Testing vs. EstimationConfidence Intervals are used to estimate an unknown population parameter using sample data.A Hypothesis test is used when theory suggests a particular value for an unknown population parameter. The question then becomes whether the sample data is consistent with the theory or not.
A Theory about the value of a population parameter?One popular test of ESP uses what is called a Rhine deck, which consists of cards with five different images on them.The cards are put in random order, and the subject must guess the card that has been drawn without seeing it.
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