[Objective: Understand the P-Value] a Quality Control Manager Thinks That

Multiple Choice

[Objective: Understand the p-value] A quality control manager thinks that there is a higher defective rate on the production line than the advertised value of p=0.025. She does a hypothesis test with a significance level of 0.05. Symbolically, the null and alternative hypothesis are as follows:
She calculates a p-value for the hypothesis test of defective light bulbs to be approximately 0.067. Choose the correct interpretation for the p-value.

A) The p-value tells us that if the defect rate is 0.025, then the probability that she would observe the percentage she actually observed or higher is 0.067. At a significance level of 0.05, this would not be an unusual outcome.
B) The p-value tells us that the probability of concluding that the defect rate is equal to 0.025, when in fact it is greater than 0.025, is approximately 0.067.
C) The p-value tells us that the true population rate of defective light bulbs is approximately 0.067.
D) The p-value tells us that the result is significantly higher than the advertised value using a significance level of 0.05.