The Null (nothing) hypothesis indicate no relations or we
can say it states equality (H0:μ1=μ2).As
we are not aware of literature and theories, so null is a good point to start
with. It states that there is no relation between two variables. For example,
there is no difference between returns of spot and futures prices of Reliance
Ltd (i.e. both market provides equal returns).
The Research hypothesis (or alternate hypothesis), in
contrast, states certain relationship between variables, based on some theory
or existing literature. Thus, RH are statements of inequality. For example, returns
of spot market are greater than that of futures market for Reliance Ltd (or
vice versa, based on some literature).
If we observe in literature, we see that generally NH are not
reported for brevity (though they are reported sometimes), whereas RH are
documented explicitly and lucidly. NH are for populations and RH are for
samples. The main purpose for this write-up is to let researchers know that
whatever we want to show, prove, disprove, or propose (based on literature
review) all come under research hypotheses or alternate hypothesis.
Salkind, N. J. (2014). 100 Questions. Los Angeles: SAGE Publications Inc.
