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# five step process for hypothesis testing

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Describe the five step process for hypothesis testing. Which is the most difficult step, and why?

Define the concept of a t and z statistic. What do these statistics allow you to do? In other words, what is the statistical relevance of these formulas?

Discuss the importance of the standard deviation in relation to the z or t-test statistic. How is the calculation affected if you do, or do not know, the standard deviation.

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The response addresses the queries posted in 650 Words, APA References

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The response addresses the queries posted in 650 Words, APA References

Testing hypothesis means to tell whether or not the hypothesis seems to be valid. In hypothesis testing the main question is whether to accept the null hypothesis or not. Procedure of hypothesis basically refers to those steps which explain the rejection and acceptance. The steps involved in hypothesis testing are:

Making a formal statement: the step consist making of formal statement of null hypothesis (Ho) and alternative statement (Ha). This means that hypothesis should be clearly stated, considering the nature of the research problem. The formulation of hypothesis is an important step which must be an accomplished with due care in accordance with object and nature of problem under consideration (Hypothesis Testing, 2001).
Selecting a significance level: the hypothesis is tested n a predetermined level of significance and as such the same should be specified. Generally in practice, either 5% level or 1% level is adopted for purpose. The factors that affect of significance are: the magnitude ...

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• MBA (IP), International Center for Internationa Business
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