Use simulation to decide whether data are consistent with a proposed model.
Compute and frame an empirical p-value
Problem
A declared simulation tail contains \(7\) of \(1,000\) trials. Compute the empirical \(p\)-value as a decimal and percent, interpret the count, and state whether the declared count should be doubled.
Big Picture
What this problem is really about
Form the empirical p-value by dividing the count in the declared extreme tail by the total simulation count. Convert the same relative frequency consistently between decimal, percent, and a verbal repeated-simulation interpretation. Tail accounting must be fixed in advance, so a count already supplied for the declared rule should not be doubled afterward.
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