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P-Value

The probability that observed test results occurred by random chance, used to determine statistical significance

Testing
Also known as:Probability Value, Significance Value

P-Value is the probability of seeing your test results (or more extreme results) if there were no real difference between control and variant. A low p-value suggests the difference is real, not random chance.

What P-Value Means

P-value answers: "If there's no actual difference, how likely is this result?"

P-value = 0.05 means:

  • 5% chance this result is random
  • 95% confidence the difference is real
  • Meets standard significance threshold

P-value = 0.01 means:

  • 1% chance this result is random
  • 99% confidence the difference is real
  • Exceeds standard threshold

Interpreting P-Values

p < 0.05: Statistically significant at 95% confidence. Standard threshold for most tests.

p < 0.01: Highly significant. Strong evidence of real difference.

p > 0.05: Not statistically significant. Cannot rule out random chance.

p > 0.10: Weak evidence. Results likely inconclusive.

What P-Value Is NOT

P-value is often misunderstood:

Not the probability variant is better: P-value doesn't tell you the chance of being right. It tells you the chance of seeing this data if null hypothesis is true.

Not effect size: Low p-value doesn't mean large improvement. A tiny lift can be statistically significant with enough data.

Not certainty: p = 0.05 doesn't mean 95% certainty. It means if you ran 100 tests with no real effect, 5 would show false positives.

P-Value in Practice

Most tools display p-value or its inverse (confidence level):

  • "95% confidence" = p-value of 0.05
  • "99% confidence" = p-value of 0.01
  • "90% confidence" = p-value of 0.10

Common Mistakes

  1. P-hacking: Running tests until you get p < 0.05. This inflates false positives.

  2. Ignoring practical impact: Statistically significant doesn't mean business significant.

  3. Binary thinking: p = 0.049 vs p = 0.051 shouldn't change decisions dramatically. Consider the full picture.

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