ABSTRACT

This chapter describes a test of hypothesis procedure that can be used to answer the initial question, whatever its nature. The procedure includes calculation of an appropriate test statistic from sample data. The chapter also illustrates the use of several of the more common test statistics. It is strongly recommended that the null hypothesis always be stated as an equality. Although this isn't necessary for statistical purposes, it does make later analysis much easier. The alternative hypothesis is then expressed either as the direction inequality or as a nondirectional inequality. Tests of hypotheses are useful guides for decision making. Based on sample data relating to a process, a product, or material, inferences can be drawn about the nature of the population represented. The inferences, which have an element of risk indicated by the accompanying statement of confidence, serve as a guide to –not a substitute for – management decision making.