From 576de4a2325efb25756c9b799b31b8dd712caac4 Mon Sep 17 00:00:00 2001 From: mmax3 <32703681+mmax3@users.noreply.github.com> Date: Sun, 14 Dec 2025 21:16:16 +0100 Subject: [PATCH] Update hypothesis.md Added didn't buy table and calculations for Chi-squared test example --- docs/stats/hypothesis.md | 10 +++++++++- 1 file changed, 9 insertions(+), 1 deletion(-) diff --git a/docs/stats/hypothesis.md b/docs/stats/hypothesis.md index ec00955..5566ad0 100644 --- a/docs/stats/hypothesis.md +++ b/docs/stats/hypothesis.md @@ -380,11 +380,19 @@ $$ \chi^2 = \sum \frac{(O_i - E_i)^2}{E_i} $$ If $H_0$ is true, both groups should convert at the Global Rate (15%). * Blue Expected Buys: $100 \times 0.15 = 15$ ($E_1$). * Red Expected Buys: $100 \times 0.15 = 15$ ($E_2$). + +| Group | Bought (E) | Didn't Buy (E) | Total | +| :--- | :--- | :--- | :--- | +| **Blue** | 15 | 85 | 100 | +| **Red** | 15 | 85 | 100 | 4. **Calculate $\chi^2$:** * Blue Buys: $(10 - 15)^2 / 15 = 25/15 = 1.66$ * Red Buys: $(20 - 15)^2 / 15 = 25/15 = 1.66$ * *Do the same for "Didn't Buy" cells...* + * Blue didn't buy: $(90−85)^2/85 = 0.29$ + * Red didn't buy: $(80−85)^2/85 = 0.29$ + * Sum it up * $\chi^2 \approx 3.92$. 5. **Compute P-Value:** @@ -486,4 +494,4 @@ We started with a promise: to learn the universal algorithm of inference. $$ \text{Score} = \frac{\text{Observed Signal}}{\text{Expected Noise}} $$ 4. **The Decision:** If the Signal is much stronger than the Noise (High Score, Low P-value), we accept the new reality. -**You have now graduated from "guessing" to "inference."** \ No newline at end of file +**You have now graduated from "guessing" to "inference."**