About This Chapter
Hypothesis Testing in Business - Chapter Summary
This easy-to-follow chapter covers hypothesis testing in business through a series of bite-sized lessons. You'll study topics including Type I and Type II errors in hypothesis testing, conducting hypothesis testing for a mean and the use of t-tests to assess statistical differences between groups. All of our learning materials are accessible on any mobile device or computer 24 hours a day. We've included quizzes with each of the lessons and a test at the end of the chapter to help you gauge your understanding and identify any areas that require further study. After you finish this chapter, you should be able to:
- Outline the steps used in hypothesis testing
- Discuss hypothesis testing of large independent samples
- Give an example of hypothesis testing for a mean
- Differentiate between Type I and Type II errors in hypothesis testing
- Explain the difference between one-tailed and two-tailed tests
- Identify the similarities and differences between t-tests and z-tests
- Explore hypothesis testing for a proportion and the difference between two proportions
- Detail hypothesis testing of matched pairs
- Determine the business applications of hypothesis testing
1. What is Hypothesis Testing? - Definition, Steps & Examples
A proper hypothesis test consists of four steps. After watching this video lesson, you'll understand how to create a hypothesis test to help you confirm or disprove an assumption.
2. Hypothesis Testing Large Independent Samples
In this lesson, you're going to learn about hypothesis testing of large independent samples. You'll learn about the assumptions in such a hypothesis test, and we'll work through an example together.
3. Conducting Hypothesis Testing for a Mean: Process & Examples
Read this lesson to learn how you can use hypothesis testing to test for a mean. Learn what conditions need to be met before you can use hypothesis testing to find the average for the test subject.
4. Type I & Type II Errors in Hypothesis Testing: Differences & Examples
Watch this video lesson to learn about the two possible errors that you can make when performing hypothesis testing. You will see how important it is to really understand what these errors mean for your results.
5. One-Tailed Vs. Two-Tailed Tests: Differences & Examples
This lesson explores the difference between the one-tailed and two-tailed tests. We will look at what they mean in statistical testing, as well as when you should and should not use them.
6. Z Test & T Test: Similarities & Differences
A t-test is a statistical method used to see if two sets of data are significantly different. A z-test is a statistical test to help determine the probability that new data will be near the point for which a score was calculated. Learn about these two statistical calculations, their differences, and their similarities.
7. What Are t-Tests? - Assessing Statistical Differences Between Groups
This lesson explores how a researcher may use a t-Test. In addition, simple to follow instructions will demonstrate how to manually complete a t-Test.
8. Hypothesis Testing for a Proportion
Data sets can be mutually exclusive. What that means is that the population will either be or answer one thing or another. In this lesson, we'll explore how hypothesis testing is applied in that situation.
9. Hypothesis Testing for a Difference Between Two Proportions
Have you ever wondered if there's a difference between two proportions or if it just seems that way? Take for example, the proportion of college graduates who smoke vs. the proportion of college dropouts who smoke? You can test for this using hypothesis testing to discover if there's a real difference or not.
10. Hypothesis Testing Matched Pairs
Sometimes, data sets come paired. What does this actually mean, though? This lesson explains what matched pairs are and goes over an example of how hypothesis testing applies to them.
11. Business Applications of Hypothesis Testing
Hypothesis testing can be used in business applications to help validate an assumption being made about data relationships. This lesson looks at the process of hypothesis testing and provides an example of its use.
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Other chapters within the Business 212: Business Statistics course
- Introduction to Business Statistics
- Introduction to Categorical Data
- Descriptive Statistics: Measurement
- Descriptive Statistics: Representation
- Measures of Dispersion in Business
- Measures of Association & Correlation in Business
- Probability for Business Statistics
- Probability Distributions for Business Statistics
- Sampling Methods for Statistics
- Confidence Intervals
- Analysis of Variance
- Nonparametric Methods in Statistics
- Regression Analysis
- Understanding Business Forecasting
- Using Control Charts in Business