WHAT IS

"P-VALUE"
IN HYPOTHESIS TESTING?

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 MEANING

P-value is the calculated probability

of finding the observed variation
when the null hypothesis (Ho) is
true. It can also be understood as
the computed probability of
committing a Type I error (i.e.
accepting an alternative hypothesis
when the null hypothesis is true).

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The outcome of the statistical
test (to accept null or alternative
hypothesis) is the determining
basis of the comparison of p-
value with significance level.

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 COMMON MISUNDERSTANDINGS
CONCERNING 'P' VALUES.

1. 'P' value compared with 0.05.

Often P value is compared with a value

of 0.05, a pre-defined value given for
alpha- which determines the
statistically significant value for the
given hypothesis. Always we put the
equation if P<= 0.05, then we say the
alternate hypothesis (Ha) is true, or P
> 0.05 indicates that the Null
hypothesis is true(fail to reject the null
hypothesis).

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The point is that 0.05 is not a pre-
defined value for all cases. It can
vary and depends on the
significance level you want that
study (hypothesis case) to be.
Therefore to say P > 0.05 will ensure
the null hypothesis is true is
incorrect. It should be ideally said as
P > the chosen 'alpha' value should
result in the 'null hypothesis' being
deemed true.

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2. Showing implications of the 'P'
value

It can indicate a difference (when

P is low and is < alpha), but it does
not portray the practical
implications or impact that it has.

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3. Low P-value and rejecting of Null
hypothesis.

When P-value is low and is less

than the alpha value, say P < 0.05
(assuming this alpha value), then it
means statistical evidence to
reject the null hypothesis is shown.
It, however, does not mean that this
will prove the alternate hypothesis.

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 CONCLUSION:

It is easily confusing that the p-value

states whether the null hypothesis is
right or wrong. It helps us understand
the statistical inference that we get
from a study. Also, the alpha value
and sample size must be decided
before the data collection is done.
The alpha value is to be decided on
the nature of the study, and it
depends on the consequences that
the type 1 and type 2 errors can
create.

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