# Statistics - Hypothesis testing process & Experimentation

1) Define what a hypothesis is and discuss the relationship between hypothesis testing and statistics.

2) List the five steps required to test a hypothesis of the mean. Be sure that all steps are in the correct sequence. Explain why the fifth step is the most important.

3) Discuss what independent and dependent variables are in an experiment, state the relationship between the two and give an example.

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134832

Define what a hypothesis is and discuss the relationship between hypothesis testing and statistics.

A hypothesis is a proposition based on experience/gut feeling etc. that a researcher/manager would like to validate. For example: A marketing manager in a FMCG firm might believe that approx. 40% of customers are highly loyal to a particular brand of soap. This is a hypothesis and the manager can test this using statistics. Statistics is nothing but taking a representative sample of the population, testing hypothesis on the sample and then inferring that the insights generated through the sample is true for the population. In the example of brand loyalty, the marketing manager will not talk to all ...

#### Solution Summary

This posting provides answers to theory questions on hypothesis, hypothesis testing and experimentation.