What Is a Test Statistic?
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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 ...
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Test Statistic Definition
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