This lesson explains how the significance level and alternative hypothesis guide a hypothesis test, and how to interpret the p-value. These ideas help you choose the correct tail and make a reasoned decision rather than applying a rule without context.
The significance level, written α, is the probability threshold selected for a hypothesis test. It is chosen before collecting sample data. If a problem says “the level of significance is 1%,” then the preset value is α=0.01.
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What is the significance level, α?
A preset probability threshold for a hypothesis test, chosen before examining the sample results.
What does a p-value measure?
Assuming H0 is true, it is the probability of a result at least as extreme as the observed result in the direction specified by Ha.
How does the alternative hypothesis determine a test's tail?
A less-than alternative is left-tailed, a greater-than alternative is right-tailed, and a not-equal-to alternative is two-tailed.
When does the usual p-value decision rule reject H0?
When the p-value is less than or equal to the preset significance level, α.
How do the p-value and critical-value methods differ?
The p-value method compares the p-value with α; the critical-value method compares the test statistic with a cutoff.
Quiz questions
For a test with α=0.05 and a p-value of 0.03, what is the usual decision?Answer: Reject H0 because the p-value is below α.
Which formula gives the one-sample z statistic for a population mean when σ is known?Answer: z=σ/nxˉ−μ0
When using a calculator to find a hypothesis-test p-value, how should its alternative setting be chosen?Answer: Set it to match the direction specified by Ha.
For a left-tailed test, the critical value is −1.645 and the observed statistic is −2.08. What does the critical-value method conclude?Answer: Reject H0, since the statistic is below the critical value.
In a hypothesis test about one population proportion, which symbol represents the population parameter?Answer: p
Based on Introductory Statistics 2e by Barbara Illowsky, Susan Dean (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.