null hypothesis

null hypothesis definition - business

null hypothesis

In statistics, the statement that any difference between groups or variables is due to chance. Statistical analysis is then used to determine if the null hypothesis can be disproved. For example, a marketing research department posits that sales are the same regardless of whether a particular product is placed on the top shelf or bottom shelf of a display. A sample of sales data is then used to determine if the probability of incorrectly stating that the shelf chosen for the display is important.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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