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Inferential Statistics
Hypothesis Test
Are the two sets of
data significantly
different?
Are my solution
making any
difference?
Hypothesis Test
What is hypothesis and hypothesis
Testing?
controlled
Determining which
has the better
performance
Comparing the
performance of subpart
against the subpart
Type I error
(rejecting a true
null hypothesis)
The null
hypothesis is
false
Correct
decision
Decision
We fail to
reject the
null hypothesis
Correct
decision
Type II error
(failing to reject
a false null
hypothesis)
Do not reject H0
P-Value
Decision:
P-Value
Reject Ho
Assumed H0 is true
P-value
= Chance
ofthe
being
if H0 is
Alpha(
) Risk =
cutwrong
off point
P-value < rejected
risk reject H0
P-value > risk do not reject H0
Alpha risk is chosen based on criticality:
0.1 Moderate (1 mistake in 10
decisions)
0.05 Important (1 mistake in 20
decisions)
0.01 Critical
(1 mistake in 100