6.2 Steps to a hypothesis test

A hypothesis test is a simple, step-by-step procedure that can be very powerful. The sections below will provide details to performing hypothesis tests, and every application will follow four basic steps.

1. State the null and alternative hypotheses

2. Calculate a test statistic under the null

3. Calculate either the rejection region(s) or the p-value

4. Use the information in steps 2 and 3 to conclude: Reject the Null or Do Not Reject the Null

You will notice that step 3 offers two equivalent ways of conducting a hypothesis test. We will discuss them in turn.