Steps Considerations   Step 1: Making assumptions and meeting test requirements.     Considerations/Cautions: The sample has been selected according to the rules of EPSEM. The variable being tested is interval-ratio in level of measurement. The sampling distribution of all possible sample means is normal in shape. This will allow us to use the standardized normal distribution to find areas un-der the sampling distribution. We can be sure that this assumption is satisfied by using large samples.

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Five steps for hypothesis testing

 

Steps Considerations

 

Step 1: Making assumptions and meeting test requirements.

 

 

Considerations/Cautions: The sample has been selected according to the rules of EPSEM. The variable being tested is interval-ratio in level of measurement. The sampling distribution of all possible sample means is normal in shape. This will allow us to use the standardized normal distribution to find areas un-der the sampling distribution. We can be sure that this assumption is satisfied by using large samples.

 

Step 2: Stating the null hypothesis.

 

Considerations/Cautions:  The null hypothesis is always a statement of "no difference." It has a varying form depending on the test being conducted. The null hypothesis is usually wanting to be rejected so researchers create a research hypothesis to contradict the null hypothesis.

 

 

Step 3: Selecting the sampling distribution and establishing the critical region.

 

Considerations/Cautions: Sampling distributions is a problem against which a particular sample outcome is measured. The critical region is also known as the region of rejection. If the Z-score falls outside the Z-critical it would cause us to reject the null hypothesis. Size of the critical region is known as Alpha. 

 

Step 4: Computing the test statistic.

 

 

Considerations/Cautions: The test statistic is also known as the Z-Score. The value of the Z-Score is also known as the Z(obtained). Calculating the test statistic helps evaluate the probability of the sample outcome. 

 

Step 5: Making a decision and interpreting the results of the test.

 

Considerations/Cautions: If the test statistic falls in the critical region, we reject the null hypothesis. If the test statistic does not fall in the critical region, we fail to reject the null hypothesis. After determining whether to or not to reject the null hypothesis you have to describe the meaning. 

 

 

  1. Choose a empirical example and explain how one would go through the 5 steps. 
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