Reference no: EM131672865

Question: Identify the four steps of hypothesis testing.

• Hypothesis testing, or significance testing, is a method of testing a claim or hypothesis about a parameter in a population, using data measured in a sample. In this method, we test a hypothesis by determining the likelihood that a sample statistic would be selected if the hypothesis regarding the population parameter were true. The four steps of hypothesis testing are as follows:

Step 1: State the hypotheses.

Step 2: Set the criteria for a decision.

Step 3: Compute the test statistic.

Step 4: Make a decision.