To test the hypothesis vs
The test statistic here is
The probability which corresponds to the value 0.8790 from the normal table is the p value. ie pvalue is the area to the left side of -0.8790 in the standard normal curve+area to the right side of 0.8790 in the standard normal curve in the case of two tailed test and this area is 0.3794. In terms of probability pvalue is nothing but the probability of committing type I error. If probability of such an error exceeds 0.05 then it is concluded that null hypothesis cannot be rejected safely at 5% level of significance.
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