Point72 · Statistics & Data Analysis
Choose and Explain a Classical Hypothesis Test
TrueInterview
October 7, 2026 · 1 min read
Define the null and alternative hypotheses, significance level, p-value, Type I error, and Type II error. Then contrast the situations where a z-test, t-test, chi-square test, and F-test are suitable. For each one, identify the parameter or relationship under test, list its assumptions, and state what a statistically significant outcome does and does not prove.
Constraints & Assumptions
- Answer using frequentist definitions throughout.
- Keep the test statistic's reference distribution separate from the distribution of the observed data.
- Consider independence and distributional assumptions instead of choosing a test based only on sample size.
- Do not treat a p-value as the probability that the null hypothesis is true.
Clarifying Questions to Ask
- Is the outcome continuous, categorical, or an estimate of variance?
- Are the samples paired, independent, or grouped?
- Are normality and equal-variance assumptions reasonable, and is the variance known?
Hint: Start from the estimand. Decide on the test only after stating whether the target is a mean, proportion, independence relationship, or variance ratio.
Hint: State the reference world. A p-value describes how extreme the statistic is under the null model and its assumptions.
What a Strong Answer Covers
- Precise definitions and the link between alpha and Type I error under the null.
- Power and Type II error expressed as functions of effect size, variability, sample size, and test design.
- Correct use cases and assumptions for all four named test families.
- An interpretation that distinguishes statistical significance, effect size, and practical importance.
Follow-up Questions
- How would multiple testing alter the decision threshold?
- What would you report alongside a p-value to convey magnitude and uncertainty?
Overview: Define the null and alternative hypotheses, significance level, p-value, Type I error, and Type II error. Lay out the assumptions and derivation clearly, examine edge cases, and show how the conclusion shifts when those assumptions fail.