In this chapter, we move from confidence intervals to hypothesis tests, which are used in research community mainly because peer reviewers and regulators typically require evidence of statistical significance prior to publishing or approving results. Data scientists will encounter them in what marketers call A–B testing. After completing this chapter, you should be able to
Previously, we introduced these two concepts:
We also saw that variation comes from two random sources:
We saw that resampling methods, or the corresponding formulas, could be used to quantify this random variability.
Statistical inference is the process of accounting for random variation in data as you draw conclusions.
Inference procedures, which are designed to protect you from being fooled by random variation, fall into two categories.
Confidence Intervals Confidence ...