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Chapter 12: Hypothesis Tests – Large Samples
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Definition: Two-Tail Test
A two-tail test points out that the null hypothesis should be rejected when
the test statistic value is in either of the two critical regions.
In this case the two critical regions will be in both tails of the distribution.
In this e-book, we will follow the following 5-step procedure to perform a
hypothesis test. We will use two approaches in this 5-step procedure. One
approach is called the classical approach and the other is called the
P
-value
approach. We will indicate what procedure is being used at the appropriate
time.
Five-Step Process for a Hypothesis Test
Tests presented in this and subsequent chapters will follow this general
five-step procedure.
Step 1:
State the null hypothesis
.
Step 2:
State the alternative hypothesis
.
Step 3:
State the formula for the test statistic (
.) and compute
its value.
Step 4:
State the decision rule (
.) for rejecting the null hypothesis
for a given level of significance.
Step 5:
State a conclusion in the context of the information given in
the problem.
Section Review
e-Self Review