In your environment (business or personal), please describe a hypothesis test related to a decision. What would be your data? What would be your null hypothesis? What would be your alternate hypothesis? What would be your Type 1 and Type 2 errors relative to your decision? Suppose you have a p-value of 0.01, what does this mean relative to your problem and decision? Suppose the p-value is 0.20, what does this mean relative to your problem and decision?
I will take the example of my personal environment. I am travelling 60 KM daily to reach to my office from my home by my own vehicle. The average travelling time to cover the distance of 60 KM is 60 minutes. My research question is that if I will travel for a particular bus service provider the travelling time will be more than 60 minutes to cover the distance of ...
This solution is comprised of a detailed explanation for a real life situation where inferential statistics is very helpful. Full description of the real life situation is provided along with the null and alternative hypothesis. After defining the situation type I and type II errors are defined with respect to the situation.