P-Value: What It Is, How to Calculate It, and Why It Matters

##### What is p-value in simple words?

A p-value is a statistical measure that tells you how likely it is that a result occurred by chance. P-values are used to determine whether a result is statistically significant, which means that it is unlikely to have occurred by chance. The lower the p-value, the more likely it is that the result is not due to chance.

##### What is p-value in statistics with examples?

The p-value is a statistical measure that is used to assess the likelihood that a given result is due to chance. In other words, the p-value is a measure of how likely it is that a given observed result could have occurred by chance alone.

For example, suppose you flip a coin 10 times and observe that it comes up heads 8 times. The p-value in this case would be the probability of observing 8 or more heads out of 10 flips, given that the probability of a head on any given flip is 0.5. This can be calculated using a binomial distribution, and the p-value turns out to be 0.02. This means that there is only a 2% chance that you would observe 8 or more heads out of 10 flips if the coin was fair.

In general, the p-value is used as a threshold for deciding whether or not to reject the null hypothesis in a statistical test. If the p-value is less than a certain threshold (usually 0.05), then the null hypothesis is rejected and the alternative hypothesis is accepted.

There are a few things to keep in mind when interpreting p-values:

-P-values can never be used to prove that a given result is due to chance. All they can do is provide evidence against the null hypothesis.

-The p-value is only a measure of the evidence against the null hypothesis, not the evidence for the alternative hypothesis.

-The p-value is affected by the sample size. All else being equal, a larger sample size will result in a lower p-value.

-The p-value is affected by the underlying distribution. If the underlying distribution is not normal, then the p-value may not be accurate. What is p and how is it calculated? The letter "p" is used as a statistical measure in a variety of different fields, but it is most commonly associated with the field of finance. "p" is a measure of the probability that a given event will occur. In finance, "p" is used to calculate the likelihood that a stock will go up or down in price. How do you find the p-value by hand? The p-value is the probability that a given observation would have been sampled, given the null hypothesis is true. To calculate it by hand, you would need to know the distribution of the data under the null hypothesis, and then use that to calculate the probability of observing your data point.

### What does p-value of 0.

1 mean? The p-value of 0.1 means that there is a 10% chance that the results are due to chance. In other words, if the null hypothesis is true, then there is a 10% chance that the results would be as extreme as they are. This is not a very strong p-value, so it is not definitive evidence against the null hypothesis.