Week 5 Qnt/561

Executive Summary
          Making decisions require the individual to select single alternative from a number of alternatives. Generally a person is making decision without knowing whether it is correct or not; it is based on the incoherent information.   Thus understanding of what decision-making involves with the use of hypothesis testing method will aid to produce accurate decisions (Harris, 2009). This paper will discuss the important of hypothesis testing in decision-making process. The goal of hypothesis testing is provide the truth and assist the individual to make valid and reliable decision. More accurately the researcher should have two hypotheses known as null hypothesis and alternative hypothesis. Researcher can often use one sample test of hypothesis to determine whether the hypothesis is believable and should not be rejected or it is unreasonable and should be rejected. A two- sample test of hypothesis is often used when the researcher want to answer the question about the mean where the data collected from two random samples of observations.  

One and Two- Sample Test of Hypothesis
            In research experimentation, researcher seek to uncover the verifiable truth about the world around them and then gather those evidence into theories that interpret the connection between the facts. From the observations and the data they obtain, researchers try to clarify an observation or event using information that is presently available. The language of statistic describe hypothesis as the assumption about population parameter (Lind, Marchal, & Wathen, 2008). Parameter is the characteristic of the population, like its variance or mean.   Hypothesis testing is a scientific method to examine data, provides a foundation for taking theories or ideas, and aid the decision making process (Encyclopedia of Business, 2010). The main goal of hypothesis testing is to determine whether the hypothesis is reasonable statement and should not be rejected or it is...