In Hypothesis Testing 1, you were introduced to the ideas of hypothesis testing in the context of deciding whether a coin was fair or biased in favor of heads. In this section hypothesis testing ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

If the data falls in the critical region, statisticians reject the null hypothesis in favor of the alternative. A one-tailed test in statistics is used to determine if a sample mean is significantly ...

In the Neyman-Pearson theory of hypothesis testing it is customary to calculate significance levels and power functions on the assumption that the sample size is fixed. The main purpose of this paper ...