In hypothesis testing, the null hypothesis and the alternate hypothesis serve different roles in the
process of drawing conclusions from statistical data.
The null hypothesis represents the idea that there is no effect, no difference, or no relationship
between variables. It is the hypothesis that you seek to test and potentially reject.
The alternate hypothesis is the opposite of the null hypothesis. It represents the idea that there is
an effect, there is a difference, or there is a relationship between variables.
Regression analysis is a statistical method that can be used in a variety of fields to analyse
relationships between variables and groups
For example, businesses can use regression analysis to forecast sales, predict the impact of
employee training on productivity, or understand consumer behaviour
The power of a statistical test is the probability that it will correctly lead to the rejection of a null
hypothesis (H0) when it is false– i.e. the ability of the test to detect an effect, if the effect actually
exists
A non-parametric test is a statistical analysis method that is used to test hypotheses about a
population when it's not possible or necessary to specify the distribution of the population. They are
also known as distribution-free tests because they make fewer assumptions than parametric tests
Disadvantages of parametric method
Less powerful than parametric tests
Less precise estimates
Large samples Small samples
considered small if it has fewer than 30
considered large if it has more than 30 observations observations
more likely to provide accurate estimates more likely to be variable and may not accurate
more expensive and time-consuming to collect.
Basic Probability Rules
1) Possible values for probabilities range from 0 to 1
2) The sum of all the probabilities for all possible outcomes is equal to 1
3) Additional rule - the probability that one or both events occur
4) Multiplication Rule - the probability that both events occur together
5) Conditional Probability - the probability of an event happening given that another event
has already happened
Sampling,
refers to any process by which members of a population are selected to participate in research
simple random sampling
stratified sampling
cluster sampling
systematic sampling
non-probability sampling
Mutually exclusive events are events that cannot occur at the same time, while independent events
are events that do not affect each other's occurrence
All Probability Formulas List in Maths
Probability Range 0 ≤ P(A) ≤ 1
Rule of Addition P(A∪B) = P(A) + P(B) – P(A∩B)
Rule of Complementary Events P(A’) + P(A) = 1
Disjoint Events P(A∩B) = 0
Independent Events P(A∩B) = P(A) ⋅ P(B)
Conditional Probability P(A | B) = P(A∩B) / P(B)
Bayes Formula P(A | B) = P(B | A) ⋅ P(A) / P(B)
probability is the likelihood of an event happening, and is calculated by dividing the number of
favorable outcomes by the total number of outcomes:
The significance level in a hypothesis test is the probability of rejecting the null hypothesis when it is
true. It is also known as the alpha level
Statistical inference is a method of making decisions about the parameters of a population, based on
random sampling. purpose of statistical inference to estimate the uncertainty or sample to sample
variation.
