Important Note: They have omitted the critical value step (Step 2 in my steps for Hypothesis Testing as taught in Lesson 9 of my book). This means that you only have to memorize Four Steps to test hypotheses,
and should always use the P-value to make your conclusions.
Your steps to test a hypothesis should always be:
- State the Hypotheses and so establish whether the test is upper-tailed, lower-tailed, or two-tailed.
- Compute the test statistic using the correct formula for z or t.
- Compute the P-value by
marking the test statistic on a bell curve and shading the appropriate region according to your alternative hypothesis.
- State your conclusion knowing that you always reject Ho if the P-value < alpha.