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Chapter 5 · Data Analysis: A Concise Overview of Statistical Techniques · Slide 185/274

Hypothesis Testing

A five-step procedure that, based on a sample and using probability theory, determines whether a hypothesis is sufficiently supported.

5.2.1 · Hypothesis TestingWhat & how it works

Hypothesis Testing

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Hypothesis Testing

A five-step procedure that, based on a sample and using probability theory, determines whether a hypothesis is sufficiently supported.

In other words: a method for testing whether the results of a random sample can be generalized to the population.

A five-step approach:

  • Formulating a null hypothesis and its alternative hypothesis
  • Setting the significance level
  • Choosing the appropriate test statistic
  • Formulating the decision rule
  • Calculating the metrics from the sample and making the decision
"People are mistakenly confident in their knowledge and underestimate the likelihood that their beliefs will turn out to be wrong. They tend to seek out only information that confirms what they already believe."— Max Bazerman
QUESTIONSTAR · Dr. Paul Marx185 / 274
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