Interpreting P-value-1 - Statistics Hypotheses Testing by ClassOf1


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									              Sub: Statistics                                                              Topic: Hypotheses Testing

              Interpretation of P–value for the given context.

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              1. Explain what the P-value means in the given context.

              The federal guideline for smog is 12% pollutants per 10,000 volume of air. A metropolitan city is
              trying to bring its smog level into federal guidelines. The city comes up with a new policy where
              city employees are to use city transportation to and from work. A local environmental group
              does not think the city is doing enough and no real decrease will occur. An independent agency,
              hired by the city, runs its tests and comes up with a P-value of

              0.055. What is reasonable to conclude about the new strategy using = 0.025?

                            o There is a 5.5% chance of the new policy having no 
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