How do you conduct a hypothesis test? Step by Step
One Sample z test or One sample t test Sample Business Statistics or Psychology Statistics Questions:
In a large university of graduate students, the mean GMAT Score is 750 with a standard deviation of 20. The scores are normally distributed. One student, whose mother just happens to be on the board of directors, was admitted with a GMAT score of 510. Should the lecturer report unfairness in the admission? What is your conclusion at a significance level of .05. Is such a small standard deviation justifiable?
Step 1: State your Hypothesis
What is your Ho and H1?
Step 2: Identify the test statistics and formula
Z or T test?
Step 3: Find the critical value from the table
Step 4: Compare the test statistics and critical value
Step 5: Conclusion
Reject or do not reject Ho
Need a recap on the 5 steps to hypothesis testing? Read it here
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