Hypothesis Testing

Two (2.5 really) ways to test the hypothesis: 1. With confidence intervals: is the hypothetical value inside the interval? 2. By computing a t value and comparing it to the critical t (or lookup t). 2.5 Finally, probably the best way is the compute the p value. In Excel, we can use the =TDIST(computed t, d.f., 2 tail) = 1.3%. This returns a significance level (alpha) for us. That means, with 98.7% confidence (1 - alpha) we can reject the null. The advantage is that we do not need to specify a confidence/significance, instead the significance is returned for us (i.e., the point at which we can reject the null) and we can decide whether it's enough

Category:

Education

Tags:

• Finance
• Quant
• Excel
• Statistics

[RednaxNL]

men;) you can explain things better in this 8.55 min. than MY MATHTEACHER at school tried to do in three weeks!:P

[VerticleIce]

I have a horrible professor who doesn't understand how to teach.  Your videos are so helpful. Thanks!!!!!

[ipconfigearth102]

thanks for the video.. i am bfm student.. just got interested in this now as u showed such a good video... can u explain more in detail?? or just send the link...

[TheSpikeystuff]

great video thanks

[smuggecko]

some really good stuff here

[Tribal1693]

@racastilho Penis

[racastilho]

Nice, but one thing still puzzles me. When we test the hypothesis that the mean of a population is *exactly* a given real number, shouldn't we be able to reject it always? I mean, what is the probablity of a continuous random variable to be *exaclty* any given number? Zero, is it not???

[jaredmills06]

You know it is a good tutorial when you can watch it at 1 am and still understand it. Well done, and thanks for uploading :)

[cathex]

Brilliant tutorials, clear, concise and beautifully articulated. Thank you.

[TheRulaBaby]

great vid thanx a lot, but how do u calculate the p value manually?

[TheRulaBaby]

LMAO ur examples the same one in my book same figures and everything :D

[detestableguy]

if this is aa two-tail test then don't you think df needs to be n-2?