We’ll cover each part of this process throughout this section. Here’s where we’re headed: There are five steps for hypothesis testing: 1) State the null and alternative hypotheses, 2) Determine the level of significance, 3) Calculate the test statistic, 4) Find critical value(s), and 5) State the conclusion. This process is also called inferential statistics, because we’re using information we have about the sample to make inferences about the population.
Read MoreWith any hypothesis test, we need to state the null and alternative hypotheses, then determine the level of significance. We’ve already covered these first two steps, and now we want to learn how to calculate the test statistic, which will depend on whether we’re running a two-tail test or a one-tail test.
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