Excel for Scientists & Engineers

Doing research is testing theories by means of experiments. However, all experiments are impacted by chance variation such as the (in-)accuracy and the (limited) number of measurements. So, we need statistical techniques to test how big a part chance plays in the outcome.
Here are two issues to consider:
Is a sample's mean of 6 within the range of means expected for a population whose mean is 7?
Can two samples with a mean of 6 and of 8 be drawn from the same population with a mean of 7?
In practice, we usually have two hypotheses:
Null hypothesis: All variation is due to random sampling variation.
Alternative hypothesis: All variation is due to some hypothetical factor
Next we need to set a limit (usually 95%):
Inside the limit: We accept the null hypothesis and declare the results random.
Outside the limit: We accept the alternative hypothesis and declare the results significant (one-tailed: 5%; two-tailed: 2*2.5%) or highly significant (2*1%).
The limit we set here depends on how much of a risk we are willing to take that our null rejection may be wrong. At a 5% significance level, we accept a 5% risk of rejecting a true null hypothesis. This risk can be at both the low end (2.5%) and the high end (2.5%) or at one end only (5%).
| Note | 1% would usually be called highly significant. This percentage is often designated with p, especially in medical literature. In this book, we reserve p... |