What is a 'Null Hypothesis'
A null hypothesis is a type of hypothesis used in statistics that proposes that no statistical significance exists in a set of given observations. The null hypothesis attempts to show that no variation exists between variables, or that a single variable is no different than zero. It is presumed to be true until statistical evidence nullifies it for an alternative hypothesis.
BREAKING DOWN 'Null Hypothesis'
The null hypothesis assumes that any kind of difference or significance you see in a set of data is due to chance.
For example, Chuck sees that his investment strategy produces higher average returns than simply buying and holding a stock. The null hypothesis claims that there is no difference between the two average returns, and Chuck has to believe this until he proves otherwise. Refuting the null hypothesis would require showing statistical significance, which can be found using a variety of tests. If Chuck conducts one of these tests and proves that the difference between his returns and the buyandhold returns is significant, he can then refute the null hypothesis.

Hypothesis Testing
A process by which an analyst tests a statistical hypothesis. ... 
Type II Error
A statistical term used within the context of hypothesis testing ... 
Alpha Risk
The risk in a statistical test that a null hypothesis will be ... 
Type I Error
A type of error that occurs when a null hypothesis is rejected ... 
PValue
The level of marginal significance within a statistical hypothesis ... 
Beta Risk
The probability that a false null hypothesis will be accepted ...

Investing
What is a Null Hypothesis?
In statistics, a null hypothesis is assumed true until proven otherwise. 
Trading
Hypothesis Testing in Finance: Concept & Examples
When you're indecisive about an investment, the best way to keep a cool head might be test various hypotheses using the most relevant statistics. 
Investing
How Statistical Significance is Determined
If something is statistically significant, itâ€™s unlikely that it happened by chance. 
Trading
What's a TTest?
TTest is a term from statistics that allows for the comparison of two data populations and their means. The test is used to see if the two sets of data are significantly different from one another. ... 
Investing
Efficient Market Hypothesis
An investment theory that states it is impossible to "beat the market". 
ETFs & Mutual Funds
Efficient Market Hypothesis: Is The Stock Market Efficient?
Deciding whether it's possible to attain aboveaverage returns requires an understanding of EMH. 
Investing
Investopedia Explains Fractal Markets Theory
Fractal Market Hypothesis has emerged as an alternative to longstanding economic theories due to its ability to explain investor behavior during crises. 
Investing
What is Descriptive Statistics?
Descriptive statistics is the term applied to meaningful data analysis. 
Trading
Understanding Statistics
Statistics provide the means to analyze data and then summarize it into a numerical form. 
Markets
The Uncertainty Of Economics: Exploring The Dismal Science
Learning about the study of economics can help you understand why you face contradictions in the market.

What does a strong null hypothesis mean?
Find out what null hypothesis is and why it is important to the scientific method. See how statisticians and economists use ... Read Answer >> 
What is the relationship between confidence inferrals and a null hypothesis?
Learn about the relationship between confidence intervals and the null hypothesis in scientific research and empirical experimentation. Read Answer >> 
Has the Efficient Market Hypothesis been proven correct or incorrect?
Explore the efficient market hypothesis and understand the extent to which this theory and its conclusions are correct or ... Read Answer >> 
What are the differences between weak, strong and semistrong versions of the Efficient ...
Discover how the efficient market theory is broken down into three versions, the hallmarks of each and the anomalies that ... Read Answer >> 
What does the efficient market hypothesis assume about fair value?
Found out what the efficient market hypothesis says about the fair value of securities, and learn why technical and fundamental ... Read Answer >> 
What are the primary assumptions of Efficient Market Hypothesis?
Find out about the key assumptions behind the efficient market hypothesis (EMH), its implications for investing and whether ... Read Answer >>