STAT 3450 Lecture Notes - Lecture 17: Null Hypothesis, Statistical Hypothesis Testing, Test Statistic
6 Mar 2017
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The computed value is known as the p-value. It is a measure of plausibility of the null hypothesis. If the probability is low (low p-value), that implies our hypothesis is not consistent with the null (the sample mean is extreme if the null were true) If the probability is reasonable (high p-value), that implies the null hypothesis is reasonable given the data. Usually an arbitrary boundary of 0. 05 is imposed on the p-value. The boundary level of 0. 05 can be changed depending on the consequences of making a mistake. The lower the p-value, the more statistically significant" the results are. More likely that the null hypothesis can be rejected. If we want to be 95% confident, is: A hypothesis test is performed of the null hypothesis out to be 0. 02. Recall: cis give an interval of plausible values of the parameter.
