Question

One of the most useful applications of business statistics involves comparing two samples to examine whether a difference between them is significant or more likely due to chance variation from one sample to the next.1. True2. False

Answer 1

Answer: True

Step-by-step explanation:

Using the p-value (probability of error) approach to hypothesis testing, business analysts are able to compare two samples to see if they are statistically significant or just different by chance.

They compare the data between the two samples and express a p-value. They also set a significance level with the logic being that if the p-value is below the significance level then the difference between the samples is significant.

For example, with a significance level of 0.05, a p-value below this would mean that the difference is significant.