P Value: Solving Complex Problems with Confidence

P-values can be used to test hypotheses about the performance of algorithms, the efficiency of systems, and the effectiveness of interventions. It is important to know the limitations of p-values and use them in conjunction with other tools. P-values can help practitioners improve existing optimization models, test a variety of hypotheses about processes, systems, and other phenomena of interest.

“If one wants to decide if there is a signal hidden in the noise, the p-value will drop sharply around S/N=1, and then keep decreasing exponentially. In this example p=0.05 happens just before the curve tails to zero.” by Jacopo Bertolotti on WikimediaCommons

How can p-values be used in Operations Research?

P-values are used to test hypotheses about model parameters, such as the mean or variance of a population. They are also used to compare the performance of different algorithms or heuristics and can be used in operations research to test a variety of hypotheses about processes, systems, and other phenomena of interest. In other words, p-value is the probability of getting a result at least as significant as the one you got, if there is no real difference between your groups. It is used to assess the statistical significance of a result.