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SouravSeptember 10, 2024

A company claims that 50 percent get a basic audit, 30 percent get an enhanced audit, and 20 percent get a complete audit. The company tests this hypothesis using a random sample and finds χ2=0.771 with a corresponding p-value of 0.68. Assuming conditions for inference were met, which of the following is the correct interpretation of the p-value? A) There is a 68 percent chance of obtaining a chi-square value of at least 0.771. B) There is a 68 percent chance that the company’s claim is correct. C) If the null hypothesis were true, there would be a 68 percent chance that the company’s claim is correct. D) If the null hypothesis were true, there would be a 68 percent chance of obtaining a chi-square value of 0.771. E) If the null hypothesis were true, there would be a 68 percent chance of obtaining a chi-square value of at least 0.771.

A company claims that 50 percent get a basic audit, 30 percent get an enhanced audit, and 20 percent get a complete audit. The company tests this hypothesis using a random sample and finds χ2=0.771 with a corresponding p-value of 0.68. Assuming conditions for inference were met, which of the following is the correct interpretation of the p-value?
A) There is a 68 percent chance of obtaining a chi-square value of at least 0.771.
B) There is a 68 percent chance that the company’s claim is correct.
C) If the null hypothesis were true, there would be a 68 percent chance that the company’s claim is correct.
D) If the null hypothesis were true, there would be a 68 percent chance of obtaining a chi-square value of 0.771.
E) If the null hypothesis were true, there would be a 68 percent chance of obtaining a chi-square value of at least 0.771.

Sourav
SouravSeptember 10, 2024

Answer

Answer: E) If the null hypothesis were true, there would be a 68 percent chance of obtaining a chi-square value of at least 0.771.
Explanation: The p-value represents the probability of observing a test statistic as extreme as or more extreme than the one observed, given that the null hypothesis is true.

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