In: Statistics and Probability
Significance leads to the importance of testing. What is the purpose of the null hypothesis? What is the purpose of the alternative hypothesis? Explain what inferences or decisions you are able to make and not make from the test.
The null and alternative hypotheses are two mutually exclusive statements about a population. A hypothesis test uses sample data to determine whether to reject the null hypothesis.
Null hypothesis (H0) -The null hypothesis states that a population parameter (such as the mean, the standard deviation, and so on) is equal to a hypothesized value. The null hypothesis is often an initial claim that is based on previous analyses or specialized knowledge.
Alternative Hypothesis (H1) - The alternative hypothesis states that a population parameter is smaller, greater, or different than the hypothesized value in the null hypothesis. The alternative hypothesis is what you might believe to be true or hope to prove true.
The significance level also denoted as alpha or α, is a measure of the strength of the evidence that must be present in your sample before you will reject the null hypothesis and conclude that the effect is statistically significant. The researcher determines the significance level before conducting the experiment.
The significance level is the probability of rejecting the null hypothesis when it is true. For example, a significance level of 0.05 indicates a 5% risk of concluding that a difference exists when there is no actual difference. Lower significance levels indicate that you require stronger evidence before you will reject the null hypothesis.
Use significance levels during hypothesis testing to help you determine which hypothesis the data support. Compare your p-value to your significance level. If the p-value is less than your significance level, you can reject the null hypothesis and conclude that the effect is statistically significant. In other words, the evidence in your sample is strong enough to be able to reject the null hypothesis at the population level.