Hypothesis testing is a statistical method used to make decisions about population parameters based on sample data.
Key Components:
- Null Hypothesis (\(H_0\)): The default assumption
- Alternative Hypothesis (\(H_a\)): What we’re trying to prove
- Test Statistic: Calculated from sample data
- P-value: Probability of observing the data if \(H_0\) is true
- Significance Level (\(\alpha\)): Threshold for decision (commonly 0.05)