Here are the essential concepts you must grasp in order to answer the question correctly.
P-Value
The P-value is a statistical measure that helps determine the significance of results in hypothesis testing. It represents the probability of obtaining a test statistic at least as extreme as the one observed, assuming the null hypothesis (H0) is true. A smaller P-value indicates stronger evidence against H0, leading to a potential rejection of the null hypothesis.
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Hypothesis Testing
Hypothesis testing is a statistical method used to make decisions about a population based on sample data. It involves formulating two competing hypotheses: the null hypothesis (H0), which represents no effect or no difference, and the alternative hypothesis (H1), which represents the effect or difference. The outcome of the test helps determine whether to reject H0 in favor of H1.
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Level of Significance (Alpha)
The level of significance, denoted as alpha (α), is the threshold for deciding whether to reject the null hypothesis. It represents the probability of making a Type I error, which occurs when H0 is incorrectly rejected. Common alpha levels are 0.05 and 0.01, but in this case, it is set at 0.08, meaning there is an 8% risk of rejecting H0 when it is actually true.
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Step 4: State Conclusion Example 4