Question

What is an example in society about Hypothesis testing?

Answer 1

I am going to give you a real life example about Hypothesis and testing.

Suppose a Drugs Company wants to launch a new product of sleeping drugs which is a modification of an old product currently available in the market. It has been found that the average sleeping time after using the old drugs is ₀ .

The company wants that the new drugs has more effective over the old one. So an experiment is conducted by the company employees to know that the new product is more effective over the old product or not.

In this situation , we firstly assume that there are two possibilities, either both the averages are equal or not .

We state this method as Hypothesis and defined as :

Null hypothesis :   = ₀ vs alternative hypothesis : > ₀

and after setting up the hypothesis we need a conclusion about the experiment which is either accepting the null hypothesis or rejection.

To decide whether it is accepted or rejected we need to testing the hypothesis using sample of the experiment.

For collecting sample we apply the old as well as the new drugs for the same person and note the sleeping time in hours. Then using this sample we are test the hypothesis and in the basis of testing we conclude.

Accepting the null hypothesis means the average sleeping time for both the products are same so there is no need to launch the new product.

Rejection means we can launch the new product .