Question

Living with parents: A Pew Research analysis stated that in 2012, 36% of the nation’s young adults ages 18 to 31—the so-called Millennial generation—were living in their parents’ home. After reading the analysis, a statistics student wanted to design a study to determine if the percentage was higher for the Millennial students who attended his college. Before collecting data, he set the significance level for his test to be 0.05. For which P-value would he reject the null hypothesis? Group of answer choices a.0.07 b.0.02 c.The magnitude of a P-value has no impact on whether he rejects or fails to reject the null hypothesis.

Answer 1

Answer:

b.0.02

Step-by-step explanation:

As he defined the significance level in α=0.05, and this is a one-side test (as the claim is that the percentage is higher, not lower), any P-value below the significance level shows a significant effect and gives evidence to reject the null hypothesis.

The P-value represents the probability of having this sample statistic, given that the statement of the null hypothesis is true. Then, the lower the P-value, more evident is that the null hypothesis is not correct. This threshold value to reject (or not) the null hypothesis is the significance level.

a) As the significance level is 0.05, a P-value=0.07 would not be low enough to reject the null hypothesis.

c) The magnitude of a P-value has impact on whether he rejects or fails to reject the null hypothesis, as is the value that is compared to the significance level to reject or not the null hypothesis.