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Chapter 12: Hypothesis Tests – Large Samples

579

We used the

P-

value to measure the strength of the evidence against the null

hypothesis for that test. The smaller the

P-

value, the stronger will be the

evidence against the null hypothesis. That is, the smaller the

P-

value, the

stronger is the evidence that we should reject the null hypothesis in favor of

the alternative hypothesis.

We may further fine tune the range of the

P

-values to quantify the strength

of the evidence against the null hypothesis.

Typical, or a

Rule-of-Thumb

cutoff points, are given next.

P-

value > 0.1

little evidence against

0.05 <

P-

value

0.1

some evidence against

0.01 <

P-

value

0.05

moderate evidence against

0.001

<

P-

value

0.01

strong evidence against

P-

value

0.001

very strong evidence against

Using the above guide to make a decision, for

Examples 12.13

, we will

reject the null hypothesis since the

P-

value = 0.0097 which is smaller than

the significance level

= 5% = 0.05. Based on the Rule-of-Thumb, a

P

-value of 0.0097, would suggest that the evidence against the null

hypothesis is moderate

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