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Step 1: State null and alternate hypotheses
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Step 2: Select a level of significance
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Step 3: Identify the test statistic (z, t, F, c2)
and draw curve with critical value
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Step 4: Formulate a decision rule
• Step 5: Take a random sample, compute the test statistic, compare it to critical value, and make decision to reject or not reject null and hypotheses
