What is an Hypothesis?

I believe my hypothesis needs to be strengthened to be better than its rivals. When utilizing the chart on page 64 of our text I do find several areas for improvement. After going through the checklist I believe that a better hypothesis would be made after an Minimal analysis of the percentage of late payments and the minimum credit scores. A hypothesis could then be created that is more specific and testable as well as analyzed against other statistics such as the percentage of late payments for a higher, specified credit score.

If research shows 70% of customers that have late payments have a credit score below 600 a stronger hypothesis would state: If the local car dealership that offers In house flagging requires a credit score higher than 600 for approved financing the percentage of late payments they receive will be less than 70%. Adequacy for its purpose I *Does the hypothesis reveal the original problem condition? I Yes, the problem is a large amount of accounts that are past due. I *Does the hypothesis clearly Identify facts that are relevant I It clearly states facts grading financing approval but does not I and those that are not?

I Include any other facts. Relevant or not. I I *Does the hypothesis clearly state the condition, size, or I It only states that lenient profiles are used, this should be I distribution of some variable in terms of values meaningful I made stronger by listing a specific minimum credit score I to the research problem? I required. I *Does the hypothesis explain facts that gave rise to the need I Yes, late accounts require explanation and analysis to I for explanation? I continue to operate the equines at a profitable level.

I I *Does the hypothesis suggest which form of research I Yes, a causal-predictive study would be appropriate. I design is likely to be most appropriate? I Raising the minimum credit requirement to determine if late I I payments decrease would be appropriate. I *Does the hypothesis provide a framework for organizing I Yes, the hypothesis indicates that statistics should be I the conclusions that result? I analyzed and shown by credit scores and late payments. I Testable I *Does the hypothesis use acceptable techniques? I Yes, the hypothesis Is late payments.

I *Does the hypothesis require an explanation that is plausible I Yes, a plausible explanation would utilize financial applications. I given known physical or psychological laws? I I *Does the hypothesis reveal consequences or derivatives that I The consequence is stated and does not need to be deduced. I can be deduced for testing purposes? I I *Is the hypothesis simple, requiring few conditions or I Yes, no assumptions are required. I assumptions? Better than its rivals *Does the hypothesis explain more facts than its rivals?

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