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Procedure for Performing a Hypothesis Test:
- Specify and which are to be tested.
- Select a significance level of the test.
(Usually α = 0.01, 0.05, 0.10)
- Collect Sample Data.
- Calculate the test statistic using information from the sample.
- Calculate the associated p-value for the test.
- Make a decision based on the p-value.
If p-value < α, reject
If p-value ≥ α, do not reject .