Business managers need to know how their decisions will affect the profitability of their businesses. Hypothesis testing allows managers to examine causes and effects before making a crucial management decision. Business managers may use the results of a hypothesis test when making management decisions. Describe how to formulate and test hypothesis about a population mean and/or a population in a business setting. Explain the types of errors that may be possible when conducting a hypothesis test in business application. Explain how business managers can use a hypothesis test in order to explain how much an increase in labor and capital affects productivity. Give examples.