P-Value And Statistical Significance: What It Is & Why It Matters

Saul McLeod, PhD

Editor-in-Chief for Simply Psychology

BSc (Hons) Psychology, MRes, PhD, University of Manchester

Saul McLeod, PhD., is a qualified psychology teacher with over 18 years of experience in further and higher education. He has been published in peer-reviewed journals, including the Journal of Clinical Psychology.

Learn about our Editorial Process

Olivia Guy-Evans, MSc

Associate Editor for Simply Psychology

BSc (Hons) Psychology, MSc Psychology of Education

Olivia Guy-Evans is a writer and associate editor for Simply Psychology. She has previously worked in healthcare and educational sectors.

On This Page:

The p-value in statistics quantifies the evidence against a null hypothesis. A low p-value suggests data is inconsistent with the null, potentially favoring an alternative hypothesis. Common significance thresholds are 0.05 or 0.01.

P-Value Explained in Normal Distribution

Hypothesis testing

When you perform a statistical test, a p-value helps you determine the significance of your results in relation to the null hypothesis.

The null hypothesis (H0) states no relationship exists between the two variables being studied (one variable does not affect the other). It states the results are due to chance and are not significant in supporting the idea being investigated. Thus, the null hypothesis assumes that whatever you try to prove did not happen.

The alternative hypothesis (Ha or H1) is the one you would believe if the null hypothesis is concluded to be untrue.

The alternative hypothesis states that the independent variable affected the dependent variable, and the results are significant in supporting the theory being investigated (i.e., the results are not due to random chance).

What a p-value tells you

A p-value, or probability value, is a number describing how likely it is that your data would have occurred by random chance (i.e., that the null hypothesis is true).

The level of statistical significance is often expressed as a p-value between 0 and 1.

The smaller the p -value, the less likely the results occurred by random chance, and the stronger the evidence that you should reject the null hypothesis.

Remember, a p-value doesn’t tell you if the null hypothesis is true or false. It just tells you how likely you’d see the data you observed (or more extreme data) if the null hypothesis was true. It’s a piece of evidence, not a definitive proof.

Example: Test Statistic and p-Value

Suppose you’re conducting a study to determine whether a new drug has an effect on pain relief compared to a placebo. If the new drug has no impact, your test statistic will be close to the one predicted by the null hypothesis (no difference between the drug and placebo groups), and the resulting p-value will be close to 1. It may not be precisely 1 because real-world variations may exist. Conversely, if the new drug indeed reduces pain significantly, your test statistic will diverge further from what’s expected under the null hypothesis, and the p-value will decrease. The p-value will never reach zero because there’s always a slim possibility, though highly improbable, that the observed results occurred by random chance.

P-value interpretation

The significance level (alpha) is a set probability threshold (often 0.05), while the p-value is the probability you calculate based on your study or analysis.

A p-value less than or equal to your significance level (typically ≤ 0.05) is statistically significant.

A p-value less than or equal to a predetermined significance level (often 0.05 or 0.01) indicates a statistically significant result, meaning the observed data provide strong evidence against the null hypothesis.

This suggests the effect under study likely represents a real relationship rather than just random chance.

For instance, if you set α = 0.05, you would reject the null hypothesis if your p -value ≤ 0.05. 

It indicates strong evidence against the null hypothesis, as there is less than a 5% probability the null is correct (and the results are random).

Therefore, we reject the null hypothesis and accept the alternative hypothesis.

Example: Statistical Significance

Upon analyzing the pain relief effects of the new drug compared to the placebo, the computed p-value is less than 0.01, which falls well below the predetermined alpha value of 0.05. Consequently, you conclude that there is a statistically significant difference in pain relief between the new drug and the placebo.

What does a p-value of 0.001 mean?

A p-value of 0.001 is highly statistically significant beyond the commonly used 0.05 threshold. It indicates strong evidence of a real effect or difference, rather than just random variation.

Specifically, a p-value of 0.001 means there is only a 0.1% chance of obtaining a result at least as extreme as the one observed, assuming the null hypothesis is correct.

Such a small p-value provides strong evidence against the null hypothesis, leading to rejecting the null in favor of the alternative hypothesis.

A p-value more than the significance level (typically p > 0.05) is not statistically significant and indicates strong evidence for the null hypothesis.

This means we retain the null hypothesis and reject the alternative hypothesis. You should note that you cannot accept the null hypothesis; we can only reject it or fail to reject it.

Note : when the p-value is above your threshold of significance,  it does not mean that there is a 95% probability that the alternative hypothesis is true.

One-Tailed Test

Probability and statistical significance in ab testing. Statistical significance in a b experiments

Two-Tailed Test

statistical significance two tailed

How do you calculate the p-value ?

Most statistical software packages like R, SPSS, and others automatically calculate your p-value. This is the easiest and most common way.

Online resources and tables are available to estimate the p-value based on your test statistic and degrees of freedom.

These tables help you understand how often you would expect to see your test statistic under the null hypothesis.

Understanding the Statistical Test:

Different statistical tests are designed to answer specific research questions or hypotheses. Each test has its own underlying assumptions and characteristics.

For example, you might use a t-test to compare means, a chi-squared test for categorical data, or a correlation test to measure the strength of a relationship between variables.

Be aware that the number of independent variables you include in your analysis can influence the magnitude of the test statistic needed to produce the same p-value.

This factor is particularly important to consider when comparing results across different analyses.

Example: Choosing a Statistical Test

If you’re comparing the effectiveness of just two different drugs in pain relief, a two-sample t-test is a suitable choice for comparing these two groups. However, when you’re examining the impact of three or more drugs, it’s more appropriate to employ an Analysis of Variance ( ANOVA) . Utilizing multiple pairwise comparisons in such cases can lead to artificially low p-values and an overestimation of the significance of differences between the drug groups.

How to report

A statistically significant result cannot prove that a research hypothesis is correct (which implies 100% certainty).

Instead, we may state our results “provide support for” or “give evidence for” our research hypothesis (as there is still a slight probability that the results occurred by chance and the null hypothesis was correct – e.g., less than 5%).

Example: Reporting the results

In our comparison of the pain relief effects of the new drug and the placebo, we observed that participants in the drug group experienced a significant reduction in pain ( M = 3.5; SD = 0.8) compared to those in the placebo group ( M = 5.2; SD  = 0.7), resulting in an average difference of 1.7 points on the pain scale (t(98) = -9.36; p < 0.001).

The 6th edition of the APA style manual (American Psychological Association, 2010) states the following on the topic of reporting p-values:

“When reporting p values, report exact p values (e.g., p = .031) to two or three decimal places. However, report p values less than .001 as p < .001.

The tradition of reporting p values in the form p < .10, p < .05, p < .01, and so forth, was appropriate in a time when only limited tables of critical values were available.” (p. 114)

  • Do not use 0 before the decimal point for the statistical value p as it cannot equal 1. In other words, write p = .001 instead of p = 0.001.
  • Please pay attention to issues of italics ( p is always italicized) and spacing (either side of the = sign).
  • p = .000 (as outputted by some statistical packages such as SPSS) is impossible and should be written as p < .001.
  • The opposite of significant is “nonsignificant,” not “insignificant.”

Why is the p -value not enough?

A lower p-value  is sometimes interpreted as meaning there is a stronger relationship between two variables.

However, statistical significance means that it is unlikely that the null hypothesis is true (less than 5%).

To understand the strength of the difference between the two groups (control vs. experimental) a researcher needs to calculate the effect size .

When do you reject the null hypothesis?

In statistical hypothesis testing, you reject the null hypothesis when the p-value is less than or equal to the significance level (α) you set before conducting your test. The significance level is the probability of rejecting the null hypothesis when it is true. Commonly used significance levels are 0.01, 0.05, and 0.10.

Remember, rejecting the null hypothesis doesn’t prove the alternative hypothesis; it just suggests that the alternative hypothesis may be plausible given the observed data.

The p -value is conditional upon the null hypothesis being true but is unrelated to the truth or falsity of the alternative hypothesis.

What does p-value of 0.05 mean?

If your p-value is less than or equal to 0.05 (the significance level), you would conclude that your result is statistically significant. This means the evidence is strong enough to reject the null hypothesis in favor of the alternative hypothesis.

Are all p-values below 0.05 considered statistically significant?

No, not all p-values below 0.05 are considered statistically significant. The threshold of 0.05 is commonly used, but it’s just a convention. Statistical significance depends on factors like the study design, sample size, and the magnitude of the observed effect.

A p-value below 0.05 means there is evidence against the null hypothesis, suggesting a real effect. However, it’s essential to consider the context and other factors when interpreting results.

Researchers also look at effect size and confidence intervals to determine the practical significance and reliability of findings.

How does sample size affect the interpretation of p-values?

Sample size can impact the interpretation of p-values. A larger sample size provides more reliable and precise estimates of the population, leading to narrower confidence intervals.

With a larger sample, even small differences between groups or effects can become statistically significant, yielding lower p-values. In contrast, smaller sample sizes may not have enough statistical power to detect smaller effects, resulting in higher p-values.

Therefore, a larger sample size increases the chances of finding statistically significant results when there is a genuine effect, making the findings more trustworthy and robust.

Can a non-significant p-value indicate that there is no effect or difference in the data?

No, a non-significant p-value does not necessarily indicate that there is no effect or difference in the data. It means that the observed data do not provide strong enough evidence to reject the null hypothesis.

There could still be a real effect or difference, but it might be smaller or more variable than the study was able to detect.

Other factors like sample size, study design, and measurement precision can influence the p-value. It’s important to consider the entire body of evidence and not rely solely on p-values when interpreting research findings.

Can P values be exactly zero?

While a p-value can be extremely small, it cannot technically be absolute zero. When a p-value is reported as p = 0.000, the actual p-value is too small for the software to display. This is often interpreted as strong evidence against the null hypothesis. For p values less than 0.001, report as p < .001

Further Information

  • P Value Calculator From T Score
  • P-Value Calculator For Chi-Square
  • P-values and significance tests (Kahn Academy)
  • Hypothesis testing and p-values (Kahn Academy)
  • Wasserstein, R. L., Schirm, A. L., & Lazar, N. A. (2019). Moving to a world beyond “ p “< 0.05”.
  • Criticism of using the “ p “< 0.05”.
  • Publication manual of the American Psychological Association
  • Statistics for Psychology Book Download

Bland, J. M., & Altman, D. G. (1994). One and two sided tests of significance: Authors’ reply.  BMJ: British Medical Journal ,  309 (6958), 874.

Goodman, S. N., & Royall, R. (1988). Evidence and scientific research.  American Journal of Public Health ,  78 (12), 1568-1574.

Goodman, S. (2008, July). A dirty dozen: twelve p-value misconceptions . In  Seminars in hematology  (Vol. 45, No. 3, pp. 135-140). WB Saunders.

Lang, J. M., Rothman, K. J., & Cann, C. I. (1998). That confounded P-value.  Epidemiology (Cambridge, Mass.) ,  9 (1), 7-8.

Print Friendly, PDF & Email

Icon Partners

  • Quality Improvement
  • Talk To Minitab

Understanding Hypothesis Tests: Significance Levels (Alpha) and P values in Statistics

Topics: Hypothesis Testing , Statistics

What do significance levels and P values mean in hypothesis tests? What is statistical significance anyway? In this post, I’ll continue to focus on concepts and graphs to help you gain a more intuitive understanding of how hypothesis tests work in statistics.

To bring it to life, I’ll add the significance level and P value to the graph in my previous post in order to perform a graphical version of the 1 sample t-test. It’s easier to understand when you can see what statistical significance truly means!

Here’s where we left off in my last post . We want to determine whether our sample mean (330.6) indicates that this year's average energy cost is significantly different from last year’s average energy cost of $260.

Descriptive statistics for the example

The probability distribution plot above shows the distribution of sample means we’d obtain under the assumption that the null hypothesis is true (population mean = 260) and we repeatedly drew a large number of random samples.

I left you with a question: where do we draw the line for statistical significance on the graph? Now we'll add in the significance level and the P value, which are the decision-making tools we'll need.

We'll use these tools to test the following hypotheses:

  • Null hypothesis: The population mean equals the hypothesized mean (260).
  • Alternative hypothesis: The population mean differs from the hypothesized mean (260).

What Is the Significance Level (Alpha)?

The significance level, also denoted as alpha or α, is the probability of rejecting the null hypothesis when it is true. For example, a significance level of 0.05 indicates a 5% risk of concluding that a difference exists when there is no actual difference.

These types of definitions can be hard to understand because of their technical nature. A picture makes the concepts much easier to comprehend!

The significance level determines how far out from the null hypothesis value we'll draw that line on the graph. To graph a significance level of 0.05, we need to shade the 5% of the distribution that is furthest away from the null hypothesis.

Probability plot that shows the critical regions for a significance level of 0.05

In the graph above, the two shaded areas are equidistant from the null hypothesis value and each area has a probability of 0.025, for a total of 0.05. In statistics, we call these shaded areas the critical region for a two-tailed test. If the population mean is 260, we’d expect to obtain a sample mean that falls in the critical region 5% of the time. The critical region defines how far away our sample statistic must be from the null hypothesis value before we can say it is unusual enough to reject the null hypothesis.

Our sample mean (330.6) falls within the critical region, which indicates it is statistically significant at the 0.05 level.

We can also see if it is statistically significant using the other common significance level of 0.01.

Probability plot that shows the critical regions for a significance level of 0.01

The two shaded areas each have a probability of 0.005, which adds up to a total probability of 0.01. This time our sample mean does not fall within the critical region and we fail to reject the null hypothesis. This comparison shows why you need to choose your significance level before you begin your study. It protects you from choosing a significance level because it conveniently gives you significant results!

Thanks to the graph, we were able to determine that our results are statistically significant at the 0.05 level without using a P value. However, when you use the numeric output produced by statistical software , you’ll need to compare the P value to your significance level to make this determination.

Ready for a demo of Minitab Statistical Software? Just ask! 

Talk to Minitab

What Are P values?

P-values are the probability of obtaining an effect at least as extreme as the one in your sample data, assuming the truth of the null hypothesis.

This definition of P values, while technically correct, is a bit convoluted. It’s easier to understand with a graph!

To graph the P value for our example data set, we need to determine the distance between the sample mean and the null hypothesis value (330.6 - 260 = 70.6). Next, we can graph the probability of obtaining a sample mean that is at least as extreme in both tails of the distribution (260 +/- 70.6).

Probability plot that shows the p-value for our sample mean

In the graph above, the two shaded areas each have a probability of 0.01556, for a total probability 0.03112. This probability represents the likelihood of obtaining a sample mean that is at least as extreme as our sample mean in both tails of the distribution if the population mean is 260. That’s our P value!

When a P value is less than or equal to the significance level, you reject the null hypothesis. If we take the P value for our example and compare it to the common significance levels, it matches the previous graphical results. The P value of 0.03112 is statistically significant at an alpha level of 0.05, but not at the 0.01 level.

If we stick to a significance level of 0.05, we can conclude that the average energy cost for the population is greater than 260.

A common mistake is to interpret the P-value as the probability that the null hypothesis is true. To understand why this interpretation is incorrect, please read my blog post  How to Correctly Interpret P Values .

Discussion about Statistically Significant Results

A hypothesis test evaluates two mutually exclusive statements about a population to determine which statement is best supported by the sample data. A test result is statistically significant when the sample statistic is unusual enough relative to the null hypothesis that we can reject the null hypothesis for the entire population. “Unusual enough” in a hypothesis test is defined by:

  • The assumption that the null hypothesis is true—the graphs are centered on the null hypothesis value.
  • The significance level—how far out do we draw the line for the critical region?
  • Our sample statistic—does it fall in the critical region?

Keep in mind that there is no magic significance level that distinguishes between the studies that have a true effect and those that don’t with 100% accuracy. The common alpha values of 0.05 and 0.01 are simply based on tradition. For a significance level of 0.05, expect to obtain sample means in the critical region 5% of the time when the null hypothesis is true . In these cases, you won’t know that the null hypothesis is true but you’ll reject it because the sample mean falls in the critical region. That’s why the significance level is also referred to as an error rate!

This type of error doesn’t imply that the experimenter did anything wrong or require any other unusual explanation. The graphs show that when the null hypothesis is true, it is possible to obtain these unusual sample means for no reason other than random sampling error. It’s just luck of the draw.

Significance levels and P values are important tools that help you quantify and control this type of error in a hypothesis test. Using these tools to decide when to reject the null hypothesis increases your chance of making the correct decision.

If you like this post, you might want to read the other posts in this series that use the same graphical framework:

  • Previous: Why We Need to Use Hypothesis Tests
  • Next: Confidence Intervals and Confidence Levels

If you'd like to see how I made these graphs, please read: How to Create a Graphical Version of the 1-sample t-Test .

minitab-on-linkedin

You Might Also Like

  • Trust Center

© 2023 Minitab, LLC. All Rights Reserved.

  • Terms of Use
  • Privacy Policy
  • Cookies Settings