Quant: Hypothesis Testing Flashcards
Estimation
With reference to statistical inference the subdivision dealing with estimating a population parameter
Hypothesis
With reference to statistical inference, a statement about one or more populations
Hypothesis Testing
With reference to statistical inference, the subdivision dealing with the testing of hypotheses about one or more populations
Level of Significance
The probability of a Type 1 error in testing a hypothesis
Non-Parametric Test
A test that is not concerned with a parameter, or that makes minimal assumptions about the population from which a sample comes
One-sided hypothesis test
A test in which the null hypothesis is rejected only if the evidence indicates that the population parameter is greater than (smaller than) 0o. The alternative hypothesis also has one side
Paired Comparison Test
A statistical test for differences based on paired observations drawn from samples that are dependent on each other.
Paired Observations
Observations that are dependent on each other
Parametric Test
Any test (or procedure) concerned with parameters or whose validity depends on assumptions concerning the population generating a sample
Power of a Test
The probability of correctly rejecting the null-that is rejecting the null hypothesis when it is false.
Risk premium
An extra return expected by investors for bearing some specified risk
Robust
The quality of being relative unaffected by a violation of assumptions
Spearman rank correlation coefficient
A measure of correlation applies to ranked data
Statistically Insignificant
A result indicating that the null hypothesis can be rejected; with reference to an estimated regression coefficient frequently understood to mean a result indicating that the corresponding populating regression is different than 0
T-Test
A hypothesis test using a statistic (t-statistic) that follows a T-distribution
