Question

4. A scientist is trying testing the efficacy of a new drug, NuDrug. He is using the following hypotheses: H0 : NuDrug is ineffective vs. Ha : NuDrug is effective.

He collects some data and obtains a P-value of 0.0026 for this test. What is the correct interpretation of the P-value?

Answer #1

The p-value approach to hypothesis testing uses the calculated probability to determine whether there is evidence to reject the null hypothesis. If p-value is greater than the significance level (alpha), then the null hypothesis is not rejected.

H0 : NuDrug is ineffective vs. Ha : NuDrug is effective.

Given p-value is 0.0026. For significance level 0.01, this p-value(0.0026) is smaller than the significance level. Hence we reject the null hypothesis i.e. we have sufficient evidence that the NuDrug is effective.

Even for significance level higher that 0.01, the result will be the same since p-value will be smaller than the significance level n each case.

Hope it helps! Request you to give a thumbs up if it does and feel free to ask any doubts in comment section.

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