BIS - Principles for Sound Stress Testing Practice...The depth and duration of the financial crisis has led many banks and supervisory authorities to que...
Lessons
- What is Hypothesis Testing
- Test Statistic, Type I and type II Errors, and Significance Level
- Decision Rule in Hypothesis Testing
- p-Value in Hypothesis Testing
- Selecting the Appropriate Test Statistic
- Hypothesis Testing with t-statistic
- Hypothesis Testing with z-statistic
- Tests Concerning Differences in Means
- Paired Comparision Tests - Mean Differences When Populations are Not Independent
- Hypothesis Tests Concerning Variances
- Chi-square Test – Test for value of a single population variance
- F-test - Test for the Differences Between Two Population Variances
- Non-parametric Tests
Hypothesis Testing with t-statistic
t-statistic is the computed value of the test statistic based on the Student’s t distribution.
t-statistic with n-1 degrees of freedom is calculated as follows:
In the hypothesis test, we compare the t-statistic with the critical t-value at a given level of significance and appropriate degrees of freedom.
You may find these interesting
Introduction to Stress TestingIn the modern risk management practices, the statistical tools and models play a significant role in...
Uncertainty and the Rational Expectations Hypothes...According to the rational expectations hypothesis, traders know the probabilities of future events, ...
Fcalc – the Global Test for Regression Significanc...- A statistically significant Fcalc (i.e. one that passes the Fcritical threshold, based on your d...
ARMA Models and ARCH Testing- Autoregressive Moving Average Model (ARMA) = calculates an average value over a period of time t...
CFA Exam Tips: Suggestions for Attacking the TestBy doing several practice exams in the months leading up to the exam, candidates get a feel for how ...
Testing Internal ControlsIf the auditor assesses control risk at less than maximum, then he needs to perform tests of control...
FSA Proposed Changes to Reverse Stress TestingStress and scenario testing should be an integral part of the tools used by the firm’s
senior manag...
Valuation Lecture 6: Beta and Cost of Capital Test...This video is a part of online course on Valuation by Professor Aswath Damodaran of NYU. This lectur...
Valuation Lecture 8: Growth Tests and Estimating G...This video is a part of online course on Valuation by Professor Aswath Damodaran of NYU. This lectur...
Related Downloads
Related Quizzes
Finance Train Premium
Accelerate your finance career with cutting-edge data skills.
Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.
I WANT TO JOINJOIN 30,000 DATA PROFESSIONALS
Free Guides - Getting Started with R and Python
Enter your name and email address below and we will email you the guides for R programming and Python.
