Hypothesis Testing

Summary

A formal process for testing whether an observed effect is likely real or just random noise — starting with a null hypothesis (no effect) and seeing if the data gives enough evidence to reject it.

• 1State a null and alternative hypothesis for a simple business question.
• 2Learn the basic logic: we don't 'prove' the alternative, we fail to reject the null.
• 3Walk through a worked hypothesis test example step by step.