When a proposition is formulated for empirical testing we call it a hypothesis.

Descriptive hypothesis : these are the proposition that typically state the existence size form or distribution of some variables. e.g the current rate of unemployment is 6 percent of labor force means country is experiencing budget difficulties.

Relational Hypothesis: these are the statements that describe a relationship between two variable with respect to some case. E.g foreign made cars are perceived by American consumers to be of better quality than domestic made cars.

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