Make Decision

In hypothesis testing, understanding the relationship between the p-value and the
level of significance is crucial for making informed decisions about population
parameters based on sample data.
Introduction to
Hypothesis Testing
• Hypothesis testing is a statistical method used to

make inferences about population parameters

based on sample data.

• In hypothesis testing, we compare a sample

statistic to a hypothesized population parameter

to determine whether there is enough evidence to

support a claim.
Comparing P-Value and Level of Significance
Definition of P-Value:
The p-value is the probability of obtaining a test statistic as extreme as, or more extreme than, the

one observed in the sample, assuming that the null hypothesis is true.

Definition of Level of Significance:

The level of significance, often denoted by alpha (α), is the threshold at which we

are willing to reject the null hypothesis.

Comparison
- If the p-value is less than or equal to the level of significance, typically α = 0.05,

we reject the null hypothesis.

- If the p-value is greater than the level of significance, we fail to reject the null

hypothesis.
Conclusion
01 02

Understanding the relationship between the p- It allows us to make informed decisions about

value and the level of significance is crucial in whether to accept or reject the null hypothesis,

hypothesis testing. based on the strength of the evidence provided

by the sample data.

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