driven and should be unbiased . This means that teams don't make assumptions out of the blue. Instead, they turn to the collected data, conducted market research , and factual information, which helps avoid completely missing the mark. The obtained results are then carefully analyzed and may influence decision-making.

Such experiments backed by data and analysis are an integral aspect of successful product development and allow startups or businesses to dodge costly startup mistakes .

‍ When do teams create hypothesis statements and validate them? To some extent, hypothesis testing is an ongoing process to work on constantly. It may occur during various product development life cycle stages, from early phases like initiation to late ones like scaling.

In any event, the key here is learning how to generate hypothesis statements and validate them effectively. We'll go over this in more detail later on.

Idea vs. Hypothesis Compared

You might be wondering whether ideas and hypotheses are the same thing. Well, there are a few distinctions.

An idea is simply a suggested proposal. Say, a teammate comes up with something you can bring to life during a brainstorming session or pitches in a suggestion like "How about we shorten the checkout process?". You can jot down such ideas and then consider working on them if they'll truly make a difference and improve the product, strategy, or result in other business benefits. Ideas may thus be used as the hypothesis foundation when you decide to prove a concept.

A hypothesis is the next step, when an idea gets wrapped with specifics to become an assumption that may be tested. As such, you can refine the idea by adding details to it. The previously mentioned idea can be worded into a product hypothesis statement like: "The cart abandonment rate is high, and many users flee at checkout. But if we shorten the checkout process by cutting down the number of steps to only two and get rid of four excessive fields, we'll simplify the user journey, boost satisfaction, and may get up to 15% more completed orders".

A hypothesis is something you can test in an attempt to reach a certain goal. Testing isn't obligatory in this scenario, of course, but the idea may be tested if you weigh the pros and cons and decide that the required effort is worth a try. We'll explain how to create hypothesis statements next.

How to Generate a Hypothesis for a Product

The last thing those developing a product want is to invest time and effort into something that won't bring any visible results, fall short of customer expectations, or won't live up to their needs. Therefore, to increase the chances of achieving a successful outcome and product-led growth , teams may need to revisit their product development approach by optimizing one of the starting points of the process: learning to make reasonable product hypotheses.

If the entire procedure is structured, this may assist you during such stages as the discovery phase and raise the odds of reaching your product goals and setting your business up for success. Yet, what's the entire process like?

• It all starts with identifying an existing problem . Is there a product area that's experiencing a downfall, a visible trend, or a market gap? Are users often complaining about something in their feedback? Or is there something you're willing to change (say, if you aim to get more profit, increase engagement, optimize a process, expand to a new market, or reach your OKRs and KPIs faster)?
• Teams then need to work on formulating a hypothesis . They put the statement into concise and short wording that describes what is expected to achieve. Importantly, it has to be relevant, actionable, backed by data, and without generalizations.
• Next, they have to test the hypothesis by running experiments to validate it (for instance, via A/B or multivariate testing, prototyping, feedback collection, or other ways).
• Then, the obtained results of the test must be analyzed . Did one element or page version outperform the other? Depending on what you're testing, you can look into various merits or product performance metrics (such as the click rate, bounce rate, or the number of sign-ups) to assess whether your prediction was correct.
• Finally, the teams can make conclusions that could lead to data-driven decisions. For example, they can make corresponding changes or roll back a step.

How Else Can You Generate Product Hypotheses?

Such processes imply sharing ideas when a problem is spotted by digging deep into facts and studying the possible risks, goals, benefits, and outcomes. You may apply various MVP tools like (FigJam, Notion, or Miro) that were designed to simplify brainstorming sessions, systemize pitched suggestions, and keep everyone organized without losing any ideas.

Predictive product analysis can also be integrated into this process, leveraging data and insights to anticipate market trends and consumer preferences, thus enhancing decision-making and product development strategies. This approach fosters a more proactive and informed approach to innovation, ensuring products are not only relevant but also resonate with the target audience, ultimately increasing their chances of success in the market.

Besides, you can settle on one of the many frameworks that facilitate decision-making processes , ideation phases, or feature prioritization . Such frameworks are best applicable if you need to test your assumptions and structure the validation process. These are a few common ones if you're looking toward a systematic approach:

• Business Model Canvas (used to establish the foundation of the business model and helps find answers to vitals like your value proposition, finding the right customer segment, or the ways to make revenue);
• Lean Startup framework (the lean startup framework uses a diagram-like format for capturing major processes and can be handy for testing various hypotheses like how much value a product brings or assumptions on personas, the problem, growth, etc.);
• Design Thinking Process (is all about interactive learning and involves getting an in-depth understanding of the customer needs and pain points, which can be formulated into hypotheses followed by simple prototypes and tests).

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How to Make a Hypothesis Statement for a Product

Once you've indicated the addressable problem or opportunity and broken down the issue in focus, you need to work on formulating the hypotheses and associated tasks. By the way, it works the same way if you want to prove that something will be false (a.k.a null hypothesis).

If you're unsure how to write a hypothesis statement, let's explore the essential steps that'll set you on the right track.

Step 1: Allocate the Variable Components

Product hypotheses are generally different for each case, so begin by pinpointing the major variables, i.e., the cause and effect . You'll need to outline what you think is supposed to happen if a change or action gets implemented.

Put simply, the "cause" is what you're planning to change, and the "effect" is what will indicate whether the change is bringing in the expected results. Falling back on the example we brought up earlier, the ineffective checkout process can be the cause, while the increased percentage of completed orders is the metric that'll show the effect.

Make sure to also note such vital points as:

• what the problem and solution are;
• what are the benefits or the expected impact/successful outcome;
• which user group is affected;
• what are the risks;
• what kind of experiments can help test the hypothesis;
• what can measure whether you were right or wrong.

Step 2: Ensure the Connection Is Specific and Logical

Mind that generic connections that lack specifics will get you nowhere. So if you're thinking about how to word a hypothesis statement, make sure that the cause and effect include clear reasons and a logical dependency .

Think about what can be the precise and link showing why A affects B. In our checkout example, it could be: fewer steps in the checkout and the removed excessive fields will speed up the process, help avoid confusion, irritate users less, and lead to more completed orders. That's much more explicit than just stating the fact that the checkout needs to be changed to get more completed orders.

Step 3: Decide on the Data You'll Collect

Certainly, multiple things can be used to measure the effect. Therefore, you need to choose the optimal metrics and validation criteria that'll best envision if you're moving in the right direction.

If you need a tip on how to create hypothesis statements that won't result in a waste of time, try to avoid vagueness and be as specific as you can when selecting what can best measure and assess the results of your hypothesis test. The criteria must be measurable and tied to the hypotheses . This can be a realistic percentage or number (say, you expect a 15% increase in completed orders or 2x fewer cart abandonment cases during the checkout phase).

Once again, if you're not realistic, then you might end up misinterpreting the results. Remember that sometimes an increase that's even as little as 2% can make a huge difference, so why make 50% the merit if it's not achievable in the first place?

Step 4: Settle on the Sequence

It's quite common that you'll end up with multiple product hypotheses. Some are more important than others, of course, and some will require more effort and input.

Therefore, just as with the features on your product development roadmap , prioritize your hypotheses according to their impact and importance. Then, group and order them, especially if the results of some hypotheses influence others on your list.

Product Hypothesis Examples

To demonstrate how to formulate your assumptions clearly, here are several more apart from the example of a hypothesis statement given above:

• Adding a wishlist feature to the cart with the possibility to send a gift hint to friends via email will increase the likelihood of making a sale and bring in additional sign-ups.
• Placing a limited-time promo code banner stripe on the home page will increase the number of sales in March.
• Moving up the call to action element on the landing page and changing the button text will increase the click-through rate twice.
• By highlighting a new way to use the product, we'll target a niche customer segment (i.e., single parents under 30) and acquire 5% more leads. 

How to Validate Hypothesis Statements: The Process Explained

There are multiple options when it comes to validating hypothesis statements. To get appropriate results, you have to come up with the right experiment that'll help you test the hypothesis. You'll need a control group or people who represent your target audience segments or groups to participate (otherwise, your results might not be accurate).

‍ What can serve as the experiment you may run? Experiments may take tons of different forms, and you'll need to choose the one that clicks best with your hypothesis goals (and your available resources, of course). The same goes for how long you'll have to carry out the test (say, a time period of two months or as little as two weeks). Here are several to get you started.

Feedback and User Testing

Talking to users, potential customers, or members of your own online startup community can be another way to test your hypotheses. You may use surveys, questionnaires, or opt for more extensive interviews to validate hypothesis statements and find out what people think. This assumption validation approach involves your existing or potential users and might require some additional time, but can bring you many insights.

Conduct A/B or Multivariate Tests

One of the experiments you may develop involves making more than one version of an element or page to see which option resonates with the users more. As such, you can have a call to action block with different wording or play around with the colors, imagery, visuals, and other things.

To run such split experiments, you can apply tools like VWO that allows to easily construct alternative designs and split what your users see (e.g., one half of the users will see version one, while the other half will see version two). You can track various metrics and apply heatmaps, click maps, and screen recordings to learn more about user response and behavior. Mind, though, that the key to such tests is to get as many users as you can give the tests time. Don't jump to conclusions too soon or if very few people participated in your experiment.

Build Prototypes and Fake Doors

Demos and clickable prototypes can be a great way to save time and money on costly feature or product development. A prototype also allows you to refine the design. However, they can also serve as experiments for validating hypotheses, collecting data, and getting feedback.

For instance, if you have a new feature in mind and want to ensure there is interest, you can utilize such MVP types as fake doors . Make a short demo recording of the feature and place it on your landing page to track interest or test how many people sign up.

Usability Testing

Similarly, you can run experiments to observe how users interact with the feature, page, product, etc. Usually, such experiments are held on prototype testing platforms with a focus group representing your target visitors. By showing a prototype or early version of the design to users, you can view how people use the solution, where they face problems, or what they don't understand. This may be very helpful if you have hypotheses regarding redesigns and user experience improvements before you move on from prototype to MVP development.

You can even take it a few steps further and build a barebone feature version that people can really interact with, yet you'll be the one behind the curtain to make it happen. There were many MVP examples when companies applied Wizard of Oz or concierge MVPs to validate their hypotheses.

Or you can actually develop some functionality but release it for only a limited number of people to see. This is referred to as a feature flag , which can show really specific results but is effort-intensive. 

What Comes After Hypothesis Validation?

Analysis is what you move on to once you've run the experiment. This is the time to review the collected data, metrics, and feedback to validate (or invalidate) the hypothesis.

You have to evaluate the experiment's results to determine whether your product hypotheses were valid or not. For example, if you were testing two versions of an element design, color scheme, or copy, look into which one performed best.

It is crucial to be certain that you have enough data to draw conclusions, though, and that it's accurate and unbiased . Because if you don't, this may be a sign that your experiment needs to be run for some additional time, be altered, or held once again. You won't want to make a solid decision based on uncertain or misleading results, right?

• If the hypothesis was supported , proceed to making corresponding changes (such as implementing a new feature, changing the design, rephrasing your copy, etc.). Remember that your aim was to learn and iterate to improve.
• If your hypothesis was proven false , think of it as a valuable learning experience. The main goal is to learn from the results and be able to adjust your processes accordingly. Dig deep to find out what went wrong, look for patterns and things that may have skewed the results. But if all signs show that you were wrong with your hypothesis, accept this outcome as a fact, and move on. This can help you make conclusions on how to better formulate your product hypotheses next time. Don't be too judgemental, though, as a failed experiment might only mean that you need to improve the current hypothesis, revise it, or create a new one based on the results of this experiment, and run the process once more.

On another note, make sure to record your hypotheses and experiment results . Some companies use CRMs to jot down the key findings, while others use something as simple as Google Docs. Either way, this can be your single source of truth that can help you avoid running the same experiments or allow you to compare results over time.

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Final Thoughts on Product Hypotheses

The hypothesis-driven approach in product development is a great way to avoid uncalled-for risks and pricey mistakes. You can back up your assumptions with facts, observe your target audience's reactions, and be more certain that this move will deliver value.

However, this only makes sense if the validation of hypothesis statements is backed by relevant data that'll allow you to determine whether the hypothesis is valid or not. By doing so, you can be certain that you're developing and testing hypotheses to accelerate your product management and avoiding decisions based on guesswork.

Certainly, a failed experiment may bring you just as much knowledge and findings as one that succeeds. Teams have to learn from their mistakes, boost their hypothesis generation and testing knowledge , and make improvements according to the results of their experiments. This is an ongoing process, of course, as no product can grow if it isn't iterated and improved.

If you're only planning to or are currently building a product, Upsilon can lend you a helping hand. Our team has years of experience providing product development services for growth-stage startups and building MVPs for early-stage businesses , so you can use our expertise and knowledge to dodge many mistakes. Don't be shy to contact us to discuss your needs! 

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Writing a Strong Hypothesis Statement

All good theses begins with a good thesis question. However, all great theses begins with a great hypothesis statement. One of the most important steps for writing a thesis is to create a strong hypothesis statement. 

What is a hypothesis statement?

A hypothesis statement must be testable. If it cannot be tested, then there is no research to be done.

Simply put, a hypothesis statement posits the relationship between two or more variables. It is a prediction of what you think will happen in a research study. A hypothesis statement must be testable. If it cannot be tested, then there is no research to be done. If your thesis question is whether wildfires have effects on the weather, “wildfires create tornadoes” would be your hypothesis. However, a hypothesis needs to have several key elements in order to meet the criteria for a good hypothesis.

In this article, we will learn about what distinguishes a weak hypothesis from a strong one. We will also learn how to phrase your thesis question and frame your variables so that you are able to write a strong hypothesis statement and great thesis.

What is a hypothesis?

A hypothesis statement posits, or considers, a relationship between two variables.

As we mentioned above, a hypothesis statement posits or considers a relationship between two variables. In our hypothesis statement example above, the two variables are wildfires and tornadoes, and our assumed relationship between the two is a causal one (wildfires cause tornadoes). It is clear from our example above what we will be investigating: the relationship between wildfires and tornadoes.

A strong hypothesis statement should be:

• A prediction of the relationship between two or more variables

A hypothesis is not just a blind guess. It should build upon existing theories and knowledge . Tornadoes are often observed near wildfires once the fires reach a certain size. In addition, tornadoes are not a normal weather event in many areas; they have been spotted together with wildfires. This existing knowledge has informed the formulation of our hypothesis.

Depending on the thesis question, your research paper might have multiple hypothesis statements. What is important is that your hypothesis statement or statements are testable through data analysis, observation, experiments, or other methodologies.

Formulating your hypothesis

One of the best ways to form a hypothesis is to think about “if...then” statements.

Now that we know what a hypothesis statement is, let’s walk through how to formulate a strong one. First, you will need a thesis question. Your thesis question should be narrow in scope, answerable, and focused. Once you have your thesis question, it is time to start thinking about your hypothesis statement. You will need to clearly identify the variables involved before you can begin thinking about their relationship.

One of the best ways to form a hypothesis is to think about “if...then” statements . This can also help you easily identify the variables you are working with and refine your hypothesis statement. Let’s take a few examples.

If teenagers are given comprehensive sex education, there will be fewer teen pregnancies .

In this example, the independent variable is whether or not teenagers receive comprehensive sex education (the cause), and the dependent variable is the number of teen pregnancies (the effect).

If a cat is fed a vegan diet, it will die .

Here, our independent variable is the diet of the cat (the cause), and the dependent variable is the cat’s health (the thing impacted by the cause).

If children drink 8oz of milk per day, they will grow taller than children who do not drink any milk .

What are the variables in this hypothesis? If you identified drinking milk as the independent variable and growth as the dependent variable, you are correct. This is because we are guessing that drinking milk causes increased growth in the height of children.

Refining your hypothesis

Do not be afraid to refine your hypothesis throughout the process of formulation.

Do not be afraid to refine your hypothesis throughout the process of formulation. A strong hypothesis statement is clear, testable, and involves a prediction. While “testable” means verifiable or falsifiable, it also means that you are able to perform the necessary experiments without violating any ethical standards. Perhaps once you think about the ethics of possibly harming some cats by testing a vegan diet on them you might abandon the idea of that experiment altogether. However, if you think it is really important to research the relationship between a cat’s diet and a cat’s health, perhaps you could refine your hypothesis to something like this:

If 50% of a cat’s meals are vegan, the cat will not be able to meet its nutritional needs .

Another feature of a strong hypothesis statement is that it can easily be tested with the resources that you have readily available. While it might not be feasible to measure the growth of a cohort of children throughout their whole lives, you may be able to do so for a year. Then, you can adjust your hypothesis to something like this:

I f children aged 8 drink 8oz of milk per day for one year, they will grow taller during that year than children who do not drink any milk .

As you work to narrow down and refine your hypothesis to reflect a realistic potential research scope, don’t be afraid to talk to your supervisor about any concerns or questions you might have about what is truly possible to research. 

What makes a hypothesis weak?

We noted above that a strong hypothesis statement is clear, is a prediction of a relationship between two or more variables, and is testable. We also clarified that statements, which are too general or specific are not strong hypotheses. We have looked at some examples of hypotheses that meet the criteria for a strong hypothesis, but before we go any further, let’s look at weak or bad hypothesis statement examples so that you can really see the difference.

Bad hypothesis 1: Diabetes is caused by witchcraft .

While this is fun to think about, it cannot be tested or proven one way or the other with clear evidence, data analysis, or experiments. This bad hypothesis fails to meet the testability requirement.

Bad hypothesis 2: If I change the amount of food I eat, my energy levels will change .

This is quite vague. Am I increasing or decreasing my food intake? What do I expect exactly will happen to my energy levels and why? How am I defining energy level? This bad hypothesis statement fails the clarity requirement.

Bad hypothesis 3: Japanese food is disgusting because Japanese people don’t like tourists .

This hypothesis is unclear about the posited relationship between variables. Are we positing the relationship between the deliciousness of Japanese food and the desire for tourists to visit? or the relationship between the deliciousness of Japanese food and the amount that Japanese people like tourists? There is also the problematic subjectivity of the assessment that Japanese food is “disgusting.” The problems are numerous.

The null hypothesis and the alternative hypothesis

The null hypothesis, quite simply, posits that there is no relationship between the variables.

What is the null hypothesis?

The hypothesis posits a relationship between two or more variables. The null hypothesis, quite simply, posits that there is no relationship between the variables. It is often indicated as H 0 , which is read as “h-oh” or “h-null.” The alternative hypothesis is the opposite of the null hypothesis as it posits that there is some relationship between the variables. The alternative hypothesis is written as H a or H 1 .

Let’s take our previous hypothesis statement examples discussed at the start and look at their corresponding null hypothesis.

H a : If teenagers are given comprehensive sex education, there will be fewer teen pregnancies .

H 0 : If teenagers are given comprehensive sex education, there will be no change in the number of teen pregnancies .

The null hypothesis assumes that comprehensive sex education will not affect how many teenagers get pregnant. It should be carefully noted that the null hypothesis is not always the opposite of the alternative hypothesis. For example:

If teenagers are given comprehensive sex education, there will be more teen pregnancies .

These are opposing statements that assume an opposite relationship between the variables: comprehensive sex education increases or decreases the number of teen pregnancies. In fact, these are both alternative hypotheses. This is because they both still assume that there is a relationship between the variables . In other words, both hypothesis statements assume that there is some kind of relationship between sex education and teen pregnancy rates. The alternative hypothesis is also the researcher’s actual predicted outcome, which is why calling it “alternative” can be confusing! However, you can think of it this way: our default assumption is the null hypothesis, and so any possible relationship is an alternative to the default.

Step-by-step sample hypothesis statements

Now that we’ve covered what makes a hypothesis statement strong, how to go about formulating a hypothesis statement, refining your hypothesis statement, and the null hypothesis, let’s put it all together with some examples. The table below shows a breakdown of how we can take a thesis question, identify the variables, create a null hypothesis, and finally create a strong alternative hypothesis.

Once you have formulated a solid thesis question and written a strong hypothesis statement, you are ready to begin your thesis in earnest. Check out our site for more tips on writing a great thesis and information on thesis proofreading and editing services.

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Review Checklist

Start with a clear thesis question

Think about “if-then” statements to identify your variables and the relationship between them

Create a null hypothesis

Formulate an alternative hypothesis using the variables you have identified

Make sure your hypothesis clearly posits a relationship between variables

Make sure your hypothesis is testable considering your available time and resources

What makes a hypothesis strong? +

A hypothesis is strong when it is testable, clear, and identifies a potential relationship between two or more variables.

What makes a hypothesis weak? +

A hypothesis is weak when it is too specific or too general, or does not identify a clear relationship between two or more variables.

What is the null hypothesis? +

The null hypothesis posits that the variables you have identified have no relationship.

The Startup Hypothesis

How do you maximize the likelihood of your startup’s success?

A startup is a hypothesis — it’s a belief that our business will be successful because of x , y , or z .

To validate this hypothesis, we run a series of experiments to test a set of smaller hypotheses.

For each sub-hypothesis (below), you and your stakeholders are attempting to convince yourselves that there is sufficient evidence to support your hypothesis so you can move on to the next stage of your startup.

For each sub-hypothesis, you should all agree on a single metric to track and an acceptance criterion for your hypothesis. For example, “if at least 10 out of 100 invited customers sign up to use our solution, then we accept that our customer acquisition hypothesis is true.”

Then, you run an experiment to gather data about your key metric to see if you have enough evidence to support your hypothesis.

If your key metric exceeds your acceptance threshold, then you provisionally accept that your hypothesis is true and move on to the next hypothesis. If not, you should use feedback from your experiment to improve your solution, or you pivot to a different idea.

So, to help you validate your startup hypothesis, here are the individual sub-hypotheses that you should test — in the order that you should test them.

Problem Hypothesis

The problem hypothesis answers the question, “Do our potential customers actually have this problem?” For example, we might hypothesize that “People struggle to learn new tech skills.” Then you develop an acceptance criterion (e.g., if at least 20 out of 100 people we interview say that learning new tech skills is a significant problem they face, then we will accept our hypothesis is true.”)

To test this hypothesis, we run an experiment using either one-on-one interviews or a survey. We ask each participant a small number of questions (e.g., 3-5) to determine whether they experience the problem we’re attempting to solve. If a high enough percentage (e.g., 20%) agree that they experience the problem, our acceptance criterion is met, and we move forward to our next hypothesis.

As a startup, your goal is to solve a customer’s problem by providing a valuable solution. However, many startups start by building a solution to a hypothetical problem first—then discover later that the problem either doesn’t actually exist or isn’t big enough to generate sustainable revenue. This common but costly mistake is easily avoidable by validating your problem hypothesis as your first step.

Solution Hypothesis

The solution hypothesis answers the question, “Does our solution actually solve our customer’s problem?” For example, our hypothesis might be, “An AI tutor would help people learn new tech skills.” Our acceptance threshold might be, “If 50% of potential customers we interview agree that our solution would solve their problem, then we will accept our hypothesis is true.”

To test this hypothesis, we perform a second round of interviews or surveys. We propose our solution to potential customers (those who experience the problem we described) and ask them if they believe our solution will solve their problem. If we exceed our acceptance threshold, we move on to the next hypothesis. If not, we use their feedback to improve our solution and ask them again.

At this point in the product/solution development, we don’t want to start building our solution yet. Rather, we just need to communicate the key ideas of our solution to elicit feedback from interviewees. To do so, we create a few quick slides, diagrams, wireframes, mockups, or an explainer videos. Our goal is to do the simplest thing possible, to get feedback on our potential solution.

Acquisition Hypothesis

The acquisition hypothesis answers the question, “Will our customers actually use our solution?” For example, our hypothesis might be, “People will use our new AI tutor to learn new skills.” Our acceptance criteria might be, “If 5% of people we email sign up to try our service for free, then …”

To test this hypothesis, we create a Minimum Viable Product (MVP). An MVP is the simplest thing we can build that will provide the key value proposition of our solution. We offer a free or low-cost version of our MVP to a few select customers (called “friendlies”) who are willing to overlook all of the issues of an alpha version of our solution and provide us with honest feedback to help us improve our solution.

Then, we determine whether enough potential customers start using our solution to solve their problems. If we meet our acceptance criteria, we move on to the next hypothesis. If not, we use feedback from customers who fail to start using our solution or our marketing to determine what we need to improve to increase our customer acquisition going forward.

Retention Hypothesis

The retention hypothesis answers the question, “Will our customers continue using our solution?”. For example, our hypothesis might be “Our existing customers will use our AI tutor (on average) 5 hours per week for at least three months”. We create an acceptance criterion based on these figures.

To test this hypothesis, we measure how long our customers use our solution, how frequently they return, or a similar metric. We determine how many of our customers continue to use our solution on a regular basis. If a customer stops using our solution, we reach out to determine why they stopped and use this feedback to improve our solution and, thus, our customer retention.

Once we’ve met the acceptance threshold for customer retention, we move on to our next hypothesis. If not, we use their feedback to continue improving our solution until it meets our customers’ needs and they continue using it on a regular basis.

Revenue Hypothesis

The revenue hypothesis answers the question, “Will our customers pay for our solution?” For example, our hypothesis might be, “Half of all potential customers will pay $9.99 per month for our AI tutor.” We then construct our acceptance criterion based on those numbers.

To test this hypothesis, we start charging customers real money to use our solution. If we exceed our acceptance threshold, we might consider increasing our price. If we are below our threshold, we either need to lower our price or add more features to justify our higher price point.

It might seem strange to delay testing your revenue hypothesis until this late in the startup process. However, if you provide something that makes money or saves money, then someone will pay you up to the amount it makes or saves them. All of the previous experiments ensure that you are building something of value. The revenue hypothesis determines how much people are willing to pay.

Scale Hypothesis

The scale hypothesis answers the question, “Can we scale our solution to build a sustainable business?” For example, our hypothesis might be, “We can scale our AI tutor to support 1 million customers per year.” We create our acceptance criterion based on the scale we need to make a profit.

To test this hypothesis, we rebuild the MVP using software architecture best practices. In some cases, the MVP can be evolved into a scalable architecture. However, in most cases, it’s best to completely scrap the MVP and rebuild it from scratch using a more scalable and maintainable architecture.

When you build an MVP, you optimize for learning. You want to know that your solution is right as quickly as possible, at the expense of scalability and maintainability. However, when you build a sustainable solution, you optimize for scalability and maintainability. These two goals are in opposition — you can’t do both simultaneously.

In addition, the skills necessary to build MVPs vs. sustainable solutions differ significantly. Employees are typically good at either one or the other but not both. So, your startup employees might not be the right fit for running your business at scale. While this is a tough decision, it is necessary to ensure you have the right people for the next phase of your business — sustainable growth.

Once you’ve validated your scale hypothesis, you have a sustainable business. Your startup hypothesis has been validated and are ready to move on to the next phase of your business — sustained growth.

However, you can also apply hypothesis testing to each new product, service, or major feature you provide your customers. For each new product, service, or feature, you test the problem, solution, acquisition, retention, revenue, and scale hypotheses.

By continuously repeating this process, you ensure that every aspect of your business is rigorously tested and validated. This sets the foundation for ongoing success and sustainable growth.

There’s a lot more to creating a startup than validating these six hypotheses, though. If you’d like to learn more, I recommend you read The Lean Startup and Lean Analytics . These books provide valuable insights on using data science practices to increase the likelihood of your startup’s success.

In addition, if you’d like to learn more about using AI, ML, and data science to test your startup hypothesis, be sure to check out all of my online courses , videos , and articles .

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What Is a Hypothesis and How Do I Write One?

General Education

Think about something strange and unexplainable in your life. Maybe you get a headache right before it rains, or maybe you think your favorite sports team wins when you wear a certain color. If you wanted to see whether these are just coincidences or scientific fact, you would form a hypothesis, then create an experiment to see whether that hypothesis is true or not.

But what is a hypothesis, anyway? If you’re not sure about what a hypothesis is--or how to test for one!--you’re in the right place. This article will teach you everything you need to know about hypotheses, including: 

• Defining the term “hypothesis” 
• Providing hypothesis examples 
• Giving you tips for how to write your own hypothesis

So let’s get started!

What Is a Hypothesis?

Merriam Webster defines a hypothesis as “an assumption or concession made for the sake of argument.” In other words, a hypothesis is an educated guess . Scientists make a reasonable assumption--or a hypothesis--then design an experiment to test whether it’s true or not. Keep in mind that in science, a hypothesis should be testable. You have to be able to design an experiment that tests your hypothesis in order for it to be valid. 

As you could assume from that statement, it’s easy to make a bad hypothesis. But when you’re holding an experiment, it’s even more important that your guesses be good...after all, you’re spending time (and maybe money!) to figure out more about your observation. That’s why we refer to a hypothesis as an educated guess--good hypotheses are based on existing data and research to make them as sound as possible.

Hypotheses are one part of what’s called the scientific method .  Every (good) experiment or study is based in the scientific method. The scientific method gives order and structure to experiments and ensures that interference from scientists or outside influences does not skew the results. It’s important that you understand the concepts of the scientific method before holding your own experiment. Though it may vary among scientists, the scientific method is generally made up of six steps (in order):

• Observation
• Asking questions
• Forming a hypothesis
• Analyze the data
• Communicate your results

You’ll notice that the hypothesis comes pretty early on when conducting an experiment. That’s because experiments work best when they’re trying to answer one specific question. And you can’t conduct an experiment until you know what you’re trying to prove!

Independent and Dependent Variables 

After doing your research, you’re ready for another important step in forming your hypothesis: identifying variables. Variables are basically any factor that could influence the outcome of your experiment . Variables have to be measurable and related to the topic being studied.

There are two types of variables:  independent variables and dependent variables. I ndependent variables remain constant . For example, age is an independent variable; it will stay the same, and researchers can look at different ages to see if it has an effect on the dependent variable. 

Speaking of dependent variables... dependent variables are subject to the influence of the independent variable , meaning that they are not constant. Let’s say you want to test whether a person’s age affects how much sleep they need. In that case, the independent variable is age (like we mentioned above), and the dependent variable is how much sleep a person gets. 

Variables will be crucial in writing your hypothesis. You need to be able to identify which variable is which, as both the independent and dependent variables will be written into your hypothesis. For instance, in a study about exercise, the independent variable might be the speed at which the respondents walk for thirty minutes, and the dependent variable would be their heart rate. In your study and in your hypothesis, you’re trying to understand the relationship between the two variables.

Elements of a Good Hypothesis

The best hypotheses start by asking the right questions . For instance, if you’ve observed that the grass is greener when it rains twice a week, you could ask what kind of grass it is, what elevation it’s at, and if the grass across the street responds to rain in the same way. Any of these questions could become the backbone of experiments to test why the grass gets greener when it rains fairly frequently.

As you’re asking more questions about your first observation, make sure you’re also making more observations . If it doesn’t rain for two weeks and the grass still looks green, that’s an important observation that could influence your hypothesis. You'll continue observing all throughout your experiment, but until the hypothesis is finalized, every observation should be noted.

Finally, you should consult secondary research before writing your hypothesis . Secondary research is comprised of results found and published by other people. You can usually find this information online or at your library. Additionally, m ake sure the research you find is credible and related to your topic. If you’re studying the correlation between rain and grass growth, it would help you to research rain patterns over the past twenty years for your county, published by a local agricultural association. You should also research the types of grass common in your area, the type of grass in your lawn, and whether anyone else has conducted experiments about your hypothesis. Also be sure you’re checking the quality of your research . Research done by a middle school student about what minerals can be found in rainwater would be less useful than an article published by a local university.

Writing Your Hypothesis

Once you’ve considered all of the factors above, you’re ready to start writing your hypothesis. Hypotheses usually take a certain form when they’re written out in a research report.

When you boil down your hypothesis statement, you are writing down your best guess and not the question at hand . This means that your statement should be written as if it is fact already, even though you are simply testing it.

The reason for this is that, after you have completed your study, you'll either accept or reject your if-then or your null hypothesis. All hypothesis testing examples should be measurable and able to be confirmed or denied. You cannot confirm a question, only a statement! 

In fact, you come up with hypothesis examples all the time! For instance, when you guess on the outcome of a basketball game, you don’t say, “Will the Miami Heat beat the Boston Celtics?” but instead, “I think the Miami Heat will beat the Boston Celtics.” You state it as if it is already true, even if it turns out you’re wrong. You do the same thing when writing your hypothesis.

Additionally, keep in mind that hypotheses can range from very specific to very broad.  These hypotheses can be specific, but if your hypothesis testing examples involve a broad range of causes and effects, your hypothesis can also be broad.  

The Two Types of Hypotheses

Now that you understand what goes into a hypothesis, it’s time to look more closely at the two most common types of hypothesis: the if-then hypothesis and the null hypothesis.

#1: If-Then Hypotheses

First of all, if-then hypotheses typically follow this formula:

If ____ happens, then ____ will happen.

The goal of this type of hypothesis is to test the causal relationship between the independent and dependent variable. It’s fairly simple, and each hypothesis can vary in how detailed it can be. We create if-then hypotheses all the time with our daily predictions. Here are some examples of hypotheses that use an if-then structure from daily life: 

• If I get enough sleep, I’ll be able to get more work done tomorrow.
• If the bus is on time, I can make it to my friend’s birthday party. 
• If I study every night this week, I’ll get a better grade on my exam. 

In each of these situations, you’re making a guess on how an independent variable (sleep, time, or studying) will affect a dependent variable (the amount of work you can do, making it to a party on time, or getting better grades). 

You may still be asking, “What is an example of a hypothesis used in scientific research?” Take one of the hypothesis examples from a real-world study on whether using technology before bed affects children’s sleep patterns. The hypothesis read s:

“We hypothesized that increased hours of tablet- and phone-based screen time at bedtime would be inversely correlated with sleep quality and child attention.”

It might not look like it, but this is an if-then statement. The researchers basically said, “If children have more screen usage at bedtime, then their quality of sleep and attention will be worse.” The sleep quality and attention are the dependent variables and the screen usage is the independent variable. (Usually, the independent variable comes after the “if” and the dependent variable comes after the “then,” as it is the independent variable that affects the dependent variable.) This is an excellent example of how flexible hypothesis statements can be, as long as the general idea of “if-then” and the independent and dependent variables are present.

#2: Null Hypotheses

Your if-then hypothesis is not the only one needed to complete a successful experiment, however. You also need a null hypothesis to test it against. In its most basic form, the null hypothesis is the opposite of your if-then hypothesis . When you write your null hypothesis, you are writing a hypothesis that suggests that your guess is not true, and that the independent and dependent variables have no relationship .

One null hypothesis for the cell phone and sleep study from the last section might say: 

“If children have more screen usage at bedtime, their quality of sleep and attention will not be worse.” 

In this case, this is a null hypothesis because it’s asking the opposite of the original thesis! 

Conversely, if your if-then hypothesis suggests that your two variables have no relationship, then your null hypothesis would suggest that there is one. So, pretend that there is a study that is asking the question, “Does the amount of followers on Instagram influence how long people spend on the app?” The independent variable is the amount of followers, and the dependent variable is the time spent. But if you, as the researcher, don’t think there is a relationship between the number of followers and time spent, you might write an if-then hypothesis that reads:

“If people have many followers on Instagram, they will not spend more time on the app than people who have less.”

In this case, the if-then suggests there isn’t a relationship between the variables. In that case, one of the null hypothesis examples might say:

“If people have many followers on Instagram, they will spend more time on the app than people who have less.”

You then test both the if-then and the null hypothesis to gauge if there is a relationship between the variables, and if so, how much of a relationship. 

4 Tips to Write the Best Hypothesis

If you’re going to take the time to hold an experiment, whether in school or by yourself, you’re also going to want to take the time to make sure your hypothesis is a good one. The best hypotheses have four major elements in common: plausibility, defined concepts, observability, and general explanation.

#1: Plausibility

At first glance, this quality of a hypothesis might seem obvious. When your hypothesis is plausible, that means it’s possible given what we know about science and general common sense. However, improbable hypotheses are more common than you might think. 

Imagine you’re studying weight gain and television watching habits. If you hypothesize that people who watch more than  twenty hours of television a week will gain two hundred pounds or more over the course of a year, this might be improbable (though it’s potentially possible). Consequently, c ommon sense can tell us the results of the study before the study even begins.

Improbable hypotheses generally go against  science, as well. Take this hypothesis example: 

“If a person smokes one cigarette a day, then they will have lungs just as healthy as the average person’s.” 

This hypothesis is obviously untrue, as studies have shown again and again that cigarettes negatively affect lung health. You must be careful that your hypotheses do not reflect your own personal opinion more than they do scientifically-supported findings. This plausibility points to the necessity of research before the hypothesis is written to make sure that your hypothesis has not already been disproven.

#2: Defined Concepts

The more advanced you are in your studies, the more likely that the terms you’re using in your hypothesis are specific to a limited set of knowledge. One of the hypothesis testing examples might include the readability of printed text in newspapers, where you might use words like “kerning” and “x-height.” Unless your readers have a background in graphic design, it’s likely that they won’t know what you mean by these terms. Thus, it’s important to either write what they mean in the hypothesis itself or in the report before the hypothesis.

Here’s what we mean. Which of the following sentences makes more sense to the common person?

If the kerning is greater than average, more words will be read per minute.

If the space between letters is greater than average, more words will be read per minute.

For people reading your report that are not experts in typography, simply adding a few more words will be helpful in clarifying exactly what the experiment is all about. It’s always a good idea to make your research and findings as accessible as possible. 

Good hypotheses ensure that you can observe the results. 

#3: Observability

In order to measure the truth or falsity of your hypothesis, you must be able to see your variables and the way they interact. For instance, if your hypothesis is that the flight patterns of satellites affect the strength of certain television signals, yet you don’t have a telescope to view the satellites or a television to monitor the signal strength, you cannot properly observe your hypothesis and thus cannot continue your study.

Some variables may seem easy to observe, but if you do not have a system of measurement in place, you cannot observe your hypothesis properly. Here’s an example: if you’re experimenting on the effect of healthy food on overall happiness, but you don’t have a way to monitor and measure what “overall happiness” means, your results will not reflect the truth. Monitoring how often someone smiles for a whole day is not reasonably observable, but having the participants state how happy they feel on a scale of one to ten is more observable. 

In writing your hypothesis, always keep in mind how you'll execute the experiment.

#4: Generalizability 

Perhaps you’d like to study what color your best friend wears the most often by observing and documenting the colors she wears each day of the week. This might be fun information for her and you to know, but beyond you two, there aren’t many people who could benefit from this experiment. When you start an experiment, you should note how generalizable your findings may be if they are confirmed. Generalizability is basically how common a particular phenomenon is to other people’s everyday life.

Let’s say you’re asking a question about the health benefits of eating an apple for one day only, you need to realize that the experiment may be too specific to be helpful. It does not help to explain a phenomenon that many people experience. If you find yourself with too specific of a hypothesis, go back to asking the big question: what is it that you want to know, and what do you think will happen between your two variables?

Hypothesis Testing Examples

We know it can be hard to write a good hypothesis unless you’ve seen some good hypothesis examples. We’ve included four hypothesis examples based on some made-up experiments. Use these as templates or launch pads for coming up with your own hypotheses.

Experiment #1: Students Studying Outside (Writing a Hypothesis)

You are a student at PrepScholar University. When you walk around campus, you notice that, when the temperature is above 60 degrees, more students study in the quad. You want to know when your fellow students are more likely to study outside. With this information, how do you make the best hypothesis possible?

You must remember to make additional observations and do secondary research before writing your hypothesis. In doing so, you notice that no one studies outside when it’s 75 degrees and raining, so this should be included in your experiment. Also, studies done on the topic beforehand suggested that students are more likely to study in temperatures less than 85 degrees. With this in mind, you feel confident that you can identify your variables and write your hypotheses:

If-then: “If the temperature in Fahrenheit is less than 60 degrees, significantly fewer students will study outside.”

Null: “If the temperature in Fahrenheit is less than 60 degrees, the same number of students will study outside as when it is more than 60 degrees.”

These hypotheses are plausible, as the temperatures are reasonably within the bounds of what is possible. The number of people in the quad is also easily observable. It is also not a phenomenon specific to only one person or at one time, but instead can explain a phenomenon for a broader group of people.

To complete this experiment, you pick the month of October to observe the quad. Every day (except on the days where it’s raining)from 3 to 4 PM, when most classes have released for the day, you observe how many people are on the quad. You measure how many people come  and how many leave. You also write down the temperature on the hour. 

After writing down all of your observations and putting them on a graph, you find that the most students study on the quad when it is 70 degrees outside, and that the number of students drops a lot once the temperature reaches 60 degrees or below. In this case, your research report would state that you accept or “failed to reject” your first hypothesis with your findings.

Experiment #2: The Cupcake Store (Forming a Simple Experiment)

Let’s say that you work at a bakery. You specialize in cupcakes, and you make only two colors of frosting: yellow and purple. You want to know what kind of customers are more likely to buy what kind of cupcake, so you set up an experiment. Your independent variable is the customer’s gender, and the dependent variable is the color of the frosting. What is an example of a hypothesis that might answer the question of this study?

Here’s what your hypotheses might look like: 

If-then: “If customers’ gender is female, then they will buy more yellow cupcakes than purple cupcakes.”

Null: “If customers’ gender is female, then they will be just as likely to buy purple cupcakes as yellow cupcakes.”

This is a pretty simple experiment! It passes the test of plausibility (there could easily be a difference), defined concepts (there’s nothing complicated about cupcakes!), observability (both color and gender can be easily observed), and general explanation ( this would potentially help you make better business decisions ).

Experiment #3: Backyard Bird Feeders (Integrating Multiple Variables and Rejecting the If-Then Hypothesis)

While watching your backyard bird feeder, you realized that different birds come on the days when you change the types of seeds. You decide that you want to see more cardinals in your backyard, so you decide to see what type of food they like the best and set up an experiment. 

However, one morning, you notice that, while some cardinals are present, blue jays are eating out of your backyard feeder filled with millet. You decide that, of all of the other birds, you would like to see the blue jays the least. This means you'll have more than one variable in your hypothesis. Your new hypotheses might look like this: 

If-then: “If sunflower seeds are placed in the bird feeders, then more cardinals will come than blue jays. If millet is placed in the bird feeders, then more blue jays will come than cardinals.”

Null: “If either sunflower seeds or millet are placed in the bird, equal numbers of cardinals and blue jays will come.”

Through simple observation, you actually find that cardinals come as often as blue jays when sunflower seeds or millet is in the bird feeder. In this case, you would reject your “if-then” hypothesis and “fail to reject” your null hypothesis . You cannot accept your first hypothesis, because it’s clearly not true. Instead you found that there was actually no relation between your different variables. Consequently, you would need to run more experiments with different variables to see if the new variables impact the results.

Experiment #4: In-Class Survey (Including an Alternative Hypothesis)

You’re about to give a speech in one of your classes about the importance of paying attention. You want to take this opportunity to test a hypothesis you’ve had for a while: 

If-then: If students sit in the first two rows of the classroom, then they will listen better than students who do not.

Null: If students sit in the first two rows of the classroom, then they will not listen better or worse than students who do not.

You give your speech and then ask your teacher if you can hand out a short survey to the class. On the survey, you’ve included questions about some of the topics you talked about. When you get back the results, you’re surprised to see that not only do the students in the first two rows not pay better attention, but they also scored worse than students in other parts of the classroom! Here, both your if-then and your null hypotheses are not representative of your findings. What do you do?

This is when you reject both your if-then and null hypotheses and instead create an alternative hypothesis . This type of hypothesis is used in the rare circumstance that neither of your hypotheses is able to capture your findings . Now you can use what you’ve learned to draft new hypotheses and test again! 

Key Takeaways: Hypothesis Writing

The more comfortable you become with writing hypotheses, the better they will become. The structure of hypotheses is flexible and may need to be changed depending on what topic you are studying. The most important thing to remember is the purpose of your hypothesis and the difference between the if-then and the null . From there, in forming your hypothesis, you should constantly be asking questions, making observations, doing secondary research, and considering your variables. After you have written your hypothesis, be sure to edit it so that it is plausible, clearly defined, observable, and helpful in explaining a general phenomenon.

Writing a hypothesis is something that everyone, from elementary school children competing in a science fair to professional scientists in a lab, needs to know how to do. Hypotheses are vital in experiments and in properly executing the scientific method . When done correctly, hypotheses will set up your studies for success and help you to understand the world a little better, one experiment at a time.

What’s Next?

If you’re studying for the science portion of the ACT, there’s definitely a lot you need to know. We’ve got the tools to help, though! Start by checking out our ultimate study guide for the ACT Science subject test. Once you read through that, be sure to download our recommended ACT Science practice tests , since they’re one of the most foolproof ways to improve your score. (And don’t forget to check out our expert guide book , too.)

If you love science and want to major in a scientific field, you should start preparing in high school . Here are the science classes you should take to set yourself up for success.

If you’re trying to think of science experiments you can do for class (or for a science fair!), here’s a list of 37 awesome science experiments you can do at home

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Ashley Sufflé Robinson has a Ph.D. in 19th Century English Literature. As a content writer for PrepScholar, Ashley is passionate about giving college-bound students the in-depth information they need to get into the school of their dreams.

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Hypotheses & Experiments

The Hypotheses & Experiments template is the heart of Business Design and helps you to plan your Validate Phase. Learn more about key elements, go through further instructions and download the template for your team.

1. Overview

The Hypotheses & Experiments template can help you reveal critical questions (= exploration ) and hypotheses (= validation ) inherent in your new business model, product, service or software, which are both uncertain and important for the success of the innovation endeavour. These questions and hypotheses often address “antilogs” around technical feasibility, economic viability or future customer behaviour. Moreover, this canvas provides space to plan how to explore or test the questions and hypotheses as efficiently as possible with experiments before or after launch. Do not test ideas! Test hypotheses that your ideas are based on!

Translate only the most important and uncertain antilogs (= test focus) into either a question or a testable hypothesis. This, however, is not an easy task, especially at the beginning of innovation projects. We usually start with explorative questions and high-level hypotheses that are hard to test. Over time, we are eventually able to nail them down to very specific but still relevant statements. Here is an example:

We believe that payment by credit cards will be accepted by the majority of our customers.

Every question or hypothesis needs an experiment in order to be explored or tested. An experiment defines a sequence of actions needed to collect data and measure the threshold: <action><measurement><timeframe>

We integrate credit card payments into our check-out process for X customers and count the usage within the next 3 weeks.

Many experiments require a Prototype (pre launch), whereas some experiments can only be conducted after launching Lean Offerings (post launch).

When validating a hypothesis, we define a threshold that determines when we are convinced that a hypothesis is "true" or "false".

We are convinced, if more than 50% of our customers who ordered products in the given timeframe used credit cards as payment method.

2. Layout & Download

3. Key Elements

This tool is the heart of Business Design !  Here is where the magic happens. Invest as much time in coming up with a good research design as you have invested in designing your actual product, software or business model. Think about your sponsor: The results of your experiments is THE source of wisdom for your sponsor to make decision on whether or not to further invest in the project. Don't fool yourself! Provide your sponsor the right support to make up his / her mind.

4. Usage Scenarios

Gathering and prioritizing uncertainties

Defining questions, hypotheses and experiments based on uncertainties

5. Instructions for Coaches

The Hypotheses & Experiments template is a good way to gather all kinds of uncertainties related to the business model.

The key is to identify as many uncertainties as possible and to then sort them by analogs or antilogs. Mark the uncertainties in your business model first.

It cannot be said that antilogs are more important than analogs. Analogs make life easier because one can simply copy from others. However, if only analogs and no antilogs were identified the sprint would stop because no further validation would be needed.

Keep the order to first gather uncertainties, to then sort them by analogs or antilogs and to then sort the antilogs by uncertainty and importance. This is one of the reasons why we use Post-its because we can move them around on the template.

Be really precise how questions or hypotheses are phrased. Beginning every Post-it with "We believe that..." or "We don't know..." is an additional help to reflect whether validation or exploration are the right method.

6. Q & A

What is the difference between "Exploration" and "Validation"? Exploration is a scientific approach of empirical research to gain first insights in a field that is quite new and not understood quite well. Your level of knowledge in this field is low. Explorative research methods help you shed light into the unknown and try to increase your understanding on how things work. Observations of customers, structured interviews, case studies or experimental prototypes are well-proven methods in that space. Validation requires a testable hypothesis that you want to validate (better "falsify"). To phrase a hypothesis, however, you already need deep knowledge in a certain field. Otherwise you will not be able to phrase a hypothesis that eventually can be validated. Surveys or other ways of collecting a vast amount of data with software systems, for instance, are good methods here. 

I always formulate my hypotheses in a way that it is almost impossible to find an experiment to test them. What's wrong? Well, the chance is high that you either don't know enough about the subject and you better explore rather than validate the subject or you are not concrete enough in your thinking. Reduce your scope and boil down your hypotheses (H1) to something more focused (H2 or H3) and try to find a good experiment again. Have a look at the "Levels of Hypotheses"  picture above.

7. Validate Cards

Validate Cards can be used to extract formulated hypotheses from the Hypotheses & Experiments template to plan corresponding experiments in detail and assign team members who are responsible for the execution. The experiment is defined by the method, how you apply it to collect relevant data and how you measure the output of the experiment. Furthermore, a threshold can be defined in terms of "We are convinced if...". This ensures to clarify in advance what result of the experiment is anticipated and how it will be rated. The assigned team member can take the card to do his / her "homework" until the defined due date. Don't forget to plan corresponding activities in the  Action Plan .

What Is Your Business Model Hypothesis?

• By Alexandre Azevedo

Source: https://strategyzer.com

Through its 9 components, BMC supports you in structuring the basis of your business model hypothesis.

What is your value proposition? What customer segments are you going to serve? How are you going to make money? What are your core activities?

These are some of the questions you’ll be able to answer with the BMC.

Now, let’s understand the meaning and importance of each BMC component.

CUSTOMER SEGMENTS

Who are your customers?

For more info on Customer Segments, check this other post too.

If you want to be successful in developing your business, start by being an expert in your customers’ lives.

The better you know your customers, the easier it will be for you to generate powerful insights that will guide you in the development of your business model hypothesis.

Information you should search for:   Everything that relates to your customers’ lives, like their:

• Demographics (age, gender, income);
• Psychographics (attitudes, behaviors, values, beliefs);
• Geographics (home location, work location, etc);
• Networks (social groups they’re part of and the roles they play),
• Daily journeys (goals, difficulties, hobbies, activities, etc)

Looking for the info:  There are several techniques that may bring you the information you are looking for such as Interviews, Observations, Empathy exercises (putting yourself in your customers’ shoes), and Data Analysis.

Generating insights:  To generate insights from this data you may use some great methodologies such as Personas, Storytelling, Storyboarding, and Customer Journey.

Of course, people are very different from each other. However, you may find some important characteristics that are common to the majority of your customers.

You may define at least two customer segments for your product. That’s up to you, as long as you’re aware that customers differ significantly, hence, demand different approaches.

VALUE PROPOSITION

What is the value you are offering to your customers?

For more info on Value Proposition, check this post .

The value proposition refers to the products and services you’ll offer to your customers as well as how they will improve people’s lives.

When defining your value proposition, include the following elements:

• A general description of the product  you’re offering
• A brief description of its features
• All the benefits your customers will have  when using your product
• A long-term vision showing how your product will change the world, after massive adoption

Don’t think solely about the features of your product. Also, think about the benefits your product brings to your customers. What will they get that they are not able to get today from current alternatives?

After describing your value proposition, it should be clear for you and for anyone else how your product adds value to your customers.

How do you communicate, sell and deliver value to your customers?

For more info on Channels, check this post .

To define your startup channels considering the whole buying experience, have in mind that, in order to do business with you, customers must be able to know:

• They have a PROBLEM
• Your SOLUTION exists
• Your solution is the BEST ALTERNATIVE for solving their problem
• Where and how to BUY your product
• Where and how to GET your product
• Where and how to get SUPPORT for your product after the purchase

Now, you should define which are the most efficient and effective channels to address each one of these points.

CUSTOMER RELATIONSHIP

How will you get, keep and grow businesses with your customers?

For more info on Customer Relationship, check this post .

While Channels relate to the experience of the customer when buying from you, Customer Relationship refers to the strategies to get, keep and grow businesses with your customers.

This BMC component aims to generate the traction needed for your business to thrive. The questions to be answered:

• GET: How will you acquire (and activate) more customers? What strategies will you design to find customers and start a “conversation” with them about their problems and their solutions?
• KEEP: How will you ensure your customers will continue buying from you after the first purchase? What kind of incentives will they receive to make the next purchases?
• GROW: How will you expand businesses with each customer? How will you make them buy more frequently or spend more on high-value products?

When designing your customer relationship strategies, have in mind the customer segment profile you’re aiming to reach. Some strategies will work much better than others depending on the segment. For example, if you’re dealing with big corporate customers, it’s likely that a dedicated sales team will work better to GET customers than Facebook ads.

REVENUE STREAMS

How will you make money with your business?

For more info on Revenue Streams, check this post .

The revenue streams are the ways your startup will monetize the value it delivers to customers.

Of course, there are several alternatives to come up with good options. To start thinking about them, I suggest you consider:

• Everyone who might benefit or is related to some degree to your business: Of course, the most obvious answer is your customer. Nonetheless, you may be surprised by how many different stakeholders might be benefited from some aspect of your business.
• How will you generate benefits for them: after considering everyone who could have some connection with your business scope, you may start wondering how you would produce the benefits for them. What is feasible and aligned with your business model?
• How much to charge for each alternative:  now, you need to set a price range for each alternative considering the cost of producing it, the value it brings to your customers, and the costs of alternatives they currently find in the market.

The items above are just suggestions and you may find other ways of coming up with ideas for monetizing your business. What is important to consider is that there are several ways of earning money from your business. Don’t get stuck with only the most obvious alternatives.

KEY RESOURCES

What are the key assets that your startup’s value proposition demands?

For more info on Key Resources, check this post .

Well, you’ll need some assets to create the value you’re promising to deliver to your customers. For example, if your startup produces an innovative shoe, it may need machines and a building to do that.

To help you in defining your startup assets, consider the categories below and which assets are essential in your business model hypothesis:

• Physical: machines, buildings, etc.
• Intellectual: trademark, brands, know-how, etc.
• Human: key people to support core business activities
• Financial: working capital, commitment lines, guarantees, etc.

Understanding which are the key resources of your business model hypothesis is crucial to be realistic about the structure your startup needs to be functional.

KEY ACTIVITIES

What activities are at the core of your startup?

For more info on Key Activities, check this post .

Depending on the business model hypothesis you’ve designed, there will be some activities that your startup should pay more attention to. These activities account for a big part of your product’s value creation and underperforming in those activities, might negatively impact your customers’ perceptions.

A good way to think about which are the key activities of your startup is to think about the other BMC components. Which of these components demands the most important activities? Is it Value Proposition production? Is it Channels management? Is it managing and developing Partnerships?

KEY PARTNERS

What are the essential partners to make your business model work?

For more info on Key Partners, check this post .

Setting the right partnerships may leverage your startup’s results by enhancing your capabilities where you may not be so good, as well as giving some protection to your business by making it more difficult to copy.

Partners might help you to get more clients, and more revenue, enhance your value proposition, improve your key activities and reduce your cost structure.

In the business world, we may find an infinite number of synergies between two or more companies. Always search and develop partnerships that are beneficial for all partners (not just for yourself).

COST STRUCTURE

Which are the main costs of your startup and what factors influence them?

For more info on Cost Structure, check this post .

Finally, you’ll have to face a crucial part of your business model hypothesis which is to consider the structure of your business’s costs.

It’s worth noticing that all the other BMC components will affect your cost structure to some degree.

For instance, if you decide (in your Channel component) to build a sales team, instead of selling just through your website, you’ll significantly impact your cost structure (obviously, in this case, the sales made by a dedicated team might easily offset its costs).

However, while your startup is still not generating revenues enough to offset its overall costs, be extremely careful about the burden of your cost structure, by estimating your Cash Burn Rate and Cash Runway .

The Questions Behind BMC

As you might have noticed, BMC is a powerful framework to help in structuring your business model hypothesis in an objective way.

However, more than just a sum of 9 separate boxes, BMC is better understood when the connections between the components are taken into account.

The word behind these connections is VALUE. Keep in mind that to be sustainable your business must be able to create, deliver and capture value .

Hence, let’s consider the BMC components as the answers to these four questions:

• How do you CREATE value?  Customer Segments, Value Proposition, Key Partners, Key Activities, Key Resources.
• How do you DELIVER value? Channels, Customer Segments.
• How do you CAPTURE value? Customer Relationship, Cost Structure, and Revenue Streams.

After completing BMC boxes, your first business model hypothesis should be very clear for you and for your team.

This is the beginning of your journey and the words “first” and “hypothesis” in the previous sentence illustrate quite well the mindset you should adopt from now on.

In the next months, your mission will be to validate your hypothesis in the market, which means you must be prepared to be wrong as much as you’re to be right.

“Learn” and “adaptation” will follow you in every step of this journey. So, be open to learning (and accepting) when many of your assumptions fail and quickly redesign (adapt) them considering what you’ve learned.

FREE CASH PLAN (EXCEL MODEL) FOR EARLY-STAGE STARTUPS

With a simple, one-page Excel model, you’ll be ready to make the most out of your early-stage cash.

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4 responses.

Azevedo, gosto muito e acompanho teu trabalho. Parabens !!! Altissimo nivel…

Muito obrigado pelas palavras, Adriano! Fico muito feliz de saber estás gostando dos conteúdos. Qualquer sugestão, é sempre muito bem-vinda. Grande abraço! 🙂

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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.

*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.

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.

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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.

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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Value Hypothesis Fundamentals: A Complete Guide

Last updated on Fri Aug 23 2024

Imagine spending months or even years developing a new feature only to find out it doesn’t resonate with your users, argh! This kind of situation could be any worst Product manager’s nightmare.

There's a way to fix this problem called the Value Hypothesis . This idea helps builders to validate whether the ideas they’re working on are worth pursuing and useful to the people they want to sell to.

This guide will teach you what you need to know about Value Hypothesis and a step-by-step process on how to create a strong one. At the end of this post, you’ll learn how to create a product that satisfies your users.

Are you ready? Let’s get to it!

How a Value Hypothesis Helps Product Managers

Scrutinizing this hypothesis helps you as a developer to come up with a product that your customers like and love to use.

Product managers use the Value Hypothesis as a north star, ensuring focus on client needs and avoiding wasted resources. For more on this, read about the product management process .

Definition and Scope of Value Hypothesis

Let's get into the step-by-step process, but first, we need to understand the basics of the Value Hypothesis:

What Is a Value Hypothesis?

A Value Hypothesis is like a smart guess you can test to see if your product truly solves a problem for your customers. It’s your way of predicting how well your product will address a particular issue for the people you’re trying to help.

You need to know what a Value Hypothesis is, what it covers, and its key parts before you use it. To learn more about finding out what customers need, take a look at our guide on discovering features .

The Value Hypothesis does more than just help with the initial launch, it guides the whole development process. This keeps teams focused on what their users care about helping them choose features that their audience will like.

Critical Components of a Value Hypothesis

A strong Value Hypothesis rests on three key components:

Value Proposition: The Value Proposition spells out the main advantage your product gives to customers. It explains the "what" and "why" of your product showing how it eases a particular pain point.

This proposition targets a specific group of consumers. To learn more, check out our guide on roadmapping .

Customer Segmentation: Knowing and grasping your target audience is essential. This involves studying their demographics, needs, behaviors, and problems. By dividing your market, you can shape your value proposition to address the unique needs of each group.

Customer feedback surveys can prove priceless in this process. Find out more about this in our customer feedback surveys guide.

Problem Statement : The Problem Statement defines the exact issue your product aims to fix. It should zero in on a real fixable pain point your target users face. For hands-on applications, see our product launch communication plan .

Here are some key questions to guide you:

What are the primary challenges and obstacles faced by your target users?

What existing solutions are available, and where do they fall short?

What unmet needs or desires does your target audience have?

For a structured approach to prioritizing features based on customer needs, consider using a feature prioritization matrix .

Crafting a Strong Value Hypothesis

Now that we've covered the basics, let's look at how to build a convincing Value Hypothesis. Here's a two-step method, along with value hypothesis templates, to point you in the right direction:

1. Research and Analysis

To start with, you need to carry out market research. By carrying out proper market research, you will have an understanding of existing solutions and identify areas in which customers' needs are yet to be met. This is integral to effective idea tracking .

Next, use customer interviews, surveys, and support data to understand your target audience's problems and what they want. Check out our list of tools for getting customer feedback to help with this.

2. Finding Out What Customers Need

Once you've completed your research, it's crucial to identify your customers' needs. By merging insights from market research with direct user feedback, you can pinpoint the key requirements of your customers.

Here are some key questions to think about:

What are the most significant challenges that your target users encounter daily?

Which current solutions are available to them, and how do these solutions fail to fully address their needs?

What specific pain points are your target users struggling with that aren't being resolved?

Are there any gaps or shortcomings in the existing products or services that your customers use?

What unfulfilled needs or desires does your target audience express that aren't currently met by the market?

To prioritize features based on customer needs in a structured way, think about using a feature prioritization matrix .

Validating the Value Hypothesis

Once you've created your Value Hypothesis with a template, you need to check if it holds up. Here's how you can do this:

MVP Testing

Build a minimum viable product (MVP)—a basic version of your product with essential functions. This lets you test your value proposition with actual users and get feedback without spending too much. To achieve the best outcomes, look into the best practices for customer feedback software .

Prototyping

Build mock-ups to show your product idea. Use these mock-ups to get user input on the user experience and overall value offer.

Metrics for Evaluation

After you've gathered data about your hypothesis, it's time to examine it. Here are some metrics you can use:

User Engagement : Monitor stats like time on the platform, feature use, and return visits to see how much users interact with your MVP or mock-up.

Conversion Rates : Check conversion rates for key actions like sign-ups, buys, or feature adoption. These numbers help you judge if your value offer clicks with users. To learn more, read our article on SaaS growth benchmarks .

Iterative Improvement of Value Hypothesis

The Value Hypothesis framework shines because you can keep making it better. Here's how to fine-tune your hypothesis:

Set up an ongoing system to gather user data as you develop your product.

Look at what users say to spot areas that need work then update your value proposition based on what you learn.

Read about managing product updates to keep your hypotheses current.

Adaptation to Market Changes

The market keeps changing, and your Value Hypothesis should too. Stay up to date on what's happening in your industry and watch how users' habits change. Tweak your value proposition to stay useful and ahead of the competition.

Here are some ways to keep your Value Hypothesis fresh:

Do market research often to keep up with what's happening in your industry and what your competitors are up to.

Keep an eye on what users are saying to spot new problems or things they need but don't have yet.

Try out different value statements and features to see which ones your audience likes best.

To keep your guesses up-to-date, check out our guide on handling product changes .

Common Mistakes to Avoid

While the Value Hypothesis approach is powerful, it's key to steer clear of these common traps:

Avoid Confirmation Bias : People tend to focus on data that backs up their initial guesses. But it's key to look at feedback that goes against your ideas and stay open to different views.

Watch out for Shiny Object Syndrome : Don't let the newest fads sway you unless they solve a main customer problem. Your value proposition should fix actual issues for your users.

Don't Cling to Your First Hypothesis : As the market changes, your value proposition should too. Be ready to shift your hypothesis when new evidence and user feedback comes in.

Don't Mix Up Busywork with Real Progress : Getting user feedback is key, but making sense of it brings real value. Look at the data to find useful insights that can shape your product. To learn more about this, check out our guide on handling customer feedback .

Value Hypothesis: Action Points

To build a product that succeeds, you need to know your target users inside out and understand how you help them. The Value Hypothesis framework gives you a step-by-step way to do this.

If you follow the steps in this guide, you can create a strong value proposition, check if it works, and keep improving it to ensure your product stays useful and important to your customers.

Keep in mind, a good Value Hypothesis changes as your product and market change. When you use data and put customers first, you're on the right track to create a product that works.

Want to put the Value Hypothesis framework into action? Check out our top templates for creating product roadmaps to streamline your process. Think about using featureOS to manage customer feedback. This tool makes it easier to collect, examine, and put user feedback to work.

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