Hypothesis testing infers whether sample evidence supports a hypothesis about the population. The p-value is the probability of observing the sample statistic (or more extreme) if the null hypothesis is true. Alpha (e.g., 0.05) is the maximum acceptable false-positive rate. Statistical significance indicates the result is unlikely under the null; it does not indicate magnitude or importance.
Interpret p-values and null hypothesis significance tests from published papers. Conduct NHST on a real dataset and report both p and effect size. Discuss the logic and limitations of NHST and alternatives (e.g., Bayesian inference).
You know from the central limit theorem that with a large enough sample, the sampling distribution of the mean is approximately normal regardless of the population distribution. You know from the hypothesis test framework that we set up a null hypothesis (H₀), compute a test statistic, and make a decision. Inferential statistics in psychology operationalizes that framework through the machinery of null hypothesis significance testing (NHST) — a procedure for deciding whether to reject H₀ based on sample data, with a controlled probability of being wrong.
The p-value is the single most misunderstood quantity in social science. Here is its precise definition: the probability of observing a test statistic at least as extreme as the one you got, *assuming the null hypothesis is true*. P = 0.03 means that if the null were true, you would see a result this extreme or more extreme only 3% of the time by chance. That's it. It does not tell you the probability that H₀ is true. It does not tell you the probability that your result will replicate. It does not tell you the size of the effect. It is a single conditional probability about the data given H₀, and that conditional is easy to flip incorrectly. Saying "there is a 3% chance this result is due to chance" reverses the condition; it would require Bayesian reasoning and a prior on H₀ to compute that probability.
The alpha level (α) is your pre-specified threshold for this conditional probability below which you will reject H₀. Setting α = 0.05 means you accept a 5% false-positive rate (Type I error) — you will reject H₀ 5% of the time when it is actually true, in the long run across many studies. This is not a guarantee about any single study. When you reject H₀, you have not proven that H₁ is true; you have shown that the data are unlikely if H₀ were true. Statistical significance and practical importance are entirely separate: a study with 100,000 participants can produce p < 0.0001 for a correlation of r = 0.02, which is statistically significant but explains only 0.04% of the variance. Effect size (Cohen's *d*, *r*, *η²*, etc.) is the quantity that measures practical importance — always report it alongside the *p*-value.
Power, which you studied in the prerequisite, connects back here in an important way. Statistical power is the probability of correctly rejecting H₀ when H₁ is true — the complement of the Type II error rate (β). Low-powered studies, which are endemic in psychology, have two failure modes: they often miss real effects (false negatives), and when they do find significant results, those results are systematically inflated. This second point — called the winner's curse — is counterintuitive but follows from the mathematics: in a low-powered study, the only time you cross the significance threshold is when the estimated effect is large enough by luck, which means your effect size estimate is biased upward. This is one of the structural causes of the replication crisis in psychology. The remedy is not to abandon NHST but to use it correctly: plan sample sizes for adequate power, pre-register hypotheses, report effect sizes and confidence intervals, and treat any single significant p-value as one piece of evidence rather than a definitive conclusion.