How would testing a hypothesis be useful in business?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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The process of testing a hypothesis can be useful in business because it can give you information about what actions you should take to improve your firm.

In a business, people are always trying to figure out ways to make the firm stronger.  They might try to come up with better policies or better products.  Whenever they do this, they are producing hypotheses that could be tested.  For example, let's imagine that you believe that your firm could be more productive if you allowed people to work from home via computer.  You could test this hypothesis by running a pilot program where a group of workers telecommuted.  You would see what impact, if any, telecommuting had on productivity.  This would confirm or refute your hypothesis.

In this way, coming up with and testing a hypothesis can be useful in improving the health of a business.

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