Resolved: Contradiction in Choosing NUll Hypothesis
So by far we were told that Alternate Hypothesis is something that refers to the change we want to see or accept, while the other statement becomes our Null Hypothesis (unless otherwise a solid status quo number is given which is not the case here) So should'nt by that logic we would be wishing for a change (alternate hypothesis) to be that our competitor has lower than 40% rate. Implying that H0 is >= 40% and H1 < 40%
Kindly explain this, as, as per previous lectures this here is creating a contradiction.
Thank You.
Hi Prashant!
Thanks for reaching out!
Let's first clarify the roles and meanings of the null hypothesis (H0) and the alternative hypothesis (H1).
The null hypothesis indeed represents the status quo, a baseline, or a default position. In our case, where we want to check if a competitor has a higher email open rate than our company's 40%, the null hypothesis would be that the competitor's open rate is less than or equal to 40%. Meaning, the baseline assumption that their open rate is not higher than ours remains unchanged.
The alternative hypothesis represents a change or difference from the null hypothesis. It is not necessarily a desired outcome or a 'wish' but is the condition that we are trying to find evidence for. In our case, the alternative hypothesis is that the competitor's open rate is more than 40%.
The alternative hypothesis isn't about what we wish or want to happen. Rather, it's what we suspect might be happening and are testing for. The null hypothesis is the default assumption that there is no change or difference.
Hope this helps.
Best,
Ivan
Thank you for this clarification. Makes more sense now :)