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Statistics is a body of analytical and mathematical methods that uses to study a population from a representative sample. One of the objectives of statistics is to gather quantitative or qualitative data that is needed to characterize the population in tabular, graphical or in a numerical manner. There are several types of statistical methods that can be used in business most especially in decision making. In this paper, we will discuss only two from a variety of statistical method, which is Hypothesis Testing and Correlation.
Hypothesis Testing
Hypothesis testing is a form of statistical inference that uses data from a sample to draw conclusions about a population parameter or a population probability distribution (http://www.eng.morgan.edu/~slh/hypo.html). This means that a hypothesis is a statement, non-numeric in nature that describes a sample from a population, which they consider a fact and can be proven with test or experiments. In proving the statement of an experiment, there are only two answers, which is true or false, rejected or not. A Null Hypothesis (Ho) is yet to be tested, thus this can be called an assumption, which still needed to proven by a test. If the assumption is false or rejected, the conclusion will be an Alternative Hypothesis (Ha), which the opposite of null hypothesis. For example, assuming that sweepstakes entry will attract customers to drive them to use their credit frequently in order to have more chance of winning, which is the null hypothesis. However, with some tests and probability computations, it shows that with a low chance of probability of winning and low probability of preferred customers denotes a lo ...