5 Steps of p-value Hypothesis Testing

Step 2:

Choose the level of significance, α, and the sample size, n

Step 4:

Collect data and compute the value of the test statistic and the p-value.

Step 3:

Determine the appropriate test statistic and sampling distribution.

Step 1:

State the null hypothesis, H₀ and the alternative hypothesis, Hₐ

Step 5:

State the statistical decision and managerial conclusion. if the p-value is < α then reject H₀, otherwise DO NOT reject H₀, State the managerial conclusion in the context of the problem.