The P value and level of significance are fundamental concepts in statistical hypothesis testing.
Step 1: P Value:
- The P value is the probability that the observed results (or more extreme results) would occur if the null hypothesis were true.
- A small P value (typically less than 0.05) indicates strong evidence against the null hypothesis, suggesting that the observed effect is statistically significant.
Step 2: Level of Significance:
- The level of significance (\(\alpha\)) is the threshold below which the null hypothesis is rejected. It is often set at 0.05 or 5%.
- If the P value is less than \(\alpha\), the null hypothesis is rejected, indicating a statistically significant result.