Statistical Hypothesis Testing is the name given to a type of statistical inference that is commonly used in the frequentist school of thought.

Step 1: Derive a hypothesis that you want to test. This hypothesis is known as alternative hypothesis (or H1).

Step 2: State the null hypothesis (H0) associated with the alternative hypothesis you derived.

Step 3: Identify the relevant variables that will be used to test the hypothesis

Step 4: Choose the relevant statistical test and compute the test statistic value

Step 5: Use the test statistic value to compute the significance level of the relationship found between the relevant variables

Step 6: Use the relevant values from the statistical test to conclude whether or not there is sufficient evidence to reject the null hypothesis (and thus accept the alternative hypothesis).

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[…] to the probability that an observed difference in the sample is not due to chance. It forms part of the hypothesis testing method mentioned earlier. Normally, the statistical significance is set at 5% or 1% and is expressed as p […]