Hypothesis Testing
Introduction
Hypothesis testing is a process of evaluating how plausible is one of two competing hypotheses, based on data collected. The two competing hypotheses are usually denoted by H0 (The null hypothesis) and H1(the alternative hypothesis). The P-value or Observed Significance Level is often use to asses the validity of the H0. It is the probability, assuming that H0 is true that the test statistic would have a have value whose disagreement with H0 is as great or greater than the one actually observed.
The steps in testing two competing hypotheses H0 and H1 for a population mean are as follows:
Applications