Choose the level of significance, +, and the sample size, n. The level of significance is
based on the relative importance of the risks of committing Type I and Type II errors in
the problem.
3. Determine the appropriate test statistic and sampling distribution.
4. Determine the critical values that divide the rejection and nonrejection regions.
5. Collect the sample data and compute the value of the test statistic.
6. Make the statistical decision and state the managerial conclusion. If the test statistic
falls into the nonrejection region, you do not reject the null hypothesis, H0
. If the test
statistic falls into the rejection region, you reject the null hypothesis. The managerial
conclusion is written in the context of the real-world problem
Choose the level of significance, +, and the sample size, n. The level of significance isbased on the relative importance of the risks of committing Type I and Type II errors inthe problem.3. Determine the appropriate test statistic and sampling distribution.4. Determine the critical values that divide the rejection and nonrejection regions.5. Collect the sample data and compute the value of the test statistic.6. Make the statistical decision and state the managerial conclusion. If the test statisticfalls into the nonrejection region, you do not reject the null hypothesis, H0. If the teststatistic falls into the rejection region, you reject the null hypothesis. The managerialconclusion is written in the context of the real-world problem
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