best answer > What does the critical value mean?- QuesHub.com | Better Than Quora
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  • Elon Muskk:

    As an expert in the field of statistics, I can explain the concept of a critical value in the context of hypothesis testing. Hypothesis testing is a fundamental tool in statistics that allows researchers to make inferences about a population based on a sample. It involves two competing statements about a population parameter: the null hypothesis (H0) and the alternative hypothesis (H1 or Ha). The null hypothesis is a statement of no effect or no difference, which is what researchers typically try to disprove. The alternative hypothesis, on the other hand, is what researchers might believe to be true or hope to prove. When conducting a hypothesis test, researchers set a significance level (denoted as α, alpha), which is the probability of rejecting the null hypothesis when it is actually true (Type I error). Common significance levels are 0.05, 0.01, and 0.001. A critical value is a threshold derived from the significance level. It is the point on the distribution of the test statistic that demarcates the rejection region. If the calculated test statistic falls into the rejection region, the null hypothesis is rejected in favor of the alternative hypothesis. The critical value is crucial because it helps determine the decision rule for hypothesis testing. Here are the steps typically involved in hypothesis testing: 1. **State the null and alternative hypotheses**: Clearly define what you are testing and what you expect to find. 2. Choose a significance level: Decide on the probability of making a Type I error that you are willing to accept. 3. Select the appropriate test statistic: Based on the hypotheses and the data, choose a test statistic that will be used to conduct the test. 4. Calculate the test statistic: Using the sample data, compute the value of the test statistic. 5. Determine the critical value: Using the significance level and the distribution of the test statistic, find the critical value(s) that define the rejection region. 6. Calculate the p-value: The p-value is the probability of observing a test statistic as extreme as, or more extreme than, the one calculated from the sample data, assuming the null hypothesis is true. 7. **Compare the p-value to the significance level**: If the p-value is less than or equal to the significance level, reject the null hypothesis. If it is greater, you do not reject the null hypothesis. 8. Interpret the results: Based on the comparison, draw a conclusion about the validity of the null hypothesis in the context of your study. The critical value is significant because it provides a clear, objective criterion for making a decision in the face of uncertainty. It is a quantifiable boundary that helps researchers avoid subjective judgments about whether to reject or fail to reject the null hypothesis. In summary, the critical value is a pivotal concept in hypothesis testing. It is the point at which the decision to reject or not reject the null hypothesis is made based on the calculated test statistic and the predetermined significance level. read more >>
  • Summary of answers:

    A critical value is the point (or points) on the scale of the test statistic beyond which we reject the null hypothesis, and is derived from the level of significance of the test. ... Calculate test statistics. Calculate p-value of test statistic. Compare p-value to the significance level .read more >>

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