Step by Step procedure in Conducting the Hypothesis Testing: prerequisites: Part 1: What is Hypothesis Testing and When it is Used? Part 2: How to decide Null and Alternate Hypothesis? https://www.isixsigma.com/ Before diving into the steps, first let’s understand the Important Terminology we need to understand: Null Hypothesis: It is a well-established fact which is believed by all the people. It can also defined as an Assumption that treats everything equally and similarly. Alternate Hypothesis: It is a new claim made against the Null Hypothesis. If we have enough evidence against the Null Hypothesis we will reject Null Hypothesis. P-value: Probability of Null Hypothesis being true. Significance level: probability of rejecting the Null Hypothesis when it is true. It is a critical point where we decide whether the Null Hypothesis is rejected or not. Generally, the significant level will be 0.05 which means a 5 percent risk while concluding
Lets Understand Null Hypothesis and Alternate Hypothesis. Prerequisites : part 1: What is Hypothesis Testing and When it is Used? Null Hypothesis (H 0 ) : It is a well Established Fact or An Assumption which treats everything is similar and equal. Alternate Hypothesis(H a ) : The claim you want to prove. Note: H 0 and H a are always opposite to each other. https://keydifferences.com/ Example 1: Statement: During 18 th century, People used to believe that Sun revolves around the earth. Later Copernicus came and told that it is not true. Since, At the time of 18 th century “Sun revolves around the earth” is a well established fact and is widely accepted belief, So It will become our null hypothesis. Copernicus claimed that “Earth revolves around the sun” which is opposite to null hypothesis. So it will become Alternate Hypothesis. H 0 : Sun revolves aro