What are the 6 steps to hypothesis testing?

What are the 6 steps to hypothesis testing?

  1. SIX STEPS FOR HYPOTHESIS TESTING.
  2. HYPOTHESES.
  3. ASSUMPTIONS.
  4. TEST STATISTIC (or Confidence Interval Structure)
  5. REJECTION REGION (or Probability Statement)
  6. CALCULATIONS (Annotated Spreadsheet)
  7. CONCLUSIONS.

What are the steps for hypothesis testing?

There are 5 main steps in hypothesis testing:

  1. State your research hypothesis as a null (Ho) and alternate (Ha) hypothesis.
  2. Collect data in a way designed to test the hypothesis.
  3. Perform an appropriate statistical test.
  4. Decide whether to reject or fail to reject your null hypothesis.

How do you find the critical value in a hypothesis test?

The third factor is the level of significance. The level of significance which is selected in Step 1 (e.g., α =0.05) dictates the critical value. For example, in an upper tailed Z test, if α =0.05 then the critical value is Z=1.645….

Upper-Tailed Test
α Z
0.10 1.282
0.05 1.645
0.025 1.960

What is the critical value approach?

The critical value approach involves determining “likely” or “unlikely” by determining whether or not the observed test statistic is more extreme than would be expected if the null hypothesis were true. Using the sample data and assuming the null hypothesis is true, calculate the value of the test statistic.

What is the five step P-value approach to hypothesis testing?

P-value Method, five steps: Step 1: State the null (H0 : µ = µ0) and alternative (H1, see below) hypotheses. Step 2: Calculate the value of the test statistic under the null hypothesis being true. ; Step 3: Compute the p-value associated with the test statistic. (i) Determine the reference distribution (a Z or tn−1).

What is a critical value and critical region?

A critical value is a point on the distribution of the test statistic under the null hypothesis that defines a set of values that call for rejecting the null hypothesis. This set is called critical or rejection region. Usually, one-sided tests have one critical value and two-sided test have two critical values.

What is the five step p-value approach to hypothesis testing?

What is critical value approach and p-value approach?

The P-value approach has the advantage in that you just need to compute one value, the P-value, to do the test. For the critical value approach, you need to compute the test statistic and find the critical value corresponding to the given confidence or significance level.

What is critical region in hypothesis testing?

A critical region, also known as the rejection region, is a set of values for the test statistic for which the null hypothesis is rejected. i.e. if the observed test statistic is in the critical region then we reject the null hypothesis and accept the alternative hypothesis.

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