Seeing the relevance of statistics in everyday life is a big part of this course.  The five step process discussed in Module 9 is used for hypothesis testing, but I’m guessing you use a similar process in your everyday life to make decisions (whether you think about it like that or not).  

Consider a question you have had or have come across in your college, career, or personal life.  Describe and apply the five steps below.  Have fun with this discussion and feel free to comment on a classmate’s post. 

Note: An example is provided to help guide you.  Please do not use this example or one too similar to it. 

Five  Step Process for Hypothesis Testing:

Step 1: State the hypothesis to be tested.

Step 2: Specify the decision rule.  

Step 3: Collect data and calculate necessary statistics to test the hypothesis.

Step 4: Make a decision.

Step 5: Take action based on the decision.

• Example:

Step 1: State the hypothesis to be tested.   

Ho: I will go to class today, Ha: I will not go to class today.

• Step 2: Specify the decision rule.  
• If there is a “high” probability of rain, I will not go to class.   If P(rain) 0.70, I will go to class (Fail to Reject Ho).
• Step 3: Collect data and calculate necessary statistics to test the hypothesis.
• Watch the Weather Channel, check local news, check iphone app to collect data.

Statistics for today: 

Weather Channel: P(rain)=0.50

Local News: P(rain)=0.40

• iphone app: P(rain)=0.65

Step 4: Make a decision.

All of the statistics showed a P(rain) of 0.65 or less, so Fail to Reject Ho.  I will go to class.

Step 5: Take action based on the decision.

• I went to class and it’s a good thing I did because we had a pop quiz! (picture attached) 

https://web.microsoftstream.com/video/f25919fb-c2e…Hypothesis Testing in Excel Demo

• Here is the book link: https://bookshelf.vitalsource.com/#/

Book Name :Applied Statistics in Business and Economics By David Doane