Arrange the following steps in sequence for testing a statistical hypothesis

A. Test statistics

B. Framing the hypothesis

C. Collecting the sample data

D. Level of significance

E. Obtaining results and taking decisions

Choose the correct answer from the options given below 

The correct answer is B, D, C, A, E.

Key PointsThe correct steps in sequence for testing a statistical hypothesis are as follows:

• Framing the hypothesis: The first step necessitates setting a null and an alternative hypothesis to establish the grounds of the statistical test.
• Level of significance: In the next step, we decide the level of significance we're going to use. Commonly, it's 0.05 or 5%, but it can vary depending on the nature of the research. This level represents the likelihood that the difference in the sample findings occurred by chance.
• Collecting the sample data: After establishing the hypothesis and level of significance, we collect the data that we are going to test. This could involve conducting surveys, carrying out experiments, observing phenomena, etc.
• Test statistics: When we have the data on hand, we run the analysis and calculate the test statistic (such as t value, z score etc.) that will determine whether or not we reject the null hypothesis.
• Obtaining results and taking decisions: Finally, we compare our test statistic to the critical values associated with our level of significance. Depending on the outcome, we then decide whether to reject or retain the null hypothesis.