List and explain the steps in hypothesis testing

Expert Solution

Step 1: State null hypothesis H0

H0: Null hypothesis There is no significant difference between specified populations. Any observed difference is due to sampling error.

Step 2: State Alternative Hypothesis HA

HA: Alternative Hypothesis: Sample observations are influenced by non-random causes

Step 3:Set Significance level

Generally significance level is taken as = 5%

Step 4: Collect data

Step 5: Calculate appropriate test statistic like: Z, t, F, depending upon various conditions like whether population standard deviation is known, Sample size (large or small),type of data (numerical or categorical) etc.

Step 6: Construct Rejection Region:

Corresponding to test statistic: : Z, t, F, , from Table, we can get critical value of test statistic.

Step 7:
If the calculated value of test statistic is greater than critical value, the difference is significant.Reject null hypothesis.

If the calculated value of test statistic is less than critical value, the difference is not significant.Fail to reject null hypothesis.

orchestra answered 2 years ago

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