I would like to know "how to test a hypothesis". I have an overview of the structure (to verify hypothesis X, I need to proove that A, B, C factors are true). However, in the case of "I hypothesize that this profitability drop is due to revenue drop, due to client preference change", how do I test this specific hypothesis?
Could I say something like, I need to drill down the root cause first. So after confirming that this is a revenue problem, I would look into price and quantity, and the relevant factors linked. If the other factors are not true, then it must be due to customer demand change. In another way, I can say that the company should benchmark what others are doing (if others are making changes to fulfill client demand, we are not, then this must be the root cause).
Appreciate any thoughts. Thanks!