Advantages and Workings of DBMS
DBMS today enjoys one of the most important positions when whole IT Structure of an organization is kept into perspective. For us to know and understand how this position was achieved over the years, we need to look into the advantages this software provides to an organization. Redundancy Control: A data which is stored multiple […]
Factors behind the Rise of the Swiss Economy
Western Europe has been an economic powerhouse. Superpowers like Germany and Great Britain have been a part of this region. However, the small landlocked country of Switzerland has turned out to be a more viable economic model when compared to these so-called superpowers. For many years, economists have been completely baffled by this stupendous growth […]
Why Forecasting has Become Very Difficult for Individuals, Firms, and Nations
Why are we being blindsided by Black Swans ? Whether you are an individual or a decision maker in a big corporation, or a policymaker in charge of planning for nations, it is a fact that forecasting has become very difficult in the present times. Indeed, the fact that big businesses and nations alike are […]
What is Health Insurance and the Different Health Insurance Systems around the World
Health Insurance around the World All of us would have heard the term Health Insurance in some form or the other and most of us would have taken health insurance policies to protect ourselves and our families from the prohibitive costs of healthcare. However, health insurance is a term that is actualized in practice differently […]
Handing off the Project to the Process Owner
After the control charts have been created and deployed, the control phase of the DMAIC methodology comes to a close as far as the project is concerned. The solution that the team had set out to reach has now been reached. It is therefore time to transition the process from being a project to being […]
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.
Your email address will not be published. Required fields are marked *
