Hypothesis Testing

A structured approach to business experimentation where a specific, falsifiable assumption is stated, tested with real data, and evaluated against pre-defined criteria to confirm or reject the assumption.

Hypothesis testing replaces opinion-driven decisions with evidence. Founders who formalise their assumptions before testing them become better at identifying what is actually working versus what merely appears to be working.

A founder hypothesises that changing her checkout button from "Buy Now" to "Start My Journey" will increase conversions by at least 10%. She runs an A/B test for two weeks, gathers statistically significant data, and either confirms or rejects the hypothesis before rolling out the change.