Identify the five steps in the statistical hypothesis testin

Identify the five steps in the statistical hypothesis testing procedure by discussing what is involved in each.

Solution

1.First step is stating the null and alternative hypothesis.

2.decide the relevant test whether it is T- test statistics, Z or F, etc

3.decide the significance level if the probability threshold below which the null hypothesis will be rejected

4.Calculate the appropriate P-value for given sample size and significance level.smaller the P-value stronger the evidence against null hypothesis. If the P-value is greater than the significance level the null hypothesis is rejected and if not, then we fail to reject null hypothesis. or if the test statistics value value with in the critical values,the null hypothesis can be accepted.

5. Decide to either reject the null hypothesis in favor of the alternative or not reject it. The decision rule is to reject the null hypothesis H₀ .if the observed value t_obs is in the critical region, and to accept or \"fail to reject\" the hypothesis otherwise.