Question

Asked Nov 25, 2019

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Starting with work life what is a description of scenarios where hypothesis testing may be beneficial

Step 1

Hypothesis testing:

Hypothesis testing was introduced by R.A. Fisher (Ronald Fisher).

It is a statistical method that is used to make a decision in comparison of two datasets. Basically it is an assumption that we make about the population parameter.

Step 2

Null hypothesis:

It defines that there is no significant difference between the two population means.

Alternative hypothesis:

It defines that there is a significant difference between the two population means.

Step 3

Level of significance:

Based on significance level, either we accept or reject the null hypothesis.

If the p-value is less than the level of significance, we can reject the null hypothesis and we say that there is a significant difference between two means. In this case, the level of significance is setting a standard quality of our test.

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