ABSTRACT
This chapter helps the readers to understand the concept of hypothesis testing. The population parameters describe the characteristics of the entire population, while sample statistics describe the characteristics of the sample. The regression coefficients estimated from the regression model are based on the sample data and are the estimates for the population parameters. The null hypothesis assumes that the beta coefficient is equal to zero (null value) which means that there is no significant relationship between the promotion expenses and revenues. A regression output in Excel exhibits the following type of statistic: t-statistics, p-values, and confidence intervals. The chapter attempts to understand the meaning of these tests so that they are interpreted aptly.
