Statistical significance (alpha level; p-value) reflects the odds that a particular finding could have occurred by chance.
If the p-value for a difference between two groups is 0.05, it would be expected to occur by chance just 5 times out of 100 (thus, it is likely to be a “real” difference). We define a p-value of less than 0.05 to indicate statistical significance.
Suppose a pizza place claims their delivery times are 30 minutes or less on average but you think it’s more than that. So you conduct a hypothesis test and randomly sample some delivery times to test the claim:
Suppose we investigate and perform the calculation and find that the mean delivery time is 40 minutes with a p-value of 0.03.
Is the result statistically significant, and what should we conclude about the null hypothesis? Why?
hypothesis:-
(claim)
p value = 0.03
decision:-
p value = 0.03 < 0.05 (alpha)
so, we reject the null hypothesis and conclude that the result is statistically significant.
conclusion:-
there is not enough evidence to support the pizza place's claim.
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