There are four possible outcomes when making hypothesis test decisions from sample data. Two of these outcomes are correct in that the sample accurately represents the population and leads to a correct conclusion, and two are incorrect, as shown in the following figure:
Below is a decision tree for the most commonly used hypothesis tests:
A hypothesis test is a method for making rational decisions about the reality of effects. Most decisions require choosing from one or more alternatives. The decision is based on incomplete information. A team might be considering using a different method which they believe will give them a better result. Their theory is that method A is going to be better than method B.
