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• Hypothesis


  A claim or statement about a property of a population
• Hypothesis test


  A standard procedure for testing a claim about a property of a population
• Null hypothesis (H0)


  A statement that the value of a population parameter is equal to some claimed value
• Alternative hypothesis (H1)


  A statement that the parameter has a value that somehow differs from the null hypothesis
• Test statistic


  A value used in making a decision about the null hypothesis, found by converting the sample statistic to a score with the assumption that the null hypothesis is true
• Decision rule: Two-tailed test


  1. If the absolute value of the computed value is greater than the absolute value of critical value, we reject the null hypothesis

  2. If the absolute value of the computed value is less than the absolute value of critical value, we do not reject or fail to reject the null hypothesis
• Decision rule: Right-tailed test

  1. If the computed value is greater than the critical value, we reject the null hypothesis

  2. If the computed value is less than the critical value, we do not reject or we fail to reject hypothesis
• Decision rule: Left-tailed test


  1. If the computed value is less than the critical value, we reject the null hypothesis

  2. If the computed value is greater than the critical value, we do not reject or we fail to reject the null hypothesis
• Steps for printer manufacturing company example


  1. Write the given data

  2. State the null and alternative hypothesis

  3. Identify the statistical test

  4. Identify z-critical value

  5. Solve for z-value

  6. Illustrate using normal curve distribution

  7. Apply decision rule

  8. Conclusion
• Steps for cellphone load expense example


  1. Write the given data

  2. State the null and alternative hypotheses

  3. Identify the statistical test

  4. Identify z-critical value

  5. Solve for z-value

  6. Illustrate using Normal curve distribution

  7. Apply decision rule

  8. Conclusion