Which of the following is NOT a required step for a significance test?
(a) State null and alternative hypothesis in the context of the problem.
(b) Identify the test to be used and justify the conditions for using it.
(c) State the significance level for which you will decide to reject te null hypothesis.
(d) Compute the value of the test statistic and, if needed, the P value.
(e) State a correct conclusion in the context of the problem.
These all look OK unless I'm missing something in the wording!
compute the value of the test statistics and the p value
The correct answer is (c) State the significance level for which you will decide to reject the null hypothesis.
To understand why this is the correct answer, let's first clarify what a significance test is. In statistics, a significance test is used to determine whether an observed effect is statistically significant or simply due to random chance. This involves comparing the observed data to a null hypothesis, which represents no effect or no difference.
In a significance test, the following steps are typically required:
(a) State null and alternative hypothesis in the context of the problem: This step involves clearly stating the null hypothesis, which represents no effect or no difference, and the alternative hypothesis, which represents the effect or difference that you are trying to detect.
(b) Identify the test to be used and justify the conditions for using it: Different types of significance tests may be appropriate depending on the data and research question. This step involves selecting the appropriate test and justifying why it is suitable for the given situation.
(c) State the significance level for which you will decide to reject the null hypothesis: This step involves choosing a predetermined level of significance, often denoted as alpha (α). The significance level represents the maximum probability of rejecting the null hypothesis when it is actually true. Common choices for significance levels are 0.05 (5%) or 0.01 (1%).
(d) Compute the value of the test statistic and, if needed, the P value: The test statistic is calculated based on the observed data and the chosen test. It quantifies the difference between the observed data and what would be expected under the null hypothesis. The P value is a probability associated with the test statistic. It represents the probability of obtaining a test statistic as extreme as, or more extreme than, the observed test statistic, assuming the null hypothesis is true.
(e) State a correct conclusion in the context of the problem: After obtaining the test statistic and the P value, you can make a decision about whether to reject or fail to reject the null hypothesis. This decision is based on comparing the P value to the significance level. If the P value is less than or equal to the significance level, the null hypothesis is rejected; otherwise, it is not rejected.
In summary, stating the significance level for which you will decide to reject the null hypothesis is not a required step in a significance test. The significance level is chosen before conducting the test and is used to make the decision about rejecting or failing to reject the null hypothesis based on the obtained results.