Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a population parameter. The methodology employed by the analyst depends on the nature of the data used and the reason for the analysis.
The hypothesis is tested using a four-step process:
- The first step is for the analyst to state the two hypotheses so that only one can be right.
- The next step is to formulate an analysis plan, which outlines how the data will be evaluated.
- The third step is to carry out the plan and physically analyze the sample data.
- The fourth and final step is to analyze the results and either reject the null hypothesis, or state that the null hypothesis is plausible, given the data.