Copyright © Texas Education Agency, All rights reserved. The Research Hypothesis Statistics & Risk Management Copyright © Texas Education Agency, All rights reserved. 1

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Copyright © Texas Education Agency, All rights reserved. What is a Hypothesis? A hypothesis is a tentative statement about the relationship between two or more variables. A hypothesis is a tentative statement about the relationship between two or more variables.Examples: As gas prices rise, consumption of gas will drop. As gas prices rise, consumption of gas will drop. Women prefer driving a SUV over a pickup truck. Women prefer driving a SUV over a pickup truck. Bonds provide a better “Return on Investment” (ROI) over stocks. Bonds provide a better “Return on Investment” (ROI) over stocks. 3

Copyright © Texas Education Agency, All rights reserved. What is a Research Hypothesis? A research hypothesis is a testable statement about there being a significant difference in a relationship between two or more variables. A research hypothesis is a testable statement about there being a significant difference in a relationship between two or more variables. 4

Copyright © Texas Education Agency, All rights reserved. Common Formulas? Research Hypothesis (SUV/PU) Research Hypothesis (SUV/PU) Research Hypothesis (Bonds/Stocks) Research Hypothesis (Bonds/Stocks) 5

Copyright © Texas Education Agency, All rights reserved. An Opinion? No, No, & No! An opinion may not be supported with facts and may be difficult to test. An opinion may not be supported with facts and may be difficult to test. −“Republicans make better Presidents than Democrats.” A hypothesis is testable. A hypothesis is testable. −“In modern times more Republicans are elected as President during recessionary periods.” 6

Copyright © Texas Education Agency, All rights reserved. An Opinion? You Decide! 7 The reason students drop out of high school is because they are failing anyway.

Copyright © Texas Education Agency, All rights reserved. An Opinion? You Decide! 8 Government Employees are lazy.

Copyright © Texas Education Agency, All rights reserved. An Opinion? You Decide! 9 Because of the recession, university enrollment has plummeted in the last ten years.

Copyright © Texas Education Agency, All rights reserved. An Opinion? You Decide! 10 Student Obesity has been on the increase for the last 10 years.