We consider the situation in which a learner must induce the rule that explains an observed set of data but the hypothesis space of possible rules is not explicitly enumerated or identified. The first part of the article demonstrates that as long as hypotheses are sparse (i.e., index less than half of the possible entities in the domain) then a positive test strategy is near optimal. The second part of this article then demonstrates that a preference for sparse hypotheses (a sparsity bias) emerges as a natural consequence of the family resemblance principle; that is, it arises from the requirement that good rules index entities that are more similar to one another than they are to entities that do not satisfy the rule. (Contains 6 figures and 4 footnotes.)