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.

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