One Variable Hypothesis Testing
In this section we will perform hypothesis tests for
- A single mean
- A single proportion
Backround
In the previous two chapters, we introduced the concept of sampling and building up confidence intervals around our sample statistics. We stated that sampling is used in business when making decisions under uncertainty.
In this chapter, we will show that sampling can be used to test the validity of a claim made about a population parameter. We will call this test that we perform a ‘hypothesis test for a single variable and population.’
Two Possible Types of Tests
We will perform tests to test the validity of claims on the following population parameters:
- Population proportions
- Population means
We will use the results of samples to determine if the claims on the population parameters are possible (or valid).
