Perform statistical hypothesis testing with T-test and Z-test, calculate p-value and confidence interval.
Statistical significance and decision making
Hypothesis testing is a statistical method to determine whether the difference between a sample or two samples is due to chance or is real. H₀ (null hypothesis) = no difference, H₁ (alternative hypothesis) = there is a difference. T-Test vs Z-Test difference: T-test is used when sample is small (typically n<30) or population standard deviation is unknown. Z-test is used for large samples or when population standard deviation is known. Reject H₀ if p-value < α (difference is significant). Applications and examples: Testing drug effectiveness (new drug → old drug comparison), marketing campaign evaluation (pre → post campaign sales), educational research (comparing different teaching methods), quality control (compliance with production standards).
Find answers to common questions
P-value is the probability of obtaining the observed result or more extreme, assuming H₀ hypothesis is true. Small p-value (e.g., <0.05) allows us to reject H₀.
Other useful tools related to statistical calculations