Today it was the second session for hypothetical testing.
We focused on testing a gap of two averages, which I believe is the most commonly used in practical business situations.
It was really hard to explain the concept of the statistical hypothesis testing, which is very confusing for beginners.
Concept of “Population” and “Sample” is the first one you have to understand as well as the fact that, in most cases, we are using “sample” data for data analysis.
From such academic topic, we moved to a practical topic, which is the test of two average gap between two groups.
Excel (T.TEST) function helps you to minimize your calculation to reach the conclusion as long as you understand how the testing works.
For the practical use, my advice was to focus only on the determinations on “one-tailed or two-tailed distribution” and “type of the testing”, which you have to specify in the function.
Once the class understood the concept and theory, we moved to the practical exercises.
Apart from those exercises, we tested the gap of average amounts to pay for lunch between “female” and ” male” students, by using sample data of the class.
It was really fun!
Finally this is today’s take-away.
Thank you again for enjoying my class today!