Background

While applying statistical tests of significance, the first step is setting up of a null hypothesis. In a study on evaluating the efficacy of a new drug, the null hypothesis (H0) is that the new drug is no better, than the current drug. The alternative hypothesis, (H1) i.e. the competing hypothesis would be that the new drug is better than the current drug. Once the statistical test has been applied, the inference is either to “reject H0 in favor of H1 ” or “do not reject H0”. If inference is “do not reject H0”, it indicates that there is no sufficient evidence against H0 in favor of H1; whereas if inference is to reject the null hypothesis, then it is indicated that the alternative hypothesis may be true. Hypotheses are always stated in terms of population parameter, such as the mean ‘µ ’ o