Introduction to Information Technology (IT) Strategy
Introduction: What is IT Strategy and Why it is Important As the joke goes, A person who is sitting in front of a computer and not knowing what to do has been described as Intel Inside and Idiot Outside. Similarly, organizations that do not have an IT strategy in place are akin to clueless organizations […]
Shapes of Data and Characteristics of Shape
The shape of the data determines the type of tools that can be used to draw conclusions from it. Here is how to graphically plot out the data to find its shape: Step 1: Plot Data into Categories To begin with, the data must be divided into equal categories. The categories must have equal intervals […]
Why India Should Abolish Personal Income Taxes?
Personal income taxes are omnipresent all over the world. From the developed nations to the developing ones, all tax the incomes of their citizens at different rates. There are only ten countries across the entire world where there are no income taxes. Out of these ten countries, six are from the Gulf peninsula. The governments […]
Inventory Migration Scope
Inventory Migration is a mammoth project exercise involving internal teams as well as many external agencies. Detailed planning, process, simulation, and training are the basis to ensure successful inventory migration exercise. Project Teams would consist of teams from all functional departments namely finance, legal /compliance, inventory planners, IT, procurement, marketing, order fulfillment and logistics & […]
Internal Planning for Effective Operations in Warehousing Projects
Globally outsourcing 3PL Market is growing fast. In the US, the industry is expected to reach over $150 billion as compared to a global estimate standing at $450 billion as per industry experts estimates. Companies aiming for aggressive growth in global scenario recognize the need to partner with 3PL logistics providers to be able to […]
Hypothesis testing is one of the statistical method used to confirm the effect that critical few inputs have on the outputs. Hypothesis testing must be used when the inputs are measured discretely. The outputs may be discrete or continuous. However the inputs must be discrete, if the inputs are continuous then correlation and regression testing may be used. The fundamentals of framing a hypothesis have been explained in this article:
Any hypothesis testing always has two hypothesis, the null and the alternate hypothesis. The null hypothesis testing shows no relation between the samples, whereas the alternate test accepts the existence of a relationship. Hypothesis testing therefore considers both the possibilities. It statistically reaches a decision as to which of the two hypothesis is valid.
The very name null signifies zero. The null hypothesis therefore implies no relationship in the variable parameters that are being measured. The null hypothesis states that there is no significant difference in the samples being measured.
For instance consider a sample of people being served at Branch A of a bank and customers being served at Branch B of the bank and service level is the parameter being measures. The null hypothesis will state that there is no statistically significant difference between the service levels at Branch A and Branch B.
Similarly the null hypothesis can be written for multiple branches. It can state that there is no statistically significant difference in the service levels of Branch A, Branch B, Branch C, Branch D and Branch E.
The alternate hypothesis by its definition is the one that is opposed to the null hypothesis. We never select the alternate hypothesis. When we reject the null hypothesis, the alternate hypothesis automatically gets selected. There are various types of hypothesis like:
It is important to understand whether the alternate hypothesis should be written in the directional or non-directional form. This is because the statistical tests being used at the background change significantly.
Formulating the problem correctly maybe the most important role for the Six Sigma project person in the analyze phase. This is because there are tools which can automatically solve the problem, but that is only after they have been correctly formulated.
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