Data Interview Qs - Auto component quality

InterviewQs

Auto component quality

Statistics T-test Interpreting P-values

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Hi, 

Let's say you're working to test product quality for an auto manufacturer, and you run a paired t-test with 700 observations covering the time to failure for a particular vehicle component.

The results of your test show that your company's mean quality exceeds your closest competitor by 5 points, with a p-value of 0.02. How would you describe this outcome to a stakeholder? What does this p-value mean exactly?



 

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