Hypothesis testing is essentially just an application of confidence intervals: we construct a confidence interval for a particular value, then compute a test statistic and check whether or not it lies in the confidence interval, then do something with that information. There are several steps to hypotheses testing, but in a nutshell it’s just checking […]
This article is for members only. You can become a member now by purchasing a
CFA® Level I Quantitative Methods Membership, CFA® Level I Membership
This will give you access to this and all other articles at that membership level.