Valuing Preference Shares Using Dividend Discount Model
The dividend discount model is also used to measure the value of preference equity in addition to forecasting the value of ordinary equity. There are certain assumptions and clarifications that need to be made regarding the use of dividend discount model for valuing preference equity. The purpose of this article is to provide this information […]
Primary Metric(s) – Meaning and its Characteristics
In order to truly control a process, one must understand the inputs as well as outputs of the process. These inputs and outputs are displayed through numbers which are called “metrics”. The primary metric is a way to say with numbers how well your process is performing. Here are a few pointers that will help […]
Catch Them Young and Watch Them Grow: CSR Initiatives in Primary and Secondary Education
CSR Initiatives in Primary and Secondary Education CSR or Corporate Social Responsibility initiatives can extend to the realm of primary and secondary education. This entails close engagement and involvement of corporates in the schools, colleges, and universities where the corporates provide for funds, training, and associated programs with a view to educate the future workforce […]
Information Technology and Business Intelligence
Introduction After 1990s there was a major transformation in the commercial world. All the organizations across industry sectors have started using information technologies to maximize their productivity and profitability. Organizations started using technologies like mainframes, PCs, telecommunications and the internet along with the goods and services which they offered to the consumers. This process has […]
The Observe Orient Decide Act (OODA) Loop and Decision Making
An important concept in the field of decision making is the OODA Loop or the Observe-Orient-Decide-Act loop. This refers to the strategic advantage that a decision maker gets over his or her opponent when he or she observes the situation and orients themselves and then decides and acts accordingly. This concept was introduced primarily in […]
Hypothesis testing is one of the statistical method used to confirm the effect that critical few inputs have on the outputs. Hypothesis testing must be used when the inputs are measured discretely. The outputs may be discrete or continuous. However the inputs must be discrete, if the inputs are continuous then correlation and regression testing may be used. The fundamentals of framing a hypothesis have been explained in this article:
Any hypothesis testing always has two hypothesis, the null and the alternate hypothesis. The null hypothesis testing shows no relation between the samples, whereas the alternate test accepts the existence of a relationship. Hypothesis testing therefore considers both the possibilities. It statistically reaches a decision as to which of the two hypothesis is valid.
The very name null signifies zero. The null hypothesis therefore implies no relationship in the variable parameters that are being measured. The null hypothesis states that there is no significant difference in the samples being measured.
For instance consider a sample of people being served at Branch A of a bank and customers being served at Branch B of the bank and service level is the parameter being measures. The null hypothesis will state that there is no statistically significant difference between the service levels at Branch A and Branch B.
Similarly the null hypothesis can be written for multiple branches. It can state that there is no statistically significant difference in the service levels of Branch A, Branch B, Branch C, Branch D and Branch E.
The alternate hypothesis by its definition is the one that is opposed to the null hypothesis. We never select the alternate hypothesis. When we reject the null hypothesis, the alternate hypothesis automatically gets selected. There are various types of hypothesis like:
It is important to understand whether the alternate hypothesis should be written in the directional or non-directional form. This is because the statistical tests being used at the background change significantly.
Formulating the problem correctly maybe the most important role for the Six Sigma project person in the analyze phase. This is because there are tools which can automatically solve the problem, but that is only after they have been correctly formulated.
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What the Current Wave of Protectionism and Populism mean for the Future of Globalization and Free Trade
February 12, 2025
