The two important parts here are the null hypothesis and the alternative hypothesis. Then the null hypothesis, in this case, is that the recovery from the NASDAQ index is zero. Hypothesis Testing refers to the statistical tool which helps in measuring the probability of the correctness of the hypothesis result which is derived after performing the hypothesis on the sample data of the population i.e., it confirms that whether primary hypothesis results derived were correct or not.įor example, if we believe that the returns from the NASDAQ stock index are not zero. What is the Hypothesis Testing in Statistics?
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