What is Hypothesis testing? Complete guide
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Hypothesis testing in statistics is one of the most important analytical tools which helps businesses make data-based decisions without any error.
It combines tested techniques. real-world data and effective procedure that allows testing assumptions or claims on the basis of beliefs, evidence, etc. to make better decisions.
Understanding this concept is a little bit confusing but with this article, I am going to make it very easy for you to understand.
In this article, I am going to cover all the terminologies related to hypothesis testing in statistics with real-world examples so that in the end your fundamentals become strong. Let's start...
What is hypothesis testing?
Hypothesis testing in statistics is the process of statistical analysis in which analysts test the claim. It is used when there's a claim made about a population parameter and we need to verify the correctness of that claim.
It is basically the claim that we want to test. Let's understand this with an example -Suppose I have a 10-year-old car and my neighbors replaced their old car with a new one because of a maintenance issue.
My father has a doubt that our car is also old, whether our car has a maintenance issue and we also need to replace it with a new one or our car is still in good condition don't need replacement.
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So in this given scenario hypothesis is whether the car needs to be replaced with a new one or not. Here I think that my car is in good condition, on the other hand, my father made a claim that the car has a maintenance issue so we need to replace it.?
I need to do some statistical analysis to prove whether I am right or my father's claim is right. That's how hypothetical analysis is helpful to prove or disprove the claim. Let's see Marvel's movie example in which Read More...
Metallurgy Director | CIP | Business Development Wealth Management in Metals, Mining & Metallurgy | Process Engieneering ADR Gold Plant | Especialist in Lean Six sigma | PMI | Mining 4.0
2 年Very useful for scenaries stimation!!
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
2 年Thanks for posting.
Lean Six Sigma Black Belt trained, Assistant Manager in quality domain.
2 年Perfect ??