A
AcadiFi
RS
retake_szn2026-05-21
cfaLevel IQuantitative MethodsHypothesis Testing

Should the p-value approach and critical-value approach always agree?

I sometimes get confused because a test statistic seems close to the critical value but the p-value feels different. Are the two approaches supposed to give the same decision?

54 upvotes
AcadiFi TeamVerified Expert
AcadiFi Certified Professional

Yes, they should agree if you use the same alternative hypothesis, significance level, and tail direction.

For a right-tailed 5% test:

  • Critical-value approach: reject if the statistic is greater than the right-tail critical value.
  • P-value approach: reject if the right-tail p-value is less than 5%.

The approaches can seem inconsistent when the tail is mixed up. For example, using a one-tailed p-value for a two-tailed test can make the evidence look stronger than it really is.

Loading diagram...

So if your answers conflict, check the tail before checking the arithmetic.

📊

Master Level I with our CFA Course

107 lessons · 200+ hours· Expert instruction

#p-value#critical-value#rejection-decision#test-statistic