First change the string to "hello world" from "hello" :-)
I tried this and it is working 
Activity
public class MainActivity extends Activity {
    @Override
    protected void onCreate(Bundle savedInstanceState) {
        super.onCreate(savedInstanceState);
        setContentView(R.layout.activity_main);
        WebView webView = (WebView) findViewById(R.id.webView1);
        webView.getSettings().setJavaScriptEnabled(true);
        webView.loadUrl("javascript:document.write('hello world')");
    }
    @Override
    public boolean onCreateOptionsMenu(Menu menu) {
        // Inflate the menu; this adds items to the action bar if it is present.
        getMenuInflater().inflate(R.menu.main, menu);
        return true;
    }
}
XML
<RelativeLayout xmlns:android="http://schemas.android.com/apk/res/android"
    xmlns:tools="http://schemas.android.com/tools"
    android:layout_width="match_parent"
    android:layout_height="match_parent"
    android:paddingBottom="@dimen/activity_vertical_margin"
    android:paddingLeft="@dimen/activity_horizontal_margin"
    android:paddingRight="@dimen/activity_horizontal_margin"
    android:paddingTop="@dimen/activity_vertical_margin"
    tools:context=".MainActivity" >
    <WebView
        android:id="@+id/webView1"
        android:layout_width="match_parent"
        android:layout_height="match_parent" />
</RelativeLayout>