APFIVE Interpreting a Simulation-Based P-Value
Which of the following conclusions is correct based on a simulation in which only 3 out of 100 samples yielded a median absolute deviation (MAD) of $$0.06$$ or greater, while the current sample has a MAD of $$0.06$$?
| Measure | Frequency (out of 100 samples) |
|---|---|
| MAD $$\ge 0.06$$ | 3 |
| MAD $$< 0.06$$ | 97 |
A
The estimated p-value is $$0.03$$, which is less than $$0.05$$, providing sufficient evidence to recalibrate the machinery.
B
The simulation implies that although only 3% of samples have a MAD of $$0.06$$ or higher, this is too small to affect machinery calibration.
C
The low MAD value indicates that the process is stable, so the p-value is not used to determine recalibration.
D
A p-value of $$0.03$$ is too high to warrant recalibration since the typical significance level is 1%.
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