Hypothesis Testing in Finance
📈 Investing
intermediate

Quick Definition

Hypothesis testing is a statistical method used to make decisions about the validity of a proposed hypothesis by analyzing sample data.

Examples

  • 1Testing if a new trading strategy outperforms the market average.
  • 2Determining if a change in interest rates significantly affects bond prices.
  • 3Assessing whether demographic factors influence investment choices among different age groups.
  • 4Evaluating the impact of a new policy on stock market volatility.

Tags

statisticsdata-analysisinvestment-strategiesmarket-researchdecision-making