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Statistical Power in Hypothesis Testing — Visually Explained
An Interactive Guide to the What/Why/How of Power
What is Statistical Power?
Statistical Power is a concept in hypothesis testing that calculates the probability of detecting a positive effect when the effect is actually positive. In my previous post, we walkthrough the procedures of conducting a hypothesis testing. And in this post, we will build upon that by introducing statistical power in hypothesis testing.
Power & Type 1 Error & Type 2 Error
When talking about Power, it seems unavoidable that Type 1 and Type 2 error will be mentioned as well. They are all well-known hypothesis testing concepts to compare the predicted results against the actual results.
Let’s continue to use the t-test example in my previous post “An Interactive Guide to Hypothesis Testing” to illustrate these concepts.
Recap: we used one-tail two sample t-test to compare two samples of customers — customers…
