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 want to prove
- Test Statistic: Calculated from sample data
- P-value: Probability of observing results as extreme as the data
- Significance Level (\(\alpha\)): Threshold for decision making (commonly 0.05)