Tests of Hypothesis

A test of statistical hypothesis is a procedure or a rule for deciding whether to accept or reject the hypothesis on the basis of sample values obtained.

A hypothesis which is tested under the assumption that it is true is called a null hypothesis and is denoted by H0. Thus a hypothesis that is tested for possible rejection under the assumption that it is true is known as the null hypothesis.

The hypothesis which differs from a given null hypothesis, H0 and when H0 is rejected is called an alternative hypothesis and is denoted by H1.