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Solutions to Probability, Statistics, and Regression

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Regression and Hypothesis Testing



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Hypothesis Testing

The main aim of hypothesis testing is to determine whether or not to reject the null

hypothesis (there is no effect, there’s no difference) using a level of significance (say, α = 0.05) –

such that, when the p-value of the statistical test is less than 0.05, the null hypothesis is rejected,

otherwise, it is approved. I use hypothesis testing in my daily life. For instance, when Netflix

released the new Season of Money Heist I was a bit skeptical about watching it. I was not sure

whether it could live to the hype generates by the previous four seasons. Therefore, I put up a

poll on my Twitter account. The following were the hypotheses:

Ho: Money Heist Season 5 is not worth watching.

Ha: Money Heist Season 5 is worth watching.

After 24 hours, 74% of the respondents agreed that Money Heist Season 5 is a must

watch. Only 26% didn’t find it worth watching with the claim that it is overrated. Based on the

results, I rejected the null hypothesis and concluded that Money Heist Season 5 is worth

watching.

Based on the hypotheses, the population of interest was 18-35 years old males and

females (the age range of most of my followers). The sampling technique was simple random

sampling because the respondents randomly responded to the prompts. The following research

questions guided the responses:

H1: Guys, do you think Money Heist Season 5 is worth watching?

The hypothesis was a bit general and direct. There were no variables to be compared to

each other. The test statistic that I used to generate findings was frequency. The application made

it easier for me because at the end of the poll, it displayed the results.

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