Null hypothesis and Alternative Hypothesis
[College Statistics] Help with null/alternative hypothesis?
Hey! Really good questions. Rather than just answer you, I think it's important to explain definitions and why we need to ask for null/alternative hypotheses in statistics. First, in stats, we are trying to find mathematical grounds for believing there is an actual relationship or association between some phenomena. In your example: grocery prices at Walmart and grocery prices at Target. Your hypothesis, Walmart has cheaper groceries than Target, is the alternative hypothesis. Now, I know what you're thinking! What, how can this be? That is my hypothesis, not an alternative! Which is true, but hold on.
Second, when searching for evidence of this (or any) relationship, you are attempting to disprove or reject the null hypothesis, which sounds weirder than it is. "Null" means no significance, no relationship. This is the default position, where there is no relationship between the prices at Walmart and the prices at Target. Thus, the alternative is that there is some relationship. If your data reveal an association, you reject the null hypothesis; if analyses reveal no relationship between prices, you would not reject the null hypothesis. In stats, neither theory is "proven," but data must be analyzed and interpreted to determine how statistically significant, or likely/unlikely, the data are.
As for what test to run, I think you should use a "difference in means" hypothesis test, or a t-test. To do this, you'll need to pick your significance level (.01, .05, .10 are common, if you've been using one in class, go with that), and compute the standard deviation of each of the two samples (prices at (1) Walmart and (2) Target), the standard error, degrees of freedom, and t-value. With the t-value, you can calculate the P-value. This reflects the probability of finding a relationship as extreme as your data assuming the null is true. For example, if your P-value is p=.03, it indicates that if Walmart's prices are the same as Target's, one could expect to obtain your observed difference or more in 3% of studies due to random sampling error.
This website is a great resource. I hope this helps! Feel free to PM me if you have any questions. :)
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Hey! Can someone explain to me in simple terms the definition of null hypothesis? If u can use an example it would be great! Also if we reject the null hypothesis does it mean that the alternative hypothesis is true?