P-Values
Example
A researcher wishes to test the claim that the average cost of tuition and fees at a four-year public college is greater than $5700. She selects a random sample of 36 four-year public colleges and finds the mean to be $5950. The population standard deviation is $659. Is there evidence to support the claim at \(\alpha=0.05\)? Use the P-value method.
State the Hypothesis
\[H_0:\mu=5700\;\;\;\;\;\;\;\;\;\; H_1:\mu>5700\;\;\text{ (Claim)}\]
Collect your data
\[n=36\]
\[\overline{x}=5950\]
\[\sigma=659\]
\[\alpha=0.05\]
Calculate the P-value (you can use the table or the Hypothesis Calculator!)
\[P=0.9885\]
Analysis
Since \(P>1-\alpha=0.95\) we reject \(H_0\) and hence we have enough evidence to support our claim.