Question

Which of the following statement is true regarding the P-value approach vs. the critical-value approach?

A. Both approaches should always reach the same conclusion

B. they do the same thing from different perspectives

C. you can do both using stata

D. All of the above are true

Answer 1

The p-value approach and the critical-value approach both give the same results when testing the hypothesis. However, in the p-value test, we only need to compute the p-value to do the test, whereas in the critical-value approach we compute the test statistic and find the critical value corresponding to the given confidence or significance level.

Ans. (A)