Under inferential statistics two topics are discussed viz. estimation of population values and testing the statistical hypotheses. Although there are two approaches to hypothesis testing, the more established is the classical or sampling theory approach. Classical statistics are found in all of the major statistics books and are widely used in research application. Hypothesis is tested on the basis of sample data collected. Researcher is entirely dependent on analysis of sample data. Second approach is known as Bayesian statistics, which are extension of the classical approach. They also use sampling data, but they go beyond to consider all other available information. This additional information consists of subjective probability estimates stated in terms of degree of belief. These subjective estimates are based on general experience rather than on specific collected data.

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Keywords: Inferential Statistics, Statistical Hypotheses, Hypothesis Testing, Sampling Theory.