P-Value Math Example 2

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Example 2

hard
Correct the following misconceptions about p-values: (a) 'p=0.03 means there's a 3% chance H₀ is true.' (b) 'p=0.03 means the effect is large.'

Solution

  1. 1
    (a) WRONG: p-value is NOT the probability H₀ is true. It is P(data this extremeH0 is true)P(\text{data this extreme} | H_0 \text{ is true}) — a conditional probability, not the posterior probability of H₀
  2. 2
    Correct: p=0.03 means IF H₀ were true, we'd see data this extreme only 3% of the time. H₀ might still be true (3% events happen!)
  3. 3
    (b) WRONG: small p-value indicates statistical significance, not practical significance (large effect)
  4. 4
    Correct: with large n, even tiny effects produce small p-values; always report effect size alongside p-value

Answer

(a) p-value ≠ P(H₀ is true). (b) p-value ≠ effect size. Both are common misconceptions.
These are the two most common p-value misconceptions. P-value is a conditional probability (given H₀), not a posterior probability. And statistical significance (small p) does not imply practical significance (large effect). Distinguish between 'unlikely if null' and 'important in practice.'

About P-Value

The probability of observing a test statistic at least as extreme as the one computed from the sample data, assuming the null hypothesis H0H_0 is true.

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