Topic

Hypothesis Testing Process

Instructions

Read Sections 9.1-9.5 in Ch. 9 of Business Statistics: For Contemporary Decision Making.

Consider the following as you read:

Observe how claims made by businesses can be validated.
Try to apply the concepts to validate some simple claims such as the mean time to arrive at work

Answer preview

Hypothesis testing follows a certain formal process, which helps to decide whether to reject or fail to reject the null hypothesis. The first step involves stating the hypothesis. This is done by stating the null and alternative hypothesis. The hypothesis must be mutually exclusive so that the occurrence of one precludes the other’s occurrence and vice versa.

Word count: 176