The role of informal microfinance institutions in saving

percent households decreased from an average of 5.37 percent in 1989-92 to an average of
4.90 percent in 1993-96, 4.38 percent in 1997-2000 and 3.84 percent in 2001-2002. Likewise,
the share of consumption expenditure received by the lowest 20 percent households
decreased from an average of 8.9 percent in 1989-1992 to an average of 7.30 percent in 1993-
96, 5.91 percent in 1997-2000 and 5.42 percent in 2001-2002.
1.1.18: Hypothesis Statement
Being mindful of the errors associated with probability sampling techniques, efforts were made
to validate the hypothesis is to give direction to the study and eliminate trial and error
research.
Furthermore, it will help to rule out intervening and confounding variables and allows for
quantification.
The following hypotheses were formulated for statistical testing
1. Diversified portfolio investments of savings and credit cooperatives societies
(SACCOs) have a positive impact on savings mobilization and poverty reduction
among low-income households.
Hypothesis is a formal question that tends to be resolved for the assumption proved or
disproved used to suggest new experiments and observations.
The hypothesis as per research questions number 6 in section 1.5 above may be tested at
0.05 level of significance, Peil, M(1995) 142 Points out that the level of significance is often
accepted as the boundary between “statistically significant and insignificant…”
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