Business Statistics

Statistical Hypothesis Testing

Statistical Hypothesis Testing

Statistical Hypothesis Testing refers to the formal procedures used by statisticians to accept or reject statistical hypotheses. It is used to determine whether there is enough evidence in a sample of data to infer that a certain condition is true for the entire population. A common misconception is that statistical hypothesis tests are designed to select the more likely of two hypotheses. Instead, a test will remain with the null hypothesis until there is enough data to support the alternative hypothesis. Statistical Hypothesis Testing is to specify a set of statistical models, one for each candidate hypothesis, and then use model selection techniques to choose the most appropriate model.