Quantitative Foundations for Finance - 2.32 - What is a P-Value? Definition and Interpretation

Quantitative Foundations for Finance
Module 2: Statistical Inference / Hypothesis Testing and P-Values
Video 32 of the course

Defines the p-value as the probability of observing a test statistic at least as extreme as the one computed, assuming the null hypothesis is true. Walks through a credit rating agency case where a z-statistic of 1.48 yields a p-value of about 0.07, and dismantles the common misinterpretation that the p-value gives the probability the null hypothesis is true.

Course dashboard: https://therationalquant.com (coming soon)

(c) Harrison Ham, Department of Finance, Clemson University

Видео Quantitative Foundations for Finance - 2.32 - What is a P-Value? Definition and Interpretation канала The Rational Quant