Step 1: State null and alternate hypotheses

 



         Step 2: Select a level of significance

          

         Step 3: Identify the test statistic (z, t, F, c2) and draw curve with critical value



 

 

 

 

 

 



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