Step 1: we must decide on the level of confidence and corresponding alpha. Step 2: as before, our chosen alpha will determine the z score to identify in the sampling distribution. Step 3: the formula will change somewhat from when we estimated the mean. Set pu (1-pu)= at (0. 5)(0. 5)=(0. 25) the value will maximize the standard error and ultimately give us the (cid:498)safest estimate(cid:499) Hypothesis: is a claim about the way things are in a population; we use data form a sample to evaluate that claim. There are multiple variations on this theme- we will spend the rest of the semester talking bout hypotheses. Not every one of those variations is at root the same basic idea and involves 5 steps. random samples against some value that is stated to characterize a population or populations. When we test a hypothesis, we"re testing a statistic that we obtain from one or more.