In order to test a hypothesis in traditional (“frequentist”) statistics, you posit an alternative called the “null hypothesis”. The null hypothesis should be chosen so as to represent the default ...

It may be common knowledge that p < .05 indicates statistical significance. Psychology students (and others) are often taught that p < .05 means the probability (p) of rejecting the null hypothesis ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Development criteria observed as time series on nominal variables pose a problem for research design. Markov chains are attractive in the first instance because they can handle such multivariate ...

The probability that the null hypothesis will be rejected when it is actually true is called the false positive rate and is determined by the significance level of the test (called alpha which is ...

A history of the selection of the widely used significance level leaves much to be desired. Statisticians and non-statisticians daily select the level of statistical significance to be used for ...

One hundred years ago, an English lady, Dr Muriel Bristol, amazed some leading statisticians by proving that she could determine by taste the order in which the constituents are poured in a cup of tea ...