In order to test a hypothesis in traditional (“frequentist”) statistics, you posit an alternative called the “null hypothesis”. The null hypothesis should be chosen so as to represent the default ...

Technologies of measuring millions of quantities at once have been rapidly developed and used in biological and biomedical research and other fields in the past decade. Yet a key issue remains ...

The probability that the null hypothesis will be rejected when it is actually true is called the false positive rate and is determined by the significance level of the test (called alpha which is ...

Research and statistical analysis help us understand how the world works, how effective medications and treatments are, what influences our health, the best approach for business practices, and much ...

Hypothesis testing is a formal procedure for investigating our ideas about the world using statistics. It is most often used by researchers to test predictions, called hypotheses. The first step in ...

Central to the theme of hypothesis testing is the P-value, which is often misunderstood or misinterpreted. While it is often stated as the probability of the data having arisen by chance, the P-value ...

A history of the selection of the widely used significance level leaves much to be desired. Statisticians and non-statisticians daily select the level of statistical significance to be used for ...

Whether you rely on fundamental analysis or technical analysis to identify promising investments, it’s helpful to have a working knowledge of statistical terms. Not every investor will be competent to ...