We now summarise below the various steps in testing of a statistical hypothesis in a systematic manner.
If |Z| < zα, that is if the calculated value of Z is less than zα we say it is not significant. By this we mean that the difference t – E(t) is just due to fluctuations of sampling and the sample data do not provide us sufficient evidence against the null hypothesis which may therefore, be accepted.
If |Z| > zα, that is if the computed value of test statistic is greater than the critical or significant value, then we say that it is significant and the null hypothesis is rejected at level of significance α that is with confidence coefficient (1- α).
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