Hypothesis or Significance Testing
1) Make a drawing of the
sampling distribution for the null hypothesis and
shade in the area representing the pvalue. Remember, the mean on the drawing
always matches with the m given
in Ho (see below).
2) Always use a parameter, never a statistic when
stating the a hypothesis. State the null and alternative hypothesis
mathematically one of three ways (note that Ho always has the same form):
Examples: 
Ho: m =
12 Ha: m < 12 
(Shade the tail on the left side of the sampling
distribution drawing.) 

Ho: m =
12 Ha: m > 12 
(Shade the tail on the right side of the sampling
distribution drawing.) 

Ho: m =
12 Ha: m
≠ 1 
(Shade the tails on both sides of the sampling
distribution drawing.) 
3) Using a statistic, find the area under the curve which corresponds to the pvalue.
4) State the definition of pvalue using the number you have just calculated.
Example for pvalue = 3%: The probability of obtaining a test
statistic as extreme or more extreme than the one obtained is 3%, assuming Ho is
true.
If Alpha is Given
5) Decide whether to reject or fail to reject the null
hypothesis based on comparing the pvalue with alpha.
 If: pvalue ≤ alpha level reject Ho
 If: pvalue > alpha level fail to
reject Ho
6) Write an English language sentence summarizing your
findings. For example if the null is rejected you might write:
Example 1) Ho rejected: The
sample is statistically significant at the alpha level (p=?) therefore
we reject the null hypothesis and accept the alternative hypothesis that
Bubba's magic pills caused a weight loss in the subjects
who took them.
Example 2) Ho accepted: The
sample is not statistically significant at
the alpha level (p=?), therefore, we fail to reject the null hypothesis.
There is not sufficient evidence to accept the alternative hypothesis that
Bubba's
magic pills caused a weight loss in the subjects who took them.


If Alpha is Not Given
5) Skip this step
6) Write an English language sentence summarizing your
findings stating whether there is or is not strong statistical evidence for
rejecting the null hypothesis. This is based on your judgment
Example 1) Ho rejected: The
sample provides strong statistical evidence (p=?) for rejecting the null
hypothesis and accepting the alternative hypothesis that
Bubba's magic pills caused a weight loss in the subjects
who took them.
Example 2) Ho accepted: The sample does not
provide strong enough statistical evidence (p=?) for rejecting the null
hypothesis, hence, we cannot accept the alternative hypothesis that
Bubba's
magic pills caused a weight loss in the subjects who took them.

