Question

What is hypothesis testing? Explain the general process and the steps included in conducting a hypothesis test? What is the difference between parametric and nonparametric hypothesis testing?

Answer 1

Hypothesis Testing is done to help determine if the variation between or among groups of data is due to true variation or if it is the result of sample variation. We form assumptions about the population with the help of sample data then we test our assumptions statistically. This is called Hypothesis testing. This test helps to provide evidence concerning the plausibility of the hypothesis, given the data.

There are five steps involved in hypothesis testing. They are:

a. Specify the Null Hypothesis (H0) and also specify the Alternative Hypothesis (H1)

c, Next step is to Set up the Significance Level

d.  Calculate the Test Statistic and Corresponding P-Value

e.  Drawing a Conclusion that is Conclude whether the null hypothesis is true or not.

Parametric tests are used where a normal distribution of value is assumed where as  Nonparametric tests are used in cases where parametric tests are not appropriate.  parametric tests derive more information about the whole population than non-parametric ones.

The measure of central tendency in the parametric test is mean, where as in the case of the nonparametric test is median.

In case of parametric test, there is complete information about the population. where as in case of the nonparametric test, there is no information about the population.