What Is a Test Statistic?

The formal definition for a test statistic, provided by the CFA Institute, is "a quantity calculated based on a sample, whose value is the basis for deciding whether or not to reject the null hypothesis. From this definition we understand the following: First, the test statistic is a measure. Second, that it allows us to determine whether we will accept or reject the null hypothesis. So, quite importantly, this is a measure that has to do with hypothesis testing.
👇🏻Follow us on RUclips
✅ / @365financialanalysttu...
👇🏻Connect with us on our social media platforms:
✅Website: bit.ly/34Pp3yu
✅Facebook: / 365financialanalyst
✅Twitter: / 365finanalyst
✅LinkedIn: / 365financialanalyst
✅Instagram: / 365financialanalyst
✅Pinterest: / 365financialanalyst
👇🏻Prepare yourself for a career in finance with our comprehensive program👇🏻
bit.ly/3mO7F3o
Get in touch about the training at:
[e-mail]
Comment, like, share, and subscribe! We will be happy to hear from you and will get back to you!
#WhatIsATestStatistic #TestsStatistic #HypothesisTesting #Hypothesis #Tests