Testing hypotheses

Have you ever wondered how researchers or scientists prove their ideas? How do businesses decide whether a new product performs better than the old one? Or how does a pharmaceutical company determine whether a new medicine really works?

These types of questions rely on hypothesis testing. At its core, hypothesis testing is like a trial for an idea—instead of assuming something is true, we test the evidence and see whether the data supports it.

Hypothesis testing is a fundamental pillar of statistical inference, providing a structured framework for making decisions about populations based on sample data. It allows us to formally evaluate competing claims or hypotheses about the characteristics of a population. By following a systematic series of steps, we can determine whether there is enough statistical evidence to reject a null hypothesis in favor of an alternative hypothesis.

Imagine we own a bagel shop and believe that changing the menu will...