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Chapters 7–8 · Estimate, test, decide

Inference & Business Decision Lab

Connect a confidence interval and hypothesis test to the same business question, then separate statistical evidence from the decision and its consequences.

1 Predict
2 Explore
3 Explain

Choose the procedure

Decision threshold

Evidence readout

Estimate—
Test statistic—
p-value—

From evidence to action

Canvas focus question: State the statistical conclusion, practical implication, and one limitation as three separate sentences.

Biblical/Ethical Stewardship and Integrity

A small p-value does not license an exaggerated claim, and a large p-value does not prove no effect. Communicate uncertainty truthfully (Proverbs 12:22), examine claims carefully and distinguish evidence from judgment (Proverbs 18:17), and consider who bears the cost of a mistaken decision (Philippians 2:3–4).

Proverbs 12:22

Lying lips are an abomination to the LORD, but those who do the truth are his delight.

Proverbs 18:17

He who pleads his cause first seems right—until another comes and questions him.

Philippians 2:3–4

doing nothing through rivalry or through conceit, but in humility, each counting others better than himself; each of you not just looking to his own things, but each of you also to the things of others.

Scripture quotations are from the World English Bible (WEB), which is in the public domain.