P-value and confidence intervals are useful tools for making business decisions. The p-value is used to establish if the test hypothesis for research is significant or not. Data used in business research may not reflect the true case of the business, thus leading to wrong decisions being made. The p-value allows researchers to know the significance of the data. I have identified two research articles that have used p-values to make decisions.
The article, Impacts of Research and Development on Firm Performance uses the p-value to arrive at a business decision. The problem statement mentioned in the article touches on the importance of research and development in competitive business environments. Businesses with good R&D frameworks and funding have a better competitive advantage. Earnings per share, R&D, return on assets, and return on equity are the main parameters of interest in the article. A total of eight pharmaceutical companies in Pakistan were included in the sample. One of the hypotheses is that there is no relationship between R&D and ROA. With a p-value 0f p<0.000 at a significance level of 0.05, it was decided that there was a significant relationship between R&D and ROA (Ghaffar & Khan, 2014) . Thus, increased spending on R&D improves performance.
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Another business research article utilizing the use of p-value to make decisions is the article on Identifying the Boundaries facing Private Firms that are in Financial distress. Management delays to make decisions affect business turnaround ability and worsen the distress. The variables of interest are the board of directors, the boundary of financial distress, and zone of insolvency. The first formulated hypothesis is: there is a positive association between the turnaround boundary value of a firm with the number of directors in the board. The study has a sample size of 127 companies (Fairhurst & Pretorius, 2019) . The p-value is p>0.05 which is not significant. Thus there is no relationship between the number of directors in the board with the value of turnaround value. The significance level is 0.05.
Reference
Ghaffar, A., & Khan, W. (2014). Impact of Research and Development on Firm Performance. International Journal Of Accounting And Financial Reporting , 4 (1), 357. doi: 10.5296/ijafr.v4i1.6087
Fairhurst, K., & Pretorius, M. (2019). Boundaries within boundaries: Identifying the boundaries facing private firms that are in financial distress. The Southern African Journal Of Entrepreneurship And Small Business Management , 11 (1). doi: 10.4102/sajesbm.v11i1.147
