Exercise · ZW-P-VALUE-008 · ★★☆ Intermediate
Two-sided test with \(z=1.96\). What is the approximate p-value?
Choose one option.
Show answer
- D. \(0.05\)
Exercise · ZW-P-VALUE-008 · ★★☆ Intermediate
Choose one option.
\(p=2\,[1-\Phi(1.96)]=2(0.025)=0.05\): that is why \(1.96\) is the critical value at the \(5\,\%\) level.
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.