Business Statistics

Chapter 10 | Statistical Inference: Hypothesis Testing for Single Populations 317

10.6.1 p-Value Approach for Hypothesis Testing

The p-value approach for hypothesis testing is used for large samples and is some times referred to as

the observed level of signicance. This approach is very advantageous especially after the introduc-

tion of many statistical software programs. The p value denes the smallest value of  for which the

null hypothesis can be rejected. The decision rule for accepting or rejecting a null hypothesis based on

the p value is as given below:

Reject the null hypothesis H

0

when the p value is < , otherwise, accept the null ...