Question

IF nominal alpha is set to .01, which of these p values would be considered criteria for rejecting the null hypothesis?

a. .002
b. .009
c. .04
d. .042

Answer 1

The null hypothesis gets rejected for the p-value of 0.04 and 0.042.

Explanation:

We are given the level of significance of
`\alpha` = 0.01 or 1%. And also we are provided with the different p-values.

As we know that; the decision rule for rejecting the null hypothesis is given by;

• If the P-value of our test statistics is less than the level of significance, then we have sufficient evidence to reject our null hypothesis.

• If the P-value of our test statistics is more than the level of significance, then we have insufficient evidence to reject our null hypothesis.

(i) The P-value given is 0.002.

Here, the P-value is less than the level of significance as 0.002 < 0.01, then we have sufficient evidence to reject our null hypothesis. So, the null hypothesis gets rejected.

(ii) The P-value given is 0.009.

Here, the P-value is less than the level of significance as 0.009 < 0.01, then we have sufficient evidence to reject our null hypothesis. So, the null hypothesis gets rejected.

(iii) The P-value given is 0.04.

Here, the P-value is more than the level of significance as 0.04 > 0.01, then we have insufficient evidence to reject our null hypothesis. So, the null hypothesis does not get rejected.

(iv) The P-value given is 0.042.

Here, the P-value is more than the level of significance as 0.042 > 0.01, then we have insufficient evidence to reject our null hypothesis. So, the null hypothesis does not get rejected.