V. 5:2 (56-58): SIDEBAR: Statistical vs. practical significance by Technical Analysis, Inc.
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SIDEBAR: Statistical vs. practical significance by Technical Analysis, Inc.
Let's look more closely at practical significance when using chi-square methodology. First, you need to specify two different hypotheses. They are frequently called the null and alternate hypotheses. In this case, the null hypothesis would be that prices are not random, and the alternate hypothesis would be that prices are random. What level would the chi-square statistic have to reach in order for you to reject the null hypothesis and accept that prices are random?
Let's look more closely at practical significance when using chi-square methodology. First, you need to specify two different hypotheses. They are frequently called the null and alternate hypotheses. In this case, the null hypothesis would be that prices are not random, and the alternate hypothesis would be that prices are random. What level would the chi-square statistic have to reach in order for you to reject the null hypothesis and accept that prices are random?
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