Hypothesis Test

Hypothesis Test

1. What is the sample size?

   • n≥30 OR np≥5 nq≥5
     • Use z-distribution to find your critical value.
   • n<30 OR np<5 OR nq<5
     • Do you know the population standard deviation (σ)?
       • Yes. Use z-distribution to find your critical value.
       • No. Use t-distribution to find your critical value.
         • Find the value of the test statistic using the appropriate formula
           • Compare the critical value and the test statistic. Does the test statistic fall in the rejection region?
             • Yes. Since the test statistic falls in the rejection region, there is sufficient evidence to reject the null hypothesis.
             • No. Since the test statistic does not fall in the rejection region, there is insufficient evidence to reject the null hypothesis.
           • Compare alpha (α) and p-value. Is your p-value less than alpha?
             • Yes. Since the p-value is less than alpha, there is sufficient evidence to reject the null hypothesis.
             • No. Since the p-value is larger than alpha, there is insufficient evidence to reject the null hypothesis.