Exercise · ZW-P-VALUE-008 · ★★☆ Intermediate

Two-sided test with \(z=1.96\). What is the approximate p-value?

Choose one option.

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  • D. \(0.05\)

Explanation

\(p=2\,[1-\Phi(1.96)]=2(0.025)=0.05\): that is why \(1.96\) is the critical value at the \(5\,\%\) level.

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Review the concept: p-value

The \(p\)-value is the probability \(P\), computed assuming the null hypothesis \(H_0\) is true, of obtaining a result at least as extreme as the one observed.

\[p=P\big(\text{result at least as extreme}\mid H_0\big)\]

More practice problems: p-value

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