We conduct a hypothesis test of H0: ? = 1 vs. Ha: ? ? 1 to determine whether the

Question

We conduct a hypothesis test of H0: ? = 1 vs. Ha: ? ? 1 to determine whether the true mean time taken to complete a tax return differs from 1 hour. The P-value of the test is calculated to be 0.001. What is the correct interpretation of this P-value? Question 5 options:

A) If the true mean time was 1 hour, the probability of rejecting the null hypothesis would be 0.001

B) The probability that the true mean time differs from 1 hour is 0.001.

C) Given that the sample mean time is 2 hours, the probability that the true mean time differs from 1 hour is 0.001.

D) If we took repeated samples of 100 tax returns and conducted the test in a similar manner, 0.1% of all samples would have means at least as high as 2 hours. E) If the true mean time was 1 hour, the probability of observing a sample mean at least as extreme as 2 hours would be 0.001. Save

Explanation / Answer

Correct answer: option (E)

E) If the true mean time was 1 hour, the probability of observing a sample mean at least as extreme as 2 hours would be 0.001.

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