This handout provides a template for setting up solutions (using the classical approach) to one and two population hypothesis tests in a probability and statistics or AP Statistics course. The 7-step format entails the following:
Step 1: State the null and the alternative hypothesis.
Step 2: Identify the problem constraints, sample size, underlying distribution, etc.
Step 3: State the significance level.
Step 4: Identify the rejection region and decision rule.
Step 5: Compute the test statistic
Step 6: Make a statistical inference and/or decision.
Step 7: Provide a layman’s interpretation of the statistical inference.