6a.4.2 - More on the P-Value and Rejection Region Approach

Two Methods for Making a Statistical Decision Section

Of the two methods for making a statistical decision, the p-value approach is more commonly used and provided in published literature. However, understanding the rejection region approach can go a long way in one's understanding of the p-value method. In the video, we show how the two methods are related. Regardless of the method applied, the conclusions from the two approaches are exactly the same.

Comparing the Two Approaches Section

Both approaches will ensure the same conclusion and either one will work. However, using the p-value approach has the following advantages:

• Using the rejection region approach, you need to check the table or software for the critical value every time you use a different $$\alpha$$ value.
• In addition to just using it to reject or not reject $$H_0$$ by comparing p-value to $$\alpha$$ value, the p-value also gives us some idea of the strength of the evidence against $$H_0$$.