Hypothesis Analysis Explained

Hypothesis analysis is a widely known concept and is used extensively by researchers, statisticians and quantitative analysts. It allows them to follow a set of formal steps to perform calculated analysis on their data. It is also widely used in machine learning and artificial intelligence. In this article, I will be explaining core concepts of hypothesis analysis. Please read Disclaimer before proceeding.

Hypothesis analysis helps researchers attain deeper insight about their data. Consequently, it allows them to make better decisions which is backed by a set of mathematically calculated measures.

Idea In Nutshell:

• Make an assumption about a concept or data
• Collect information to test the assumption
• Verify if the assumption is right
• State your hypothesis
• Repeat if required

Let’s go over the set of formal steps:

Step 1. State the Hypothesis — Null & Alternative

In practice, two hypothesis assumptions are made about data:

• One which is believed to be true; known as Null Hypothesis (H0)
• One which is believed to be false; known as Alternative…