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

# Selecting the Appropriate Test Statistic

You can identify the appropriate test statistic for your data as follows:

### You may find these interesting

Statistical Foundations: Mean and Standard Deviati...Many financial calculations and estimations require a statistical analysis of the variability of pas...

Statistical Foundations: Understanding Correlation...Whereas standard deviation shows how risky individual assets are, correlations show how asset risks ...

Statistical Foundations: Predicting VolatilityFollowing are the major steps we take to estimate volatility, using the S&P 500 Index:
- Let's lo...

Introduction to Stress TestingIn the modern risk management practices, the statistical tools and models play a significant role in...

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...

How to Select the Most Appropriate Time Series Mod...- **Simple Linear and Exponential Growth Models** – If an analyst looks at a time series plot grap...

r Programming Language for Statistical AnalysisIt is becoming important for today’s finance professionals to have the basic programming skills as m...

Impacts of LIFO and FIFO Inventory Methods on Sele...| FINANCIAL STATEMENT/RATIO | FIFO | LIFO |
| --- | --- | --- |
| Net Income and Profit Margins | Us...

#### 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.