Assumptions: a) Simple Random Sample
b) Normal Population or Large Sample
c) σ Unknown
Step 1: Set up null and alternative hypotheses.
H0: μ =
H1: μ ≠
Step 2: Input α (level of significance of hypothesis test).
α =
(Note: α = level of significance of hypothesis test
= probability of making Type I error.)
Step 3: Calculate Test Statistic.
x̅ (sample mean) =
n (sample size) =
s = (sample standard deviation) =
Test Statistic =
x̅ - μ
/
s/√n
Step 4: Determine P-value
Using the test statistic in Step 3 as a t-score, we will find the left-tailed area and right-tailed area corresponding to this t-score.