What are important features of hypothesis testing?

Question

mhalmantus · Accepted Answer

Step 1
Hypothesis testing is a crucial procedure to perform when it is expected to make inferences about a population using a random sample. These inferences include estimating population properties such as the mean, differences between means, proportions, and the relationships between variables.
Hypothesis - Hypothesis is a statement or assertion about statistical distribution or parameter of certain situation. There are two types of hypotheses in every problem/ situation of test of significance. If one is rejected the other is to be accepted and vice versa. These hypotheses are referred to as null hypothesis and alternative hypothesis.
Null hypothesis: A hypothesis of ‘no difference’ is called as null hypothesis. Denoted by

H_{0}

.
Alternative hypothesis: it is the hypothesis to be accepted in case of rejection of null hypothesis. Denoted by

H_{1}

or

H_{a}

.
Step 2
Hypothesis Testing is done to help determine if the variation between or among groups of data is due to true variation or if it is the result of sample variation.
It is used to give results about facts or surveys.
On performing hypothesis testing, conclusions about entire population can be drawn which is based on representative sample.
Hypothesis testing is the process used to evaluate the strength of evidence from the sample and provides a framework for making determinations related to the population.
Step 3
Procedure of performing hypothesis testing
Set the null and alternative hypotheses.
Identify the test statistic based on data. (State required assumptions)
Compute value of test statistic.
Define the decision criterion.
Make the decision based on findings.

What are important features of hypothesis testing?

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