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What is the five-step p-value approach to hypothesis testing?
Hypothesis testing is a rigorous process and comprises many steps. The classification of steps varies from statisticians to statisticians. For example, Daniell and Tetrell (1995) had classified the hypotheses testing into seven steps. However, hypotheses testing should be compact and describe all necessary information about the research theory, data collection, and the sampling method. Thus the procedure should comprise the following five steps:
i. Stating hypotheses (null and alternative hypotheses).
ii. Testing the assumptions, and identification of the appropriate test statistic and its' probability distribution.
iii. Stating the decision rule based on the level of significance and other parameters (degrees of freedom).
iv. Computation of the test statistic and the p-value.
v. Making decision based on the p-value.