Quick Definition

The p-value is a statistical measure that helps determine the significance of the results obtained from a data set, indicating the probability of observing results at least as extreme as those measured when the null hypothesis is true.

Formula

Examples

• 1In stock market analysis, a p-value is used to test the effectiveness of a new trading strategy compared to the existing one.
• 2In portfolio management, p-values help determine whether the changes in portfolio returns are due to a specific investment strategy or random fluctuations.
• 3In economic forecasting, p-values are used to assess the reliability of economic indicators in predicting market trends.

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