null-hypothesis

  1. Nicole Seaman

    P1.T2.20.14. Hypothesis testing

    Learning objectives: Construct an appropriate null hypothesis and alternative hypothesis and distinguish between the two. Differentiate between a one-sided and a two-sided test and identify when to use each test. Explain the difference between Type I and Type II errors and how these relate to...
    • Nicole Seaman
    • Thread
    • alternative-hypothesis confidence-interval hypothesis-testing null-hypothesis one-sided-test two-sided-test type-i-error type-ii-error
    • Replies: 5
    • Forum: FRM® Practice Questions
  2. Nicole Seaman

    YouTube T2-12 The p value is the exact significance level

    The p value is the area in the rejection region(s). In this example, we observe a sample mean of +15 bps and our null hypothesis is that the "true" population mean is zero. The corresponding p value of 2.36% is the exact (i.e., lowest) significance level at which we can reject the null. Put...
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