Quick Definition

The null hypothesis is a type of hypothesis used in statistics that proposes no significant difference exists between specified populations, any observed difference being due to sampling or experimental error.

Examples

• 1In finance, a researcher might use a null hypothesis to test whether new investment strategy A does not outperform the existing strategy B.
• 2A market analyst might set a null hypothesis that the introduction of a new product does not affect the stock prices of the involved company.
• 3An economist might use a null hypothesis to claim that changes in interest rates do not have an impact on bond prices.
• 4A financial auditor might use the null hypothesis to assert that there is no significant difference in internal audit failures before and after implementing a new software system.

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