When should we reject the null-hypothesis?

Null-Hypothesis.

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Set the significance level, , the probability of making a Type I error to be small — 0.01, 0.05, or 0.10. Compare the P-value to. If the P-value is less than (or equal to), reject the null hypothesis in favor of the alternative hypothesis. If the P-value is greater than, do not reject the null hypothesis.

A null hypothesis is either rejected or not rejected. For this we compare the p- value and the level of significance.

  • If the p- value is less than the level of significance, we say we have significant evidence to reject the null hypothesis.
  • If p- value is greater than the level of significance, we say there is no significant evidence to reject the null hypothesis. Here we DO NOT REJECT the null hypothesis. ( This does not mean we have accepted it.)