Hypothesis testing is used to determine if an observed outcome is statistically significant by calculating how many standard deviations it is from the average and finding the probability of it occurring by random chance. Standard deviation measures the variation or spread of measured values, with a low standard deviation meaning values are clustered together and a high one meaning more variation. While we care about the standard deviation of individual measurements, what's more important for statistical significance is the standard deviation of the average value, which can change with additional measurements.
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