Hypothesis test procedure

1. state the Ho and Ha
2. find test statistic z or t, for proportions we can use z if np > 5 and n(1-p) or nq > 5
3. find critical value for z or t using the appropriate chart
4. make the decision on the test, if using p-value, if p-value > significance level then do not reject. If p-value < significance level of the test, reject.
5. state the conclusion
Type I error is when you reject Ho when you should not reject Ho
Type II error is when you do not reject Ho when you should reject Ho
The power of the test is the probability of not committing a type two error, which is basically the probability of making the correct decision of rejecting Ho.