Hypothesis Testing

   

Definition: Hypothesis Testing is a statistical method of reasoning and decision making using data from a scientific study.
The question of interest is simplified into two competing claims / hypotheses between which we have a choice; the null hypothesis (H0) against the alternative hypothesis (H1).
These two competing claims / hypotheses are not however treated on an equal basis: special consideration is given to the null hypothesis.
Statistical hypothesis tests define a procedure which controls (fixes) the probability of incorrectly deciding that a default position (null hypothesis) is incorrect based on how likely it would be for a set of observations to occur if the null hypothesis were true.


   

   

More on hypothesis testing.
More on problem solving: Catch-22, Evaporating Cloud, Heuristics, Intuition, Kepner-Tregoe, more...



   

MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.




© 2020 MBA Brief - Last updated: 20-10-2020  -  Privacy   |   Terms