Hypothesis Testing

COURSE

In this course, you will learn about hypothesis testing, used for validating dataset hypotheses, along with techniques to test a hypothesis.

Study Notes for CFA Level I

Many a times, we want to test the validity of a statement. For example, is the mean return from this...

### Test Statistic A test statistic is a quantity, calculated based on a sample, whose value is the...

A decision rule is the rule based on which the null hypothesis is rejected or not rejected. We firs...

The p-value is the probability, computed using the test statistic, that measures the support (or lac...

You can identify the appropriate test statistic for your data as follows: ![](https://financetrain....

t-statistic is the computed value of the test statistic based on the Student’s t distribution. t-st...

z-statistic is the computed value of the test statistic based on the standard normal distribution. ...

Sometimes we want to test if the mean values differ between two populations. We can assume that the ...

In the above cases, we assumed that the samples are independent. However, sometimes the samples may ...

Till now the tests we saw were related to population mean. We can also conduct hypothesis tests conc...

The tests concerning the value of a population variance of a normally distributed population are cal...

The tests concerning the differences between two population variances are called F-test. We are test...

In parametric tests we make assumptions about the distribution of the population and each parametric...