Hypothesis Testing

Hypothesis testing is a procedure that allow, us to (depending on certain decision rules) confirm a starting hypothesis, called the null hypothesis, or to reject this null hypothesis in favor of the alternative hypothesis.

HISTORY

The theory behind hypothesis testing developed under study. The first steps were taken when works began to appear that discussed the significance (or insignificance) of a group of observations. Some examples of such works date from the eighteenth century, including those by Arbuthnott, J. (1710), Bernoulli, Daniel (1734) and Laplace, Pierre Simon de (1773). These works were seen more frequently in the nineteenth century, such as those by Gavarett (1840) and Edgeworth, Francis Y. (1885).

The development of hypothesis testing occurred in parallel with the theory of estimation. Hypothesis testing seems to have been first elaborated by workers in the experimental sciences and the management domain. For example, the Student test was developed