Concepts of Hypothesis:-
When we perform an analysis on a population sample – the analysis could be descriptive, Inferential or exploratory in nature – we get certain information from which we can make claims about entire population. These are just claims, we can’t be sure if they are actually true. This kind of claim or assumption is called Hypothesis testing.
There are two ways to check if your hypothesis has any truth to it, if the hypothesis is true then apply it to the population parameters. This is called Hypothesis testing. The goal is to determine whether there is enough evidence to infer that the hypothesis about the population parameter is true. In hypothesis testing, we can confirm our assumptions about the population based on sample data.
Basic difference between inferential statistics and hypothesis testing .
Inferential statistics is used to find some population parameter (mostly population mean) when you have no initial number to start with. So, you start with the sampling activity and find out the sample mean. Then, you estimate the population mean from the sample mean using the confidence interval.
Hypothesis testing is used to confirm your conclusion (or hypothesis) about the population parameter (which you know from EDA or your intuition). Through hypothesis testing, you can determine whether there is enough evidence to conclude if the hypothesis about the population parameter is true or not.
- Null Hypothesis (H0) – is the prevailing belief about the population – it states that there is no change or no difference in the situation.
- Alternate hypothesis(H1) – also called as research hypothesis, is the claim that opposes the null hypothesis.
Critical Value:- After formulating the hypothesis testing, the critical value is useful to make decision
Below are the steps for critical value methods
- Calculate the value of z-score from the given value of alpha – default 5% if not specified in the problem
- Calculate the critical values of Upper and lower
- Make the decision on the basis of the value of sample mean x with respect to the critical values
will write one more blog related to Concepts of Hypothesis Testing - II