Hypothesis Testing

Hypothesis Testing
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The following steps explain how to do a Hypothesis Test.

Step 1: Specify the Null Hypothesis. …
Step 2: Specify the Alternative Hypothesis. …
Step 3: Set the Significance Level LaTeX: \alphaα
Step 4: Calculate the Test Statistic and Corresponding P-Value. …
Step 5 If the P-Value < LaTeX: \alphaα
We reject the null hypothesis
Let us assume that a dealer claims the gas mileage of a specific model of a car is greater than 25 miles per gallon.

What is the null and alternative hypothesis?

If you decide your level of confidence is 0.9 and the p-value is 0.05 what is your decision?