Question: Comparing the relationship between the p-value and the significance level, we find that the p-value (0.00040326) is much smaller than the significance level (0.05). This
Comparing the relationship between the p-value and the significance level, we find that
the p-value (0.00040326) is much smaller than the significance level (0.05). This suggests that the
probability of observing a test statistic as extreme as -3.3642, or even more extreme, under the null
hypothesis is extremely low. Therefore, we have strong evidence to reject the null hypothesis.
Based on this conclusion, we can confidently reject the null hypothesis in favor of the
alternative hypothesis. The salesperson's claim that the average cost per square foot in the Pacific
region is less than $280, supported by the newly designed advertisement, is substantiated by the
analysis. The evidence suggests that the advertisement has resulted in a statistically significant
decrease in the average cost per square foot in the Pacific region.
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