9.4. Chapter Exercise#
Apply the key ideas from this chapter in the connected task below. Work in your own notebook or local project. Keep your implementation, reasoning, and verification results together.
9.4.1. Make a model-based decision#
Reuse one supplied chapter case and state the null model, alternative, test statistic, and direction of extreme evidence before simulating.
Generate the null distribution with a fixed seed and calculate the p-value using the same statistic for observed and simulated data.
Check the simulation mechanism and explain the decision at a stated significance level, possible decision errors, and practical importance. State why the p-value is not the probability that the null hypothesis is true.
Return to the chapter lessons as needed: Assessing a Model with Simulation, Comparing Distributions, Hypotheses and p-Values.