Last answered:

13 Oct 2022

Posted on:

16 Feb 2022


Inconsistency with H0 and H1 between video and exercise questions?

In the video example when the question "Does the competitor have a higher open rate than 40%?" the H0 was OR =< 40% and H1 was OR > 40%, which makes sense. (H1 was the representation of the question)

However, in the exercise, when asked "Is the competitors open rate 40% exactly?"... why is H1 OR != 40%

For example, when all ten observations are 40%, p-score is reduced to 0.015, which means you can reject the H0 at 5%, however... you'd be rejecting that OR = 40%, even though you can be quite confident that it is 40%
It doesn't make sense to me that the closer to 40%, the more likely you are to reject that it's 40%....

1 answers ( 0 marked as helpful)
Posted on:

13 Oct 2022


From my understanding, the p-value you provide is losing significance in it not being higher than 40%. The p-value has to have multiple zeros after the decimal to stay close to zero to have a high significance level. But there is more knowledge that is needed to understand why it is this answer as I am reviewing more.

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