CAlculate P valueSolutionIn statistics the pvalue is a funct

CAlculate P value

Solution

In statistics, the p-value is a function of the observed sample results (a statistic) that is used for testing a statistical hypothesis. Before performing the test a threshold value is chosen, called the significance level of the test, traditionally 5% or 1%  and denoted as ?. If the p-value is equal or smaller than the significance level (?), it suggests that the observed data is inconsistent with the assumption that the null hypothesis is true, and thus that hypothesis must be rejected and the alternative hypothesis is accepted as true. When the p-value is calculated correctly, such a test is guaranteed to control the Type I error rate to be no greater than ?.

The p-value is calculated as the lowest ? for which we can still reject the null hypothesis for a given set of observations. An equivalent interpretation is that p-value is the probability of obtaining the observed sample results, or a \"more extreme\" result, when assuming the null hypothesis is actually true (where \"more extreme\" is dependent on the way the hypothesis is tested). Since p-value is used in Frequentist inference (and not Bayesian inference), it does not in itself support reasoning about the probabilities of hypotheses, but only as a tool for deciding if to move from the null hypothesis to the alternative hypothesis.