What is the five-step process for hypothesis testing?

Hint: We need to find the five-step process for hypothesis testing. Hypothesis testing, in statistics, is used to analyze the results of an experiment. It usually evaluates the validity of the result of the survey or the experiment.

Complete step-by-step answer:
Hypothesis testing is used to determine the probability that a given hypothesis is valid. It is used to make statistical decisions using data of the experiment.
Hypothesis testing, in statistics, is used to analyze the results of an experiment. The method of analysis depends on the type of data used and the reason for the analysis.
The five steps involved in hypothesis testing are given as follows,
1. Making assumptions
Hypothesis testing requires several assumptions. The various assumptions include considering the level of the measurement of the variable, the method of sampling, sample size, and shape of the probability distribution.
2. Stating the research and null hypotheses and selecting alpha
The research hypothesis is the statement of expectation that will be tested by research. It is always expressed in terms of population parameters symbolized as ${{H}_{1}}$
The null hypothesis is a statistical analysis that contradicts the research hypothesis. It is usually denoted by ${{H}_{0}}:{{\mu }_{1}}={{\mu }_{2}}$ which shows that there is no difference between the population means.
3. Selecting the sampling distribution and specifying the test statistic
A sample distribution shows every possible value a statistic can take in every possible sample of the population.
4. Computing the test statistic
The test statistic is used to determine the difference between the means.
5. Making a decision and interpreting the results
If the value of p is greater than alpha, the result is not significant.
If the value of p is lesser than alpha, the result is significant.

Note: Hypothesis testing is used by investors to decide what to invest in and whether the investment is likely to provide a satisfactory return. Business officials take decisions using the results of a hypothesis test.