CHAPTER 4

Hypothesis Testing

A hypothesis is a statement about a phenomenon, trying to explain a population parameter or effect of a process when we have limited information about that population or process. A representative sample is used for observation and testing. An inference then made about the population, based on the test results. Increasing productivity after implementing a new benefits plan, treatment effect of a new medication, environmental ramifications of a chemical production plant, and using new technologies for learning, are examples where we state a hypothesis about population or process based on limited observations. Hypothesis testing is a process of statement, determining decision criteria, data collection and computing statistics, ...

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