2. Conducting Hypothesis Tests
• All hypothesis tests are conducted the same way. (state hypothesis, form analysis plan, analyze
sample data according to plan, interpret data and make a claim based on the results of the
analysis)
1. State hypothesis: Ho &Ha, where Ho & Ha are mutually exclusive
2. Form analysis plan: describes how to use the sample data and whether to reject or not reject the
null hypothesis
3. Analyze: calculate computation using sample data
TEST STATISTIC: use following equation when null hypothesis involves mean or
proportion
TS= (Statistic- Parameter) OR TS= (Statistic – Parameter )
SD of Statistic SD of Statistic
** where parameter is a value specific to the null hypothesis and the statistic is the point estimate of
parameter
** when the parameter in the null hypothesis involves qualitative data, use a chi-square statistic as Test
Statistic (in future lesson)
** you can find the TS formula under inferential statistics in the formula sheet
P-value: probability of observing a sample statistic as extreme as the test statistic, assuming the null
hypothesis is true.
4. Interpret Results: compare P-value to significance level, reject the null hypothesis when the P-
value is less than the significant level.
