Describe the key question: What is the key question/claim that needs to be settled? What are the actions being considered based on the possible answers? (For example, the question for the sales manager is whether the bonus system is effective, and the actions are whether to continue the bonus system or not. HR’s question is whether there is discrimination and the action will be adjusting salaries or not.) Without hypothesis testing, how is management deciding on the answer to the question?
What is the variable? How would you set up the hypothesis test? First, pick an appropriate variable to measure the element in question (Note that this must be specific and measurable (countable)). Then, state what the null and alternative hypotheses would be and what kind of a test you would use.
Describe the data you would use: What do you need and where would it come from? Does it need to be collected or does it already exist?
How would you explain to management the significance of this test? How would you convince them that using this is necessary? What would be the drawback of not using a hypothesis test in this situation?