Stats: Hypothesis Testing Steps (Guide)
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8 steps, names, and needed date
updated 6 years ago by llozada15
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What is the __%; C.I.? (80%, 90%, 95%, 98%, 99% tipically)
.80 or tail area of .1 = z=1.28
.90 or tail area of .05 z= 1.645
.95 or tail area of .025 z= 1.96
.98, or tail area of .01 z=2.33
.99, or tail area of .005 z= 2.575
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Step 1: State the Hypothesis
What are the null and alternative hypotheses?
 Look at wording and sign
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Step 2: Critical points: what is (are) the critical values?
U or P?
 For mean u, is sigma known or unknown?
 Known sigma; z
table, need: area under tail: “guided by simple of Ha
Draw a graph
 2 sided (a/2) (you will have +/ z) or
 1 sided? (You will have either a –z or +z) left or right?
 Known sigma; z
table, need: area under tail: “guided by simple of Ha
Draw a graph

 Unknown sigma: t table: you will need: df and a or a/2 if
two sided. Draw a graph
 Use t table.
 If right sided, you will have a +tcrit
 If left sided, you will have a –tcrit
 If both sided, you will have a +/tcrit
 Unknown sigma: t table: you will need: df and a or a/2 if
two sided. Draw a graph
 For population p, is n large? Yes in this class n>30
 Use z table Draw a graph
 2 sided (a/2) (you will have +/ z) or
 1 sided? (You will have either a –z or +z) left or right?
 Use z table Draw a graph
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Step 3: Decision Rule: Rejection Region: reject Ho if:
 “Z or T stat is in the region of Z or Tcrit”
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Step 4: Find test statistic:
 For mean U, sigma known Zstat= xbar – U(that we want) / (sigma/sqrt(n))
 For mean U, sigma UNknown Tstat= xbar – U(that we want) / (st. deviation (s) /sqrt(n))
 For population p, n>30, large = Zstat=pbarpo(that we want)/sqrt( (po(tha we want)*(1Po(that we want)/n)
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Step 5: Decision:
Fail to reject Ho, or reject the Ho
 You need zcrit and zstat or tcrit and tstat
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Step 6: What is the conclusion?
always write it in terms of the alternative Ha
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Step 7: What is the p value:
Unsure of how to do:
 You do need Zstat or Tstat.
 You also need the direction of Ha, and to know if it’s a right or a left or both sided.