Home
Finance Resources
Investment Planning
Banking
Finance
Stock Market
Futures & Options
Trading
Mutual Funds
Insurance
Taxation
Enquire
Home » Finance Faqs » What is a p-value?

What is a p-value?

p-value is a gauge used in statistical hypothesis testing which indicates the probability of getting resulting value atleast as extreme as a given point.

For example, consider an experiment of tossing a coin 20 times. We observe that there were 14 heads, and need to determine if the coin is biased or not.

We calculate p-value statistic of this experiment to know the answer. As we recall p-value is a measure of probbaility

To calcluate the probability of atleast 14 heads , we use cumulative distribution function of binomial distribution.

eg.,run the following command in Matlab:
pvalue=1-binomial_cdf(13,20,0.5)

(0.5 is used for equal probability of sucess/failure)

It gives a value of 0.057659. What does it mean?
It means that if a coin is unbiased there is a 5.76% chance that the no of heads will be 14 or more.

This p-value is finally used to compare with significance level α (usually 5%) for rejection of null hypotesis



More FAQs
Previous 1 2 3 4 5 6 7 8 9 10 11 Next



put comment
Domain Registration | Windows Hosting | Linux Hosting | Java Hosting | Virtual Dedicated Server | Dedicated Server | Reseller Web Hosting | Unlimited Windows reseller hosting | Unlimited Linux reseller hosting | Cheap Windows reseller hosting | Cheap Linux reseller hosting | Cheap Windows hosting | Best Windows hosting | Windows hosting Multiple Domains | Unlimited Windows hosting | Compare hosting plans | Cheap Linux hosting | Best Linux hosting | Linux hosting Multiple Domains | Unlimited Linux hosting | Cheap asp.net hosting | Best asp.net hosting | unlimited asp.net hosting | Cheap asp.net reseller hosting | Unlimited asp.net reseller hosting | Java Features | Cheap Java hosting | Best Java hosting | unlimited Java Hosting | Unlimited Linux reseller hosting | Java Hosting Multiple Domains| | Matargashti Full Song | Matargashti mp3 Download | Matargashti Video Download | Matargashti Song Tamasha | Prem Ratan Dhan Payo Songs Download | Prem Ratan Dhan Payo Songs mp3 Download | Prem Ratan Dhan Payo Songs Video Download | Pinga Song Download | Pinga Full Song mp3 Download | Pinga Song mp3 Download | Pinga Song Video Download | Latest Bollywood Updates | Bollywood Updates | Prem Ratan Dhan Paayo Songs Download|
© ProfitGuruOnline-2024. All Rights Reserved.