Industry Relevance in Hypothesis Testing

Different industry experts have different views on the applications and usability of hypothesis testing because of different reasons.

Let us first hear from Madhukar about the applications of hypothesis testing in the real world and get some insights into how this will be relevant in the next courses of Predictive Analysis, when you reach the model building stage of the Crisp-DM framework.

Anand has a very different take on hypothesis testing, as he believes that, nowadays, all the data is available digitally for most industries. This makes the usability of hypothesis testing a little limited in lot of scenarios.

To summarise, hypothesis testing still holds importance in the following two types of industries, even if all the data is available digitally:

1. Manufacturing processes in the food, pharmaceuticals, chemicals industries, where it is not practically possible to gather information on the entire population.

2. E-commerce, advertising and digital marketing companies, where the amount of data collected from various samples is so huge that analysing all data becomes very difficult without having big data systems in place.