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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, distinguish evidence from judgment, and consider who bears the cost of a mistaken decision.