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Hypothesis testing

Null Hypothesis: No relationship (we assume it as a true)


There is no relationship between pay and satisfaction.
Alternate: Opposite to Null hypothesis (we testify it whether
to accept it or reject it)
There is a relationship between pay and satisfaction.

Based on Null Hypothesis, there are 2 error.


Type 1= incorrectly rejecting the null hypothesis
Alpha (a, p) (Significance level 5%, confidence level 95%
Type 2: non-rejection of false null hypothesis
Beta (b)
One tailed test:
There is a positive/negative relationship

Two tailed test:


There is a relationship

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