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Hypothesis Testing
Definition of Hypothesis Testing
- A hypothesis is a claim or an opinion about an issue or item. Hence it has to be tested statistically in order to establish in which it is correct or not correct
- Whenever testing a hypothesis, one must completely understand the two basic hypothesis to be tested that is:
i. The null hypothesis as H0)
ii. The alternative hypothesis as H1
arrange these numbers in ascending order. -5 -7 1 2 15 0 - 25
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MAXIMAX method Maximax method is based upon 'extreme optimism' the decision maker chooses that particular strategy which corresponds to the maximum of the maximum pay off for e
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