Interpreting a Simulation-Based P-Value

Question

The table below shows the results of a simulation of 100 samples designed to assess process variability. A new sample from the process has a median absolute deviation (MAD) of $$0.06$$. Based on the simulation results, which of the following is the most appropriate conclusion?

| Measure | Frequency (out of 100 samples) |
|---|---|
| MAD $$\ge 0.06$$ | 3 |
| MAD $$< 0.06$$ | 97 |

Accepted Answer

The estimated p-value is $$0.03$$, which is less than $$0.05$$, providing sufficient evidence to recalibrate the machinery.

Answer

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.

Answer

A p-value of $$0.03$$ is too high to warrant recalibration since the typical significance level is 1%.

Answer

The low MAD value indicates that the process is stable, so the p-value is not used to determine recalibration.

Interpreting a Simulation-Based P-Value

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