Question

P-value test and Ctitical Value test are identical. P-value and Critical value are two different names for the same steps. They can be used interchangeably.

a. true
b. false

Answer 1

Option B - False

Explanation:

Critical value is a point beyond which we normally reject the null hypothesis. Whereas, P-value is defined as the probability to the right of respective statistic which could either be Z, T or chi. Now, the benefit of using p-value is that it calculates a probability estimate which we will be able to test at any level of significance by comparing the probability directly with the significance level.

For example, let's assume that the Z-value for a particular experiment is 1.67, which will be greater than the critical value at 5% which will be 1.64. Thus, if we want to check for a different significance level of 1%, we will need to calculate a new critical value.

Whereas, if we calculate the p-value for say 1.67, it will give a value of about 0.047. This p-value can be used to reject the hypothesis at 5% significance level since 0.047 < 0.05. But with a significance level of 1%, the hypothesis can be accepted since 0.047 > 0.01.

Thus, it's clear critical values are different from P-values and they can't be used interchangeably.