Lecture 13: Steps in Hypothesis Testing

1. Make Assumptions and State the Null Hypothesis

2. Select the Sampling Distribution - Determining the Probability of Outcomes.

3. Select the Critical Region - Decide what outcomes are so unlikely that we will reject the Null Hypothesis.

4. Compute the Test Statistic

5. Make a Decision

An example of this system using the Binomial Distribution: Can Melissa Tell the Difference between Dr. Pepper and Diet Dr. Pepper?

One-tailed versus two-tailed tests.