What is Hypothesis Testing?

Hypothesis testing is a statistical method used to make informed conclusions about populations by analyzing sample data. It involves formulating two hypotheses—a null hypothesis (no effect or relationship exists) and an alternative hypothesis (an effect or relationship exists)—then applying statistical tests to determine the validity of these hypotheses.

This approach helps organizations validate assumptions, test business decisions, and assess the effectiveness of strategies. By determining statistical significance, hypothesis testing allows businesses to confidently interpret data-driven insights, reduce uncertainties, and make better-informed decisions to enhance performance and outcomes.