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Hypothesis Testing

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The concepts of hypothesis testing are very crucial towards understanding the meaning of different data. They are influenced by the fact that hypothesis testing helps in developing the actual analysis of the given data. This is useful as it generates a better understanding of the given data. The hypothesis comes up with two types of hypothesis namely, null hypothesis and alternative hypothesis.  The application of the statistical concepts differs and depends with the area of interest. The first concept of hypothesis testing is used in business in estimating the profits that the business expects to make in the future. The business uses the concepts to evaluate the possibility of achieving the success it will have in the future. The null hypothesis (H0) will show that the profits will rise in future due to increase in sales promotion. The alternative hypothesis will say that the prices change due to the general trend in business.

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The second concept checks at the growth in population. This growth can be analyzed using different techniques as used in hypothesis. In the case of testing the hypothesis, the two-tailed technique measures the degree and extent of change in population. The test will prove that the growth in population is due to lack of family planning. The null hypothesis will be in agreement with the two-tail test. The concepts will be able to check at all those factors that affect the growth.

The other basic concept from the hypothesis tests the market share of a company. The null hypothesis will be useful. The possibility of increasing the market share generates an overall test of hypothesis. This will ensure that the company will be productive despite the competition in the market. Hypothesis testing is thus relevant in this study as there is a good contrast between the null and alternative hypothesis. The use of two tails test also creates a proof on the requirements of a business remaining in operation given the existing competition.

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