Chapter 9.3, Problem 9.50E

To determine

To explain how p-value gives more information than significance level.

Answer to Problem 9.50E

The p-value gives more information than significance level as it included the likelihood of obtaining a more extreme result.

Explanation of Solution

First need to know about the p-value and significance level:

The P-value is the probability that the sample proportion is more extreme than in the sample, when the null hypothesis is true.

The fixed significance level only determines whether the sample proportion is significant or not significant, when the null hypothesis is true.

Therefore, the p-value gives more information than significance level as it included the likelihood of obtaining a more extreme result.