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    Hypothesis Testing: Null and Alternative Hypotheses

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    What is hypothesis testing in the field of statistics, and why is it an important tool?

    What would be an example of the null and alternative hypotheses in the research data below?
    - Sample size: 1,100
    - Likely potential target market: 4 million
    - Satisfaction scores ranged from 1(very dissatisfied) to 5 (very satisfied)
    - Average sample satisfaction score: 4.5
    - The standard deviation of the sample scores is unknown.

    Why is it important to properly frame the null and alternative hypotheses?

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    Solution Preview

    Hypothesis testing is an important statistical tool which lets us challenge conventional wisdom. We designate the "null hypothesis" to be to conventional wisdom ("pigs cannot fly") and then examine the probability of observing certain phenomenon ("seeing a flying pig out the window") assuming the null hypothesis is true. If this probability is sufficiently low, we can reject the null ...

    Solution Summary

    This solution outlines the importance of hypothesis testing and explains, using an example, how to create a null and alternative hypothesis.