In hypothesis testing, you need to first have an understanding of what a hypothesis is, which is an educated guess about a parameter. Once you have the hypothesis, you collect data and use the data to...In hypothesis testing, you need to first have an understanding of what a hypothesis is, which is an educated guess about a parameter. Once you have the hypothesis, you collect data and use the data to make a determination to see if there is enough evidence to show that the hypothesis is true. However, in hypothesis testing you actually assume something else is true, and then you look at your data to see how likely it is to get an event that your data demonstrates with that assumption.