Question

In: Statistics and Probability

Choose either True/False on each statement. a) The larger p-value, the greater the evidence against H0.   ...

Choose either True/False on each statement.

a) The larger p-value, the greater the evidence against H0.                            [ Select ]                       ["False", "True"]      

b) Statistical significance is not the same as practical significance. False

c) If a 95% CI misses the parameter in H0, then a two-tailed test should reject H0 at α=5%α=5%.                            [ Select ]                       ["True", "False"]      

d) For a significant level α=5%α=5% and the p-value = 1.74×10−61.74×10−6. We have a very strong evidence in favor of Ha.                            [ Select ]                       ["True", "False"]      

e) The larger sample sizes make it easier to get significant result.                            [ Select ]                       ["False", "True"]      

Solutions

Expert Solution

a) We reject the null hypothesis when p-value < level of significance, and we fail to reject it when p-value > level of significance. Therefore smaller the p-value, greater the evidence to reject the null hypothesis. Larger the p-value, smaller the evdence against H0. Therefore the given statementis False here.

b) Statistical significance may not be equal to the practical significance because the practical significance depends on the specific study we do. Therefore yes statistical significance is not the same as practical significance. Therefore the given statement is True here.

c) For 95% confidence level, the level of significance is 1 - c = 1 - 0.95 = 5%. Therefore we reject the null hypothesis H0 at 5% level of significance. Therefore the given statement is True here.

d) As the p-value here is 1.74 x 10-6 therefore it is less than 0.05 which is the level of significance here. This means that the test is significance and we can reject the null hypothesis here. This gives sufficient evidence for evidence in favor of the alternative hypothesis. Therefore the given statement is True here.

e) A large sample size increases the test statistic value which decreases the p-value obtained and hence makes the testing easier to give significance result. Therefore the given statement is True here.


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