# Hypothesis Testing Steps

List the steps involved in hypothesis testing using: a) the traditional/classical method; b) the probability-value method. Provide an example of each.

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#### Solution Preview

The five steps in the classical approach are:

1. Hypotheses

2. Level of Significance

3. Decision Rule: Reject the null hypothesis if |tsample| > tCritical value)

4. Calculation of the test-statistic

5. Decision.

The five steps in the p-value approach are:

1. Hypotheses

2. Level of Significance

3. Decision Rule: Reject the null hypothesis if p-value <

4. Calculation of the test-statistic and p-value

5. Decision.

Suppose that we have the following problem: The marketing department of a major household products manufacturer is considering whether or not to send some of its sales executives on a one week top-up salesmanship ...

#### Solution Summary

This solution details the fives steps in the classic and p-value approach. It also gives fully worked examples and explanations for each approach.