The idea of testing hypotheses

Within every organization, there are ideas and concepts we would like to test to make more informed decisions. In many situations, decisions are made based upon intuition or “gut feel,” but human intuition is fallible, so we need a framework to test ideas before making critical decisions.

Let’s consider a scenario that you might face as a data science leader. Suppose you manage an online brand and are considering running a promotion on an e-commerce marketplace to increase sales of a particular product. Before investing resources in the promotion, you want to determine its potential effectiveness.

This is where hypothesis testing comes in – it provides a framework for making data-driven decisions and avoiding costly mistakes based on assumptions.

In this section, we will briefly introduce hypothesis testing and how it can help you make informed decisions in various scenarios.

What is a hypothesis?

A hypothesis...