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Five Step Hypothesis

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The five-step step hypothesis test The team will use the five-step hypothesis test to support or reject the research problem. The following are five steps that will lead to accurate conclusions concerning the null hypothesis and the claim.
The five-step step hypothesis testing consists of:

1. Step one - State the null hypothesis and the alternate hypothesis
2. Step two - level of significance/ Formulate testable hypothesis
3. Step three - Calculate the test statistic
4. Step four - Set up a decision rule
5. Step five - Collect some data
The research topic: the team calculates the average cost of houses in cities with high crime rates against affluent cities with low crime rates in PGC.
Step 1: State the null hypothesis and the alternate hypothesis. Home values in PGC have decreased because of the high crime rate in the county.
H0: The average home sold is 203,069 that is, m = 203,068
Ha: The average home sold is 203,068 that is, m ≠ 203,068
Step 2: Select a level of significance (ά or alpha)
In this step, we are able to evaluate if the hypothesis is suitable, and have met the requirements for the test. To do this we must select a type one error that is frequently used at the 0.5 or 0.1 significance level. For instance, to get the Z for a 95% confidence interval, make the shaded area 0.95. The z should show .95 of the area is between -1.96 and 1.96.
Step 3: Calculate the test statistic.
This step uses a two-tailed z- test with a significance level of 0.05
This will determine whether the sample mean is close to the value.
Step 4: Making a decision.
This step requires the team to determine if the test statistics will fall below or above the significant level to either accept the null hypothesis or reject the null hypothesis. The rule for this decision is to reject H0 if the test z- score < -1.96 or > 1.96. Since 5.074 > 1.96, we reject H0.

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