Now, let’s see how the different concepts that you learnt in the previous session are applied in real-world industry scenarios.

Deepak will walk you through a demonstration of hypothesis testing on Excel, so download the Excel file given below and perform all the steps along with Deepak for a deeper understanding. You will also be introduced to a new concept called **two-sample mean test.**

For MAC users: You need to install the add-in ‘Data Analysis Toolpak’ in Microsoft Excel (this is pre-installed in Windows) from this link to perform the demonstration. The steps on how to use this add-in are demonstrated in the video.

Two-sample mean test **– paired** is used when your sample observations are from the same individual or object. During this test, you are testing the same subject twice. For example, if you are testing a new drug, you would need to compare the sample before and after the drug is taken to see if the results are different.

Let’s now move on to the other type of two-sample mean test, which is unpaired.

**Two-sample mean test – unpaired** is used when your sample observations are independent. During this test, you are not testing the same subject twice. For example, if you are testing a new drug, you would compare its effectiveness to that of the standard available drug. So, you would take a sample of patients who consumed the new drug and compare it with another sample who consumed the standard drug.

In the Excel file, go to the third tab ‘2-sample mean test – Unpaired’ and perform the required test. Answer the questions below after performing this test, taking a significance level of 5%.