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Confidence Interval
Confidence Interval
When we conduct a hypothesis test, we're essentially assessing the likelihood of observing our
sample data (or more extreme data) if the null hypothesis were true. The p-value represents this
probability.
When the p-value is less than 0.05 (or whatever significance level we've chosen), it means that the
observed data is unlikely to have occurred under the assumption that the null hypothesis is true.
Here's the reasoning behind rejecting the null hypothesis in this case:
1. Small p-value: A p-value less than 0.05 indicates that the observed data is highly unlikely if
the null hypothesis were true. It suggests that the observed result is statistically significant.
2. Evidence against null hypothesis: Since the observed data is unlikely under the null
hypothesis, we have evidence against the null hypothesis. In other words, the data provides
support for the alternative hypothesis, which typically asserts that there is some effect or
difference present.
3. Decision rule: In hypothesis testing, we use the p-value to make a decision about whether to
reject or fail to reject the null hypothesis. A common decision rule is to reject the null
hypothesis if the p-value is less than or equal to 0.05.
4. Type I error control: By setting a significance level (e.g., 0.05), we control the probability of
making a Type I error (rejecting the null hypothesis when it's actually true). A significance
level of 0.05 means that we're willing to accept a 5% chance of making a Type I error.
In summary, when the p-value is less than 0.05, it indicates that the observed data is unlikely under
the assumption of the null hypothesis, providing evidence to reject the null hypothesis in favor of the
alternative hypothesis. The significance level helps control the risk of making incorrect decisions
based on the observed data.