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Category: Business Statistics

The 5 Steps to Hypothesis Testing for one sample

Step 1: State the hypothesis claim Always think about the alternative hypothesis (H1) first.  If the question states “ I am trying to find out if the average weight is greater than 50kg” then the alternate hypothesis will be: average mean more than 50 hence null hypothesis (Ho) will just be less than or equal …

What Is Central Limit Theorem?

Central limit theorem states that as sample size (n) increases, the shape of the sampling distribution of the mean becomes closer to normal no matter what the shape of the distribution of the population. The rule of thumb is when sample size is more than or equal to 30, the distribution will be relatively normal regardless …