Question

What does the p-value tell the business statistician, especially in terms of the normal curve? If the p-value is smaller than the level of significance, what does that mean in terms of the null hypothesis? Why?

Answer 1

The p value tells the strength of evidence supporting the null hypothesis. It is the probability of the test statistic assuming null hypothesis is true. In the other words, it is statistically value which provides details how much evidence is to reject the common explanation for the data set. It is the probability of obtaining extreme as one observed given that the null hypothesis is true.

If p value is smaller than the level of significance, it means that the p value is statistically significant because null hypothesis is rejected.