- A p-value is a statistical measure used to test hypotheses
- It shows how likely the data is to be a result of random noise assuming the null hypothesis is true
- Low p-values (< 0.05) are often treated as “significant”
- Based on the t-value of a sample:
t-value formula
\[ t = \frac{\hat{\beta} - \beta_0}{SE(\hat{\beta})} \]
- The p-value derived from this t-value by comparing it to a t-distribution table