General notes on hypothesis testing:

* We define the population parameter. We will use this to form our hypothesis.
* Form the null hypothesis and the alternative hypothesis.
* We use the population parameter and the descriptive statistics to calculate the test statistic
* Either calculate the critical test statistic, or the p-value from the test
* Based on the result of the above calculation, decide if the results are statistically significant or
not.
If you calculate critical test statistic:
Compare this value to the test statistic, based on the tail of the test decide if the
result is significant or not. If a right tailed test, we need the test statistic to be greater than the
critical value, If this is a left tailed test, we need the test statist to be less than or equal to the
critical value.
If you calculate the value based on the test statistic:
We need the p-value to be less than the significance level to decide that the
result is statistically significant.
* Conclude the test based on the decision.
If the results are statistically significant:
“Reject H0, there is enough evidence to support the claim that “enter claim
here”.”
If the results are not statistically significant:
“Do not reject H0, there is not enough evidence to support the claim that “enter
claim here”.”
For claims mentioned above, if the claim is “Average cost per square foot in the pacific
region is less than $280, and the test statistic t is, -1.08, and the p-value associated with this test
statistic is 0.1406:
Since the p-value is greater than the significance level, 0.05, we do not reject H0. There
is not enough evidence to support the claim that the average cost per square foot in the pacific
region is less than $280.