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State the general steps of the critical-value approach to hypothesis testing.

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The general steps of the critical-value approach to hypothesis testing is listed in the solution.

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01

Step 1. Steps of the critical-value approach to hypothesis testing 

Step 1: State the null and alternative hypotheses.

Step 2: Decide on the significance level, .

Step 3: Compute the value of the test statistic.

Step 4: Determine the critical value(s).

Step 5: If the value of the test statistic falls in the rejection region,

reject H0: otherwise do not reject H0.

Step 6: Interpret the result of the hypothesis test.

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