Q.1: What is the procedure involved in performing hypothesis tests? Q 2: Discuss the business uses of time series forecasting.

Q.1: What is the procedure involved in performing hypothesis tests?
All the hypothesis tests can be conducted in the same manner. The researcher states a hypothesis
to be tested, formulates an analysis plan, analyzes sample data according to the plan, and make a
decision about the hypothesis, based on results of the analysis. The steps of the hypothesis tests
are presented in the following:
Step 1: State the hypotheses. In this step the researcher have to state a null hypothesis and an
alternative hypothesis. Theses hypothesis should be stated in such a way that they are mutually
exclusive. That is, if one is true, the other must be false; and vice versa.
Step 2: Formulate plan of the analysis. This step describes how to use sample data to accept or
reject the null hypothesis. It should specify the following elements.
Significance level: Before analysis researcher should choose the significance level of the
test which is usually equal to 0.01, 0.05, or 0.10.
Test method: Select the appropriate statistic for the test and its sampling distribution. The
statistic is computed from the sample and based on the statistic a suitable test statistic is
presented for the test. The test statistic might be based on mean, proportion, difference between
means, difference between proportions or z-score, t-score, chi-square, etc. Given a test statistic
and its sampling distribution, a researcher can assess probabilities associated with the test
statistic.
Step 3:...