Hypothesis testing

Question 1

Hypothesis Testing: the 3-step approach

Answer 1

• Many answers work, even answers not following the 3-step approach
• Best ways to learn: practice a lot

1. Define your hypothesis
2. Break it down
3. Gather and process data

Question 2

Define your hypothesis
- All hypotheses must have …
- This step is …

Answer 2

cause, an effect, and a consequence
only here to help you

Question 3

Break it down
- You need … to test
… are better (maybe not 100% MECE)
- … vs. … tests (you will probably use both)
… should be in your mind

Answer 3

simple hypotheses
- Logical breakdowns
Quick exhaustive
- Availability of data

Question 4

Gather and process data

• What you would be doing in …
  
  • What …?
  • How would you …?
  • How would you …?
  • What do you …?
• … tests vs. … tests
  
  • …: tests that necessarily don’t prove wether the hypothesis is true or false but shows that it is much more likely for it to be true or false
  • …: tests where the data actually proves the hypothesis (or is very close to proving it)

Answer 4

real life
data
get it
turn it into information
expect it to look like

Indicative - conclusive
Indicative tests
Conclusive tests

Question 5

How to practice

Answer 5

• When you come up with hypotheses in your case training, pick one and try to think of how you would test it the hypothesis is true or not
• Learn along the process