National open university of nigeria introduction to econometrics I eco 355

 
4.0.
 
CONCLUSION 
The unit conclude that in stage one of the hypothesis-testing process, we formulate a 
hypothesis called the null hypothesis. This has some special characteristics. It is a 
specific statement about population parameters and it provides the basis for calculating 
what is called a 
p
-value. The null hypothesis is often shortened to H
₀
. The null hypothesis 
represents your current belief. If the data is consistent with it, you do not reject the null 
hypothesis (H
₀
). But if the data provides enough evidence against it, then you do reject 

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H
₀
. The result of the hypothesis test is either: to reject or not to reject the null hypothesis 
and you might be wondering, why not just accept H
₀
instead of 'not rejecting' it? This is 
because statistical hypothesis testing is not geared towards proving that H
₀
is true, but to 
disproving it instead. 
5.0 
SUMMARY 
 
This unit has vividly discuss at length in accepting and rejecting an hypothesis and we 
can see that the process of how we can accept and reject an hypothesis was discuss in 
Module three, unit five and in this unit you must have learn more on how you are to 
accept and reject an hypothesis. 
6.0.
 
TUTOR MARKED ASSESSMENT EXERCISE 
Differentiate between a Null and Alternative hypothesis 
7.0 
REFERENCES/FURTHER READINGS 
 
Adesanya, A.A., (2013). Introduction to Econometric, 2
nd
edition, Classic Publication
limited, Lagos Nigeria. 
Gujarat, D. N. (2007) Basic Econometrics, 4
th
Edition, tata Mcgraw – Hill publishing 
company limited, New Delhi. 
Hall, S. G., & Asterion, D. (2011) Applied Econometrics, 2
nd
Edition, Palgrave 
Macmillian, New York city, USA.