Answered: Explain the four steps involved in…

Name: Explain the four steps involved in significance testing?
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Description: Explain the four steps involved in significance testing?

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter8: Sequences, Series, And Probability

Section8.7: Probability

Problem 58E: What is meant by the sample space of an experiment?

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Explain the four steps involved in significance testing?

Expert Solution

Step 1

Hypothesis testing can be conducted in two ways:

Critical value approach.
P-value approach.

The critical value method involves determining “likely” or “unlikely” by determining whether or not the observed test statistic value is as extreme as or more extreme than the expected if the null hypothesis is true.

Step 2

The four steps that involved in the process of hypothesis testing using critical value method:

Specify the null and alternative hypothesis.
Calculate the value of the test statistic (t-test or z-test).
Obtain the critical value by finding the value of known distribution of the test statistic using the level of significance, .
Compare the test statistic to the critical value.

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