Do you REJECT Ho if it's greater than .05? or less than .05?
I thought it was rejected if it's greater than .05, b/c that means it's Not statistically significant.. but my text says Ho is RETAINED if it's <.05
I thought it was rejected if it's greater than .05, b/c that means it's Not statistically significant.. but my text says Ho is RETAINED if it's <.05
-
The null hypothesis is rejected (at the p = 0.05 level) if the computed p-value is less than 0.05. If the computed p-value is larger than 0.05, then the evidence against it is not statistically significant, so it is retained and not rejected (again at the p = 0.05 level.)
The choice of p = 0.05 as the cutoff is arbitrary. You can use any cutoff value you wish. Smaller cutoffs mean a smaller probability of making a type I error (rejecting the null hypothesis when it is true), but a larger probability of making a type II error (failing to reject the null hypothesis when it is false.) Conversely, larger cutoffs mean a larger probability of making a type I error, but a smaller probability of making a type II error.
The choice of p = 0.05 as the cutoff is arbitrary. You can use any cutoff value you wish. Smaller cutoffs mean a smaller probability of making a type I error (rejecting the null hypothesis when it is true), but a larger probability of making a type II error (failing to reject the null hypothesis when it is false.) Conversely, larger cutoffs mean a larger probability of making a type I error, but a smaller probability of making a type II error.