Hypothesis testing
Best consumed before six months from date of manufacture, Two years warranty, Expiry date: June 20, 2015, and so on, are some of the likely assurances, which readers would have easily come across. An analyst will have to arrive at such statements using the related data. Let us first define a hypothesis:
- Hypothesis: A hypothesis is an assertion about the unknown parameter of the probability distribution. For the quote of this section, denoting the least time (in months) until which an eatery will not be losing its good taste by
, the hypothesis of interest will be 
. It is common to denote the hypothesis of interest by 
and it is called the null hypothesis. We want to test the null hypothesis against the alternative hypothesis that the consumption time is well before six months' time, which in symbols is denoted by 
. We will begin with some important definitions followed by related examples.
Test statistic: A statistic that is a function of the random sample is called a...
