Hypothesis Test

Definition

A hypothesis test is a statistical procedure used to make decisions about whether there is enough evidence to support or reject a claim about a population parameter. It involves formulating null and alternative hypotheses, collecting data, and using statistical tests to evaluate those hypotheses.

Related terms

Type I Error: Type I error occurs when we reject the null hypothesis even though it is actually true. In other words, we mistakenly conclude there is an effect or difference when there isn't one.

Type II Error: Type II error occurs when we fail to reject the null hypothesis even though it is false. In other words, we miss detecting an effect or difference that actually exists.

P-value: The p-value is the probability of obtaining a test statistic as extreme as (or more extreme than) the observed value, assuming the null hypothesis is true. It helps us determine if our results are statistically significant.