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How to conduct Hypothesis Testing step by step - simple and elegant (part 3)

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. ...
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How to decide Null Hypothesis & Alternate Hypothesis - Examples (part 2)

Lets Understand Null Hypothesis and Alternate Hypothesis.


Prerequisites:

part 1: What is Hypothesis Testing and When it is Used?

 

Null Hypothesis (H0) : It is a well Established Fact or An Assumption which treats everything is similar and equal.

Alternate Hypothesis(Ha) : The claim you want to prove.

Note: H0 and Ha are always opposite to each other.


                                                                                                                             https://keydifferences.com/


Example 1:

Statement: During 18th 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 18th 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.

H0 :   Sun revolves around the Earth.

Ha :    Earth revolves around the sun.


Example 2:

Statement: It is believed that a candy Machine makes chocolate bars that are on average 5g. a worker claims that the Machine after maintenance no longer makes 5g bars.

H0 : avg = 5              ->      Given Fact about candy Machine. 

Ha :   avg != 5                 ->        Given Claim by the worker.


Example 3: 


Statement: Model A is using for Amazon Recommendation system from past 5 years. Now, A Data scientist has built a new Model B and claimed that it works better than Model A.

H0 : Model B is not better than Model A.

Ha : Model B is better than Model A.


Here somehow if we able to reject null hypothesis (well established fact) then Alternate Hypothesis (new claim) will become established Truth.

Note: Since we can’t prove the new claim (Alternate Hypothesis) directly. We try to reject established fact(Null Hypothesis) using some evidence. This is the main idea behind Hypothesis Testing.

In the next blog, I will explain about how to conduct Hypothesis Testing and How to decide in rejection of Null Hypothesis.

part 3: Conducting Hypothesis Testing Step by Step - Easy and Elegant


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