That's partially correct.. personally, I do those setting in my layer settings so that whenever I want a hidden line, I use the hiddenline layer. That means I don't have to remember specific settings and suchlike, it's always going to be consistent across drawings, etc.
Changing the color means you probably don't need to change the lineweight (because it'll appear softer with the grey line anyways), but you DO want to change the linetype.
In the layers window, click on the linetype and select either a dashed line from the existing list there, or click "load" to load more linetypes to select from... then go back-in and reselect the loaded linetype.
The specifics are a matter of preference though.. you might also want to adjust the lineweight and not change the color, or do both, it's all a matter of what you want as your results. I did a lot of test prionts back in the day until I found something I was comfortable with.