Hypothesis test procedure
Five steps.
Steps.
- State hypotheses. (default) and (alternative, one- or two-tailed).
- Choose significance level . Usually 5% or 1%.
- Compute test statistic.
- Find critical region OR -value.
- Conclude. Reject if in critical region / if . State in context.
One- vs two-tailed.
- : upper tail.
- : lower tail.
- : both tails.
Cambridge tip. Always state hypotheses clearly, including in symbolic form.
- Five-step procedure.
- Direction of determines tail.
- State conclusion in context.