Section 13 Hypothesis Testing: Concept


  • To test if the True Population Mean is statistically significantly different from the Hypothetical Mean


  • Statistically significantly different suggests the difference between the True and Hypothetical Means cannot be explained by the natural variation in the data


  • Mathematical view of proof
    • A perfect world of numbers and symbols as well as their relationship
    • Most mathematical proofs are proved with certainty


  • Statistical view of proof
    • The world of numbers and symbols as well as their relationship cannot be observed without noise.
    • Most statistical proofs are proved beyond reasonable doubt.
    • Statisticians, like juries, have to assess the real world as the data suggest and take the decisions under the condition of uncertainty.
    • All statistical conclusions therefore attached with a measure of probability indicating the confidence of the conclusion, or how we could reach the similar conclusion purely by chance.