MODULE 2

• STEPS IN TESTING A HYPOTHESIS

  1.State the null and alternative hypothesis.

  2.Choose an appropriate level of significance then establish the critical region.

  3.Compute for the test statistic from the sample data. The formula used in determining the test statistic depends on the type of hypothesis being performed.
• STEPS IN HYPOTHESIS TESTING

  4.Compare the computed value of the test statistic with the critical region. If the test statistic falls within the critical region, reject Ho. Otherwise, do not reject Ho.

  5.Interpret the results with a conclusion.
• • If the null hypothesis is rejected, there is sufficient evidence to show that the alternative hypothesis is true.
  • When the null hypothesis is not rejected, there is insufficient evidence to show that the alternative hypothesis is true.
• A Z-test is used when the population standard deviation is known or if the sample size if large (n ≥ 30).
• A t-test is used when the population standard deviation id unknown and the sample size is small ( n < 30 ).