Hypothesis Testing

1. Discuss the process for hypothesis testing.

• Discuss the 8 steps of hypothesis testing?
• When performing the 8 steps for hypothesis testing, which method do you prefer; P-Value method or Critical Value method? Why?

2. Perform the hypothesis test.

• If you selected Option 1:
  • Original Claim: The average salary for all jobs in Minnesota is less than $65,000.
  • Test the claim using α = 0.05 and assume your data is normally distributed and σ is unknown.

• If you selected Option 2:
  • Original Claim: The average age of all patients admitted to the hospital with infectious diseases is less than 65 years of age.
  • Test the claim using α = 0.05 and assume your data is normally distributed and σ is unknown.

• Based on your selected topic, answer the following:

1. Write the null and alternative hypothesis symbolically and identify which hypothesis is the claim.
2. Is the test two-tailed, left-tailed, or right-tailed? Explain.
3. Which test statistic will you use for your hypothesis test; z-test or t-test? Explain.
4. What is the value of the test-statistic? What is the P-value?
5. What is the critical value?
6. What is your decision; reject the null or do not reject the null?
   1. Explain why you made your decision including the results for your p-value and the critical value.
7. State the final conclusion in non-technical terms.