The Basic Practice of Statistics 7th Edition

Published by W. H. Freeman
ISBN 10: 146414253X
ISBN 13: 978-1-46414-253-6

Chapter 17 - Tests of Significance: The Basics - Chapter 17 Exercises - Page 412: 17.35

Answer

See below.

Work Step by Step

The $P$-value is the probability of obtaining a value that is more extreme or equal to the standardized test statistic if the null hypothesis is true. Hence $P\lt0.03$ means that $P$ is very small and close to $0$, which implies that the increase of $5\%$ is very unlikely but it also means that this increase is statistically significant.
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