A major credit card company is interested in whether there is a linear relationship between its internal rating of a customer’s credit risk and that of an independent rating agency. The company...

A major credit card company is interested in whether there is a linear relationship between its internal rating of a customer’s credit risk and that of an independent rating agency. The company collected a random sample of 200 customers and used the data to test the claim that there is a linear relationship. The following hypotheses were used to test the claim.

H0:β1=0Ha:β1≠0

The test yielded a t-value of 3.34 with a corresponding p-value of 0.001. Which of the following is the correct interpretation of the p-value?

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  If the alternative hypothesis is true, the probability of observing a test statistic at least as extreme as 3.34 is 0.001.

  
  

  
  

  If the alternative hypothesis is true, the probability of observing a test statistic at least as extreme as 3.34 is 0.001.

  
  
  
  
  A
  
  


• 
  
  
  

  
  

  If the alternative hypothesis is true, the probability of observing a test statistic of 3.34 or greater is 0.001.

  
  

  
  

  If the alternative hypothesis is true, the probability of observing a test statistic of 3.34 or greater is 0.001.

  
  
  
  
  B
  
  


• 
  
  
  

  
  

  If the null hypothesis is true, the probability of observing a test statistic of 3.34 or greater is 0.001.