Hypothesis Testing in Data Analysis π
Today I explored the backbone of statistical decision-making β Hypothesis Testing.
πΉ Key Steps:
1. State Hypotheses
β’ Null (Hβ): No effect/difference
β’ Alternative (Hβ): There is an effect/difference
2. Set Significance Level (Ξ±) β usually 0.05
3. Choose a Test β t-test, chi-square, ANOVA, etc.
4. Calculate Test Statistic & P-Value
5. Make a Decision
β’ If p < Ξ± β Reject Hβ β
β’ Else β Fail to reject Hβ
πΉ Why it matters?
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Validates assumptions
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Minimizes bias in decisions
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Powers research, A/B testing & analytics
β‘ Fun Fact: Hypothesis testing was formalized by Ronald Fisher & Jerzy Neyman in the early 1900s β and itβs still the gold standard in science!
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