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Hypothesis Testing

Hypothesis Testing

Super Learner

For the below-mentioned lecture please tell me how has the hypothesized difference been calculated? I have  also attached a snippet for your ease.

1 Answer

365 Team

Hi Archisman,
The hypothesized value in this case (and in any other) is the value that we decide prior to the test. In this case, we want to check if the difference is -4%, thus the hypothesized value is -4%.
The 365 Team

Can we decide any random value? There has to be some certain criteria based on which we will decide the hypothesized value? In the rest of the exercises and the practical example on Hypothesis testing, the value was taken as zero.

6 months
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