-State the null and alternative hypotheses. -Calculate the value of the test statistic. -Identify the reference distribution. -Find the P-value for the observed test statistic -Check the assumptions. -State a conclusion.
compares 1 mean ⇌ fixed number (μ1=μ0).
one mean, know σ
one mean, unknown σ
one proportion. H0: p = p0
compares mean1 ⇌ mean2 (μ1=μ2).
We are 95% confident that, the population parameter will occur within the range of values.