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Interactive·

Significance Level and p-value

Is a new design truly better, or did it only look better in this sample?

An app redesigns its checkout screen. The current version converts 8.1% of visitors, while the new version converts 9.4%.

Current conversion

8.1%

New conversion

9.4%

p-value

0.012

The observed difference is 1.3 percentage points. We need to determine whether it reflects a real improvement or ordinary sampling variation.

Key question

If there were no real difference, how unusual would a gap of 1.3 percentage points or more be?

1

Concept

What is a p-value?

A p-value measures extremeness under the null hypothesis

The p-value is the probability of obtaining a result at least as extreme as the observed one, assuming the null hypothesis is true.

p-valueInterpretation
0.37A result this large is common under H₀
0.012A result this large is relatively unusual
0.001A very unusual result under H₀
2

Why It Matters

What is the significance level?

The significance level is a decision threshold chosen in advance

The significance level α defines the rule for rejecting H₀. A common choice is 0.05, but it is a convention rather than a natural law.

ComparisonDecision
p < αReject H₀
p ≥ αDo not reject H₀

p = 0.049 and p = 0.051 represent nearly the same strength of evidence. A hard threshold should not erase that continuity.

3

How It Works

Small does not mean large

A smaller p-value does not imply a larger effect

CaseEffectSample sizep-value
10.15 pp1,000,000 per group< 0.001
24 pp25 per group0.64

The p-value depends on effect size, sample size, and variability. Report the observed difference and confidence interval as well.

4

Example

A commonly misread number

A p-value is not the probability of a hypothesis

For p = 0.02

❌ There is a 2% probability that H₀ is true.

❌ There is a 98% probability that the redesign is better.

✓ If H₀ were true, a result this extreme would occur 2% of the time.

5

Interactive

Change the sample size

Change the sample size

Two checkout screens. Move the gap and the number of visitors, and watch the p-value follow both.

8.10%old9.40%new

Gap

1.30%p

Standard error

0.516%p

p

0.0117

A gap of 1.30 percentage points across 6,000 visitors per screen gives p = 0.0117. The gap on the screen never changed — only how much data stands behind it.

Enough visitors make any gap significant. That is why the p-value is not the size of the effect.

  • What happens to p when n increases but the effect stays fixed?
  • What happens when the effect grows at the same n?
  • How different are p = 0.049 and p = 0.051 in practical terms?

Key takeaways

  • A p-value measures how unusual the data are under H₀.
  • The significance level is chosen before looking at the result.
  • A p-value is not an effect size.
  • A p-value does not give the probability that a hypothesis is true.

A p-value answers “How unusual is this result under H₀?” not “What is the probability that this claim is correct?”

Go Deeper

Type I Error, Type II Error, and Power