Question 707:

Asked on April 29, 2009

Tags: Parameter , Five Step Hypothesis Testing

1

Answer:

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1. Q707_1_five_stepsQ707.doc

There are many different ways to frame a hypothesis test and different books have slightly different steps. Here is one 5-step procedure which covers all the important steps.

One Parameter
1.    Write a Null and Alternative Hypothesis
2.    Select a Level of Significance
3.    Choose a Test Statistic (no calculations)
4.    Write a decision rule for the computed test statistic
5.    Make a decision by computing the test statistic and comparing it to the decision rule. What the decision rule means in terms of the question in the problem.

Please see the attached word document for all detailed steps and calculations.