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4.2 What is Hypothesis Testing

Sep 12, 2025

Overview

This lecture introduces hypothesis testing in statistics, focusing on how to use null and alternative hypotheses, p values, and significance levels to assess differences and avoid common pitfalls in data interpretation.

Perception vs. Reality in Statistics

  • Human perceptions are often misleading and need careful inspection.
  • Hypothesis testing helps distinguish real differences from imagined ones.

Hypotheses in Statistics

  • A hypothesis is a specific, testable claim about a real-world outcome or difference.
  • The null hypothesis states that there is no effect or no difference.
  • The alternative hypothesis asserts that there is a meaningful effect or difference.

Hypothesis Testing Process

  • Collect data relevant to both the null and alternative hypotheses.
  • Use statistical tests to compare data to models predicted by the hypotheses.
  • Hypotheses should be specific and measurable for reliable testing.

One-Tailed vs. Two-Tailed Tests

  • One-tailed test: predicts an effect in a specific direction (e.g., more or less).
  • Two-tailed test: tests for any difference, regardless of direction.

The Role of the p Value

  • The p value is the probability that data as extreme as observed would occur if the null hypothesis is true.
  • A small p value (< significance level) suggests data are unlikely under the null hypothesis.

Significance Levels and Statistical Decisions

  • Significance level (often 5% or 1%) is the threshold for rejecting the null hypothesis.
  • If p value < significance level, reject the null hypothesis; if not, fail to reject it.
  • Failing to reject does not mean the null is true; it means insufficient evidence for the alternative.

Limitations and Pitfalls

  • Hypothesis testing can’t prove a hypothesis is true, only provide evidence for/against.
  • The significance threshold is somewhat arbitrary.
  • A p value is not the probability that the hypothesis is true.

Key Terms & Definitions

  • Null Hypothesis (Hβ‚€) β€” a statement that there is no effect or difference.
  • Alternative Hypothesis (H₁) β€” a statement that there is an effect or difference.
  • p Value β€” probability of obtaining observed data, or more extreme, if the null hypothesis is true.
  • Significance Level (Ξ±) β€” chosen probability threshold for rejecting the null hypothesis.

Action Items / Next Steps

  • Review definitions of null and alternative hypotheses, p values, and significance levels.
  • Practice forming specific, measurable hypotheses.
  • Understand how to interpret p values in context with significance levels.