Every conjecture about the unknown distribution of a random variable X is a statistical Hypothesis.

It
refers to the numerical values of a unknown parameter to be verified. Significance test refers to
verify a single hypothesis assuming there is no alternate hypothesis . We have non-parametric tests
also where no assumption is made about the distribution of the sample and it is completely
determined from the sample values, such as chi-square goodness of fit.

When the parametric space contains a single parameter , it is called a simple hypothesis , while
otherwise when it contains multivariate r.v it is called composite hypothesis.

The p-value is used in context of null-hypothesis testing in order to quantifying statistical significance
of evidence. They are the strength of evidence against null hypothesis. The result contrary to the
null hypothesishave to be statistically significant i.e. they are highly improbable to happen whenever
H0 is accepted. This p-value is the probability of observing a vlue of the parameter if null hypothesis
is true from the sample calculation. The smaller the p-value , the larger the statistical significance the
hypothesis is not adequately explaining observation. One should obtain the value of p’ from baseline
data of the sample and compare it with the p-value. If the probability of getting smaller value than p
is very low, one may conclude that the hypothesized value of p is not correct. In fact , in testing a
hypothesis , the value of p is affixed determined number which is being tested with the sample
values xi , computing p’ to compare with p.

Unlike this p-value , the α-value[ level of significance] is set by the investigator arbitrarily as .05,.01
etc. This confidence interval is the range of values calculated by the statistical methods that includes
the desired true value of the parameter. If 99% level of significance is selected , 99 out of
100mstudies result will be covered within this interval. If the size of the sample and dispersions are
known , confidence intervals can be calculated from p-value.

In case of chi-square distribution with (n-1)-degrees of freedom , we may obtain the confidence
interval [ 95%] as :