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Chapter 8: Q. 16 (page 392)

Explain why theP- value of a hypothesis test is also referred to as the observed significance level.

Short Answer

Expert verified

Depending upon the P-value, we can determine whether we can reject or fail to reject our null hypothesis. This is why theP-value of a hypothesis test is also referred to as the observed significance level.

Step by step solution

01

Step 1. Given information

We need to explain why the P-value of a hypothesis test is also referred to as the observed significance level.

02

Step 2. Explanation for the answer:

  • If we rejected our null hypothesis H0,then the P-value must be lesser than or equal to the level of significance.
  • If we failed to reject our null hypothesis H0, the the P-value must be greater than the level of significance.

Therefore, the P-value of the hypothesis test is also referred to as the observed significance level.

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