What is the difference between p value and level of significance?

03 March 2019 1 4K Report

This is one of the important questions asked in almost every PhD and faculty interview. I think answer of this will help all of us.

Satrajit Mandal

"A Type 1 error is made if the null hypothesis is rejected when in fact it is true. The probability of Type 1 error is called the level of significance. Corresponding to an observed value of a test statistic, the p-value is the lowest level of significance at which the null hypothesis would have been rejected." \cite Mathematical Statistics with Applications by Ramachandran and Tsokos. So, the difference is pretty well clear from the definitions I guess.

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