When moving mysql database from one server to another or, to test that the data backup works as expected we need to import mysql dump file in the testing environment.
Create the database (test-database) in the testing environment and identify the location of the .gz or .sql file.
If the mysql dump was a .gz file, you need to gunzip to uncompress the file by typing
$ gunzip mysqldump.sql.gz
This will uncompress the .gz file and will just store mysqldump.sql in the same location.