This unit introduces the formal process of significance testing, the standard for evaluating statistical claims. Students will learn the State-Plan-Do-Conclude four-step framework to test claims about population means and proportions.

Key concepts include formulating the null hypothesis (H₀) and alternative hypothesis (H_a), calculating test statistics (z or t), and interpreting the p-value in the context of the study. Students will also explore the critical consequences of statistical decision-making, including Type I and Type II errors, and the relationship between the significance level (α), the probability of a Type II error (β), and the power of a test. Mastery of these tools allows students to determine if an observed result is statistically significant or simply due to chance.