Hypothesis Testing

Definition

Hypothesis testing is a statistical method used to make inferences about population parameters based on sample data. It involves formulating a null hypothesis and an alternative hypothesis, collecting data, calculating test statistics, and making decisions about rejecting or failing to reject the null hypothesis.

Related terms

Type I Error: A type I error occurs when we reject the null hypothesis when it is actually true.

Type II Error: A type II error occurs when we fail to reject the null hypothesis when it is actually false.

One-Tailed Test: In a one-tailed test, we are only interested in detecting an effect in one direction (e.g., greater than or less than).