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Hypothesis Testing and p-values
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Exploring a simplified coin flip example to lay the foundation of null and alternative hypotheses, p-values and significance levels.
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Null and alternative hypotheses (H₀ & H₁)
SL AI 4.11
The null hypothesis H0 states the baseline assumption, usually that no effect or relationship exists. If we reject the null hypothesis, we accept an alternative hypothesis H1.
Significance Levels & p-values
SL AI 4.11
p-value: The probability of getting results as surprising (or more) as the observation if the null hypothesis were true.
Significance level (α): The cutoff we choose in advance. If the p-value is below α, we reject the null hypothesis.
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