About Lesson
Hypothesis Testing
Overview: This section covers the process of hypothesis testing in statistics.
- What is Hypothesis Testing?
- A method for testing a claim or hypothesis about a parameter in a population using sample data.
- Steps in Hypothesis Testing:
- Formulate Null and Alternative Hypotheses: The null hypothesis (H0) represents no effect or no difference, while the alternative hypothesis (H1) represents the opposite.
- Choose a Significance Level (α): Commonly set at 0.05 or 0.01.
- Calculate the Test Statistic: Based on the sample data.
- Make a Decision: Compare the test statistic to a critical value to accept or reject the null hypothesis.
- Real-Life Example:
- A company may test whether a new advertising campaign leads to higher sales compared to the previous campaign by conducting a hypothesis test.
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