Chapter 8, Problem 53SE

Effectiveness of Financial Incentives A psychologist is interested in testing whether offering students a financial incentive improves their video-game-playing skills. She collects data and performs a hypothesis test to test whether the probability of getting to the highest level of a video game is greater with a financial incentive than without. Her null hypothesis is that the probability of getting to this level is the same with or without a financial incentive. The alternative is that this probability is greater. She gets a p-value from her hypothesis test of $\mathrm{0.003.}$ Which of the following is the best interpretation of the p-value?

i. The p-value is the probability that financial incentives are not effective in this context.

ii. The p-value is the probability of getting exactly the result obtained, assuming that financial incentives are not effective in this context.

iii. The p-value is the probability of getting a result as extreme as or more extreme than the one obtained, assuming that financial incentives are not effective in this context.

iv. The p-value is the probability of getting exactly the result obtained, assuming that financial incentives are effective in this context.

v. The p-value is the probability of getting a result as extreme as or more extreme than the one obtained, assuming that financial incentives are effective in this context.